The NASDAQ closed up nearly 1.7%, the biggest increase in seven weeks since Nvidia's earnings report date, and reached record highs with Google and Amazon; Apple and Nvidia rose more than 4%; and Morgan Stanley fell more than 5%, the biggest drop in nearly half a year. China's stock index rebounded exasperately. Station B rose nearly 5%, Xiaomi rose more than 2%, while NIO fell nearly 3%, and Ideal Auto fell more than 2%. The two-year US Treasury yield rose above 5.0% intraday for the first time in nearly five months, then declined after PPI was announced. After PPI, the US dollar index fell; during Lagarde's speech, it rose and hit a new high of nearly five months; the yen repeatedly fell below 153, hitting a new low since 1990; after PPI, the offshore renminbi hit a new daily high, rising more than 100 points above 7.25. After rising above $71,000, Bitcoin fell to the 70,000 mark. Crude oil fell, and US oil fell more than 1% to the second lowest level this month. Gold rebounded and rose nearly 2% to a record high in the intraday period. Lun nickel fell 3% and stopped rising eight times in a row, while copper continued to fall close to a two-year high.
The US PPI for March, which was announced on Thursday, grew faster than in February, but there are some signs that inflation has not accelerated. The 2.1% year-on-year growth rate of PPI in March was slightly lower than expected, and the month-on-month growth rate slowed to 0.2%; in March, the core PPI accelerated to 2.4% month-on-month for three consecutive months, slightly higher than the expected growth rate, while the month-on-month growth rate slowed to 0.2% from February, which is in line with expectations; it affects several categories of the PCE price index favoring the Federal Reserve, such as healthcare and portfolio management, which is weak.
The review said that after the CPI announced on Wednesday surpassed expectations for three consecutive months, PPI brought some relief to investors worried that inflation is heating up again. After the PPI was announced, the price of US Treasury bonds turned up intraday and yields fell. Interest rate sensitive two-year US Treasury yields rose above the 5.0% mark for the first time since mid-November last year, then turned downward. After PPI was announced, the benchmark 10-year US bond yield declined, then returned to an upward trend. It hit a new high of nearly five months over the past few days, and remained stable above 4.50% of the key level broken through on Wednesday. Bond market traders are preparing for the yield to break 5.0%.
After the PPI was announced, major US stock indexes opened higher, and they all turned down in early trading. An outstanding energy stock led the decline on Wednesday. Banking giants such as J.P. Morgan Chase, which will kick off the earnings season, fell sharply on Friday, suppressing the market. Investors are paying attention to the clues of interest rate cuts revealed in the Federal Reserve official's speech. The Federal Reserve's “top three” and New York Federal Reserve Chairman Williams said that the Federal Reserve has made “tremendous progress” in achieving a better balance between the dual goals of inflation and employment, but there is no need to cut interest rates “in the short term.” Richmond Federal Reserve Chairman Barkin said that the data heightens doubts about whether the inflation trend is changing. After Williams's speech, US bond yields have rebounded somewhat.
Tech giants strengthened in the midday trading, driving the market upward. The NASDAQ rose nearly 2% in one day, the best single-day performance since Nvidia announced excellent earnings reports more than a month ago. Apple's intraday increase extended to more than 4% after news broke that an AI-supported M4 chip upgrade was in preparation, and rebounded strongly after falling to a five-month low on Wednesday. Nvidia, which fell into the adjustment range on Tuesday, accelerated its rebound and also rose by more than 4%, equalizing all losses during the month. However, after the media claimed that its wealth management business was investigated by various regulators, Morgan Stanley dived in midday trading, and most other major banks, such as J.P. Morgan Chase, also closed down.
In the foreign exchange market, the ECB kept interest rates unchanged as expected, but commentators believe that the ECB has sent the clearest signal so far that it may start cutting interest rates within two months. Central Bank Governor Lagarde said at the press conference after the meeting that some information and data were obtained in April. Some ECB management committee members are already confident about inflation, but we know we will get more data and information in June. The euro's decline widened during Lagarde's press conference and fell to a low point in about two months.
