Source: Wall Street News
Author: Li Dan
The S&P Index fell four times in a row to a low of nearly two months. Among the “Seven Sisters” of technology, Google rose alone. The chip stock index closed down more than 3%, and Nvidia fell nearly 4%. After the earnings report, Travelers fell more than 7%, leading the decline in Dow constituent stocks, and United Airlines rose 17%. China's stock index fell three times in a row, and Xiaopeng Motor rose nearly 4%. The European technology sector fell by more than 3%. After the earnings report, LVMH rose nearly 3% and Adidas rose nearly 9%. Demand for US bond tenders was strong. US bond yields rapidly broke away from the five-month high, and ten-year yields fell back more than 10 basis points from the high intraday level. The US dollar index stopped rising for five consecutive years and fell below its five-month high. The yen left its low since 1990. The offshore renminbi rose more than 200 points in the intraday period, breaking 7.25 to a one-week high. Bitcoin fell nearly $5,000 intraday, falling below the 60,000 mark for the first time in more than a month. Crude oil fell more than 3% to the biggest decline in three months, falling to a three-week low for three consecutive weeks. Gold fell to a record closing level for the fourth day in a row. Lunxi rose 3%, and Luntong rose more than 1%, all rebounding to high levels in the past two years.
Technology stocks were responsible for the fall in US stocks on Wednesday. The total value of new orders for the first quarter of Europe's largest technology company ASML (ASML) fell far short of expectations, falling sharply by 61% month-on-month, dragging European and American chip stocks down sharply. Most tech giants such as AI benchmark Nvidia were not spared. The three major US stock indexes opened high and went low in early trading, and the S&P and NASDAQ rebounded and lost again in the intraday period, further falling to their low point in the past two months. In the market, the media said they are considering options to attack Iran's nuclear facilities. Some commentators believe that this has triggered a decline in US stocks.
Corporate financial reports continue to attract attention. Insurance company Travellers, which was less profitable due to high disaster losses, took the lead in dragging down the Dow. The healthcare giant UnitedHealth, which published excellent financial reports on Tuesday, failed to reverse the Dow's decline once again. US United Airlines itself, which had good profit guidance for the second quarter, had almost fallen short of expectations for the delivery of narrow-body aircraft for the whole year, and Boeing, the other Dow's constituent stock, declined. The financial reports of the two European consumer goods giants LVMH and Adidas respectively brought good news about strong growth in some Chinese markets and strong demand for some footwear, helping to offset the impact of Asmack as the leading technology stock and bolstering the overall rebound in the European stock market.
Wall Street News has mentioned that “I don't care” about US stocks on Tuesday that Federal Reserve Chairman Powell dampened expectations of interest rate cuts, partly because corporate profits have replaced monetary policy as the main driving force for current fluctuations in US stocks. Barclays strategists recently said that since investors are worried about high interest rates and uncertain geographical conditions, corporate profits are shouldering the heavy responsibility of driving the stock market to rise further. According to some commentators, the combination of geopolitical uncertainty, rising interest rates, the Federal Reserve's hawkish stance, and frustration with inflation has allowed bears to dominate for the time being. Investors' sentiment and behavior changed markedly from October last year, laying the foundation for long-term sideways fluctuations.
On the bond market side, the US Treasury completed a bid sale of 13 billion US dollars of 20-year treasury bonds. Tender multiples and other indicators show strong demand. After the bid results were announced, the price of US bonds rebounded at an accelerated pace, and the decline in yield widened, speeding up away from the five-month high. The yield on the benchmark ten-year US Treasury came back below 4.60%. At one point, it fell more than 10 basis points from the high level set on Tuesday. The interest rate sensitive two-year US Treasury yield did not continue to hover around the 5.0% line.
In the foreign exchange market, the UK's CPI growth rate slowed to its lowest level in two and a half years in March, strengthening expectations that the Bank of England would cut interest rates. The pound rebounded against the US dollar, reached a one-month high against the euro, and the US dollar then fell. The US dollar index, which hit a five-month high in a few days, came to a standstill, closing down for the first time in a week, and the yen was able to break from its low since 1990. Some analysts are still bullish on the US dollar. Some say that any escalation of the Middle East crisis will allow the dollar to benefit from the inflow of safe-haven funds. Meanwhile, Bitcoin accelerated its decline after the fall in US stocks, breaking the low level created by Iran after attacking Israel over the weekend. For the first time in more than a month, it fell below the 60,000 US dollar mark in the intraday market.
