Source: Wall Street News
The S&P index fell several times in the intraday session, and the NASDAQ only turned up at the end of the session. The chip stock index fell more than 1% and outperformed the market. Nvidia hit a record high in the market and fell 1.6%, and AMD once fell 5%; Tesla rebounded, closing up more than 2%, and Apple rose for two consecutive days after launching Vision Pro; AI concept stock Palantir closed up more than 30% after the earnings report; Eli Lilly's earnings rose more than 5% at the beginning of the session; and regional bank NYCB fell 22%. China's stock index closed up 6%, and new car builders surged. Xiaopeng, Ideal, and NIO Auto rose more than 10%, Station B rose more than 10%, Jingdong rose more than 7%, and Ali rose nearly 5%.
Chip stocks, the main driving force behind the sharp rise in US stocks in the previous few weeks, temporarily stopped, dragging down the two major US stock indexes and almost failed to successfully rebound on Tuesday. Nvidia, which hit a record high over the past few days, fell to a record high. A recent report by Citigroup strategists warns that technology stocks face the risk of a major sell-off. They believe that in terms of positions, investors are so optimistic about technology stocks that any sell-off could trigger a wider collapse.
Meanwhile, China Securities overtook the lead and went up strongly on Tuesday. Popular Chinese securities listed in the US followed the violent rebound of A-shares on Tuesday following the violent rebound of A-shares on Tuesday after the China Securities Regulatory Commission proposed measures to strengthen supervision such as suspending the addition of new securities, and the performance far outperformed the general market. The three NEV companies showed outstanding performance, all rising by more than 10%. Ideal Auto was upgraded by Deutsche Bank from holding to buying, and the target price was set at $41, meaning that the stock price is expected to soar 46% from Monday's close.
Federal Reserve officials who spoke on Tuesday echoed the signal sent by the Federal Reserve's Josh Powell over the weekend that they are not in a hurry to cut interest rates. Cleveland Federal Reserve Chairman Mester said that if economic development meets expectations, they may be confident of cutting interest rates “later this year.” Minneapolis Federal Reserve Chairman Kashkari believes that the inflation situation has improved markedly, but more progress is needed.
US stocks generally fluctuated slightly as investors paid attention to comments made by Federal Reserve officials and tried to find clues to determine how recent economic data would affect the Federal Reserve's interest rate decisions. Prior to the large-scale sale of 42 billion US dollars of 10-year US bonds by the US Treasury Department on Wednesday, US Treasury bonds, which had plummeted in price during the first two trading days, rebounded, and the US dollar, which had strengthened over the past few days, fell from its high level in nearly three months. The benchmark 10-year US Treasury yield is back below 4.10%. The interest rate sensitive two-year US Treasury yield once fell nearly 10 basis points from the one-month high set on Monday.
Among commodities, China favored support for basic metals such as copper to stop the decline over the past few days, and gold was supported by a fall in the US dollar and rebounded; supply risks caused by tension in the Middle East fueled a continued rebound in international crude oil. The cease-fire situation between Palestine and Israel is confusing. Israeli officials say they do not accept the Hamas cease-fire terms, but Qatar and the US have confirmed that they have received a “positive response” from Hamas to the framework of the cease-fire agreement in Gaza.
The NASDAQ turned up at the end of the session, and the chip stock index fell more than 1%, Nvidia hit a record high in the intraday period and then fell, and the China General Stock Index closed up 6%
The three major US stock indexes collectively opened slightly higher, and their performance has varied since then. The Dow Jones Industrial Average remained strong throughout the day, rising more than 160 points and more than 0.4% at the beginning of the session when it hit a new daily high. The S&P 500 index rose 0.3% at the beginning of the session, and the Nasdaq Composite Index rose nearly 0.4% at the beginning of the session, then turned down about half an hour after opening. At midday trading, S&P fell nearly 0.2% when it hit a new low. After turning up, it turned down more than once, locking in gains at the end of the session. The NASDAQ index fell more than 0.5% at a new low in midday trading, and only turned up at the end of the session.
In the end, the three major indices all rebounded after stopping for two straight days on Monday. The Dow closed up 141.24 points, or 0.37%, to 38521.36 points, close to the historic closing high it set for the second day last Friday. Last Friday set a record high for closing, S&P closed up 0.23% to 4954.23 points. The NASDAQ index, which closed at a closing high since January 3, 2022, closed up 0.07% to 15609.00 points on Friday.
The tech-heavy Nasdaq 100 index rose nearly 0.4% at the beginning of the session, then turned down and closed down 0.23%, continuing to fall from the all-time high of closing recorded last Friday. The Nasdaq Technology Market Capitalization Weighted Index (NDXTMC), which measures the performance of technology components in the Nasdaq 100 Index, fell more than 1% in early trading and closed down 0.66% after turning down at the beginning of the session, leaving the historic closing level set for two consecutive days. The small-cap stock index Russell, which is mainly value stocks, maintained gains after rapidly rising at the beginning of the 2000 session, closing up 0.85%, and rebounded after falling for two consecutive days until the closing low since January 18.
