On Monday, January 10th, no important economic data was released for the US market. Global investors are focusing on the US consumer inflation CPI for December and producer inflation PPI, which reflects wholesale prices, released this week, as well as interest rate hikes from the Federal Reserve's Powell re-election hearing. Financial stocks such as BlackRock, Citi, J.P. Morgan Chase, and Wells Fargo will begin the earnings season for US stocks in the fourth quarter of 2021.

The market expects the US CPI to rise further to 7.1% year-on-year in December, the highest in 40 years. Traders are betting that the probability of raising interest rates in March this year is as high as 90%. Goldman Sachs predicts that the Federal Reserve will raise interest rates by a total of 100 basis points each in March, June, September, and December. The start of the downsizing was brought forward from the fourth quarter of this year to July. J.P. Morgan CEO Dimon also said that the hawkish monetary policy is bad for risky assets.

Technology led a V-shaped reversal in US stocks at the end of the session. The NASDAQ closed higher after falling 2.8%. S&P fell five times in a row, and JD led China Securities

Following the overnight decline in European stocks, US stocks opened low on Monday, with the Dow falling 130 points and the NASDAQ falling 190 points, or more than 1%. 45 minutes after the opening of the market, the Dow fell more than 500 points, while the NASDAQ, which is the majority of technology stocks, fell more than 2% and led the decline of other stock indexes.

The Dow fell nearly 592 points or 1.6% during the session, falling below the 36,000 point mark. The S&P 500 index fell as deep as 95 points or 2%. At one point, it fell below the 4,600 mark. The deepest drop in the NASDAQ was nearly 406 points, or 2.8%, and the daily decline reached 14,500 points. Russell 2000 small-cap stocks also fell more than 2%, and the NASDAQ 100 Index fell more than 420 points or 2.7%. The declines of several major stock indexes narrowed at the end of the session, and buying prices resurfaced.

According to statistics from the financial blog Zerohedge, the NASDAQ fell more than 10% from its record high in November last year to a technical “pullback” range. At one point, it fell below the key technical level of the 200-day EMA of 14688.73 points for the first time since the outbreak of the epidemic in Europe and the US in March 2020. When the day was low, the NASDAQ fell 7% in the six trading days so far in 2022, the worst opening performance since the collapse of the Science and Technology Bank bubble in 2000.

The S&P 500 index closed down 6.74 points, or 0.14%, to 4670.29 points. Five consecutive days of decline marked the longest continuous decline cycle since September last year.Erase most of the gains since December 21 last year. The Dow closed down 162.79 points, or 0.45%, to 36068.87 points, four consecutive declines until December 23 last year.The NASDAQ closed up 6.93 points, or 0.05%, to 14942.83 points. It stopped falling four times in a row and rebounded from a low of nearly three months since mid-October last year.There has been a sharp decline of 4.5% this year. The NASDAQ 100 closed up 0.14% to 15614.43 points.

Most of the 11 S&P sectors closed down, with the industrial sector falling more than 1.1%, the raw materials sector falling 1%, the consumer goods sector falling more than 0.7%, the utilities and optional consumer sector falling at least 0.6%, the communications and information technology sector up 0.1% at most, and the healthcare sector rising more than 1%. The Nasdaq Biotech Index rose more than 1%, and the Russell 2000 small-cap stock closed down 0.4%.

According to the analysis, the inflation outlook that has not yet peaked, the expectations of European and American central banks led by the Federal Reserve to raise interest rates, the rapid spread of the COVID-19 Omicron variant, and potential economic shocks have all made the global market uneasy. Investors continue to sell high-risk, high-growth-oriented assets. Investors should be prepared for fluctuations in the first few months of this year, but a strong earnings season may support the market.

The NASDAQ, which is dominated by technology stocks, initially outperformed other stock indexes, and previously the most speculative sector was the first to be sold off. “Sister Wood” Cathie Wood's flagship ETF, ARKK, fell more than 5% today. It fell five consecutive days until August 2020, the lowest since August 2020, and fell 16% for five days. Game Station once fell nearly 15%, and AMC Cinemas, which once fell more than 7%, led “retail group stocks” to a one-year low. Blockchain stocks generally declined.

