Source: Wall Street News

When Nvidia announced its earnings report, investors sold technology stocks, chip stocks, and AI stocks. US stocks fell across the board on Wednesday. The stock price fell before Nvidia announced its earnings report, dragging down the chip stock index and the NASDAQ by more than 1%. The AI “monster stock” ultra-microcomputer decided to postpone the release of Q4 results the day after being sniped by bears. The stock price plummeted rapidly, falling more than 19%. Nvidia's after-market earnings report showed that revenue for the second quarter continued to exceed expectations, but revenue guidance for the third quarter fell short of the highest expectations. Blackwell chips are expected to seize several billion dollars in the fourth quarter, but there is no direct response to whether these billions of dollars were incremental, and the stock price fluctuated and dived after the market.

Nvidia cut more than expectations, weakening market enthusiasm. After the market, its stock price first rose 2% and then fell more than 8%, and the rest of the technology stocks fell after the market. The NASDAQ once fell more than 1.3% after the 100 session, AMD fell more than 3.8% after the market, Arm Holdings fell more than 3.6%, ultra-micro computers fell more than 6.7% at one point, and Micron Technology once fell more than 3.3%.

As risk sentiment worsened and safe-haven demand boosted the strengthening of the dollar, G10 currencies generally declined, and Bitcoin fell below 0.06 million dollars. The two-year US Treasury yield declined by 2.80 basis points, while the yield on the remaining US Treasury bonds rose by 1 to 2 basis points. Commodities generally declined. As the geopolitical situation did not escalate, EIA data showed that crude oil inventories fell below expectations. The market continued to be short on the prospects for oil demand. Energy stocks followed the decline in crude oil prices, and US oil fell more than 1.3% to below $75. Gold, silver, and copper have all been sold off.

US stocks fell across the board, the NASDAQ fell more than 1%, and the Dow bid farewell to a record high. Nvidia closed down 2.1% and fell more than 8% after the market, ultra-microcomputers fell more than 19%, and Ideal Auto fell by more than 16%. Most sectors declined, with the technology, optional consumption, communications and energy sectors falling the most, while only the finance and healthcare sectors closed higher, while the utilities sector remained flat:

• The three major US stock indices: the S&P 500 market closed down 0.60% to 5592.18 points. The Dow, which is closely linked to the economic cycle, closed down 159.08 points, or 0.39%, to 41091.42 points. The NASDAQ, which has the majority of technology stocks, closed down 1.12% to 17556.03 points. The NASDAQ 100 closed down 1.18%. The Nasdaq Technology Market Capitalization Weighted Index (NDXTMC), which measures the performance of NASDAQ's 100 technology components, closed down 1.35%. The Russell 2000 Index, which is more sensitive to the economic cycle, closed down 0.65%. The VIX Panic Index closed up 1.69% to 17.12.

Most ETFs in the US stock industry closed down. Regional bank ETFs and banking ETFs each increased by nearly 1%. Meanwhile, semiconductor ETFs fell nearly 2%, while technology industry ETFs, online stock index ETFs, and global technology stock ETFs each fell by at least 1%. Optional consumer ETFs, global aviation ETFs, and energy ETFs all fell by more than 0.5%.

Most of the 11 sectors of the S&P 500 index closed down. The information technology/technology sector closed down 1.30%, the optional consumer sector closed down 1.05%, the telecommunications sector closed down 0.84%, the energy sector down 0.67%, the essential consumer sector closed down 0.41%, the raw materials sector closed down 0.38%, the real estate sector closed down 0.35%, the industrial sector fell 0.04%, the utilities sector remained flat, the healthcare sector closed up 0.12%, and the financial sector closed up 0.31%.

The “Seven Sisters of Science and Technology” were completely destroyed. Nvidia closed down 2.1%, Tesla down 1.65%, Amazon down 1.34%, Google A down 1.11%, Apple down 0.68%, Microsoft down 0.78%, and “metaverse” Meta down 0.45%.

