On the evening of the 24th Beijing time, US stocks opened higher on Wednesday. Investors are analyzing the latest earnings reports and continue to monitor the Federal Reserve's interest rate path. Tesla's stock price soared after it announced that it would speed up the launch of affordable electric vehicles.
As of press release, the NASDAQ was up 0.81%, the S&P 500 was up 0.31%, and the Dow was down 0.08%.
Samy Chaar, chief economist at Lombard Odier, said, “It feels like this week's focus has returned to market fundamentals and financial reports. At least for the time being, we are freeing ourselves from the geopolitical factors that have been affecting the market for the past two weeks.”
The performance of the US stock earnings season so far. As of Tuesday evening, more than one-fifth of the S&P 500 companies had reported earnings, and more than three-quarters of them had exceeded Wall Street expectations, according to FactSet data.
Jay Hatfield, CEO of Infrastructure Capital Advisors, said, “Normally, the stock market weakens before the earnings season because there is only economic and political news on the market, and they are often negative. After a pullback caused by an information vacuum, US stocks experienced a typical earnings season rebound on Tuesday.”
The market continues to pay attention to the prospects of the Federal Reserve cutting interest rates.
Traders in the US interest rate market have begun to bet that the Federal Reserve will not cut interest rates this year. As the US economy shows resilience, progress on inflation has stalled, and Federal Reserve monetary policymakers have been hinting recently that they expect interest rates to remain high for a longer period of time. This has had a ripple effect on hedging tools.
The swap market shows that interest rates will be cut by a total of about 40 basis points before the end of the year, which means it is more likely that interest rates will be cut by 25 basis points twice. Confidence in the eventual shift to easing helps explain the strong demand for Tuesday's record sale of $69 billion 2-year US Treasury bonds.
Despite this, some traders are still preparing for a possible further decline in US Treasury bonds, as the sell-off drove yields on various maturity bonds to 2024 highs. The most notable bet on US Treasury options on Tuesday was a $11 million bet, which aims to increase the 10-year US Treasury yield to more than 5% within a month, compared to the current yield of around 4.6%. In the spot market, J.P. Morgan's latest customer survey showed that neutral positions were the largest in two months.
J.P. Morgan CEO Jamie Dimon said in a speech at the New York Economic Club on Tuesday that he feared that the US economy might repeat the mistakes that hindered economic development in the 1970s. In that turbulent decade, the economy was constrained by stagflation combined with low growth and high inflation, and Dimon thought this risk might reappear.
Individual stocks in focus
Star technology stocks generally rose, Tesla surged about 11%, Nvidia and Meta rose more than 1%, and Microsoft, Amazon, and Google followed suit.
Most popular Chinese securities rose, with Bilibili up more than 8%, NIO by more than 4%, Ali, JD, and Xiaopeng by more than 2%, and Baidu by more than 1%.
Chip stocks rose collectively. Arm rose more than 7%, Texas Instruments rose nearly 6%, AMD and Broadcom rose more than 2%, Nvidia and TSMC rose more than 1%, and Micron followed suit.
$Tesla (TSLA.US)$It surged about 11%, and it was reiterated that it will accelerate the launch of cheap models.
$Vertiv Holdings (VRT.US)$Up nearly 19%, performance guidance is strong.
$Texas Instruments (TXN.US)$Up nearly 6%, the Q1 earnings report was better than expected.
editor/tolk