Source: Wall Street News Author: Li Dan
The S&P Index rose three times in a row to a new high of more than three weeks; the Dow rose four times in a row to a new high of nearly four weeks; Nvidia led the tech giant, Meta rose 3%, and Apple surged and fell 0.9% the next day; Palantir, which showed poor earnings guidance, fell 7% after the market. China's stock index stopped rising for three consecutive years. Ehang Intelligence closed up 7.6%, and Ideal Auto closed up more than 4%. US bond yields broke away from a three-week low, and two-year yields rose for the first time in four days. The US dollar index stopped falling three times in a row and broke out of its low for more than three weeks. The offshore RMB fell more than 300 points in the intraday period and fell to 7.22. Bitcoin rose above $65,000 to hit a new high of more than a week before falling more than $2,000. Crude oil broke away from a seven-week low, and US oil ended five consecutive declines, but after rising more than 1% in the intraday period, it turned down in the short term. After two consecutive losses, gold rebounded, not approaching a four-week low, and rose more than 1% in the intraday period.
This week is a relatively “light” week for the US economic data. Investors will be watching the speeches of several Federal Reserve officials. Commentary said that after Federal Reserve Chairman Powell's unexpected speech last week was not hawkish, saying that the next rate hike is unlikely, the market will be watching. It remains to be seen whether most other Federal Reserve officials agree with Powell's position. No matter what the hawks say, Powell's dovish signal cannot be erased. Of course, as before, the Fed's decision still has to be based on data.
After Friday's non-farm payrolls report revived expectations of interest rate cuts, US stocks continued to rise, and the S&P 500 broke through the 50-day EMA. It is viewed by chart analysts as a key position to maintain positive momentum. Technology stocks continue to bolster the market. Investment bank Melius's report reaffirmed Nvidia's purchase rating and pointed out that in addition to Nvidia and Broadcom, capital expenditure for large clouds should also benefit AMD. However, after announcing its earnings report, Apple, which had surged last Friday, fell back. Last weekend, Buffett's Berkshire Hathaway announced a 13% reduction in Apple holdings in the first quarter. Buffett later said that the reduction is related to the US government's corporate tax hike and that he will still hold Apple for a long time. Apple is likely to remain the largest stock by the end of this year.
The China Securities Index, which surged last week, turned down a few times during the intraday period, but some Chinese securities remained high. After announcing that the L6 model had accumulated orders of more than 41,000 units in three weeks, Ideal Auto once had an intraday increase of 7%; Yihang Intelligence, which produces autonomous aircraft, rose by more than 10%. Morgan Stanley initially covered this individual stock and gave it a purchase rating. I am optimistic about the prospects for this urban air traffic (UAM) pioneer to receive policy support from China.
On the bond market side, after the weak growth in non-farm payrolls last Friday heated up expectations of interest rate cuts, the rise in US Treasury bond prices eased markedly after last Friday's sharp rise. Yields broke away from the three-week low set after last Friday's dive. The yield on medium- to long-term US bonds fell, while the yield on two-year US bonds, which are sensitive to interest rates, maintained an upward trend and climbed slightly. This week, the US Treasury will bid for 10- and 30-year US bonds totaling 67 billion US dollars, testing the market's demand for long-term US bonds.
In the foreign exchange market, the US dollar index turned down slightly in the intraday period, then surged off the three-week low set after the release of the non-farm payrolls report on Friday; while the US dollar rebounded, some non-US currencies fell, and the yen fell more than three weeks high set last Friday. The offshore renminbi once fell below 7.22, falling below the two-month high set by rising above 7.17 last Friday; Bitcoin surged and fell below the 65,000 US dollar mark for the first time in more than a week, then fell below the 65,000 US dollar mark for the first time in more than a week, then fell below the 65,000 US dollar mark. $30,000.
Among commodities, the situation in the Middle East affects nerves in the international crude oil market. According to CCTV reports, Israeli media said that Israel's wartime cabinet passed a decision on Monday to attack Rafah, the southernmost city in the Palestinian Gaza Strip after a few days; Egyptian officials said that the Hamas attack on southern Israel last Sunday made cease-fire negotiations difficult. Crude oil reached a new intraday high, rising more than 1% during the day. Gold's intraday gains also extended to more than 1%.
During the midday trading session of US stocks, CCTV said that Hamas leaders said they had agreed to the cease-fire plan proposed by the mediators Egypt and Qatar. Crude oil “plummeted” in the short term, then quickly turned up, eventually breaking out of the closing low since early March. According to Xinhua News Agency, the Israeli Prime Minister's office issued a statement on Monday night saying that Israel's wartime cabinet decided to continue operations in Rafah. Israel believes that although the draft agreement agreed by Hamas is far from meeting Israel's requirements, Israel will still send a delegation to participate in the relevant cease-fire negotiations. In addition to the prospects for a cease-fire in the Gaza Strip, some commentators mentioned that Saudi Arabia raised the price of official crude oil sold to most regions in June, which also boosted the rise in oil prices.
