Hot news

• Federal Reserve Meeting Minutes: Officials Are Worried About Slowing Down Inflation Decline, Sending Signs of Slowing Down

On Wednesday local time, the Federal Reserve announced the minutes of the Federal Open Market Committee (FOMC) monetary policy meeting from March 19 to 20. Policymakers are concerned that inflation is not falling fast enough and that austerity policies may be maintained for a longer period of time, but they still expect interest rates to be cut sometime this year. The report also sent signals of downsizing adjustments, and officials are inclined to slow the pace by half.

• “New Federal Reserve News Agency”: CPI seriously weakened the reason the Federal Reserve cut interest rates in June!

US inflation has been stronger than expected for three consecutive months. The Fed's first interest rate cut, which was completely digested by the swap market, was postponed from September to November. Bets to cut interest rates in June have all but disappeared, and traders also firmly believe that interest rates will only be cut twice this year. Nick Timiraos, known as the “Federal Reserve's microphone,” wrote that hot inflation weakened the reason the Federal Reserve cut interest rates in June.

• Wall Street reviews CPI: Interest rate cuts in June are useless, Biden: can drop by the end of the year!

The March CPI data released by the US Bureau of Labor Statistics on Wednesday once again exceeded expectations. Since entering this year, inflation has exceeded expectations for three consecutive months. Wall Street analysts generally believe that it is almost impossible for the Federal Reserve to cut interest rates in June, and that it is even necessary to start considering the possibility of raising interest rates. The yield on 10-year US Treasury bonds rose above 4.5%. In contrast, US President Joe Biden insisted on expectations that the Fed would cut interest rates, saying that the Fed would cut interest rates before the end of the year.

• Chain reaction! US inflation data frightened the bond market, and the 10-year US bond auction collapsed

On Wednesday, the US Treasury auctioned off 39 billion US dollars of 10-year treasury bonds. The results of the auction were quite bleak. Almost all indicators showed poor performance, showing that the final interest rate spread, reflecting weak demand, was the third largest in history.

• Goldman Sachs: It's time to take profit from US technology stocks and look at investments elsewhere

Faced with the high valuation of US technology stocks, Alexandra Wilson-Elizondo, Co-Chief Investment Officer of Goldman Sachs's Multi-Asset Solutions, said, “We are still optimistic about the stock market. Given that current technology stocks may face pullback pressure, the company favors energy stocks with low valuations and high potential, and the Japanese stock market.”

• The yen continued to weaken, and the dollar once rose above the 153 mark against the yen

The yen continued to weaken. At one point, the dollar rose above the 153 mark against the yen, continuing to hit a new high since June 1990. Some institutions used the 153 mark as the main point of intervention by the Japanese authorities.

Resumption of US stock trading

• The three major US stock indices collectively closed down, and Nvidia reversed the market and rose nearly 2%

The three major US stock indices collectively closed down. The Dow fell 1.09%, the NASDAQ fell 0.84%, and the S&P 500 index fell 0.95%.

Most Star Technology stocks fell, with Tesla, Intel, and Qualcomm falling nearly 3%, AMD falling more than 2%, Apple falling more than 1%, and Nvidia reversing the market by nearly 2%.

Most popular Chinese securities fell, and the Nasdaq China Golden Dragon Index fell 0.39%. NIO and Bilibili fell more than 2%, Baidu, NetEase, and Pinduoduo fell more than 1%, and iQiyi, Ideal Auto, and JD fell slightly. Alibaba rose more than 2%.

• Be alert! Nvidia, the “most beautiful boy” of the US stock market, once entered a technical adjustment zone

Wednesday,$NVIDIA (NVDA.US)$The performance was stronger than the US stock market. The US CPI data continued the signs of rising inflation since the beginning of the year. US stocks and US bonds plummeted across the board, but Nvidia turned up after opening low in early trading, and eventually closed up nearly 2% to close at $870.39. Despite this, Nvidia, as an important driver of the rise in US stocks since the beginning of the year, entered the technical adjustment zone once this week, so it is worth being wary of.

• Meta officially announces next-generation AI training and inference chip project

$Meta Platforms (META.US)$The latest version of its Training and Reasoning Accelerator Program (MTIA) was announced on April 10, local time. MTIA is Meta's family of custom chips designed specifically for AI workloads. Meta said that compared to the first generation MTIA, the latest version significantly improved performance and helped strengthen content ranking and recommended advertising models. According to Meta, the company aims to reduce its reliance on companies such as Nvidia.

• Adobe buys video resources for $2.62 per minute to build an AI model

$Adobe (ADBE.US)$Efforts have begun to obtain videos to build their own AI Wensheng video model to compete with Wensheng Video Sora launched by OpenAI. According to relevant documents, the company asked its group of photographers and artists to provide more than 100 short films showing the movements and emotions of the characters, as well as simple anatomical photographs of feet, hands, or eyes. The average cost of a video is around $2.62 per minute, but it can also be as high as $7.25 per minute.

• Amazon will allow employees to exchange stock rewards for cash

$Amazon (AMZN.US)$Give middle- and lower-level employees an opportunity to decide to what extent their future compensation is linked to the company's stock performance. According to an internal memo seen by the media, in May of this year, Amazon will give employees of many US companies a choice — reduce the number of shares acquired next year by a quarter in exchange for more cash. Amazon has joined a growing number of tech companies, including Tesla and Shopify, that place less emphasis on equity compensation as a way to motivate employees. This represents a huge change in the way tech companies pay their employees.

Top 20 US stock turnover

Hong Kong Market Outlook

• Beishui sells Tencent for nearly HK$400 million

On April 10 (Wednesday), Southbound made a net purchase of HK$2,325 billion in Hong Kong stocks.

$CHINA MOBILE (00941.HK)$,$BANK OF CHINA (03988.HK)$,$PETROCHINA (00857.HK)$Received net purchases of HK$350 million, HK$334 million and HK$305 million respectively;

$TENCENT (00700.HK)$,$HSBC HOLDINGS (00005.HK)$,$MEITUAN-W (03690.HK)$Net sales were HK$366 million, HK$299 million and HK$118 million respectively.

Today's attention

Keywords: Chinese CPI, PPI; US PPI, number of initial jobless claims

On Thursday, in terms of economic data, the US will announce the March PPI, the number of jobless claims at the beginning of the week ending April 6, and the EIA natural gas inventory for the week ending April 5; China will announce the March CPI and PPI.

Due to factors such as increased consumer demand during the Spring Festival, China's CPI rose 0.7% year on year, the first correction in half a year. It rose 1.0% month-on-month, up 0.7 percentage points from the previous month. However, industrial production during the Spring Festival holiday is in the traditional low season, and PPI slowed at an accelerated pace, down 2.7% year on year and 0.2% month on month.

Wang Hao, a macro analyst at Guojun, believes that the pattern of supply being stronger than demand continues. The PMI ex-factory price index and the purchase price index for major raw materials fell and rose in March, and the PPI growth rate is expected to remain basically the same year-on-year in March.

In terms of financial events, New York Federal Reserve Chairman Williams delivered a speech.

In terms of IPOs, US stocks$PACS Group (PACS.US)$It will go on sale today.

Futubull Chen read:

You're not buying stocks; you're buying part of a corporate business.

—Warren Buffett

editor/tolk