The three major US stock indexes lost two consecutive losses, and the NASDAQ closed at a two-week low; the small-cap stock index and chip stock index fell more than 1% and outperformed the market; the chip stock sector led the decline of S&P; Nvidia fell nearly 7% in the intraday period, Arm closed down more than 5%, AMD fell nearly 5%, while Intel rose more than 2%; Tesla fell more than 3%; the AI concept stock fell by nearly 6%; Walmart's earnings report surged more than 3%, and its sector reversed the market's dominance. China's stock index fell more than 1% to a standstill in three consecutive years. Xiaopeng Motors fell more than 5%, and JD fell more than 4%.
After a long weekend where the market was closed on Monday, US stocks, which fell for several days last Thursday and Friday, accelerated their decline on the first trading day of this week. Technology stocks, which are the main drivers of the market since the beginning of this year, have taken the lead in the decline. The tech giant “Seven Sisters” once fell sharply in the intraday market.
Nvidia plummeted the day before it released its earnings report on Wednesday EST. At one point, it fell close to 7% intraday. Since the beginning of this year, Nvidia's stock price has risen by more than 40%. Last week, the market capitalization surpassed Amazon and Google, second only to Microsoft and Apple. The market is still waiting. Whether Nvidia's latest earnings report can meet investors' high expectations for the AI boom. After falling on Monday, Nvidia's market capitalization was overtaken by Amazon and Google.
According to Wall Street news, analysts recently warned that the AI boom continues to ferment this year. Currently, call options are frantically betting on AI concept stocks such as Nvidia. Once Nvidia releases financial reports, the implied volatility of the entire options market may decrease, and the price of Nvidia-related individual stocks will fall, leading to a general market correction. Whether Nvidia's earnings report is good or bad, it will end the rise in US stocks.
After the long weekend, the price of US bonds rebounded, supported by heightened risk aversion, and yields fell intraday. The benchmark 10-year US Treasury yield is no longer close to the two-month high set last week. The interest rate-sensitive two-year US Treasury yield once fell more than 10 basis points from the high level set last Friday since the Federal Reserve's interest rate meeting in December last year.
Expectations of the Federal Reserve's interest rate cut continue to “subside”. The US dollar index, which has been rising every week since the beginning of the year, has followed the decline in US bond yields, leveling off all gains since it was announced last Tuesday that the US CPI exceeded expectations. It fell to a low level for more than a week, and non-US currencies were generally able to rise. The offshore renminbi rose above the 7.20 mark against the US dollar for the first time in almost two weeks. Cryptocurrency, however, failed to take advantage of the weakening dollar. Bitcoin surged higher and fell. The intraday sprint of $53,000 hit a new high in more than two years, and later fell below $51,000.
Among commodities, the US dollar and US bond yields declined, boosting the continued rebound of gold. Spot gold rose above 2030 US dollars, hitting a one-week high. Futures closed close to 2,040 US dollars for the first time in more than a week. International crude oil, which had risen over the past few days, fell back, leaving the high level of more than three months set in the past few days. The commentator said that investors' concerns about global demand have overshadowed the impact of geographical tension in the Middle East, such as the Arab-Israeli conflict.
The three major US stock indexes surged after Walmart's earnings report, the small cap stock index and the chip stock index outperformed the large market, and the Chinese stock index stopped three times in a row
The three major US stock indexes collectively opened lower, with mixed intraday performance. The low opening S&P 500 Index and the Nasdaq Composite Index maintained a downward trend throughout the day. The S&P index fell 1% in midday trading, the NASDAQ fell more than 1% in early trading, and fell about 1.7% in midday trading. The Dow Jones Industrial Average turned up at the beginning of the session and early trading. It rose 35 points when it hit a new high in early trading, and continued to decline after turning down at the end of the morning trading. It fell nearly 170 points or more than 0.4% in midday trading.
In the end, the three major indices all fell for two consecutive trading days after two consecutive gains. The NASDAQ closed down 0.92% to 15630.78 points, breaking its closing low since February 6. S&P closed down 0.6% to 4975.51 points, approaching the low since February 5, which was refreshed after the US CPI was announced last Tuesday. The Dow closed down 64.19 points, or 0.17%, to 38563.80 points.