The S&P Index rose three times in a row, the Dow rose four times in a row, Nvidia led the way, tech giant Apple surged, and Palantir plummeted after falling back in earnings the next day
The three major US stock indexes collectively opened higher for three consecutive trading days and have maintained their gains since then. The Dow Jones Industrial Average rose more than 210 points and rose more than 0.5% at the beginning of the market. The increase narrowed to less than 200 points in early trading. The increase in midday trading was over 200 points, the S&P 500 index rose more than 1.0% at the end of the session, and the Nasdaq Composite Index rose about 1. %. In the end, they collectively closed higher for 3 consecutive days, and the Dow rose for 4 consecutive days.
S&P, which closed up 1.26% on Friday, the biggest increase since February 22, closed up 1.03% to 5180.74 points, breaking the high level since April 11 for two consecutive days and the biggest three-day increase since November 14, 2023. The NASDAQ closed up 1.19% to 16,349.24 points, a new high since April 11. The Dow closed up 176.59 points, or 0.46%, to 38852.27 points, breaking the high level since April 9 for two consecutive days.
The small-cap stock index Russell 2000, which is mainly value stocks, closed up 1.23%, outperforming the market and rising for 4 consecutive days until April 9. The Nasdaq 100 Index, which focuses on technology stocks, closed up 1.13%, and the Nasdaq Technology Market Capitalization Weighted Index (NDXTMC), which measures the performance of technology constituents in the Nasdaq 100 Index, closed up 1.59%, all rising for three consecutive days until the closing of April 11.
Among the major sectors of the S&P 500, real estate, which had only a slight decline, did not close higher on Monday. IT, where chip stocks are located, led the rise by nearly 1.5%, Meta's communications services rose nearly 1.4%, financial and non-essential consumer goods rose by nearly 1.2% and 1.1% respectively, and industry rose 1%, and essential consumer goods, which had the smallest increase, rose less than 0.1%.
Including Microsoft, Apple, Nvidia, Google's parent company Alphabet, Amazon, Facebook's parent company Meta, and Tesla, most of the tech giants “Seven Sisters” closed higher, but Apple, which surged last Friday, fell back. Tesla rose 3.5% in early trading and closed up nearly 2% for three consecutive days, but it is not close to the closing high since March 1, which was set by a 15% surge last Monday.
Among FAANMG's six major technology stocks, Meta closed up 3%, rising for four consecutive days, breaking its high position since April 24; Microsoft closed up 1.7%, rising from 4 to April 16, but the media said that after Microsoft was preparing to launch a self-developed AI model, Microsoft had a slight decline in the short term; Amazon dropped nearly 0.8% after the initial decline, closing up 1.3%, rising for 4 days. 2 days after announcing financial reports; Alphabet turned down again in early trading and once fell 0.7% at the end of trading. After turning upward, it closed up 0.5%, rising for four consecutive days It has been high since April 26; Netflix closed up about 3, rising for 4 days and 2 days breaking its high level since April 18; while Apple, which closed up 6% last Friday after announcing the financial report, fell more than 1% in the midday session, closing down 0.9%, falling to its closing high since February 22, which was refreshed for two days.
Chip stocks generally continued to rise. The Philadelphia Semiconductor Index and semiconductor industry ETF SOXX closed up about 2.2% and 2.1%, respectively, outperforming the market and rising three times since April 11. Among chip stocks, Nvidia closed up about 3.8%, a high position since March 26; after Baird upgraded the rating from neutral to outperforming the market and added it to its list of the best semiconductor ideas, Micron closed up more than 4.7%; at the close, AMD rose more than 3%, Broadcom rose 2.5%, and Qualcomm rose more than 1%. TSMC US stocks, which had fallen more than 1% at the beginning of the session, rose 0.9%, and Intel rose 0.6%; while Microchip Technology (MCHP), which closed up 2.6%, announced earnings and EPS for the second quarter after the market The guidelines all fell short of expectations, falling more than 4% after the market.
A number of AI concept stocks surged. At the close, SoundHound.ai (SOUN) rose 15.8%, ultra-micro computers (SMCI) rose more than 6%, C3.ai (AI) rose 3%, and Oracle (ORCL) rose more than 2%. Astera Labs (ALAB), Adobe (ADBE), and BigBear.ai (BBAI), known as “Little Nvidia,” which sold data center interconnect chips, rose more than 1%; while Palantir (PLTR), which closed close to 8.1%, reported higher than expected for the first quarter, but for the second quarter and the whole year The guidance fell short of expectations and fell 7% after the market.
