On the evening of the 26th Beijing time, US stocks opened higher on Friday. Earnings from Google and Microsoft suggest that the artificial intelligence boom that is driving tech stocks up continues. The US core PCE rose 2.8% year over year in March, indicating that inflationary pressure remains high.
As of press release, the NASDAQ is up 1.33%, the S&P 500 is up 0.72%, and the Dow is up 0.24%.
So far, around 38% of the S&P 500 constituent companies have reported quarterly results, and nearly 80% of them have exceeded earnings expectations.
A J.P. Morgan strategist said that of the S&P 500 component companies that have announced results so far, the performance of nearly 80% has exceeded analysts' expectations. Despite this, the stock price response has not been as good as expected. The increase brought about by better-than-expected results is below average, while lower-than-expected results have been more affected than usual.
More than 50% of the S&P 500 companies are yet to announce their results.
In terms of Friday's economic data, the core price index favored by the Federal Reserve rose at a brisk pace in March, heightening concerns about stubborn price pressure.
According to data released by the US Department of Commerce on Friday, the so-called core personal consumption price index (PCE), which excludes highly volatile food and energy, rose 0.3% month-on-month and 2.8% year-on-year. The overall PCE price index rose 0.3% month-on-month and 2.7% year-on-year.
Over time, 0.2% month-on-month inflation data is necessary to bring inflation back to target levels. The Federal Reserve is expected to keep interest rates unchanged next week.
US inflation rose moderately in March, but it is unlikely to change the financial market's expectations that the Federal Reserve will not cut interest rates until September.
The financial market initially anticipated that the Federal Reserve would cut interest rates for the first time in March, but then the rate cut was postponed until June, and now until September, as the job market and inflation data continued to rise unexpectedly this year.
Individual stocks in focus
Most Star Technology stocks rose. Google rose more than 10%, Microsoft rose nearly 3%, Nvidia and Amazon rose nearly 2%, Meta rose slightly, and Intel reversed the market and fell more than 11%.
Popular Chinese securities rose collectively. Xiaopeng rose more than 10%, NIO rose nearly 9%, Ideal rose more than 6%, JD rose more than 5%, Pinduoduo and Baidu rose more than 3%, and Ali rose more than 2%.
In terms of individual stocks,$Alphabet-A (GOOGL.US)$It surged more than 10%, and the Q1 earnings report crushed expectations in all aspects.
$Intel (INTC.US)$It fell more than 12%, and Q2 earnings guidance was weak.
$Snap Inc (SNAP.US)$It surged more than 23%, the Q1 earnings report exceeded expectations, and the Q2 performance guidance was better than expected.
editor/tolk