Among commodities, gold fell back to a record high for the fourth day in a row. International crude oil has plummeted, and demand concerns have overshadowed the impact of supply risks brought about by the situation in the Middle East. The US Department of Energy announced that US EIA crude oil inventories increased for four consecutive weeks last week, and the increase of more than 2.7 million barrels was more than double what analysts expected. After the data was released, the crude oil decline widened to more than 3%, equalizing all gains during the month, creating the worst single-day performance since Saudi Arabia cut more than expectations and lowered official crude oil prices three months ago. Some commentators mentioned that EIA data showed that gasoline demand was once again disappointing, and the four-week average fell to a low level in the same period since 2022. Analysts pointed out that Iran's attack on Israel is not expected to soon trigger US sanctions on oil exports to Iraq, and the crude oil premium caused by the geopolitical conflict is collapsing.
S&P points out four consecutive declines, Google alone among the “Seven Sisters” of technology, Nvidia dropped nearly 4%, then Travelers plummeted, and United Airlines soared
The three major US stock indexes collectively opened higher. The Nasdaq Composite Index, which had risen nearly 0.6% at the beginning of the session, turned down half an hour after opening, and the decline widened to more than 1% in the midday session. The S&P 500 index, which rose more than 0.5% at the beginning of the session, and the Dow Jones Industrial Average, which rose nearly 240 points at the beginning of the session, turned down one after another in early trading. In midday trading, S&P fell nearly 0.7%, and the Dow fell more than 160 points and 0.4%. The decline narrowed later. The Dow turned higher, and S&P turned higher in the short term. In the end, the three major indices collectively closed down on the second day of this week. The S&P and NASDAQ fell for four consecutive days. S&P recorded the longest continuous decline since January 5.
The NASDAQ closed down 1.15% to 15683.37 points, and S&P closed down 0.58% to 5022.21 points, all breaking the closing low since February 21 for three consecutive days. The Dow, which just ended seven consecutive losses on Tuesday, closed down 45.66 points, or 0.12%, to 37753.31 points, approaching its closing low since January 18, which was refreshed on Monday.
The small-cap stock index Russell 2000, which is mainly value stocks, closed down 0.99%, falling to a low level since February 5 for the fourth consecutive year. The tech-heavy Nasdaq 100 index closed down 1.24% and fell back to its closing low since February 21 after rebounding on Tuesday. The Nasdaq Technology Market Capitalization Weighted Index (NDXTMC), which measures the performance of technology components in the Nasdaq 100 Index, closed down 1.75%, falling back to its low since February 28.
Among the major sectors of the S&P 500, a total of seven closed down on Wednesday. IT, where chip stocks such as Nvidia are located, led the decline by 1.7%, other sectors fell no more than 0.8%, and Google's communications services fell by more than 0.1%, the smallest decline. Among the four sectors that closed higher, utilities, which rose more than 2%, led the way, essential consumer goods rose nearly 0.5%, and finance and materials rose 0.2%.
Among the constituent stocks of the Dow, insurer Travelers (TRV), which had lower earnings than expected in the first quarter, led the decline, closing down 7.4%, Intel and Amazon falling more than 1%, and Boeing (BA) falling more than 1% in the midday session, closing down 0.2%; while UnitedHealth (UNH), which surged more than 5% after announcing earnings on Tuesday, rose more than 4% and closed 2.1% at the beginning of the session.
Among the tech giants “Seven Sisters,” including Microsoft, Apple, Nvidia, Google's parent company Alphabet, Amazon, Facebook's parent company Meta, and Tesla, only Alphabet did not fall in the intraday. Tesla, which had the highest decline in the first two days, turned down at the beginning of the market. After falling 2.1% in early trading, the decline narrowed, closing down nearly 1.1%, falling for four days and two days in a row, breaking its closing low since April 26, 2023.
