Source: Sina US stocks

On the evening of the 29th Beijing time, US stocks opened lower on Wednesday. As concerns about inflation heats up, rising US Treasury yields put pressure on stock indexes. The market continues to pay attention$NVIDIA (NVDA.US)$Wait for the performance of technology stocks and US stock financial reports. Economic data raised new doubts about the timing and extent of the Fed's interest rate cut, and the hawkish remarks made by Federal Reserve officials made matters worse.

As of press release, the three major indices have plummeted.$Dow Jones Industrial Average (.DJI.US)$It fell nearly 1%,$Nasdaq Composite Index (.IXIC.US)$,$S&P 500 Index (.SPX.US)$It fell more than 0.5%.

US stock trading has entered the final trading session in May. The three major US stock indexes will all record gains this month, partly due to enthusiastic support for a better-than-expected quarterly earnings season. The S&P 500 index has risen 5.3% so far this month, and the Nasdaq is up about 8%. The Dow rose 3.3%.

In May, the Dow broke through the 40,000 point mark for the first time, and the NASDAQ broke the 17,000 mark for the first time.

Nvidia has continued to rise since its earnings report was announced last week, and surpassed $1,100 for the first time on Tuesday, with a market capitalization of over $2.8 trillion.

In the three trading days since the release of the earnings report, Nvidia's stock price has surged about 20% cumulatively. This is one of the few highlights of the recent major US tech stocks. In comparison, Tesla, Alphabet, Microsoft, and Meta all continued to decline.

In addition to technology stocks, US stock earnings reports are still receiving market attention.$American Airlines (AAL.US)$Announced a reduction in sales expectations for the second quarter. USA$Southwest Airlines (LUV.US)$Financial reports have also been announced.

$Dick's Sporting Goods (DKS.US)$The company announced a strong increase in profits and raised performance guidelines.

US Treasury yields rose for the second day in a row on Wednesday. On Wednesday morning, the 10-year US Treasury yield rose 2.4 basis points to 4.566%, peaking at 4.578%.

Analysts believe that the 10-year US Treasury yield surged above 4.5%, a worrying level for stock investors.

On Tuesday local time, the US Treasury Department successively auctioned 69 billion US dollars of two-year treasury bonds and 70 billion US dollars of five-year treasury bonds. The overall auction results were poor, and overseas demand was insufficient, causing the US overload yield to rise that day.

Vital Knowledge analyst Adam Crisafulli said, “As the poor trend in US Treasury prices continued until Wednesday, the stock markets in most major markets were hit. The situation is beginning to be somewhat divided: at the macro level, the market is worried that inflation will accelerate again; while some industries are struggling to cope with the impact of deflation/ falling inflation on corporate profits.”

Leonardo Pellandini, stock strategist at Baer Sachs Bank of Switzerland, said, “The risk of higher long-term bond yields is eroding stock valuations, and short-term pressure seems to be a foregone conclusion. However, as inflation expectations ease and upcoming interest rate cuts, we think the market can continue to rise.”

Financial blog Zero Hedge commented, “The two-year US bond auction was terrible, and demand from foreign buyers was very weak, forcing direct bidders and tier-1 traders to step in. As a result, after the auction results were announced, the 10-year US Treasury yield soared to more than 4.50%, reaching the highest level in two weeks. This is not surprising, as market concerns about interest rates being high for a longer period of time have not dissipated.”

Traders lowered their bets on the Fed's interest rate cut in May. The market has now fully accepted the expectation that the Fed will cut interest rates by 25 basis points this year.

In fact, according to CME's US Federal Reserve's observation tool, federal funds futures trading data shows that the probability that the Fed will keep interest rates stable in September is close to 54%, and it is expected that it will most likely cut interest rates in September or November. They think the probability of cutting interest rates by another 25 basis points before the end of the year is one-third.

The sharp improvement in the US consumer confidence index for May, which was announced on Tuesday, left the market speculating on the strength of the economy and continued inflationary pressure, which in turn cast a shadow over the future of the Federal Reserve's policy path.

Minneapolis Federal Reserve President Kashkari, who is a hawkish member of the Federal Reserve Policy Development Committee, said on Tuesday that he would like to see more months of data showing an easing in the inflation situation before the Federal Reserve takes action to cut interest rates. He also said that if price pressure rises again, he will not rule out the possibility of further rate hikes.

Kashkari said, “I don't think anyone completely rules out the possibility of a rate hike. I think the chances of us raising interest rates are pretty low, but I don't want to give up any possibility.”

Another hawkish person, Federal Reserve Governor Bowman, even said that she supports either waiting until the downsizing of the Fed's balance sheet begins, or adopting a more dovish reduction process than announced earlier this month.

This Friday, the US market will see the Federal Reserve's most important inflation indicator, the personal consumption expenditure (PCE) index report. Economists expect the PCE price index to grow at an annual rate of 2.7% in April, the same as in March.

Aneeka Gupta, head of macroeconomic research at Wisdom Tree, said that the US personal consumption expenditure inflation data released on Friday will be an important guideline for the Federal Reserve's policy. Economists expect personal consumption expenditure (PCE) inflation to stabilize at 2.7% in April from March levels.

Federal Reserve Chairman Powell and his colleagues have emphasized on various occasions recently that before lowering the benchmark interest rate, more evidence is needed to show that inflation continues to advance towards the 2% target.

Individual stocks in focus

The collective correction of semiconductor stocks,$Advanced Micro Devices (AMD.US)$It fell nearly 4%,$Arm Holdings (ARM.US)$,$Taiwan Semiconductor (TSM.US)$It fell more than 3%,$Qualcomm (QCOM.US)$Decreased by more than 2%.

Popular Chinese securities stocks generally declined.$iQIYI (IQ.US)$,$Bilibili (BILI.US)$It fell nearly 3%,$JD.com (JD.US)$,$XPeng (XPEV.US)$,$Alibaba (BABA.US)$Decreased by more than 2%.

$Faraday Future Intelligent Electric Inc. (FFIE.US)$Shares have plummeted by more than 30%, and the company warned that profits may never be achieved or continued.

According to media reports, Tesla appears to be further advancing the implementation process of its FSD system in China. According to reports, after a recent software update, did any relevant characters appear in Tesla's Chinese employees' in-vehicle systems?$Tesla (TSLA.US)$There was a slight decline in the intraday.

On Wednesday, Bank of America reiterated its right$Apple (AAPL.US)$The company “outperforms the market” rating, and the tech giant will announce its generative AI strategy at next month's developer conference. Apple rose nearly 1%.

$ConocoPhillips (COP.US)$Will be acquired for $22.5 billion$Marathon Oil (MRO.US)$Marathon oil rose nearly 9%.

$American Airlines (AAL.US)$It fell by more than 13%. The company expected the adjusted EPS for the second quarter to be 1.00-1.15 US dollars, and the original forecast was 1.15-1.45 US dollars.

edit/lambor