Most of the popular Chinese securities fell. The Nasdaq Golden Dragon China Index (HXC) rose 1% at the beginning of the session. It turned down in early and midday trading and closed down 0.1%, falling to its closing high since October 2023, which was refreshed for three days. China's ETFs KWEB and CQQQ both turned down at the beginning of the session, closing down nearly 0.7% and over 0.4%, respectively. New car builders had mixed ups and downs. After announcing that the cumulative orders for the new L6 model had exceeded 41,000 units in the three weeks, Ideal Auto had an initial increase of about 7%, closing up 4.3%, and less than 5% in early trading. At the beginning of the market, NIO Auto rose more than 8% and closed up nearly 2.2%, while Xiaopeng Motor and Xiaomi Fan fell more than 2% in early trading, closing down 0.3% and 0.4% respectively. Among other individual stocks, Ehang Intelligence (EH), which had risen 10.9% in early trading, rose 7.6%; Tencent Fan rose nearly 0.6%; Alibaba rose 0.3%; while Pinduoduo and NetEase fell more than 1%, B accounted for 0.4%, JD fell 0.5%, and Baidu fell less than 0.1%.
Among individual stocks that announced financial reports, first-quarter losses exceeded expectations, and second-quarter revenue guidance fell 9.7%; Tyson Foods (TSN), whose second-quarter revenue and profit were lower than expected, closed down nearly 5.7%; electric vehicle manufacturer Lucid (LCID) closed 9.5%, and the first-quarter revenue reported slightly higher than expected, but lost 0.3 US dollars per share, falling more than 7% after the market.
Among the most volatile individual stocks, Paramount Global (PARA), which closed down 7% last Friday, rose 7% and closed up 3.1% at the beginning of the session. The media said that after the exclusive merger and acquisition negotiations with Skydance Media (Skydance Media) expired, Paramount executives decided to negotiate with all interested acquirers last weekend, including Sony and private equity Apollo Global Management (Apollo Global Management), which allegedly jointly submitted a $26 billion takeover offer last week; in the company's tenant and hospital operator Steward Health After CARE filed for bankruptcy under Chapter 11 of the Bankruptcy Act, the medical institution real estate trust Medical Properties Trust (MPW) closed down 7.6%.
On the European stock side, three ECB officials all said that recent data has strengthened their confidence that inflation will drop to 2% by mid-next year, and the pan-European stock index has risen for two consecutive days. The European Stoxx 600 index is close to its closing high since April 8, when it was refreshed last Monday. Stock indices of major European countries rose sharply. German and French stocks rose for two days, falling for three days in a row, and Western stocks, which fell last Friday, rebounded. The British stock market was closed for one day due to the Bank Day holiday, which hit a record high for two consecutive days last Friday.
Among the various sectors, insurance led the increase of nearly 1.7%; oil and gas closed up nearly 1.1%. Among individual stocks, French oil group Maurel et Prom, which has obtained a license to operate in Venezuela, rose 7.3%; Spanish-listed defense and technology company Indra, whose net profit increased 40% in the first quarter, surged 8.8%; Volvo rose nearly 1.1% after announcing that demand for electric vehicles drove a 27% year-on-year increase in sales in April.
US Treasury yields break out of a three-week low, two-year yields rise for the first time in four days
The yield on the US 10-year benchmark treasury bond rose above 4.51% in early trading in the Asian market. The yield on the US stock market fell 4.47% to a new low since April 10, which was refreshed by 4.45% last Friday, and has since rebounded. Early trading, the US stock market hit a high of 4.51% and approached daily highs. By the end of the bond market, it was about 4.49%, falling nearly 2 basis points during the day, and the yield on most other maturing US bonds fell for four consecutive days.
The 2-year US bond yield, which is more sensitive to interest rate prospects, fell 4.79% to a new low in the European stock market, fell more than 3 basis points during the day, and rose above 4.83% to a new daily high in midday trading. It rose by nearly 2 basis points during the day, far from the low since April 10, which was refreshed by 4.71% last Friday. It was about 4.83% at the end of the bond market, rising more than 1 basis point during the day, and rebounded after three consecutive days of decline.
The US dollar index stopped three consecutive declines and broke out of a low level for more than three weeks, Bitcoin once fell more than $2,000 after rising above $65,000
The ICE dollar index (DXY), which tracks the exchange rate of the dollar against a basket of six major currencies including the euro, rose above 105.20 before the European stock market and rose nearly 0.2% during the day. The European stock market fell below a new daily low of 104.90, fell nearly 0.2% during the day, then continued to rebound. US stocks completely broke away from the decline in midday trading and broke away from the low level of the US CPI for March announced on April 10 last Friday when it was updated close to 104.50.