Among the six major FAANMG technology stocks, Meta and Netflix, which turned down at the beginning of the session, closed down 1.1% and 0.6% respectively. Meta fell four times to a low since April 1, and Netflix failed to continue to break away from the low level since March 15, which was refreshed on Monday; Apple closed down 0.8% after rising more than 0.7% in early trading, continuing to approach the low since October 26, 2023 set last Wednesday; after rising 1% in early trading, it closed down nearly 0.7% in early trading. Closed down 1.1%, falling continuously On the 4th and 3rd, it hit a new low since April 4; while Alphabet, which fell from the 3rd to the low level since April 5, rose 1.7% at the beginning of the market and closed up nearly 0.6%.
Chip stocks retreated after an overall rebound on Tuesday. The Philadelphia Semiconductor Index and semiconductor industry ETF SOXX turned down at the beginning of the session, closing down nearly 3.3% and about 3%, falling back to their closing low since February 21. Among chip stocks, Asmack US stocks, which are listed on the NASDAQ, fell more than 8%, down 8.3%, and closed down 7.1%; Nvidia, which had risen nearly 1.6% at the beginning of the session, turned down less than half an hour after opening and closed down nearly 3.9%, falling back to a low level since March 1; at the close, AMD, which turned down at the beginning of the session, fell 5.8% and Intel 1.6%; TSMC US stocks, which rose nearly 2% at the beginning of the session, fell nearly 0.6%.
AI concept stocks generally followed the general market decline. At the close, SoundHound.ai (SOUN), BigBear.ai (BBAI), and Palantir (PLTR) fell more than 2%, ultra-micro computers (SMCI), Oracle (ORCL), Astera Labs (ALAB), known as “Little Nvidia,” which sells data center interconnect chips, fell more than 1%, Adobe (ADBE) fell about 0.4%, while C3.ai (AI) rose 0.5%.
Bank stock indices have rebounded. The overall banking index KBW Bank Index (BKX), which fell back to its closing low since March 1 on Tuesday, closed up 0.7%; the regional banking index KBW Nasdaq Regional Banking Index (KRX) closed up nearly 0.2%, and the regional bank stock ETF SPDR S&P Regional Bank ETF (KRE) also rose nearly 0.2%, all rebounding after three consecutive days of decline, breaking out of the closing lows since November 28 and November 30, 2023, which were refreshed respectively on Tuesday.
Among the major banks, after J.P. Morgan Chase and Wells Fargo, which also sold bonds after releasing financial reports, closed up nearly 1.1%, and continued to rise after the release of the earnings report on Tuesday. Bank of America, which fell 3.5% after releasing earnings on Tuesday, closed up 1.6%, and Citi rose more than 2% in early trading. It will close up for the first time since the earnings report was announced last Friday. By the close, Goldman Sachs rose nearly 1.8%, Wells Fargo rose nearly 1.4%, while J.P. Morgan Chase, which turned down in early trading, fell 0.4%.
Among the individual stocks that announced financial reports, United Airlines (UAL) closed down 8.1% after reporting EPS losses for the first quarter were lower than expected, revenue was higher than expected, and profit guidance for the second quarter was higher than expected; while reporting that profit and revenue for the first quarter were lower than expected, and domestic demand did not grow and fell short of expectations, transportation and logistics company J.B. Hunt Transport Services (JBHT) closed down 8.1%. Furthermore, software company Autodesk (ADSK) fell more than 8% in early trading and closed down 5.8% after announcing further delays in the release of financial reports due to ongoing internal investigations into directors.
Among individual stocks with high fluctuations, the Phase III trial showed that the potential of its best-selling diet drug Zepbound to improve sleep apnea symptoms exceeded agency expectations. LLY (LLY), one of the “diet pills”, rose more than 3% in early trading and closed 0.5%, while Resmed (RMD), which produces devices for treating sleep-related breathing disorders, closed down nearly 6%; after Jefferies believed that traffic growth in its brand stores was slowing down and downgraded the rating from holding to losing out of the industry, clothing retailer Urban Outfitters (URBN) initially fell more than 4% in the market , closing down 2.5%.
