Source: Wall Street News

The US data released on Thursday shattered hopes for a soft landing: the annualized quarterly GDP growth rate of 1.6% in the first quarter hit a new low of nearly two years, less than half of the fourth quarter of last year, and slower than the 2.5% growth rate expected by the market; personal spending on economic growth engines increased 2.5% in the first quarter, and the growth rate was lower than expected; the GDP report was released at the same time. The PCE price index, the core inflation index favored by the Federal Reserve, grew by 3.7% in the first quarter, almost double the growth rate in the fourth quarter; furthermore, the number of people applying for unemployment benefits for the first time last week did not rise as expected, but fell to two. Low for the past month.

The data shows that economic growth is unexpectedly weak, but core inflation is stubbornly high. The labor market is still strong, concerns about stagflation have intensified, the Fed's interest rate prospects are even more uncertain, and interest rate cuts are more likely to be delayed, and the prospects for interest rate cuts have been further thwarted. The commentator said that the Federal Reserve wants to see inflation begin to decline continuously, while the market wants to see economic growth and corporate profits increase. If the data does not satisfy both aspects, that is bad news for the market.

After US stock pre-market GDP and other data were released, swap contract pricing showed that the Fed's interest rate cut expected by intraday investors fell to about 33 basis points this year, which meant only one 25 basis point interest rate cut, far lower than the more than six interest rate cuts expected at the beginning of this year; US Treasury bond prices dived, and the yield rose by more than 10 basis points from a lower day to a new high in more than five months. The yield on the benchmark ten-year US Treasury bond rose 4.70% in the intraday period for the first time in more than five months, and the yield on two-year US bonds, which is sensitive to interest rates, has risen rapidly and refreshed, breaking away from a new low in nearly two weeks set earlier in the day However, the rally did not last long, and US stocks returned to their decline in early trading.

Expectations of interest rate cuts have been hit, tech giants' earnings reports are poor, and major US stock indexes have opened sharply lower across the board. After announcing that revenue guidelines for the second quarter were lower than expected and that AI-related investment spending would be as much as 10 billion US dollars this year, and CEO Zuckerberg warned that it would take some years to profit from generative AI, Meta jumped lower than 10%, leading the decline in S&P and NASDAQ constituent stocks; after announcing that revenue for the first quarter was lower than expected and revenue growth from major business consulting stagnated year-on-year, IBM announced that revenue for the first quarter was lower than expectations and that growth would slow in the second quarter. It is expected that the Asia-Pacific region outside of China and Europe will continue to weaken, and construction machinery giant Caterpillar initially fell more than 10%. Dow The two major drivers of the decline.

However, some blue-chip stocks reversed the market, supporting major stock indexes to rebound from intraday bottoming out. When the earnings report was announced, Tesla maintained its gains after Wednesday's rise; chip stocks generally rose. Nvidia, which dived on Wednesday, rebounded by more than 5% from a daily low. The new Evercore ISI report reaffirmed Nvidia's outperforming industry rating, and recommended seizing every opportunity for this individual stock to weaken to the bottom. Pharmaceutical giant MSD's profit and revenue in the first quarter rose more than 4% in the intraday period, taking the lead in containing the Dow's decline. Newmont, the world's largest gold mining company, had a profit higher than expected in the first quarter, up more than 10%, and the materials sector, where mining stocks are located, rose against the market. After the market, the first-quarter results announced by Microsoft and Google's parent company were both better than expected. Google also announced the first dividend payment in history. After the market, the stock price quickly stopped falling and once rose by more than 16%, which is likely to support the market's rebound on Friday. However, the second-quarter guidance fell short of expectations, and Intel dived back after the market.

In the foreign exchange market, the Eurozone and the UK PMI were better than expected, while US GDP was poor. Both the euro and the pound against the US dollar, and the yen continued to hit new lows since 1990 this week. After falling below the key level of 155 on Wednesday, it fell further 156. The comments say that the yen has repeatedly hit a new low for 34 years may force Bank of Japan Governor Ueda Kazuo to make statements more hawkish after this Friday's meeting, because he will try to maintain the path of withdrawing from super easing without hitting the yen. Bitcoin continued to rebound after US GDP. At one point, it reached 65,000 US dollars. It has rebounded more than 2,000 US dollars from its low level of almost a week before falling earlier in the day.

