Source: Wall Street News

Nvidia, hailed by Goldman Sachs as “the most important stock on the planet,” released earnings after the US stock market on Wednesday. Nvidia's stock price continued to fall before the release of this major earnings report, which tested the market's confidence in the AI boom, leading blue-chip technology stocks to drag down the market.

The minutes of the US Federal Reserve meeting at the end of January released at noon show that Federal Reserve officials are worried that interest rates will be cut too fast and that the decline in inflation will stagnate. Reporter Nick Timiraos, known as the “New Federal Reserve News Agency,” later wrote that the minutes showed that most Federal Reserve officials were concerned about premature interest rate cuts and deep-seated price pressure, not that high interest rates remained too long. Only two pointed out the risk of long-term high interest rates.

After the release of the minutes, the decline of major US stock indexes widened and reached a new low, but the decline did not continue. Although the NASDAQ fell further to its low level in the past two weeks, the S&P and Dow rebounded thrillingly due to rising levels at the end of the session. After the market, Nvidia's revenue for the fiscal quarter and the current fiscal quarter's guidance were higher than expected. After the market, Nvidia stopped falling and rebounded, and stock prices rose, driving chip stocks and AI concept stocks to rise together after the market.

Demand for the 20-year US Treasury bid sale completed by the US Treasury Department on Wednesday was extremely weak. The “tail” of demand, that is, the gap between the winning interest rate and the pre-issue interest rate was the largest since the 20-year US bond bid was recorded. The ratio for overseas investors hit a new low in nearly three years. After the bid results were announced, the decline in US bond prices widened, and yields rebounded further. The benchmark 10-year US bond yield was 4.30%. After the release of the Federal Reserve minutes, the yield continued to rise, once approaching the two-month high set last week.

The NASDAQ closed at a new low in nearly three weeks, and the S&P Dow turned upward at the end of the session, Nvidia's earnings report led to a sharp rise in chip stocks and AI concept stocks after the market

The three major US stock indexes collectively opened lower for two consecutive days, and have maintained a downward trend since then. The Dow Jones Industrial Average fell more than 170 points and 0.4% at the beginning of the session. At the end of early trading, the decline narrowed to less than 14 points, and the decline widened to more than 100 points in midday trading. After the release of the Federal Reserve minutes at noon, the Nasdaq Composite Index fell more than 1.1%, the Dow fell more than 220 points, and the S&P 500 index both fell nearly 0.6%. The decline of the NASDAQ index narrowed at the end of the session, and the S&P and Dow turned upward.

In the end, of the three major indices, only the NASDAQ closed down, falling 0.32% to 15580.87 points. It fell for three consecutive trading days, breaking its closing low since February 1. S&P closed up 0.13% to 4981.8 points. It did not continue to approach the low since February 5, which was refreshed after the US CPI was announced last Tuesday. The Dow closed up 48.44 points, or 0.13%, to 38612.24 points, and both stopped falling for two days.

The tech-heavy Nasdaq 100 index fell more than 0.8% in midday trading and will drop for three or two consecutive days to hit 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 1% in the midday session and will continue to fall to a low level since February 1. The small-cap stock index Russell, which is mainly value stocks, fell nearly 0.8% in the 2000 midday session, and continued to fall below its closing high since December 27 last year, which was refreshed last Thursday.

Including Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla, the seven major technology stocks had mixed ups and downs. Tesla rose more than 2.9% in early trading and turned down slightly in midday trading, falling for three to a week in a row to close at a low level.

Among FAANMG's six major technology stocks, Meta, the parent company of Microsoft and Facebook, fell more than 1% in early trading, Apple turned down in midday trading after rising more than 0.7% in early trading, and Netflix fell more than 1% in early trading. Amazon, which announced after the Tuesday market that it would be included as a component of the Dow on February 26, rose more than 1% in early trading, and Google's parent company Alphabet rose more than 1% in midday trading.

Chip stocks generally declined for four consecutive days, and the decline narrowed at the end of the session. The Philadelphia Semiconductor Index and semiconductor industry ETF SOXX fell more than 1% in early trading and closed down more than 0.2%, breaking the closing low since February 7. Among individual stocks, Nvidia, which announced financial results after Wednesday, fell 4.6% in midday trading, closing down nearly 2.9%, falling for four consecutive trading days after hitting a record high last Wednesday, breaking the closing low since February 2; Intel, which closed down more than 2%, rose less than 1% after the market, and AMD, which closed down 0.8%, rose more than 4% in early trading, and turned up about 6% in early trading.

AI concept stocks continued to plummet overall, but turned higher after the market. The “demon stock” ultra-microcomputer (SMCI), which has been rising more than 150% since the beginning of this year, fell 10% in midday trading, up more than 10% after the market, up more than 10% after the market, C3.ai (AI), which closed down 3%, rose more than 5% after the market, rose more than 8% after the market, and BigBear.ai (BBAI), which closed down more than 9%, rose more than 5% after the market, closed down 0.6%, and Adobe (ADBE), which closed down 0.6%, rose more than 5% after the market about 0.5% .

Popular Chinese securities generally rebounded. The Nasdaq Golden Dragon China Index (HXC) rose more than 2.2% at the beginning of the session, closed up nearly 1%, and returned to gains after stopping three consecutive gains on Tuesday. Both KWEB and CQQQ ETFs closed up more than 1%. Among individual stocks, at the close, Ideal Auto rose more than 4%, Alibaba rose more than 3%, JD and Tencent fans rose more than 2%, Baidu, Xiaopeng Auto, and Station B rose nearly 0.2%, while Pinduoduo, which turned down in early trading, fell more than 1%, NetEase fell 0.7%, New Oriental fell more than 2%, and Bitcoin mining giant Canan Technology fell more than 12%.

Among the individual stocks that announced financial reports, cybersecurity company Palo Alto Networks (PANW), which lowered its full-year revenue and billing guidelines, fell nearly 30% intraday; healthcare company Teladoc (TDOC) and PV stock Solaredge Technologies (SEDG), which both fell short of expectations in fourth-quarter revenue and first-quarter guidance, fell more than 20% and more than 10%, respectively; restaurant chain Wingstop (WING), whose fourth-quarter revenue was higher than expected, fell more than 4% intraday; and in the fourth quarter Wix.Com (WIX), a website building platform with higher revenue and profits than expected, rose more than 10% in the intraday; luxury home builder Toll Brothers (TOL), whose quarterly profit was higher than expected, rose more than 5% intraday.

Editor/Corrine