The small-cap stock index Russell 2000, which is mainly value stocks, closed down 1.41%, outperforming the market and continuing to fall from its closing high since December 27 last year, which was refreshed last Thursday. The tech-heavy Nasdaq 100 index fell more than 1% in the intraday period and closed down 0.79%, falling for two consecutive days until its closing low since February 1. The NASDAQ Technology Market Capitalization Weighted Index (NDXTMC), which measures the performance of technology components in the NASDAQ 100 Index, fell more than 2% in the intraday period and closed down 1.2%, falling to a low level since February 6.
Among the constituent stocks of the Dow Index, Caterpillar closed down 2.5%, while Walmart, which announced strong results for the fourth quarter and raised its annual dividend by 9%, rose more than 6.4% and closed up 3.2% at the beginning of the session. Coca Cola and Intel both rose more than 2%. Among the major S&P 500 sectors, only Walmart's essential consumer goods closed up 1.1% on Tuesday. IT, where chip stocks are located, led the decline by nearly 1.3%, Tesla's non-essential consumer goods fell 1%, energy fell nearly 1%, and other sectors fell less than 0.4%.
Seven major technology stocks, including Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla, fell sharply in the intraday session for two consecutive trading days. Tesla fell 5.4% in midday trading and closed down 3.1%, continuing to fall from the closing high since January 24, which was refreshed last Thursday.
Among the six major FAANMG technology stocks, Netflix, which fell more than 2% in midday trading, closed down 1.5%, and continued to fall from the closing high since December 2021, which was refreshed last Thursday; Amazon closed down 1.4%, falling from the 3rd to the low level since February 1, and Facebook's parent company Meta, which fell more than 1% in the intraday session, closed down 0.3% and 0.4%, respectively. Microsoft dropped 0.3% and 0.4% in a row from January 3 to January 31, and Apple fell for 6 consecutive trading days. Since the 5th It closed at a low level; however, after falling for two consecutive days last Friday, Google's parent company Alphabet, which hit a closing low since January 8, fell nearly 0.7% at the beginning of the session, then turned slightly higher and closed up 0.3%.
Chip stocks generally fell for three consecutive days and outperformed the market on Tuesday. The Philadelphia Semiconductor Index and semiconductor industry ETF SOXX fell more than 2% in early trading, and fell more than 3% in midday trading, closing down nearly 1.6% and 1.7% respectively, breaking the closing low since February 7. Among individual stocks, Nvidia fell more than 6.7% in the intraday period, closing down nearly 4.4%. After reaching a record closing high on Wednesday, it fell for three consecutive trading days, breaking the closing low since February 6. Arm fell 10% at the beginning of the session, closing down 5.1%, and AMD fell 6.8% and closed down 4.7% in the intraday period. Intel closed up 2.3% after the media claimed that the Biden administration negotiated subsidies to Intel of more than 10 billion US dollars to encourage the chip manufacturing industry to return to the US.
Overall, AI concept stocks continued to fall sharply and outperformed the market over the past few days. Ultramicrocomputer (SMCI), which closed down 20% after hitting a record high last Friday, fell 13.8% and closed down nearly 2% in midday trading, C3.ai (AI) fell more than 8% and closed down nearly 5.9%, BigBear.ai (BBAI) fell more than 7% in the intraday session, closed down 3.6%, Palantir (PLTR) fell 7% in early trading, closed down more than 4%, and closed up more than 4% after falling more than 4% in early trading. SoundHound.ai
Popular Chinese securities generally declined. The Nasdaq Golden Dragon China Index (HXC) fell 2.2% in early trading, closed down 1.3%, and fell after three consecutive days of gains. KWEB and CQQQ fell more than 2% in the intraday period, closing down about 1.7% and 1.3%, respectively. Among individual stocks, Bitcoin mining giant Jianan Technology fell more than 6%, Yibang International fell more than 7%, Xiaopeng Motor fell more than 5%, JD fell more than 4%, Good Future fell by more than 3%, NIO Auto and Pinduoduo fell nearly 3%, Tencent Fanshun fell more than 2%, Baidu and Station B fell more than 1%, Alibaba dropped about 1%, and NetEase 0.1%, while Ideal Auto had an increase of nearly 3.5% at the beginning.