Among commodities, gold declined and fell for a while after the US GDP was announced, but US stocks rallied in early trading. Spot gold rose more than 1% during the day, and New York futures rebounded more than 1% from a lower daily rate. They all evened the decline in the previous two days and returned to Monday's level. Futures will break out of the closing low of nearly three weeks. The World Bank's recent report predicts that in many global elections this year, gold will receive uncertain geopolitical and policy support, and will continue to be out of touch with rising US bond yields. After rising about 4% in the first quarter, the price of gold will rise further, rising about 8% throughout the year.

After the US GDP, which was upset and weak, was announced, international crude oil turned down in the market, but since then rebounded and maintained its gains until the close, getting rid of the risk of breaking a new low in the past month, and stood at a high position for more than a week. According to the review, the rebound in oil prices is due in part to Israel's actions in the Gaza Strip reigniting the risk of supply disruptions in the Middle East, and US Treasury Secretary Yellen's statement that domestic economic performance is still very good. After more data is released, the GDP growth rate will improve in the first quarter. According to Xinhua News Agency, Israeli media said that Israeli Prime Minister Binyamin Netanyahu approved plans to carry out ground operations in the southern city of Rafah in the Gaza Strip; CCTV quoted Israeli media as saying that the Israel Defense Forces have deployed dozens of tanks and armored vehicles along the southern border near Gaza.

IBM, Caterpillar, and Intel plummeted after three consecutive years, Meta recorded the biggest decline in two years, and Google and Microsoft turned up

The three major US stock indexes collectively opened lower for the first time this week, and all narrowed their early trading losses by more than half. The Nasdaq Composite Index fell more than 2% at the beginning of the session, and the decline narrowed to less than 2% in early trading. The S&P 500 index fell about 1.6% in early trading, and fell less than 1% in midday trading. The Dow Jones Industrial Average fell slightly by more than 700 points and 1.8% in early trading. The decline narrowed to less than 400 points in midday trading, and fell less than 1%. In the end, the three major indices collectively closed down for the first time this week. The S&P and NASDAQ stopped rising for 3 days, and the Dow fell for 2 consecutive days after rising for 4 days.

S&P closed down 0.46% to 5048.42 points, leaving the closing high since April 12, which was refreshed on Tuesday. The NASDAQ closed down 0.64% to 15611.76 points. It is still far from the closing low since January 31, which was set last Friday, and is expected to rise steadily this week. The Dow closed down 375.12 points, or 0.98%, to 38085.80 points, continuing to fall from its closing high since April 9, which was refreshed on Tuesday.

The tech-heavy Nasdaq 100 index fell 2% at the beginning of the session and closed down 0.55%. After three consecutive days of rebound, it was unable to break away from its low since January 18, which was refreshed last Friday. The NASDAQ Technology Market Capitalization Weighted Index (NDXTMC), which measures the performance of technology components in the NASDAQ 100 index, fell more than 3% at the beginning of the session, closing down 0.63%, and failed to continue to break out of the low since February 21 set last Friday. The small-cap stock index Russell, which is mainly value stocks, fell nearly 1.9% in early trading, closing down 0.72%. After rising to a high level since April 12 on Tuesday, it fell for two consecutive days.

Among the constituent stocks of the Dow Index, IBM, which announced financial reports, was far ahead in the decline. Caterpillar, which fell more than 9% in early trading, closed down 7%, and Microsoft ranked third. Honeywell, which had higher revenue than expected in the first quarter and maintained full-year guidance, still closed down 0.9%; among the few rising constituent stocks, MSD, which rose nearly 4.6% at the beginning of the session, led 2.9%. At the close of trading, Intel, Boeing, Unitedhealth, and Chevron, the sole energy stock, rose more than 1%.

Among the major sectors of the S&P 500, a total of six closed losses on Thursday. Meta's communications services fell about 4%, leading the decline. Healthcare, which had the second-largest decline, fell only by more than 0.6%, and Tesla's non-essential consumer goods fell 0.2%, the smallest decline. Among the five sectors that closed higher, materials rose about 0.7%, energy rose 0.5%, utilities and industry rose nearly 0.3%, and IT, where Nvidia is located, rose nearly 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 rose in early trading. Tesla, which rose 12% on Monday, quickly turned up after falling more than 2% at the beginning of the market. It closed up nearly 5%, rising for three consecutive days. Two days after the announcement of the earnings report, it hit a closing high since April 12.