It is worth mentioning that Nvidia's revenue for the second fiscal quarter hit a record high in a single quarter, exceeding expectations by 122%. The revenue guidance for the third fiscal quarter increased the most by 83%, and fell below 100% for the first time in six quarters. It was better than Wall Street's average forecast but lower than the highest forecast for continued three-digit growth. Blackwell is expected to bring in billions of dollars in revenue in the fourth quarter. Blackwell samples are sent to partners and customers, and mass production will begin in the fourth quarter as planned. Nvidia plans to buy back an additional $50 billion. After the market, Nvidia first rose more than 2%, then fell more than 8% at one point.

Chip stocks collectively declined. The Philadelphia Semiconductor Index closed down 1.83%; the industry ETF SOXX closed down 1.8%; Nvidia doubled down the ETF, down 4.26%. Ansemi Semiconductor closed down 1.88%, Qualcomm down 1.2%, Kelei down 1.05%, Arm Holdings down 4.48%, AMD down 2.75%, and Broadcom down 1.99%. TSMC's ADR closed down 0.79%, Asmack's ADR fell 0.2%, Intel closed down 2.29%, Micron Technology closed down 3.07%, and Applied Materials closed down 1.47%.

AI concept stocks generally declined. Snowflake closed down 3.44%, SoundHound AI, an AI voice company owned by Nvidia, closed down 2.02%, C3.ai 2.25%, Oracle down 0.43%, Serve Robotics down 1.27%, Palantir 1.56%, BullFrog AI down 7.45%, BigBear.ai 7.1%, Dell Technology 0.27%, and CrowdStrike down 2.09%.

Notably, the “AI Demon Stock” ultra-microcomputer closed down 19.02%, and the intraday decline widened to 26%, the worst intraday performance since March 2020. After Hindenburg released a shorting report against the company on Tuesday, Ultramicrocomputer announced a delay in announcing the Q4 earnings report. Management needs more time to evaluate the design and operational effectiveness of internal controls.

Most Chinese securities fell. The Nasdaq Golden Dragon China Index closed down 3.57%. Among ETFs, the China Technology Index ETF (CQQQ) closed down 1.55%. China Internet Index ETF (KWEB) closed down 3.13%.

Among popular Chinese securities, Pinduoduo ADR closed down 7.03%, BOSS Direct Hiring closed down 21.45%, Gaotu fell by more than 18.4%, New Oriental closed down 3.91%, Good Future closed down 3.49%, Station B closed down 5.6%, NetEase closed down 3.78%, Baidu closed down 2.9%, Alibaba closed down 2.25%, Douyu and Tencent Music fell at least 5.1%, Yaduo and Weibo fell at least 3.2%, JD, Sohu, China, Baisheng Vipshop and Zhongtong Express fell by at least 0.5%.

Among the individual stocks that announced financial reports, (1) Ideal Auto closed down 16.12%, and operating profit for the second quarter was 0.468 billion yuan, down 71.2% year on year. Among new car builders, Xiaopeng fell 9%, NIO fell 7.5%, and Krypton fell 9.85%; (2) Meituan ADR closed up 3.7% after rising 10.2%. The company's second-quarter revenue increased 21% year on year, and adjusted net profit surged 77.6% year on year; (3) Mengniu Dairy ADR closed down 3.07%. Due to consumer demand falling short of expectations, Mengniu Dairy's revenue fell 12.6% year on year, and net profit fell 17.2% year on year.

Among other key individual stocks, (1) Bank of America closed up 0.71%, Buffett reduced its holdings of Bank of America shares and cashed out another 0.982 billion US dollars; (2) Buffett's Berkshire Hathaway closed up 0.88%, breaking through 1 trillion US dollars for the first time, becoming the first non-tech US company with a market capitalization to reach this milestone. Berkshire Hathaway Class B shares have accumulated a cumulative increase of more than 1,800% since their US IPO. (3) Salesforce rose more than 4% after the market, and the current CFO will resign; (4) Affirm's US shares rose 12% after the market, and the company's first-quarter guidance exceeded market expectations; (5) HP once fell more than 4%, with net revenue of 13.52 billion US dollars for the third fiscal quarter, and analysts expected $13.37 billion.

The European stock market closed slightly higher for the second day in a row. The pan-European Stoxx 600 index was approaching the highest level in history, and the German stock index rebounded more than 8.3% from the bottom of August:

The pan-European Stoxx 600 index closed up 0.33% to 520.60 points, approaching the all-time high of 524.71 points set on May 15. Most sectors rose, with chemical stocks up 1.4%, insurance stocks up 1.16%, while mining stocks fell 1.25%.