By the close of the US stock market on Monday, the US dollar index was on the 105.10 line, rising less than 0.1% during the day; the Bloomberg US dollar spot index, which tracks the exchange rate of the US dollar against ten other currencies, rose slightly during the day. For the time being, the low level in the same period since April 11, which was refreshed last Friday, and the US dollar index rebounded after three consecutive days of decline.
Among non-US currencies, the yen declined after rising for three days. The US dollar rose less than 0.1% against the Asian market and remained strong after rising in early Asian trading. It rose more than 0.6% during the day, breaking out of the low level since April 10, which fell below 151.90 last Friday. US stocks closed slightly below 154.00; EUR/USD rose above 1.0790 to a new high in the European stock market. US stocks closed below 1.0770, rising less than 0.1% during the day, falling less than 0.1% during the day, falling short of 1.0810 last Friday. High level since the 10th; broke last Friday 1.2630 hit the high level of GBP/USD since April 10, and was below 1.2600 throughout the day. European stocks were close to a new daily high of 1.2600. US stocks hovered around the 1.2560 line at the close of trading, rising more than 0.1% during the day.
The offshore renminbi (CNH) was in a downward trend against the US dollar throughout Monday. At the beginning of the Asian session, it reached a new high of 7.1921, and fell 305 points during the day, falling 305 points during the day, falling below the high level since rising above 7.17 on January 25 last Friday. US stocks were close to recovering 7.20 before the market, and the decline widened later, and US stocks fell 7.21 in early trading. At 4:59 Beijing time on May 7, the offshore RMB was 7.2142 yuan against the US dollar, down 214 points from the end of the New York session last Friday, and fell after three consecutive days of gains.
Bitcoin (BTC) rose above $65,000 for the first time since April 26 in early trading on Monday. In early European trading, some platforms rose above $65,600, breaking the high level since April 24, and then fluctuated downward. US stocks fell below $63,000 in midday trading, and some platforms fell below $62,900, falling at least $2,500, down about 4% from the daily high. US stocks closed above $63,300 and fell more than 1% in the last 24 hours.
Crude oil got rid of a seven-week low, and US oil ended five consecutive declines, but after rising more than 1% in the intraday period, it turned down in the short term
International crude oil futures declined in the short term. When European stocks hit a new intraday high, US WTI crude oil was close to 79.10 US dollars, rising nearly 1.3% during the day. Brent crude oil rose above 83.80 US dollars, with an intraday increase of slightly more than 1%. After it was reported in midday trading that Hamas accepted the cease-fire plan proposed by the mediator, crude oil quickly fell to a new low in the intraday period. US oil approached 77.90 US dollars, falling nearly 0.3% during the day, and oil prices soon rose. The media quoted Israeli sources as saying that Israel would not take Hamas's reaction to the mediator's proposal seriously.
In the end, crude oil rebounded. After five consecutive days of decline, WTI's June crude oil futures closed up $0.37, up more than 0.47% to $78.48 per barrel, leaving the low since March 12, which was refreshed for three consecutive days last Friday; Brent crude oil futures for July closed up 0.37 US dollars, up more than 0.44% to 83.33 US dollars/barrel, and also bid farewell to the low level since March 12, which fell back and were refreshed last Friday.
US gasoline and natural gas futures rose sharply. NYMEX's June gasoline futures closed up 1.3% to 2.582 US dollars/gallon, breaking out of a fresh closing low since March 8 last Friday; NYMEX's June natural gas futures closed up more than 2.47% to 2.195 US dollars/million British thermal units, rising for three consecutive days, breaking the high level since January 24.
Gold's rebound is no longer approaching a four-week low, rising more than 1% in the intraday period
Gold basically maintained its upward trend on Monday. At a new low in early Asian trading, New York gold futures fell below $2,292, and spot gold fell below $2,292, falling more than 0.3% and 0.4% during the day, respectively, and continued to rise thereafter. When the US stock market hit a high since last Tuesday, April 30, futures rose to $2341.9, and spot gold approached $2,332, respectively, rising about 1.4% and 1.3% during the day, respectively, after falling to around $2,285 and below $2,278, respectively. rank,
By the close, COMEX June gold futures, which had been falling for two days, closed up 0.98% to $2331.2 per ounce, not approaching the closing low since April 2, which was refreshed last Tuesday. By the close of the US stock market, spot gold was above $2,320, up about 1% during the day.
edit/lambor