FAANMG's six major technology stocks all fell during the intraday session, but even after falling during the midday session, the decline moderated by 16% at the beginning of the session. The decline narrowed by about 10.6%, closing down about 10.6%, the biggest closing drop since February 3, 2022. It fell two consecutive days to a low closing level since February 1, then turned up and rose more than 1% after trading; Microsoft and Alphabet, which will release financial reports after trading on Thursday, both fell more than 5% at the beginning of the session. Microsoft closed down nearly 2.5%, and fell back to the low level since January 31. After the financial report was announced, it rose more than 5% after the market. Alphabet closed down nearly 2%, falling to a three-day high closing record, rising more than 10% after announcing financial reports; Amazon fell 5.8% at the beginning of the session, closing down 1.7%, falling for two consecutive days, breaking the closing low since March 11, turning up after the market and rising by more than 4%; while Apple closed 0.5%, which is expected to continue rising from the 4th until April 15; Netflix initially fell 1.7% in early trading, closing up 1.7%, not approaching the closing low since February 13, which was refreshed on Monday.

Chip stocks generally reversed the market and outperformed the market. The Philadelphia Semiconductor Index and semiconductor industry ETF SOXX turned higher at the beginning of the session, closing up nearly 2% and 1.9% respectively, rising for four consecutive days until closing high since last Tuesday, April 16. Among chip stocks, Nvidia, which closed down more than 3% after the intraday dive on Wednesday, fell more than 1.8% at the beginning of the session, then quickly turned up, closing up more than 3.7%, rebounding 5.6% from the daily low, not close to the closing low of 9% since February 21, which plummeted 10% last Friday; Broadcom closed up 3%; after switching to AMD in early trading, it closed up more than 1%; while TSMC US stocks, which fell more than 4% at the beginning of the session, closed down nearly 2%; Intel closed up nearly 1.8%, but after announcing financial reports, it closed down nearly 1.8% after the financial report.

AI concept stocks have mixed ups and downs, and may rise or narrow in the intraday period. At the close, ultra-micro computers (SMCI), which turned up in early trading, rose more than 4%, and SoundHound.ai (SOUN), which turned up in early trading, rose 3.7%, and Palantir (PLTR), which fell more than 4% at the beginning of the session, rose nearly 0.6%. Astera Labs (ALAB), known as “Little Nvidia,” which sells data center interconnect chips, closed up nearly 0.9% after midday trading; while C3.ai (AI) fell nearly 0.9%, BigBear.ai (BBAI) fell nearly 1.8%, Adobe (ADBE) and Oracle (ADBE) (Oracle) ORCL) fell nearly 0.8% and 0.4%, respectively.

Popular Chinese securities had mixed ups and downs. The Nasdaq Golden Dragon China Index (HXC) fell more than 0.9% at the beginning of the session and closed up nearly 0.8% after turning up in early trading. It outperformed the market for 4 consecutive days, and hit a closing high since April 11 on the 4th and 2nd. KWEB closed up nearly 0.2%, while CQQQ closed down nearly 0.2%. New car builders fell sharply in the intraday market. By the close, their performance was mixed. Ideal Auto fell by nearly 1.7%, NIO Auto, which had fallen by nearly 3% at the beginning of the market, fell by more than 0.2%, Xiaopeng Motors closed out, and Xiaomi fans rose less than 0.1%. Among other individual stocks, JD rose more than 1% at the close; Alibaba and Baidu rose by about 0.6% and 0.7% respectively after turning up in early trading; while NetEase, which turned up gains in midday trading, rose 0.1%; while Station B fell 2%, Pinduoduo fell more than 1%, and Tencent Fansan fell nearly 1%.

Among the individual stocks that announced financial reports, Southwest Airlines (LUV) closed down nearly 7% after first-quarter revenue was lower than expected, and management warned that Boeing aircraft deliveries were delayed and next year's growth guidelines were lowered; home appliance manufacturer Whirlpool (WHR) closed down 10.1% after announcing higher-than-expected revenue and earnings for the first quarter but laying off 1,000 employees due to stagnant demand in the US market; digital workflow company ServiceNow (NOW), whose first-quarter revenue was slightly higher than expected; although first-quarter revenue and profit were better than expected, blood sugar monitoring system manufacturer Dexcom closed down 4%; although first-quarter revenue and profit were better than expected, blood sugar monitoring system manufacturer Dexcom (DXCM) was still down 8% after the market.

However, net profit for the first quarter was far higher than expected, and after revealing that its plan to divest non-core assets received strong buyers' interest, the world's largest gold mining company Newmont (NEM) closed up 12.5%; horse racing and casino betting company Churchill Downs (CHDN), whose profit and revenue were higher than required in the first quarter, closed 4.7%; Chipotle Mexican Grill (CMG), a Mexican restaurant chain with higher-than-expected profit in the first quarter and raised this year's free cash flow guidelines Ford Motor (F) fell nearly 3% in midday trading and closed up 0.7%; social media Snap (SNAP) rose nearly 30% after the market, after announcing a 21% increase in revenue for the first quarter due to improvements in advertising platforms; after the post-market announcement that losses for the first quarter were lower than expected and revenue higher than expected, biotech stock Gilead Sciences (GILD) rose nearly 3% after the market.