Popular Chinese securities had mixed ups and downs, and early trading either turned down or the decline narrowed. The Nasdaq Golden Dragon China Index (HXC) rose more than 0.7% at the beginning of the session, turned down in early trading and closed down 0.3%, falling for three consecutive days, breaking its closing low since February 13. KWEB closed down 0.4%, while CQQQ closed up nearly 0.7%. Among the new car builders, Xiaopeng Motors rose 3.8%, NIO Auto rose more than 2%, Ideal Auto rose by more than 1%, and the Xiaomi fan rose by about 0.5% at the close. Among other individual stocks, Baidu fell nearly 2%, Alibaba fell more than 1%, NetEase fell 0.5%, Tencent fan fell 0.4%, and Pinduoduo, which turned down in early trading, fell less than 0.1%, while in early trading, JD rose nearly 0.4%, and Station B rose less than 1%.
In terms of European stocks, the pan-European stock index, which recorded the biggest decline in nine months, rebounded slightly on Tuesday. The European Stoxx 600 Index, which closed down more than 1.5% on Tuesday, closed up less than 0.1%, leaving the low level since March 6, which was refreshed on Tuesday. Major European stock indexes basically closed higher. British stocks, which fell twice in a row, and German, French, Italian and Western stocks, which fell on Tuesday, both rebounded, while the Dutch domestic stock index, where Asmack is located, closed down nearly 1.1%.
Among the various sectors, personal and household goods, where luxury giants are located, closed up about 1.8%. Thanks to the announcement that organic revenue growth for the first quarter was in line with expectations and demand for fashion and leather goods in the Chinese market increased by 10%, LVMH closed up 2.8%, driving Hermès up 2.3% and Lifeng up nearly 3%; while the technology sector plummeted 3.4%, while Asmeros, the Dutch-listed European technology stock with the highest market capitalization, closed down 6.7%. Among other individual stocks that announced financial reports, Adidas closed up more than 8.6% to support a rebound in German stocks after announcing higher-than-expected revenue for the first quarter and raising full-year guidance due to strong demand for sneakers; Continental, a supplier of parts to the tire and other transportation industry, which had lower than expected revenue and profit margins in the first quarter, fell 5.5%; and Just Eat Takeaway, an online ordering takeaway company with lower-than-expected orders in the first quarter fell 4.5%.
The price of US bonds rebounded, and the 10-year yield fell more than 10 basis points from the five-month high in the intraday period
The yield on the US 10-year benchmark treasury bond rose above 4.68% in early Asian trading, falling at an accelerated pace, breaking 4.60% in midday trading. After the 20-year US bond bid was completed, it fell 4.58% to a new daily low, falling more than 9 basis points during the day, falling by more than 9 basis points during the day, down about 12 basis points from the 4.70% increase on Tuesday and being refreshed for two consecutive days. It was about 4.59% at the end of trading, falling nearly 8 basis points during the last day of trading.
The 2-year US Treasury yield, which is more sensitive to interest rate prospects, rose 5.0% to a new high before the European stock market, and fell more than 7 basis points during the midday session, breaking more than 7 basis points during the day, breaking away from the high level since November 14, 2023, when it rose above 5.0% on Tuesday. It was about 4.93% at the end of the bond market. It fell nearly 6 basis points during the day, and fell after two consecutive days of rise.
The US dollar index fell from a five-month high, and the yen left its low since 1990, Bitcoin fell by nearly 5,000 US dollars in the intraday period
The ICE dollar index (DXY), which tracks the exchange rate of a basket of six major currencies including the US dollar against the euro, rose above 106.40 before the European stock market, and reached a high level since November 1, 2023, which was refreshed for two consecutive days. It rose nearly 0.2% during the day. After the announcement of the UK CPI, European stocks turned up in the early trading and early trading of the US stock market in the short term. US stocks accelerated their decline in midday trading, falling below 105.90 during the day's low and falling nearly 0.4% during the day.
By the close of the US stock market on Wednesday, the US dollar index was slightly below 106.00, down 0.3% during the day; the Bloomberg US dollar spot index, which tracks the exchange rate of the US dollar against ten other currencies, fell more than 0.3% during the day, falling from the same high level since November 2023, which was refreshed for four consecutive days, and the US dollar index fell after five consecutive days of gains.