Among the most volatile individual stocks, smart TV brand Vizio (VZIO) closed up 16.3% after Walmart announced that it had reached a cash acquisition agreement of $2.3 billion; the financial institution Capital One Financial (COF), which bought all shares of its counterpart Discover Financial Services (DFS) worth US$35.3 billion, fell 5.5% at the beginning of the session and turned up at the end of early trading. At the end of early trading, it rose more than 1% and closed up 0.1%. DFS rose more than 10% at the beginning of the session and closed up 12.6%.
In terms of European stocks, mining stocks and technology stocks led the decline, and the pan-European stock index fell for four consecutive trading days. The European Stoxx 600 Index has temporarily closed at a high level since January 5, 2022, after being refreshed for three consecutive days. Stock indices of major European countries had mixed ups and downs. German stocks fell from the record closing level set last Friday for two consecutive days. British stocks, which had risen four times in a row, fell, while French stocks, which closed slightly and largely closed on Monday, hit record closing highs for four consecutive trading days. The Spanish stock index rose two times in a row, and the Italian stock index, which fell back on Monday, rebounded.
Among the Stoxx 600 sectors, the basic resources of mining stocks closed down 1.8%, leading the decline for two consecutive days. The technology sector also fell 1.8%. The Swiss-listed software company Temenos, which is expected to slow profit growth before interest and tax in 2024, fell 5.6%, ASML, the Dutch-listed European highest market capitalization chip stock, fell 2.5%, and the oil and gas sector affected by the decline in crude oil fell nearly 1.1%; while the chemical sector rebounded 2.5% to a seven-week high, mainly because after announcing that annual operating profit was higher than expected, it doubled its operating profit margin target until 2025 320 After one basis point, the Parisian listed industrial gas giant Air Liquide (Air Liquide) surged 8.3%.
Among other individual stocks, Barclays rose 8.6% after formulating a three-year plan including cost cuts of 2 billion pounds with the intention of reviving stock prices; Novo and Nord, the highest market capitalization pharmaceutical company in Europe listed in Denmark, closed down 1.7%, ending the trend of hitting a record high for five consecutive days.
The two-year US Treasury yield once fell more than 10 basis points from the February high
The yield on the US 10-year benchmark treasury bond was close to 4.32% in early Asian trading, rising nearly 4 basis points during the day, rising to a 4.33% high since December 1, 2023, and continued to decline. European stocks fell 4.30% in early trading, falling by nearly 4 basis points during the day, and gradually rebounded in midday trading. By the end of the bond market, it was about 4.28%. It remained roughly the same level as last Friday and failed to continue the rebound trend of last Friday.
The 2-year US Treasury yield, which is more sensitive to interest rate prospects, rose to a new high of 4.66% in early Asian trading, and fell by nearly 2 basis points during the day. It fell 4.57% to a new daily low of about 7 basis points in early trading. It fell nearly 15 basis points from the high level since the first day of the Federal Reserve interest rate meeting on December 13 last year, which was refreshed last Friday. It was about 4.61% at the end of the bond market. It fell by about 3 basis points during the day.
The US dollar index hit a new low in more than a week, and the offshore renminbi rose above 7.20 in the intraday period
The ICE US Dollar Index (DXY), which tracks the exchange rate of the US dollar against a basket of six major currencies including the euro, rose above 104.40 in early Asian trading and rose more than 0.1% during the day. European stocks continued to decline after falling before the market. US stocks fell below 104.00 before the market, and US stocks fell below 103.80 at the beginning of the market, breaking the intraday low since February 9, falling nearly 0.5% during the day.