Among individual stocks that fluctuated a lot, the data management software company Rubrik (RBRK) had an issue price of $32 above the guidance range on the first day of listing on the NYSE, rising 20.6% at the opening and 15.6% at the close; mobile phone parts manufacturer Loar Holdings (LOAR) was also higher than the guidance range, and its debut rally was even stronger, closing 75.7% higher.

European stocks were also hit by financial reports from some companies, and the pan-European stock index declined for two consecutive days. The European Stoxx 600 index continued to fall from its closing high since April 8, which was refreshed on Tuesday. Stock indices of major European countries fell during the week. German, French, Italian and Western stocks fell for two consecutive days, while British stocks, which stopped rising for five consecutive days on Wednesday, closed at a record high on the 3rd day of this week.

Among various sectors, industrial revenue fell nearly 1.9%, due to the fact that Dutch-listed digital payment company Adyen plummeted 18.4% after announcing lower sales expectations for the first quarter and analysts' concerns that collection fees were at an all-time low; the personal and household goods sector where the luxury giant is located closed down 1.9%. Among component stocks, Hermès, whose sales soared 17% in the first quarter, still fell 2.4%. LVMH and Lifeng fell 2.8% and 1.2% respectively; the food sector fell by about 1%, mainly due to the announcement that organic sales growth for the first quarter was lower than expected, and Nestle Food Packaging Company, the largest Swiss listed food packaging company in the world Fell 2%; The technology sector fell 1%, hit by Meta and other US technology stocks, and ASM International (ASMI), which surged 11% after Wednesday's earnings report, fell 1.4%; while the basic resources of mining stocks closed 1.9% against the market, benefiting from BHP Billiton's bid of 38.8 billion US dollars to seek acquisition on Thursday, British and American resources listed in London surged 16.1%, supporting the rebound of British stocks.

After the GDP announcement, US bond yields rose more than 10 basis points to a five-month high

At the time the US GDP was announced, the yield on the US 10-year benchmark treasury bond quickly fell below 4.62% and reached a new low of 4.61%. The US stock rose above 4.70% before the market, breaking the high level since November 2, 2023. It rose more than 9 basis points during the day and rebounded more than 12 basis points from the daily low. By the end of the bond market, it was about 4.70%, rising about 6 basis points during the day, after three days of continuous decline.

Before the GDP announcement, the 2-year US bond yield, which is more sensitive to interest rate prospects, fell to a new low of 4.89% in the European stock market. After GDP was announced, it quickly rose to 5.0%. US stocks rose above 5.02% before the market, breaking the high level since November 14, 2023 after rising 5.0% on Monday. It rose nearly 10 basis points during the day and rebounded about 14 basis points from the daily low. By the end of the bond market, it was about 5.0%. It rose more than 7 basis points during the day.

The US dollar index hit a new low for nearly two weeks, then turned higher, and Japan hit a new low since 1990 for 4 consecutive days

The ICE US Dollar Index (DXY), which tracks the exchange rate of the US dollar against a basket of six major currencies including the euro, was close to 105.50 in the European stock market, falling more than 0.3% during the day. After the announcement of US GDP, it quickly rebounded and turned up. US stocks reached a new high of 106.00 before the market, rising more than 0.1% during the day, and failed to rise again after falling in early trading.

By the close of the US stock market on Thursday, the US dollar index was below 105.60, falling nearly 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 less than 0.1% during the day, close to the simultaneous low since April 12, which was set by Tuesday's fall, and the US dollar index both rebounded again on Wednesday and then fell.

Among non-US currencies, the yen hit a new low since 1990 in the intraday session this Thursday. The US dollar rose above 155.70 against the European stock market, breaking the high level since 1990 for the fourth day in a row, rising nearly 0.3% during the day. US GDP returned some gains and fell 155.50. US stocks closed above 155.60 and rose nearly 0.2% during the day; EUR/USD fell below 1.0680 before the GDP was announced. The US stock market rebounded at 1.0740 in midday trading, approaching the mid-day rise of 1.0740 in the European market. Since April 11, created by 40 High; GBP/USD fell below 1.2450 as a new day low after the US GDP was announced, and US stocks returned to 1.2520 in midday trading, close to the high since April 12 created after European stocks rose above 1.2520 in the intraday session.