FAAMNG star tech stocks rebounded at the end of the session.Facebook's parent company Meta Platforms once fell 5% to its lowest level in a month, falling more than 1%. Amazon once fell 4% to an eight-month low since May last year. It closed down 0.7%, falling five to three months in a row. Apple once fell 2.3% to a three-week low, while Microsoft once fell 3% to its lowest level in two and a half months, and both closed higher. Netflix once fell 2.7% to its lowest level in nearly five months, and closed down 0.2%. Google's parent company Alphabet once fell 2.8% to a three-month low, closing up more than 1% and stopping four consecutive declines. If it closed down five days, it would be the longest continuous decline cycle since November 2019.

According to the analysis, the multi-day decline in large science network stocks was mainly impacted by the sharp rise in US bond yields, while the relatively expensive tech giants, semiconductor stocks, and software sectors generally fell. Amazon fell more than 14% from its peak in November last year to a technical correction. Bank of America said it was facing supply chain and labor issues, slowing e-commerce growth, and compression of valuations. At one point, ETFs in the iShares Technology and Software sector fell more than 3%, falling more than 20% from their peak in November last year, the lowest since June last year. In the end, they closed up 0.6% and closed out of a bear market.

Tesla fell 4.6% at the beginning of the session, hit a daily low of 980 US dollars, turned up and closed up more than 3% in the afternoon session. The stock price returned above 1,000 US dollars, stopped falling four times in a row, and rebounded from a low of nearly three weeks.Tesla is moving closer to software companies. Following the price increase to 10,000 US dollars in November 2020, the price of its autonomous driving system increased 20% this year, surging nearly 4 times in 7 years. Wedbush believes all of the paperwork at its Texas plant has been completed, and production of the new Model Y model is likely to begin in the next 7 to 10 days.

Chip stocks plummeted at the beginning of the session and collectively turned upward at the end of the session.The Philadelphia Semiconductor Index fell as deep as 120 points or more than 3%. Once it fell below 3,700 points, it eventually closed up 0.2% and returned above 4,800 points, rebounding from a two-month low. Nvidia, one of the best-performing stocks last year, closed up 0.6% after falling nearly 6%, and AMD closed after falling more than 5%, all rebounded from their lowest level since the beginning of November last year. TSMC's US stock, which benefited from a shortage of chips, closed up more than 1% after rising nearly 2%. Sales reached record highs for six consecutive quarters, and investment banking strength supported it even stronger this year.

In terms of key individual stocks:

The sportswear Lulu Lemon fell nearly 9% at the beginning to its lowest level in seven months, and closed down nearly 2%. Due to the impact of Omicron on year-end holiday sales and operations, the company expects revenue and earnings per share from November last year to January this year to be at the low end of the guidance range. The stock has dropped 11% this year, which is seen as the latest example where offline sales in the retail industry are generally being dragged down by the pandemic.

Video game maker Take-Two Interactive will buy its counterpart Zynga for 12.7 billion US dollars. The price of $9.86 per share is 64% higher than Zynga's closing price last Friday. Zynga rose more than 42% intraday to a four-month high, and Take-Two fell more than 13% to a 19-month low. The deal led French video game company Ubisoft to a rise of more than 4%, and the market speculates that the industry will further consolidate mergers and acquisitions.

Cannabis producer Tilray once rose more than 22%, closing more than 13%, erasing most of the decline since January 3. Revenue for the second fiscal quarter increased by about 20% year-on-year to 155 million US dollars.

Pfizer Pharmaceuticals rose nearly 1% after falling 1.8%. Its CEO said the vaccine against Omicron will be ready in March and production has already begun. Pfizer also reached an exclusive multi-target research collaboration with biomedical company Beam Therapeutics to promote novel in-body base editing programs for a series of rare genetic diseases such as liver, muscle, and central nervous system. Beam dropped as deep as 8% to its lowest level in eight months.