Among the Dow's constituent stocks, Walgreens closed up more than 4%, Nike, Disney rose nearly 3%, Johnson & Johnson, 3M, UnitedHealth, and Dow Chemical rose more than 1%. Boeing, which fell more than 1% on Monday after discovering new quality problems with some 737 Max aircraft, rose 0.9%, while McDonald's, which closed down 3.7% after announcing earnings on Monday, the biggest drop since May 2022, continued to fall, closing down nearly 0.5%.
Of the major S&P 500 sectors, only two closed down on Tuesday. IT, where chip stocks are located, fell nearly 0.5%, and Meta's communications services fell 0.2%. Among the nine sectors that closed, materials rose 1.7%, leading the way. Healthcare and interest-rate sensitive real estate all rose more than 1%.
Leading tech stocks continued to have mixed ups and downs. Tesla quickly turned up after falling more than 2% at the beginning of the session. At one point, it rose 3% and closed up 2.2% in early trading, breaking away from the closing low since May 2023 caused by two consecutive days of decline.
Among FAANMG's six major technology stocks, Facebook's parent company Meta turned down in early trading and closed down 1%, continuing to fall below the closing record high of 20% after announcing earnings last Friday; Amazon, which closed up nearly 8% and hit a three-year high, also fell for 2 days. Early trading fell more than 1%, closing down 0.7% in early trading; last Friday, Microsoft fell less than 1% after falling for two days in early trading and breaking a record high; Netflix, which turned down at the beginning of the session, closed down 1.1%; the Apple market closed down 1.1%; the Apple market closed down 1.1%; closed down 0.1% in early trading and closed up 0.9% on Friday, close to 0.Vision on Friday Pro went up for two consecutive days after launch; Google parent The company Alphabet maintained gains throughout the day on Tuesday. It rose more than 1% in early trading and closed up more than 0.3%, rising for four consecutive days.
Chip stocks generally declined and outperformed the market. The Philadelphia Semiconductor Index and semiconductor industry ETF SOXX turned down at the beginning of the session. At the beginning of the midday session, they fell more than 2%, closing down about 1.1% and nearly 1.2%, respectively. After three days of continuous gains, they fell back to their closing highs since January 25. Among individual stocks, Nvidia rose to a record high of 697.54 US dollars at the beginning of the session, then quickly turned down. It fell nearly 4.4% in the midday session, closing down 1.6%, falling to the closing record high for three consecutive trading days; AMD once fell 5% in the midday session, closing down 3.6%, falling two consecutive days until the closing low since January 18. After announcing earnings reports on Monday, Ansemi, which surged 9.5%, closed down 1.6%, while Intel, which had fallen more than 1%, closed down 0.2% in early trading.
Seven major tech stocks, including Apple, Microsoft, Alphabet, Meta, Amazon, Nvidia, and Tesla, fell slightly overall on Tuesday.
Most AI concept stocks rose and generally outperformed the market. After the market on Monday, it was announced that fourth-quarter revenue was higher than expected and achieved annual profit for the first time, saying that Palantir (PLTR), which has strong AI demand, closed up 30.8%, C3.ai (AI) closed up 7.8%, SoundHound.ai (SOUN) rose 5.5%, and BigBear.ai (BBAI) 10.1%. On Monday, the ultra-micro computer (SMCI), which rebounded to hit a record closing record, fell more than 5% and closed up nearly 2.8% in the intraday period, while Adobe (ADBE) closed down 3.7%.
Popular Chinese securities generally surged, outperforming the market. The Nasdaq Golden Dragon China Index (HXC) closed up nearly 6%, rising for two consecutive days until the close since January 12. China's ETFs ASHS, KWEB, and CQQQ closed up 8.8%, 6.7%, and 7.1%, respectively. The three new car builders surged. NIO Auto closed up nearly 12.1%, Xiaopeng Motors closed up nearly 12%, and Ideal Auto closed up 10.5%. Among other individual stocks, by the close, they had risen more than 20%, Station B rose more than 10%, JD rose more than 7%, NetEase rose more than 6%, Alibaba and Tencent fans rose nearly 5%, and Baidu and Pinduoduo rose nearly 4%.
Bank stock indices collectively fell for two consecutive days. The overall banking index KBW Bank Index (BKX) closed down about 0.1%, breaking its closing low since January 18 for two consecutive days; the regional banking index KBW Nasdaq Regional Banking Index (KRX) closed down 1.4%, breaking the low since November 30, 2023 on the second day. The regional bank stock ETF SPDR S&P Regional Bank ETF (KRE) closed down nearly 1.3%, breaking the low since November 30, 2023.
Among regional banks, New York Community Bank (NYCB), which rebounded more than 5% on Friday but fell 42% throughout the week, closed down 22.2%, hitting a new low since 1997. After closing down 10.6% on Monday, it plummeted again. Alliance Western Bank (WAL) closed down nearly 2% for the second day in a row, while Zions Bancorporation (ZION), which also fell nearly 2% on Monday, closed up less than 0.1%.
