On the evening of the 17th Beijing time, retail sales in February in the USA increased less than expected, indicating that inflationary pressures are forcing consumers to cut back on spending. The Federal Reserve will hold a monetary policy meeting this week.
Today, the three major US stock indices opened lower and then rose, as of the time of writing, $S&P 500 Index (.SPX.US)$ increased by 0.41%, $Nasdaq Composite Index (.IXIC.US)$ up 0.20%, $Dow Jones Industrial Average (.DJI.US)$ up 0.41%.
The most important event this week will be the Federal Reserve's monetary policy meeting.
The market generally expects that the Federal Reserve will keep interest rates unchanged at the end of the latest policy meeting. However, the remarks by Federal Reserve Chairman Jerome Powell after the meeting will be closely monitored to see if there are any changes in his tone. Earlier, Powell had repeatedly stated earlier this year that the central bank is 'not in a hurry' to cut interest rates.
Although no changes to interest rates are expected, investors will focus on whether the Federal Reserve signals any economic support.
On Monday, economic data showed that US retail sales in February grew by 0.2%, lower than the average expected value of 0.6% from economists surveyed by Dow Jones. Retail sales for January were revised down to a contraction of 1.2%.
In February, USA retail sales growth was below expectations, and the data for the previous month was revised downward, exacerbating concerns about a decrease in Consumer spending. Among the 13 categories in the report, 7 showed declines, particularly the motor vehicle data, which the market initially expected to rebound from January's weakness. The sales of RBOB Gasoline, as well as electronics and Outfits, also saw declines. As the only service sector category in the retail report, spending at restaurants and bars recorded the largest drop in a year.
US retail sales rebounded in February, suggesting that the economy will continue to grow in the first quarter, although at a moderate pace, due to import tariffs and large-scale layoffs of federal government workers dampening market sentiment. Previously, there was a significant growth in fourth-quarter data, while many regions in the USA faced winter storms in January, and wildfires occurred in California.
However, with consumer confidence in March dropping to a nearly two-and-a-half-year low, the growth momentum seen in February is unlikely to continue. A series of tariffs imposed by President Trump has sparked a trade war, raising concerns about inflation, job losses, and income losses, which may weaken consumer spending. The large-scale layoffs of public workers are also seen as detrimental to spending. Credit card data from Bank of America shows early signs of weakness in discretionary spending.
Focus Stocks
The performance of Growth Tech stocks is divergent. $Advanced Micro Devices (AMD.US)$ up nearly 5%, $Netflix (NFLX.US)$ Increased by nearly 4%, $Tesla (TSLA.US)$ Falling nearly 3%, $NVIDIA (NVDA.US)$ 、 $Amazon (AMZN.US)$ A slight decline.
China Concept Stocks are performing strongly, $MINISO (MNSO.US)$ up 5%, $Baidu (BIDU.US)$ up nearly 5%, $PDD Holdings (PDD.US)$ 、 $Alibaba (BABA.US)$ Up nearly 3%.
Quantum Computing concept stocks continue to rise sharply, $Arqit Quantum (ARQQ.US)$ up nearly 31%, $Quantum (QMCO.US)$ Increased by over 16%, $Quantum Computing (QUBT.US)$ rose over 15%, $SEALSQ Corp (LAES.US)$ Increased by more than 10%. $D-Wave Quantum (QBTS.US)$ Increased by over 8%.
Nuclear Power stocks are performing well, $Oklo Inc (OKLO.US)$ Rising over 5%, $Energy Fuels (UUUU.US)$ up nearly 5%, $NANO Nuclear Energy (NNE.US)$ Increased by over 4%, $Vistra Energy (VST.US)$ Up over 2%.
$Intel (INTC.US)$ Increased by more than 7%, the new CEO plans to comprehensively reform the chip business and AI Global Strategy.
$Tesla (TSLA.US)$ Decreased by more than 3%, recently downgraded by multiple Institutions with a lower Target Price.
$Affirm Holdings (AFRM.US)$ Decreased by more than 14%, Klarna has replaced it as the rapidly growing Crediting choice for retail giants in the USA.$Walmart (WMT.US)$the quick Crediting choice.
Editor/Somer
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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