By the close of the US stock market on Tuesday, the US dollar index was below 104.10, falling about 0.2% during the day, falling back to the same low since February 7 after stabilizing on Monday; the Bloomberg US Dollar Spot Index, which tracks the exchange rate of the US dollar against ten other currencies, fell 0.1%, falling for the second day after falling slightly on Monday.
Non-US currencies generally rose. EUR/USD approached 1.0840 at the beginning of the session, breaking the high level since February 2, rising nearly 0.6% during the day; GBP/USD had a one-week high in early trading, rising 0.6% during the day; the yen rebounded for two consecutive days. The dollar fell below 150.00 against the US stock market. The US dollar fell below 150.00 against the US stock market before the US market, and US stocks fell below 149.70 and 0.3% during the day.
The offshore renminbi (CNH) fell to a new low of 7.2185 against the US dollar in early Asian trading. The US stock market rose and maintained gains in early Asian trading. After hitting new highs since February 9 and February 8 last Friday and Monday, respectively, it also refreshed its high since February 7. It recovered 7.20 for the first time since February 7, and rebounded 225 points from the daily low. US stocks fell below 7.20 in early trading. At 5:59 Beijing time on February 21, the offshore RMB was 7.2017 yuan against the US dollar, up 97 points from the end of Monday's New York session, up five consecutive trading days.
Crude oil closed down more than 1%, fell at a three-month high, and oil stopped rising for three consecutive years
International crude oil futures declined. US WTI crude oil measured at 79.90 US dollars at the beginning of the US stock market, rising 0.9% during the day. After falling in early trading, it turned higher in midday trading, and the decline widened after falling again. At the new low, US oil fell below 77.70 US dollars, falling more than 1.9% during the day. Brent crude oil basically maintained its decline on Tuesday. Only the Asian market turned up in early trading. US stocks fell below a new daily low of $82.10 in the intraday period, falling about 1.8% during the day.
WTI's March crude oil futures, which closed higher for two consecutive days and closed higher for two consecutive days on Monday, closed down 1.28% to $78.18 per barrel, farewell to the high level since November 6, 2023, which was refreshed for two consecutive days last Friday; Brent crude oil futures for April, closed down 1.46% to $83.56 per barrel, falling to the highest level since November 6, 2023, which was refreshed for two consecutive days on Monday.
US gasoline and gas futures fell sharply. NYMEX's March gasoline futures closed down 2.5% to $2.2774 per gallon, falling for two consecutive trading days, breaking the low level since February 7; NYMEX March natural gas futures, which ended an eight-day decline on Friday, closed down 1.77% to 1.5760 US dollars/million British thermal units, breaking the closing low since June 2020 set last Thursday.
Renxi fell five times in a row, and copper rebounded to a high of more than two weeks, and gold closed to a new high in more than a week
London basic metals futures mostly fell on Tuesday. Renxi fell for five consecutive trading days, hitting a new low of more than a week for the second day in a row. Lunan aluminum fell four days in a row, breaking the low level since late January for the third day in a row. Lunnickel continued to fall slightly from the high level set last Friday since the end of January. Lunzine fell to a high of more than a week after three consecutive days of rising.
However, after stopping two consecutive gains on Monday, Luntong returned to gains and closed up to 8,500 US dollars, breaking the high level since February 1 set last Friday. On Monday, after three consecutive gains, lun-lead rebounded slightly and did not continue to fall below the one-week high level set last Friday.
New York gold futures maintained gains throughout the day on Tuesday. US stocks hit a pre-market high of $20,42.7, rising more than 0.9% during the day. In the end, COMEX April gold futures, which had no closing price for the US holiday, closed up 0.78% to 2039.8 US dollars/ounce on Monday. They closed higher for three consecutive trading days, breaking the closing high since February 8, and far from the closing low since December 13, 2023, which forced 2004 dollars to refresh last Wednesday.
Spot gold surged 2,031 US dollars before the US stock market, breaking the intraday high level since last Tuesday, February 13. It rose more than 0.6% during the day. US stocks closed above 2020 US dollars and rose more than 0.3% during the day.
Editor/Corrine