European multinational stock indexes generally rose. The German stock index closed up 0.54%, more than 8.3% from the rebound on August 5, approaching the highest level in history. The French stock index closed up 0.16%, the Italian stock index closed up 0.30%, the Dutch stock index closed up 0.31%, the Spanish stock index closed up 0.05%, while the UK stock index closed down 0.02%.

The market is awaiting US personal consumption expenditure (PCE) data released on Friday to find clues about the extent to which the Federal Reserve may cut interest rates in September. In just two years, US bond yields fell 2.80 basis points, while US bond yields rose 1-2 basis points for the remaining maturities, and the 2/10 year yield curve was close to zero:

US bonds: At the end of the session, two-year US Treasury yields, which are more sensitive to monetary policy, fell 2.80 basis points to 3.8712%. Intraday trading was in the 3.8465%-3.8753% range, falling throughout the day. European stocks broke 3.85% intraday and hit a new low since “Black Monday” on August 5. The yield on the US 10-year benchmark treasury bond rose 2.09 basis points to 3.8425%. Intraday trading was in the 3.8027%-3.8444% range. European stocks continued to rise after a fresh intraday low, and reached a new high at the end of trading.

European bonds: The yield on 10-year German bonds, the benchmark for the Eurozone, fell 2.8 basis points and remained in a state of decline throughout the day. The lowest decline in the intraday period was 6 basis points to 2.232%, the biggest decline since August 5. The two-year German bond yield fell 1.8 basis points. French 10-year Treasury yields fell 2.8 basis points, Italian 10-year Treasury yields fell 2.2 basis points, Spanish 10-year Treasury yields fell 1.4 basis points, and Greek 10-year Treasury yields fell 3.0 basis points. The yield on two-year British bonds rose 0.5 basis points, and the yield on British 10-year treasury bonds rose 0.3 basis points, reversing in a V-shape throughout the day. It was as low as 3.965% at 19:23 Beijing time.

According to the news, the money market remains unchanged in anticipation of the ECB's interest rate cut, and investors await the August inflation data for Germany and Spain released on Thursday. Data released by Statistics France on Wednesday showed that the composite consumer confidence index rose 1 point to 92 in August, reaching the highest point since the Russian-Ukrainian conflict broke out, and household confidence in the economic situation recovered slightly. However, the index is still far below its long-term average, which was 100 for the period January 1987 to December 2023.

Factors at the end of the month led to a 0.5% rebound in the US dollar index, breaking the one-year low set on Tuesday. Non-US currencies generally fell. The yen fell 0.37%, and fell below 144 in the intraday period:

US dollar: The DXY index, which measures a basket of dollars against six major currencies, rose 0.50% to 101.053 points. The intraday trading range was 100.565-101.177 points.

The Bloomberg US dollar index rose 0.35% to 1229.74 points. The intraday trading range was 1225.43-1230.66 points.

Non-US currencies generally declined. The euro fell by around 0.5%. The pound fell by around 0.3%, leaving the highest since March 2022, which was hit on Tuesday.

Yen: The yen fell 0.37% against the US dollar to 144.49 yen. The intraday trading range was 143.69-145.04 yen. The yen rose 0.21% against the euro to 160.65 yen; the yen rose 0.16% against the British pound to 190.587 yen.

Offshore RMB: Offshore RMB (CNH) fell 114 points against the US dollar to 7.1,329 yuan at the end of the session. Overall intraday trading was in the 7.1190-7.1408 yuan range, falling 218 points from the daily high when it hit a new low.

Cryptocurrency has generally declined. Bitcoin, the largest market capitalization leader, fell 4.33% at the end of the session to $59365.00. Ethereum, the second-largest, fell 1.76% at the end of the session to $2538.50.

Although the situation in the Middle East is tense and the risk of oil supply interruptions in Libya limited oil prices, the decline in US oil inventories fell below expectations. The market continued to be short on the prospects for oil demand. Oil prices fell for the second day in a row. US oil fell more than 1.3% to below 75 US dollars, and oil fell below 79 US dollars:

US Oil: WTI crude oil futures for October closed down $1.01, or close to 1.34%, to $74.52 per barrel.

