The US stock market was volatile and divided, and the price of European and American government bonds rose. Netflix Inc suffered the biggest decline since 2004, with poor technology, chips and streaming media. The three major stock indexes only closed higher, with an intraday high of 400 points.
Long-end US bond yields fell deeply, short-end yields rose, 10-year real yields briefly turned positive for two consecutive days, the 5-year / 10-year curve was reversed, and the 2-year / 30-year curve flattened rapidly. The dollar stopped rising for two consecutive years but reached a new high in the past two years, the yen hit a 20-year low, and the rouble recovered from the conflict between Russia and Ukraine. Us oil fell first and then rose, cloth oil could not maintain the rising trend, traded US $107, and US natural gas lost US $7. Gold futures fell for two days to an one-week low as spot gold held steady above $1950 on fears that demand would drive down base metals in London.
The US housing market continues to cool. Sales of existing homes fell 2.7% in March from the previous month to 5.77 million units, the lowest since June 2020, down 4.5% from a year earlier, and the February figure was also revised down. The median price of $375200 hit an all-time high, up 15 per cent from a year earlier. The average interest rate on mortgages in the United States rose to 5.2% in the last week, a 12-year high.
According to the Fed's beige book, which reflects the state of the regional economy, the economy has expanded moderately since mid-February, geopolitics and inflation have affected the outlook, employment has increased slightly but it is difficult for most companies to recruit, average wage increases have been modest but some companies have raised wages sharply, and companies have the ability to pass on costs to consumers by raising the price of their products.
Fed officials continue to release eagles. Daley, chairman of the San Francisco Fed, said inflation in the United States was too high and that raising interest rates "purposefully" to neutral rates was a top priority. Chicago Federal Reserve Chairman Evans, who serves as the voting committee for next year, is also worried that inflation is too high and supports two big interest rate increases of 50 basis points this year.
Federal Reserve Chairman Powell and ECB President Christine Lagarde will speak on the global economy on Thursday. Traders expect the Fed to raise interest rates by 50 basis points in each of its next two meetings, with the ECB's governing board giving a clear time point for the first time, saying it could do so as soon as July.
Netflix Inc plunged 35%, causing the Nasdaq to fall more than 1%, while the Dow rose as high as 400 points. S & P turned down in late trading, and technology, chips and streaming media were poor.
On Wednesday, April 20, the three major indexes of U. S. stocks opened higher and then diverged rapidly. Investors evaluate the first-quarter results of listed companies in Europe and the United States and remain concerned about the drag on the economy caused by the conflict between Russia and Ukraine. Both the World Bank and the IMF this week downgraded their global economic growth forecasts for the next two years.
The Dow kept rising throughout the day, rising as much as 404 points, or 1.2%, back above 35000, boosted by positive results from constituent stocks IBM and Procter & Gamble Co. S & P rose 0.6% and then turned lower in late trading, with health care and financial sectors doing better. The Nasdaq, which is dominated by technology stocks, was dragged down by Netflix Inc, down 193 points or 1.4%. As a constituent stock, Netflix Inc's Nasdaq fell 247 points or 1.7%, losing 14000 points.
As of the close, the Dow rose for two consecutive days to the highest in the month, closing up nearly 250 points, or 0.71%, at 35160.79. The s & p 500 closed down 2.76 points, or 0.06%, at 4459.45, hovering around its highest level since April 8th. Both the NASDAQ and the NASDAQ fell from their one-week highs set yesterday, falling nearly 167points, or 1.22 per cent, to 13453.07, but were still tired during the week, with the NASDAQ falling 1.5 per cent.
Due to poor quarterly results and poor guidance for the next quarter and the loss of paying subscribers for the first time in 11 years, streaming giant Netflix Inc fell 39%, the biggest intraday decline since 2004, closing down 35% to a more than four-year low since January 19, 2018, wiping out $56 billion from market capitalization. Prices are down 63% this year, making them the worst performers in the s & p 500 and Nasdaq 100, with 10 wall street analysts downgrading.
Streaming media companies fell, with Walt Disney Company down 5.6%, the lowest since the end of October 2020. Roku fell as much as 8.9%, falling from a two-week high. Warner Bros. Discovery once fell more than 7% to a new low, and both shares closed down more than 6%. Paramount, a newcomer to streaming, fell more than 12% to close at an one-month low.
Large technology stocks that have not yet reported results have generally fallen. Meta Universe Meta fell 7.8 per cent to its lowest level since March 15, pushing $200 and the biggest drop in 11 weeks. Amazon.Com Inc fell 2.6 per cent from a two-week high. Alphabet, Alphabet Inc-CL C's parent company, fell as much as 2%, while Tesla, Inc., who reported after-hours results, fell 5%, stopping two consecutive gains and falling from a week-and-a-half high. Apple Inc fell 0.1%. Among the star technology stocks, only Microsoft Corp rose.