Among non-US currencies, the yen temporarily left its low level since 1990. The US dollar fell below the record low of 154.20 against the US stock market in midday trading. It fell nearly 0.4% during the day, falling close to 154.80 on Tuesday and the high level since 1990 set for four consecutive days; GBP/USD rose above 1.2480 in early trading, rising nearly 0.5% during the day, breaking below the low level since November 17, 2023, which was refreshed by 1.2410 after Powell's speech on Tuesday.
The offshore renminbi (CNH) was as low as 7.2685 against the US dollar in early Asian trading, then fluctuated and rebounded. After closing, US stocks rose to 7.2425, breaking their high since April 10, and rebounded 260 points from their daily low, far from the low since November 13, 2023, which fell below 7.28 on Tuesday. At 4:59 Beijing time on April 18, the offshore RMB was 7.2440 yuan against the US dollar, up 204 points from the end of Tuesday's session in New York, and rebounded after falling back on Tuesday.
Bitcoin (BTC) reached a new daily high above $64,000 before the European stock market, trading prices rose above $64,500 on some platforms, and continued to decline after the opening of the US stock market. It fell below 59,800 US dollars in the midday session, falling below 60,000 US dollars for the first time since March 5, falling more than $4,700, down more than 7% from the daily high, then rising above $61,400. The decline narrowed. At the close of US stocks, it was above $61,000 and fell more than 2% in the last 24 hours.
Crude oil fell more than 3%, the biggest decline in three months, and fell to a three-week low for three consecutive weeks
International crude oil futures are basically in a downward trend. They only turned up in the short term in early Asian trading, and the decline accelerated after the opening of the day. At a fresh low in midday trading, US WTI crude oil fell below $82.60, falling 3.3% during the day, and Brent crude oil fell below $87.20, falling 3.2% during the day.
In the end, crude oil closed down for three consecutive days, the biggest daily decline since Saudi Arabia surpassed expectations and lowered the price of official crude oil sold to Asia on January 8. WTI crude oil futures for May closed down $2.67, or nearly 3.13%, to $82.69 per barrel, breaking the closing low since March 27; Brent crude oil futures for June closed down $2.73, down about 3.03% to $87.29 per barrel, which also hit a three-week low.
Lensilon copper rebounded to a high level in the past two years, and gold fell to a record high closing level for the fourth day in a row
London basic metals futures generally rose on Wednesday. Renxi, which led the rise, rose 3%, equalizing the decline of the previous two days and hitting a new high since June 2022 after last Friday. Lunnickel, which fell back to a one-week low on Tuesday, rose nearly 3% and rebounded to a one-week high. After two consecutive days of decline, Lunzinc rose more than 2%, breaking the high since April last year set last Friday. Luntong, which fell back on Tuesday, rose more than 1%, breaking the high since June 2022 set on Monday. Lunan aluminum rose by about 1%, rising for four consecutive days, and hitting a new high since February last year for three days. Lead rebounded slightly and did not continue to fall from the high level set on Monday since November last year.
New York gold futures were in a downward trend for most of the time on Wednesday. Before the European stock market, early trading, and early US stocks turned up in the short term. US stocks reached as low as $2376.5 on the mid-day refresh day and fell 1.3% during the day, falling 1.3% during the day, falling short of the record intraday high set close to $2,450 last Friday.
Spot gold rose to a new daily high above $2,395 in early trading, then continued to decline. US stocks fell below $2,362 in the intraday session, breaking their low since Monday, April 15, falling more than 0.9% during the day, falling more than 1.4% from the daily high, falling below the historical intraday high set by rising above $2,430 last Friday.
By the close, COMEX June gold futures, which had been rising for four consecutive trading days, closed down 0.81% to $2388.4 per ounce, falling to the highest closing record set for the fourth day at $2407.8 on Tuesday. At the close of the US stock market, spot gold was slightly above $2,370 and fell by about 0.4% during the day. For the first time since last Thursday, it did not set a new record for the same period.
Editor/Jeffy