The offshore renminbi (CNH) fell to 7.2739 against the US dollar in early Asian trading, breaking the low level since last Tuesday, April 16 to 7.2831 for two consecutive days. After the US GDP was announced, the increase narrowed and fell close to 7.27. The increase in US stocks continued to expand after opening. The midday trading hit 7.2537, up 202 points from the daily low. At 4:59 on April 26, Beijing time, the offshore renminbi reported 7.2553 yuan against the US dollar, up 178 points from the New York market at the end of Wednesday, ending two consecutive days of decline. It rose on the second day of the week.

Bitcoin (BTC) fell below $63,000 to below $62,900 before the US GDP was announced, breaking the intraday low of $60,000 on Friday, April 19, and continued to rebound after the GDP was announced. At the end of the session, US stocks traded above $65,000, rising more than $2,000 and up nearly 4% from the daily low. US stocks hovered at the $65,000 level at the close of the day, rising more than 1% in the last 24 hours, and is still far from the high level since April 13, which was refreshed above $67,200 on Tuesday.

Crude oil GDP then fell and then rebounded by more than 1% and closed to a new high of more than a week

International crude oil futures declined several times in the intraday session on Thursday. When US GDP reached a new high before it was announced, US WTI crude oil had risen above 83.30 US dollars, and Brent crude had risen above 88.50 US dollars, rising about 0.6% during the day. After GDP was announced, it fell, and US stocks turned down before the market.

When US stocks hit a new daily low in early trading, US oil fell below $82.00 and fell 1% during the day. Oil was close to $87.30, falling 0.8% during the day, and continued to rise after turning high. At the time of the day's high, US oil rose above $83.80, up 1.2% during the day, oil rose above $89.20, and rose nearly 1.4% during the day.

In the end, crude oil, which fell back on Wednesday, rebounded and closed higher on the second day of this week. WTI's June crude oil futures closed up $0.76, or 0.92%, to $83.57 per barrel; Brent crude oil futures for June closed up $0.99, or 1.12%, to $89.01 per barrel, and both hit closing highs since April 16.

US gasoline and natural gas futures continued to have mixed ups and downs. NYMEX's May gasoline futures closed up about 0.9% to 2.7582 US dollars/gallon, rising for three consecutive days, breaking the high level since April 16; NYMEX May natural gas futures closed down 0.85% to 1.6530 US dollars/million British thermal units, falling 2 days in a row, and continued to fall from the high level since April 10, which was refreshed on Tuesday.

After Lunxi rebounded more than 3%, and Luntong rose two times in a row and reached a high level of GDP for two years, gold once fell. Later, it rose by more than 1%

London basic metals futures mostly rose on Thursday. Renxi, which led the rise, rose more than 3% and rebounded after falling two days to a low of more than a week, but due to a drop of more than 7% on Tuesday, it will continue to decline this week. Lunzinc rose more than 1.5%, and both Helun Copper rose for two consecutive days, approaching the highs set last Friday since April last year and April 2022, respectively. Lead has been rising for three consecutive days, approaching the high level set last Friday since November last year. After two consecutive days of decline, Lunnickel rose more than 1%, beginning to approach the high level set on Monday since September last year.

Meanwhile, Lunlu, which rebounded slightly on Wednesday, fell more than 1.5% to a low of more than a week, far from the nearly two-year high set on Monday.

Gold has risen several times in the intraday period. At a new intraday low in the Asian market, New York gold futures reached 2316.4 US dollars, falling more than 0.9% during the day. Spot gold fell nearly 0.5% during the day, European stocks turned up before the market, and declined after the US GDP was announced. Before the US stock market, futures and spot gold fell below $2,300 and $2,320, respectively, and turned down in the short term during the day.

Gold US stocks rallied in early trading. Futures rose to 2357.6 US dollars, rising more than 0.8% during the day. Spot gold rose above 2,340 US dollars and rose more than 1.2% during the day. They all returned to the intraday level of Monday, April 22, leveled off the decline of the previous two days, and gradually regained more than half of the increase.

At the close, COMEX June gold futures, which had been falling for three days, rose 0.18% to $2342.5 per ounce, leaving the closing low since April 4, which was refreshed on Wednesday.

At the close of the US stock market, spot gold was above $2,330, rising more than 0.7% during the day. It is still far from the closing record high set by slightly lower than $2,390 last Friday. As it fell more than 2% on Monday, it will continue to decline this week.

Editor/jayden