According to financial blog Zerohedge, FANG+ 's large technology stocks experienced their biggest one-day decline since the outbreak in Europe and the United States in March 2020. Some analysts said that Netflix Inc's experience made investors worry about buying technology stocks before the release of the results.
Meanwhile, IBM and consumer goods giant Procter & Gamble Co both reported positive results, with shares jumping more than 7 per cent and 2.6 per cent respectively to nearly one-month highs since July last year, while Procter & Gamble Co hit a two-and-a-half-month high.
Chip stocks opened high and then fell, and the Philadelphia semiconductor index rose more than 2% before closing down 0.4%, ending two days higher. NVIDIA Corp fell by more than 3%, but Micron Technology Inc maintained a rise of 0.7%, and ASML, which reported good results, rose nearly 3%.
Berkshire class A shares fell slightly after rising 0.7 per cent, falling from an one-week high as the largest US pension fund supported the removal of Mr Buffett as chairman. The flagship ETF ARKK of "bull queen" wooden sister fell another 6 per cent, down 40 per cent this year and 60 per cent from last year's high.
People familiar with the matter said Tesla, Inc. CEO Musk was reaching out to potential Wall Street partners to seek debt financing rather than equity financing for the $43 billion takeover of Twitter. Social media giant Twitter fluctuated and ended up up more than 1%.
Novawax said that early data showed that its COVID-19 vaccine achieved good results in COVID-19 virus and flu virus experiments. At one point, the share price rose more than $2, and the overall intraday rise of nearly 2.6%, but closed down more than 1.6%, the lowest since June 2020.
Hot Chinese stocks followed the market down, with ETF KWEB closing down 4.8% and CQQ down 3.2%. The Nasdaq Golden Dragon China Index (HXC) fell 4.8 per cent. Of the four constituent stocks on the Nasdaq, JD.com fell more than 5%, Pinduoduo fell more than 6%, Baidu, Inc. fell more than 3%, and NetEase, Inc fell 5%. Among the other stocks, BABA and Tencent's ADR fell by about 4%. The B station fell nearly 8%, iQIYI, Inc. fell 6.7%, and the "car making three fools" both fell by more than 7%.
The analysis points out that Wall Street pays more attention to the pricing power of companies in the period of high inflation and the guidance of financial results for future quarters. Some people are beginning to feel that the market's bet on the Fed's rate hike is excessive and that inflation may be about to peak. Bank of America Corporation has turned to long 10-year Treasuries. It has also been suggested that as the economy reopens in the post-epidemic era, portfolios should be shifted away from home economy beneficiary stocks.
European stocks collectively closed higher, with technology stocks pushing the pan-European Stoxx 600 index up 0.86 per cent, while German, French and Italian stock indexes all rose more than 1 per cent. Danone, a French food company, rose more than 5 per cent and reiterated its full-year guidance under inflationary pressure, while brewer Heineken also rose more than 5 per cent after positive results. But Credit Suisse, which warned of a loss in the first quarter, fell nearly 2 per cent, while Rio Tinto PLC's UK shares, which reported lower-than-expected iron ore shipments in the first quarter, fell about 5 per cent.
Long-end US bond yields fell deeply, short-end yields rose, 10-year real yields briefly became positive for two consecutive days, and European bonds rose generally.
The yield on 10-year US bonds fell from yesterday's high of more than three years since the end of 2018, and fell nearly 10 basis points to a daily low of 2.82 per cent on Wednesday. Us stocks fell 7 basis points in after-hours trading, stopping three straight gains and trading at 2.84 per cent, having previously exceeded 2.98 per cent.
Yields on two-year Treasuries, which are more sensitive to monetary policy, fell 3 basis points at one point, but US stocks rose above 2.58 per cent in midday trading, still near their highest level since early 2019. The yield on 30-year bonds fell 12.5 basis points at one point, falling from a three-year high.
The 5-year / 10-year Treasury yield curve is back upside down, superimposed by a decline in long-term bond yields, which may indicate a lack of market confidence in the long-term economy.The two-year / 30-year yield curve quickly flattened again, narrowing spreads by 30 basis points in two days.
The real yield linked to inflation, the yield on US 10-year inflation protected Treasuries (TIPS), fell back into negative range after rising to 0.035 per cent, but briefly turned positive for two consecutive days for the first time since 2020. This may put pressure on the stock market.
Bond yields in major European countries also fell. In late trading, yields on 10-year German and UK bonds both fell more than 5 basis points, the biggest drop in more than two weeks since April 4. Benchmark French bond yields also fell nearly 5 basis points, Italian and Spanish bond yields fell by about 4 basis points, and Greek base bond yields fell by nearly 8 basis points. Experts also warned that Russia could default on its debt.