Other vaccine stocks generally rose.Novavax rose more than 6% and delivered the first batch of COVID-19 vaccines to Europe. Modena rose as high as 13%, recovering all of its losses since January 4. Its CEO said that the booster vaccine against Omicron will soon enter clinical trials and is expected to be collaboratively launched globally in the fall. It has also signed advance payment agreements of 18.5 billion US dollars with the United Kingdom, South Korea, and Switzerland. The clinical-stage biopharmaceutical company Molecular Partners rose as high as 47%, and Novartis stopped falling and rose to nearly 1%. The two companies said they had received positive data from the phase II study of ensovibep (MP0420), a candidate treatment for COVID-19.

JD led China Securities with a rise of nearly 2%, and worked with Pinduoduo to push the NASDAQ 100 to stop falling and rise:

JD rose three times in a row, further away from a new low of four and a half months. The media said that it opened two robot retail stores in the Netherlands to challenge Amazon in the European market. Among other e-commerce stocks, Alibaba fell more than 1%, and Pinduoduo rose nearly 2%. Among tech giants, Baidu fell 0.6% and Tencent ADR rose 1.7%, basically recovering the decline since January 3.

Station B rose more than 6.3%, Tuniu rose more than 4.7%, BeiGene and iQiyi rose more than 4%, Renren rose more than 3%, NetEase Youdao, Manbang, and Graffiti Smart rose more than 2.5%, and Xiaoying Technology, Tencent Music, and Beck rose nearly 2%.

However, Dada and NIO fell more than 1.3%, Fuxin Technology fell more than 2%, Good Future fell more than 3%, New Oriental fell nearly 5%, Xiaopeng and Ideal Auto fell more than 5.3%, Ctrip Group fell more than 7%, Fun Life fell more than 9%, Head Education fell more than 12%, and Elite Education fell more than 33%.

The European stock market and the stock indexes of major countries fell sharply, while the stock indexes of the top three economies in the Eurozone, such as Germany, France, and Italy, all fell 1%. The pan-European STOXX 600 index closed down 1.48%. The technology sector led the decline by 3.2%, and the real estate sector did not perform well. However, benefiting from higher interest rates, bank stocks rose 0.4%, and travel and leisure stocks also rose more than 1% at one point.

Following this week's inflation data, 10-year US Treasury yields rose above 1.80% to a two-year high

The 10-year US Treasury yield rose 3.9 basis points during the day to 1.808%, rising above the 1.80% mark, rising for six consecutive days and breaking the two-year high since January 2020. US stocks traded 1.78% at the end of the session, up 27 basis points from 1.51% at the end of 2021.

The yield on 30-year long-term bonds rose 3.5 basis points at one point, and the daily high rose above 2.15%, but US stocks fell and traded 2.11% at the end of the session, falling from the three-month high since October last year. The two-year yield, which is more sensitive to monetary policy, once rose to 0.91%, reaching a two-year high.

According to the analysis, the higher inflation data released this week may prompt the Federal Reserve to raise interest rates early. The US core CPI is expected to rise 5.4% year on year in December, up from 4.9% the previous month, highlighting the need for early interest rate hikes. The continued rise in US bond yields caused technology stocks to fall. The former suggests that investors expect the Federal Reserve to raise interest rates sooner.

Eurobond yields have fluctuated. The yield on 10-year German bonds rose 1 basis point at the end of the session to -0.034%. Economists still expect Germany to achieve strong economic growth this year, and base bonds are expected to get rid of negative interest rates for the first time in three years. 10-year British bonds rose more than 1 basis point, Greek benchmark treasury bond yields rose 3 basis points, but Italian base bond yields fell 2.7 basis points, and French and Spanish yields also fell. On Friday, the Eurozone inflation rate rose 5% year on year in December to the highest since 1991, making Italian base bond yields the highest in 18 months.