Among the individual stocks that announced financial reports, fourth-quarter revenue and 2024 guidance were higher than expected. The blockbuster diet drug Zepbound (LLY), which had quarterly revenue of $175 million after being approved for listing in November last year, rose more than 5% at the beginning of the session, turning down more than 1% in early trading, and closing down nearly 0.2% in midday trading; engineering materials and laser supplier Coherent (COHR), which had higher profits in the second fiscal quarter than expected, closed 17.4%; the fourth quarter profit and the British healthcare company GE Healthcare Technologies ( GEHC) closed up nearly 11.7%; profit for the fourth quarter was at the high end of the company's guidance and after announcing plans to repurchase $1 billion and raise dividends, chemical giant DuPont (DD) closed up 7.4%; service price increases and cost reduction measures helped narrow fourth-quarter losses, and the music streaming company Spotify Technology (SPOT) rose 6% at the beginning of the market, closing nearly 3.9%.
Among the most volatile individual stocks, the express delivery giant UPS (UPS) rose 5.3% in the intraday market, closing nearly 5% after UBS upgraded its rating from neutral to buy and raised its target price to $160, which is expected to support profit growth; after announcing the acquisition of three Bitcoin mines in Mississippi in the US and the opening of a new mine in Georgia, Bitcoin mining company CleanSpark (CLSK) closed up 12.1%.
In terms of European stocks, China has favorable policies, and energy stocks have taken the lead in supporting the rebound of pan-European stock indexes. The European Stoxx 600 index easily smoothed out Monday's decline and reached a new high closing level since January 6, 2022. Stock indices of major European countries rose sharply. German, French and Spanish stocks, which fell back on Monday, and British stocks, which fell four days in a row, rebounded. German stocks also reached record highs, and the Italian stock index rose for three consecutive days.
Among various sectors, oil and gas closed up about 2%. Thanks to better-than-expected profits in the fourth quarter and accelerated share repurchases, BP closed up nearly 5.5%; the basic resources of mining stocks rose more than 1% due to the impact of Chinese demand. Among individual stocks, Novo Nordisk, the highest market capitalization pharmaceutical company in Europe and listed in Denmark, closed up nearly 0.5%, continuing to hit a record high. Its diet drug rival Lilly declined for a while; Europe's highest market capitalization chip stock, ASML, listed in the Netherlands, closed up nearly 0.8%, and even set a new closing high. It rose more than 1.3% in the intraday period. After the opening of the US stock market, as US chip stocks turned down, they took back some of the gains.
US Treasury yields fell, and two-year yields once fell nearly 10 basis points from a one-month high
The yield on the US 10-year benchmark treasury bond rose in the short term in the European stock market. It was close to the high level since January 25, which was refreshed on Monday. US stocks broke 4.10% in the intraday period, breaking 4.08% at the end of the session, falling more than 9 basis points from today's high, and is still far from the low since December 27, which broke down 3.82% last Thursday. By the end of the bond market, it was about 4.10%, down nearly 6 basis points during the day.
The 2-year US bond yield, which is more sensitive to interest rate prospects, rose to 4.48 in the European stock market, approaching the high level since January 5, which was refreshed on Monday. After breaking 4.40% in midday trading, US stocks fell by 4.38%, falling by nearly 10 basis points from the daily high and Monday's high. By the end of the bond market, it was about 4.40%, down about 3 basis points during the day, and the 10-year US bond yield fell after two consecutive days of rising.
Lun Tonglun Zinc stopped four consecutive declines, nickel fell to a three-year low, and gold broke out of a one-week low
London basic metals futures mostly stopped falling on Tuesday. Luntong and Lunzinc rebounded after four consecutive days of decline, breaking out of the two weeks they had set on Monday and since early December, respectively. After four consecutive declines, Lun's lead settled down and stabilized at a two-week low. Renxi, which fell nearly 3% on Monday and led the decline, rose more than 1%. Helun Aluminum both rebounded after three consecutive declines, breaking away from their respective lows since mid-January and two weeks since Monday. Meanwhile, nickel fell for two days in a row and closed below 16,000 US dollars, a new low since November 2020.
New York gold futures reached a record low of 2038.8 US dollars in early trading and fell 0.2% during the day. US stocks maintained their gains after turning up before the market. In early trading, Zhang Zhi reached a new daily high of 2055.3 US dollars and rose 0.6% during the day.
In the end, COMEX April gold futures, which fell for two consecutive trading days, closed up 0.42% to $2051.4 per ounce, breaking out of the one-week low that was refreshed on Monday.
Spot gold was above 2020 dollars throughout the day on Tuesday. In the US stock market, it surged to a new daily high of 2,039 US dollars. It rose nearly 0.7% during the day, breaking away from the low level since January 25, which was refreshed by breaking the US dollar on Monday. US stocks were above 2030 US dollars at the close of trading and rose more than 0.5% during the day.
Editor/Corrine