The fall in the euro boosted the rebound of the US dollar index, which turned down after PPI was announced, and hit a new high in the past five months. The yen's decline widened. After falling below the warning line of 152.00 on Wednesday, the yen repeatedly fell below 153.00 against the US dollar on Thursday, hitting a new low since 1990, making investors highly wary of whether the Japanese government would intervene. At a time when the US dollar strengthened, Bitcoin's intraday gains were limited. At one point, it fell to the 70,000 US dollar mark and failed to approach the high of more than three weeks set by the US dollar test of 73,000 US dollars on Monday.
Among commodities, PPI picked up expectations that the Federal Reserve would cut interest rates. Combined with geopolitical risks in the Middle East and Ukraine, they jointly supported the rebound of gold. Both spot gold and New York futures rose nearly 2% in the intraday period, regaining the trend of record highs before falling back on Wednesday. However, international crude oil failed to maintain Wednesday's rebound, and US oil and oil prices both fell by more than 1%. Investors weigh the possibility of Iran attacking Israel to retaliate against Israel. The review said that the geographical risk comes at a time when supply in the oil market will be tight. As the northern hemisphere falls into the peak of summer driving demand, OPEC+ voluntary production cuts will end in the middle of the year, and OPEC+ will be the key to the outlook for oil prices in the second half of the year.
NASDAQ, Google, and Amazon reach record highs, Apple Nvidia leads the “Seven Sisters”, and Morgan Stanley recorded the biggest decline in nearly half a year
The three major US stock indexes collectively opened higher and fell sharply in early trading. The Dow Jones Industrial Average rose about 106 points at the beginning and then quickly turned down. It fell more than 260 points and 0.7% in early trading. After turning up in midday trading, it rose nearly 140 points and rose nearly 0.4%, then took back all gains and turned down at the end of the session. The S&P 500 index fell more than 0.4% in early trading, turned higher at the end of early trading, and rose 1% in midday trading. The Nasdaq Composite Index turned down in the short term in early trading, then expanded to more than 1% in midday trading, and rose 1.8%.
In the end, of the three major indices, only the Dow closed down, down 2.43 points, less than 0.01%, to 38459.08 points. It fell for four consecutive days, breaking its closing low since February 14 for two days. The NASDAQ index, which stopped two consecutive gains on Wednesday, closed up 1.68%. It was the biggest increase since the first trading day after Nvidia announced its earnings report on February 22, reaching a record high of 16442.20 points. S&P closed up 0.74% to 5199.06 points, and did not continue to approach the closing low since March 15, which was set last Thursday.
The small-cap stock index Russell 2000, which is dominated by value stocks, closed up 0.7% and rebounded after falling back to a low level since March 18 on Wednesday. The tech-heavy Nasdaq 100 Index closed up 1.65% and rebounded to a high level since March 22, approaching the highest closing record set on March 22. The Nasdaq Technology Market Capitalization Weighted Index (NDXTMC), which measures the performance of technology components in the Nasdaq 100 Index, closed up 2.34%, rebounded and hit a record closing high.
Among the major sectors of the S&P 500, a total of five closed higher on Thursday. IT, where chip stocks such as Apple and Nvidia are located, rose more than 2.3%, Google's communications services rose more than 1.1%, Amazon's non-essential consumer goods rose more than 0.9%, and industry rose 0.1%. Among the six sectors that closed down, Morgan Stanley's finance fell nearly 0.6%, healthcare fell nearly 0.5%, and energy, which had fallen more than 1% in early trading, closed down 0.2%.
Including Microsoft, Apple, Nvidia, Google's parent company Alphabet, Amazon, Facebook's parent company Meta, and Tesla, the tech giants “Seven Sisters” partially declined in early trading or had a short-term decline, rising at noon.