The dollar has stopped rising for two consecutive years but is close to a two-year high, the yen has hit a 20-year low, and the rouble has recovered from the conflict between Russia and Ukraine.
The DXY, a basket of dollar indexes that measure the dollar against six major currencies, fell as much as 0.7 per cent, stopping two days of gains, but held steady above the 100th mark, rising above 101to a two-year high since March 2020 yesterday.
The euro rose 0.6 per cent against the dollar, back above 1.08, hitting a two-year low of 1.0758 last week. Today's rally is related to the Bundesbank president's support for the ECB to raise interest rates at the beginning of the third quarter. The Russian rouble has also recovered all the decline since the outbreak of the conflict between Russia and Ukraine.
The USDJPY hit a 20-year high again, reaching 129.43 for the first time since April 2002. This is because the monetary policy of the Central Bank of the United States and Japan is divided, and the Bank of Japan on Wednesday announced unlimited purchases of government bonds at fixed interest rates, once again defending the easing of ultra-low interest rates. But Japan's finance minister warned yesterday that devaluation would do more harm than good for the economy, with the yen performing worst among the G10 currencies this year.
Us oil lost 100 US dollars and then rebounded, cloth oil could not maintain the rising trend and traded at 107 US dollars, while US natural gas lost 7 US dollars.
Us oil fell first and then rose, while cloth oil could not maintain its rising trend. WTI May crude oil futures closed up 19 cents, or 0.18 percent, at $102.75 a barrel. Brent June crude oil futures closed down 45 cents, or 0.42 percent, at $106.80 a barrel.
Us Oil WTI May futures, which expire today, fell $1.86 or 1.8% at one point, rose before the close and rose as high as $1.60 or 1.6%, returning above $103. June futures rose within days after losing the $100 mark, returning above $102.
International Brent June futures fell $2.58 or 2.4% at one point, lost $105 at a daily low, returned above $107 before the close, down nearly $7 from a high of $114 in the overnight Asian market, and fell for two days in a row.
Analysts pointed out that oil prices are still fluctuating between concerns about supply shortages from Russia and Libya, as well as a "tug-of-war" between a slowdown in global economic growth and weak demand. Us Oil stopped falling and turned higher because US EIA commercial crude oil stocks plunged more than 8 million barrels last week.
The source also said that the European Union may follow the Anglo-American sanctions on Russian oil next week in an effort to speed up the search for alternative sources. That pushed US oil exports to an all-time high last week, outpacing imports for the first time and the biggest drop in EIA crude stocks in 15 months.
NYMEX US natural gas futures for May closed down 3.33 per cent at $6.9370 per million British thermal units, losing $7 integer, rising more than 10 per cent to a 13-year high on Monday and breaking through $8 for the first time since 2008 and falling more than 8 per cent yesterday as investors took profits.
Natural gas in Europe continues to fluctuate. ICE UK natural gas futures closed 2.62 per cent higher at 177.88 pence per kcal on Wednesday, after closing down yesterday at a daily high of 195.810 pence before departing from US stocks. Dutch natural gas futures, the European benchmark TTF, fell 1.65 per cent to 92.2 per cent per megawatt in late trading, after rising nearly 8 per cent yesterday from a daily high of 99 euros before leaving the US market.
Gold futures fell for two days in a row to an one-week low, and spot gold held steady above $1950, worried that demand would lead to a fall in basic metals in London.
COMEX June gold futures closed down 0.2% at $1955.40 an ounce, falling for two days to an one-week low. Gold prices fell 1.8% on Tuesday due to hawkish comments from fed officials, as higher u.s. bond yields raised the opportunity cost of holding gold.
At one point on Wednesday, spot gold fell more than $10, or 0.6%, to a session low below $1940, and u.s. stocks rose after midday and returned to above $1950. Analysts said that $2000 is a key resistance level for gold, and today's rise in gold prices still has something to do with hedging the rising conflict between Russia and Ukraine and high inflation. Supply concerns sent palladium, the precious metal, up more than 4 per cent.
Most base metals in London closed lower, reversing yesterday's rally. Copper for LME delivery closed down $82 at $10223 a tonne for two days on concerns about weak demand and copper inventories rising to their highest level since October. Lunni and lead rose for four days in a row and fell back from their highs during the month. However, speculators increased their net long position in LME Copper to an 11-month high.
Most of the inner market futures night markets closed higher, with styrene up more than 3 per cent, coking coal up 1.8 per cent, iron ore, pulp, asphalt, LPG and fuel all up more than 1 per cent, but pure alkali fell nearly 2 per cent.
Edit / somer