International oil prices first rose and then fell. Supply interruptions offset concerns about the epidemic. European and American natural gas both rose intraday

WTI's February crude oil futures closed down $0.67, or 0.85%, to $78.23 per barrel. Brent crude oil futures for March closed down $0.88, or 1.07%, to $80.87 per barrel.

US oil WTI rose 0.55 US dollars or 0.7% during the day, and the daily high rose above 79 US dollars, but at the end of the session it temporarily fell to 78 US dollars. At one point, it fell more than 1 US dollar or 1.3%, falling for 2 days in a row and basically taking back the gains since January 6. International Brent rose $0.53 or 0.6%, rose above $82 per day, then fell $1.25 or 1.5%, pushing down the $80 mark.

According to the analysis, supply disruptions in Kazakhstan and Libya offset concerns raised by the rapid rise in the number of people infected with Omicron around the world, and oil prices remained stable on Monday. However, the largest oil field in Kazakhstan is gradually resuming production, which may cause oil prices, which rose 5% last week, to fall this week.

Both European and American natural gas rose intraday, while European gas turned down at the end of the session. US gas futures rose more than 4%, and cold weather in the Midwest and East boosted demand. The TTF benchmark Dutch gas futures once rose 6% and fell more than 3% to 84.33 Euros/MWH at the end of the session. ICE UK gas futures also fell 4% at the end of the session. They all rose more than 28% last week. The key gas pipelines between Russia and Europe restricted gas delivery for three consecutive weeks.

Expectations of interest rate hikes in March heated up, the US dollar broke through 96 and a half months, and the yen rose due to risk aversion

The basket dollar index (DXY), which measures the dollar against the six major currencies, rose 0.5% intraday high, returned above the 96 mark, and rebounded to a new one-and-a-half-month low that closed last Friday.

Risk aversion pushed the dollar to a deep decline of 0.4% against the yen and fell to 115, falling back from the five-year high of 116.35 set last week. The euro once fell 0.7% against the US dollar and fell below 1.13, weakening as the ECB's position was more dovish. The Chilean peso and the Brazilian real are the worst performing Latin American currencies today, and the market is concerned that the spread of the pandemic will weaken demand for copper and iron ore.

Gold returned to 1,800 US dollars and broke out of a three-week low, Luntong fell below 9,600 US dollars, and Lunnickel was the highest in nearly two months

COMEX's February gold futures closed up nearly 0.1% to 1798.00 US dollars/ounce, breaking through the 1,800 US dollar mark during the intraday period.

Spot gold rose 0.3% during the day and also returned above 1,800 US dollars. Last Friday it fell to a three-week low since December 16. Spot silver, platinum, and palladium all rose on Monday.

Saxo Bank analyst Ole Hansen also said that despite rising US bond yields, gold remained around 1,800 US dollars. This indicates that the market is paying attention to other factors such as the inflation environment and geopolitical tension, and that the precious metals market is also supported by the weak stock market.

UBS expects palladium to return to $2,000 per ounce by the end of the year, and the outlook for platinum is also bullish. The reason is that automotive supply chain restrictions, including chip shortages, are expected to ease this year, and demand for these two precious metals will rebound.

London base metals have had mixed ups and downs. LME copper closed down 84 US dollars, falling again to the 9,600 US dollars/ton mark. Last Thursday it closed below this mark for the first time since late December last year. Nickel futures rose two days in a row to a high of nearly two months, boosted by demand from the electric vehicle battery industry. Tin futures closed above 39,900 US dollars/ton, close to the highest level set by rising above 40,000 US dollars at the end of last year. Zinc futures fell for four days in a row.

The domestic futures night market generally closed down, with thermal coal falling 3.3%, leading the decline. Among the “Three Brothers of Coal,” coke fell 1.90%, coke coal fell 1.84%, methanol fell nearly 3%, and ethylene glycol fell 2.3%, but iron ore rose more than 1%, and soda ash rose more than 2%.