Tesla, which fell nearly 3% on Wednesday and had the highest decline among the “Seven Sisters,” turned down less than 20 minutes after opening. It fell nearly 1.9% in early trading, rose about 2% in midday trading, and closed up nearly 1.7%, starting to approach the closing high since March 27, which was refreshed on Tuesday.
Among the six major FAANMG technology stocks, Apple opened high, rising more than 4% and closing 4.3% at the end of the session. After falling back to a low level since October 26, 2023, it rebounded to a closing high since March 20; Alphabet, which ended three consecutive gains on Wednesday, closed 2%, breaking the historic closing high created on Tuesday; Amazon, which turned into a short-term decline at the beginning of the session, rose nearly 1.7% in midday trading, and reached record highs in both the intraday session; Microsoft, which had declined slightly in early trading, closed down 1.1% on Wednesday It then rebounded to a high level since March 22; it had a slight decline in early trading Meta closed up 0.6%, rising for two consecutive days, approaching the all-time closing high set last Friday; Netflix, which had declined slightly in early trading, closed up nearly 1.7%, beginning to approach the high since November 2021 set by last Friday's rebound.
Chip stocks generally rebounded and outperformed the market. The Philadelphia Semiconductor Index and semiconductor industry ETF SOXX turned down in the short term less than an hour after opening. They rose more than 2% in midday trading, closing up about 2.4% and nearly 2.3% respectively, and rebounded after stopping three consecutive gains on Wednesday. Among chip stocks, Nvidia, which rebounded against the market on Wednesday, maintained gains throughout the day, closing up 4.1% and closing high for two consecutive days until March 26, far from the closing low since March 4, which was refreshed on Tuesday; at the close, Arm rose nearly 5%, Qualcomm rose 2.5%, AMD rose 2%, Intel, which had fallen more than 1% in early trading and midday trading, rose nearly 0.7%.
Most AI concept stocks rose. At the close, Astera Labs (ALAB), known as “Little Nvidia,” which sells data center interconnect chips, rose 6%, SoundHound.ai (SOUN) rose nearly 5.8%, ultra-micro computers (SMCI) rose more than 3%, Palantir (PLTR) rose nearly 1.9%, Oracle (ORCL) rose more than 1%, C3.ai (AI) rose nearly 0.3%, while BigBear.AI (BBAI) fell more than 1%, and Adobe (ADBE) fell 0.6%.
Bank stock indices had mixed ups and downs. The overall banking index KBW Bank Index (BKX) closed down nearly 0.8%, falling for two days, breaking its low since March 19; the regional banking index KBW Nasdaq Regional Banking Index (KRX), which fell sharply by 5% on Wednesday, closed less than 0.1%, close to the low level since November 30, 2023 refreshed on Wednesday, and fell back to a new low level since February 13, SPDR S&P Regional Bank ETF (KRE) also closed up less than 0.1% on Wednesday.
Among the major banks, Morgan Stanley closed down nearly 5.2%, the biggest drop since October 18, 2023. Goldman Sachs and Bank of America closed down 0.8%. J.P. Morgan Chase, Wells Fargo, and Citibank, which will release financial reports on Friday, closed down slightly, 0.4%, and closed up nearly 0.9%, respectively.
Popular Chinese securities generally rose. The Nasdaq Golden Dragon China Index (HXC) rose more than 0.9% at the beginning of the session. After turning down in early trading, it fell 0.5% in mid-trading, closing slightly up less than 0.1%, and almost fell for two consecutive days. KWEB and CQQQ closed up 0.9% and 1.2%, respectively. The three new car builders turned down at the beginning of the session. At the close, NIO Auto fell by nearly 3%, Ideal Auto fell by more than 2%, while Xiaopeng Motors, which fell nearly 1% in early trading, rose more than 1% after turning up in midday trading. Furthermore, the Xiaomi fan rose by more than 2%. Among other individual stocks, Station B rose nearly 5%, New Oriental rose nearly 3%, Pinduoduo, JD, and Tencent fans rose more than 1%, Baidu rose 0.7%, Alibaba rose nearly 0.4%, and NetEase fell more than 2%.