Oil: Brent crude oil futures for October closed down $0.90, or more than 1.13%, to $78.65 per barrel.

Intraday performance: US oil and oil maintained overall declines throughout the day. Due to the tense situation in the Middle East and the risk of oil supply interruptions in Libya limiting the decline in oil prices, US oil and oil rose slightly in early Asian trading. The highest increase of nearly 0.6% surged the $76 mark, and the highest increase of oil rose nearly 0.6% above the $80 mark. At a new low in the European stock market, US oil fell nearly 2.3% below the $74 integer, and oil fell more than 2% below the $78 integer. In early trading of US stocks, the US Department of Energy announced that US EIA crude oil inventories fell for two consecutive weeks last week, and inventories hit new lows since January this year. Both oil and oil prices have almost erased all of their daily declines, but since the decline in US oil inventories was lower than expected and concerns about weak oil demand continued, the two continued to decline thereafter.

According to the news, according to people familiar with the matter, production at the Waha oil field in Libya fell to 0.175 million b/d, a sharp drop from the previous 0.32 million b/d. Meanwhile, Libya's national oil production fell further to 0.45 million b/d. According to CCTV news reports, US officials said that if Iran takes action, the US will protect Israel. The cease-fire negotiations in Gaza continue in Doha, the capital of Qatar. At 22:30 Beijing time, the US Energy Information Administration (EIA) released a weekly crude oil inventory report showing that US EIA crude oil inventories fell by 0.846 million barrels last week, while analysts expected a drop of 2.52117 million barrels, a decrease of 4.649 million barrels in the previous week.

Jeff Currie, a senior commodity analyst at Carlyle Group, believes that high interest rates have caused capital to shift from the crude oil market to the US currency market, reducing crude oil futures positions and crude oil inventories by up to 100 billion US dollars, and oil prices are under downward pressure. He predicted that with the start of the Federal Reserve's interest rate cut cycle, capital will flow back into the crude oil market and push up oil prices, similar to the impact of closing Japanese yen arbitrage trades on the stock market. Meanwhile, serious supply problems are likely to further exacerbate this trend.

Natural gas: US natural gas futures closed up nearly 1.37% in September, at $1.930 per million British thermal units. The European benchmark TTF Dutch gas futures fell 0.57% to 38.430 euros/megawatt-hour. ICE British gas futures rose 0.03% to 94.790 ps/kcal.

The strengthening of the US dollar and the settlement of profits from some investors put pressure on the price of gold. Spot gold fell about 0.8% to the 2,500 US dollar mark. The deepest decline in the intraday period was more than 1.2%. Futures closed down more than 0.5% to above $2,530:

Gold: COMEX December gold futures fell 0.52% at the end of the session to $2539.80 per ounce. In early Asian trading, spot gold rose slightly, up nearly 0.2% to $2,530. Afterwards, the decline continued. US stocks fell more than 1.2% to below $2,500 when they hit a new pre-market low, and fell by about 0.79% to $2504.61 at the end of the session.

Silver: COMEX September silver futures fell 2.80% at the end of the session to $29.145 per ounce. In early Asian trading, spot silver rose as high as 0.4% above the $30 mark, then continued to fall. At noon trading, US stocks fell by nearly 3% to the integer level of $29. At the end of trading, spot silver fell 2.83% to $29.1,267 per ounce.

The analysis points out that if the personal consumption expenditure (PCE) data released on Friday falls short of expectations, it may raise the market's expectations that the Federal Reserve will adopt a more relaxed policy, which will provide an upward impetus for gold prices. Furthermore, investors' enthusiasm for buying gold ETFs continues to rise.

London's industrial base metals have collectively declined. The economic weather vane “Dr. Copper” fell nearly 1.99% to 9,260 US dollars/ton, Lunxi aluminum fell more than 2.16%, Lunzinc fell more than 2.10%, Lun lead fell by more than 1.83%, Lun nickel fell by more than 0.68%, and Renxi fell more than 1.92%.

International Copper closed down 1.14% at night, Shanghai Copper closed down 1.00%, Shanghai Aluminum down 0.53%, Shanghai Zinc down 0.25%, Shanghai Lead down 0.91%, Shanghai Nickel down 0.28%, and Shanghai Tin closed down 1.50%.

edit/lambor