Among the most volatile individual stocks, Nike (NKE) closed up 3.4% after being downgraded by Bank of America from neutral to buying and believing investors should bottom out, the increase was second only to Apple among the Dow's constituent stocks; after Vertex Pharmaceuticals agreed to a cash acquisition of US$4.9 billion and the acquisition value per share had a 67% premium over Tuesday's closing price, biotech company Alpine Immune Sciences (ALPN) closed 36.9%; while used car retailer CarMax ( KMX) closed down 9.2%; industrial and firmware dealer Fastenal (FAST), whose revenue and profit fell below expectations for the first fiscal quarter, closed down 6.5%.
In terms of European stocks, the pan-European stock index retreated as soon as it rebounded on Wednesday. The European Stoxx 600 Index closed down 0.4% to 504.55 points, breaking its closing low since March 18. Stock indexes of major European countries fell sharply. The Spanish stock index, which led the decline, fell by more than 1%, and the French stock index fell for five and three consecutive days, respectively. German, British, and Italian stocks, which rebounded on Wednesday, fell.
Among the various sectors, after the ECB hinted that it would cut interest rates, banks closed down more than 2.3%, the biggest daily decline in more than eight months. The telecom sector followed by a drop of nearly 2.2%. Deutsche Telekom, which was affected by post-interest trading, plummeted 6.2%, while the utilities and healthcare sectors both rose 0.5%.
Two-year US Treasury yields rose above 5.0% intraday for the first time in nearly five months and fell after PPI was announced
After the US PPI was released, the yield on US 10-year benchmark treasury bonds first accelerated, falling during ECB President Lagarde's press conference. US stocks fell to a new low of 4.51% before the market, falling about 3 basis points during the day, and continued to recover. US stocks turned up in early trading. They were 4.59% close to the 4.60% mark, breaking the high level since November 14, 2023 for 2 consecutive days. By the end of the bond market, they rose by about 4 basis points during the day.
The 2-year US Treasury yield, which is more sensitive to interest rate prospects, slightly exceeded 5.0% when the PPI was released. It rose above the 5% integer psychological mark for the first time since November 14, 2023. It hit a new high of 2 consecutive days since November 14 last year, rising by nearly 3 basis points during the day, then quickly rebounded. The decline widened during Lagarde's speech. It broke 4.92% to a new daily low, and fell nearly 6 basis points during the day. The intraday decline in US stocks narrowed. It was about 4.60% at the end of the bond market, down about 1 basis point during the day, and rebounded by about 1 basis point during the day. Retreat.
After PPI, the US dollar index fell and then rose and hit a new high in nearly five months, and the yen hit a new low since 1990
The ICE dollar index (DXY), which tracks the exchange rate of a basket of six major currencies including the US PPI, quickly fell after the US PPI was announced. At the beginning of the market, the US stock market reached a new daily low of 105.00, falling 0.2% during the day. After Lagarde's press conference, US stocks rose above 105.50 after turning higher in early trading, breaking the high level since November 14, 2023 for two consecutive days, rising nearly 0.3% during the day.
By the close of the US stock market on Thursday, the US dollar index was slightly below 105.30, rising slightly during the day; the Bloomberg US dollar spot index, which tracks the exchange rate of the US dollar against ten other currencies, rose less than 0.1% during the day, breaking the high level in the same period since November 13, 2023. Both the US dollar index and the US dollar index rose for two consecutive days, and jumped after the PPI was announced.
Among non-US currencies, the euro first rebounded and rose against the US dollar after the ECB announced its resolution. US stocks were close to a new daily high of 1.0760, rising more than 0.1% during the day, then quickly falling back and falling. US stocks fell below 1.0700 in early trading, breaking the low level since February 14, falling 0.4% during the day. US stocks closed above 1.0720, falling more than 0.1% during the day; the yen fell below 153.00 several times during the Thursday session, and quickly fell back to a new low in 1990. After the refresh date, it was as low as 152.80. European stocks rose above 153.20 after turning up before the market, and European stocks turned down in early trading. After the US PPI was announced, they were close to 152.80 and continued to rebound thereafter. US stocks rose above 153.30 for the second day in a row, hitting a new high since 1990 for the second day. US stocks closed slightly below 153.30 and rose less than 0.1% during the day.
The offshore renminbi (CNH) fell to 7.2641 against the US dollar in early Asian trading, remaining flat at its low level since April 2, which was refreshed on Wednesday. After the US PPI was announced, it reached a new daily high of 7.2494, up 147 points from today's low. At 4:59 Beijing time on the 12th, the offshore RMB was 7.2558 yuan against the US dollar, up 66 points from the end of Wednesday. It rebounded after stopping three consecutive gains on Wednesday.
Bitcoin (BTC) European stocks rose above $71,200 in early trading, and some platforms rose above $71,300, and later declined somewhat. The US PPI fell below $71,000 before it was announced, and hit 71,000 US dollars after the announcement. US stocks fell another 70,000 US dollars in early trading, and fell below $69,700 to a new daily low of $69,700, falling more than 2% from the daily high. US stocks closed above $70,000, and some platforms were above $70,600. $7.27 million The high intraday level created since March 14 is still far away.
Crude oil fell back, and US oil fell more than 1% to the second lowest in this month
International crude oil futures turned down intraday and failed to continue to rebound. At a new high in the Asian market, US WTI crude oil rose above 86.60 US dollars and rose above 90.90 US dollars. Brent crude oil rose nearly 0.5% during the day, and European stocks maintained their decline after falling before the market. When US stocks hit a new daily low in early trading, US oil fell below 84.90 US dollars, falling nearly 1.6% during the day, oil falling below 89.40 US dollars, and falling more than 1.2% during the day.
In the end, crude oil, which rebounded on Wednesday, fell. It closed down on the 3rd day of the last 4 days, and failed to stay close to the closing high since October 20 last year set last Friday. WTI crude oil futures for May fell 1.19 US dollars, or 1.38%, to 85.02 US dollars/barrel, breaking the closing low since closing at 83.71 US dollars on April 1; Brent crude oil futures for June closed down 0.74 US dollars, down about 0.92% to 89.74 US dollars/barrel, and returned below this mark just after recovering $90 on Wednesday.
Lunnickel fell 3%, and copper continued to fall close to a two-year high, and gold rebounded by nearly 2% in the intraday period to a record high
London basic metals futures mostly fell on Thursday. Lunnickel, which led the decline, fell by about 3%, falling to a four-week high created by an eight-day rise. Renxi, which had been rising for seven days, fell by about 1%, leaving the high position since the end of January last year, when it had three days in a row. From three consecutive increases to the end of January, the highest level of Lun lead fell by more than 1%. Luntong and Lunaluminum declined for two consecutive days, and continued to fall below their high levels since June 2022 and late February last year, respectively. Meanwhile, Lunzinc rose for four consecutive days, and hit a new high since April last year on the 3rd.
New York gold futures rose for most of the time on Thursday. European stocks fell as low as $2343.1 on the new day after falling before the market, falling more than 0.2% during the day. European stocks generally rose after turning short-term declines in early trading, and continued to expand in midday trading. By the close, COMEX June gold futures, which fell back on Wednesday, closed up 1.03% to $2372.7 per ounce, breaking the record for the highest closing day set on Tuesday for three consecutive days.
The increase in New York futures widened further after closing. US stocks rose above 2,390 US dollars at the end of the session and rose nearly 2% during the day. Spot gold continued to rise in early trading in the US stock market. At the end of the session, US stocks rose above $2,374 and rose nearly 1.8% during the day. Both futures broke the historical intraday high level set on Tuesday. US stocks were above $2,370 at the close and rose about 1.7% during the day, setting a new record for the same period on Tuesday.
editor/tolk