At the close, the Dow Jones Industrial Average fell by 34.29 points, or 0.07%, to 47,706.51 points; the Nasdaq Composite Index rose by 1.16 points, or 0.01%, to 22,697.10 points; and the S&P 500 Index declined by 14.49 points, or 0.21%, to 6,781.50 points.
According to Zhitong Finance, the three major indices ended mixed on Tuesday, with oil prices falling sharply as markets awaited inflation data due to be released before the U.S. stock market open on Wednesday.
[U.S. Stocks] At the close, the Dow Jones Industrial Average fell 34.29 points, or 0.07%, to 47,706.51 points; the Nasdaq Composite Index rose 1.16 points, or 0.01%, to 22,697.10 points; and the S&P 500 Index dropped 14.49 points, or 0.21%, to 6,781.50 points. Chinese concept stocks generally rose, with the Golden Dragon Index up 1.96%. Nio Inc. (NIO.US) surged 15%, XPeng Motors (XPEV.US) gained 2.28%, and Alibaba (BABA.US) rose 3.17%.
[European Stocks] The German DAX 30 Index rose 574.56 points, or 2.46%, to 23,968.94 points; the UK FTSE 100 Index increased by 163.79 points, or 1.60%, to 10,413.31 points; the French CAC 40 Index climbed 142.00 points, or 1.79%, to 8,057.36 points; the Euro Stoxx 50 Index advanced 156.35 points, or 2.75%, to 5,841.55 points; the Spanish IBEX 35 Index jumped 492.16 points, or 2.90%, to 17,436.76 points; and the Italian FTSE MIB Index surged 1,190.54 points, or 2.70%, to 45,215.50 points.
[Asian Stocks] The Nikkei 225 Index rose 2.88%, the KOSPI Index climbed 5.35%, and the Jakarta Composite Index gained 1.41%.
[Cryptocurrencies] Bitcoin rose more than 1.7% to $69,835; Ethereum increased over 1.4% to $2,031.2.
[Crude Oil] The price of light sweet crude oil futures for April delivery on the New York Mercantile Exchange fell $11.32, closing at $83.45 per barrel, a decline of 11.94%; the Brent crude oil futures for May delivery on the London exchange dropped $11.16, settling at $87.80 per barrel, a decrease of 11.28%.
[U.S. Dollar Index] The U.S. dollar index, which measures the greenback against six major currencies, fell 0.36% on the day, closing at 98.823 in the forex market. By the close of the New York forex market, 1 euro was exchanged for 1.1644 U.S. dollars, higher than 1.1578 U.S. dollars on the previous trading day; 1 British pound traded at 1.3460 U.S. dollars, above 1.3388 U.S. dollars from the previous session. 1 U.S. dollar was exchanged for 157.63 Japanese yen, down from 158.33 yen; 1 U.S. dollar fetched 0.7770 Swiss francs, lower than 0.7799 francs; 1 U.S. dollar bought 1.3570 Canadian dollars, below 1.3591 Canadian dollars; and 1 U.S. dollar was valued at 9.1371 Swedish kronor, less than 9.2100 kronor.
[Metals] Spot gold closed at $5,192.84; spot silver ended at $88.288.
[Macroeconomic News]
U.S. House Speaker Johnson downplayed concerns about gasoline prices, calling it a "temporary fluctuation." He dismissed worries about soaring gas prices during the U.S. military action in Iran, stating that it was merely a "temporary fluctuation" that would quickly resolve once the conflict ended. When asked whether Americans could tolerate gas prices exceeding $5 per gallon, Johnson rejected such concerns. Johnson said: "I believe the scope and mission of this operation were carefully designed and limited. I think the mission is being accomplished and is nearly complete. Moreover, the Commander-in-Chief himself has indicated in the past 24 hours that the operation is nearing its end, so gas prices will adjust accordingly afterward." He noted that a significant reason for the rise in natural gas prices might be the regime there closing the Strait of Hormuz and added, "The Strait of Hormuz will reopen, which will take a few weeks, and natural gas prices will come back down." Johnson continued: "So, this is just a temporary fluctuation within the extraordinary trend of America returning to energy dominance. The evidence speaks for itself and will continue to prove this point."
Bank of America: A sustained oil price shock may pave the way for the Federal Reserve's easing policy. In its report, Bank of America stated that markets currently view rising oil prices as a greater inflation threat, but supply shocks actually pose risks to both aspects of the Fed's dual mandate. The report pointed out that monetary policy tightens only when consumer demand is strong enough and economic activity can withstand supply shocks, allowing the Fed to focus on inflation as it did during the Russia-Ukraine conflict in 2022. However, the bank noted that the economy was significantly stronger at that time (with an unemployment rate of 4%, core PCE inflation above 5%, monthly job gains of 500,000, and substantial stimulus funds still in consumers' hands). Currently, employment growth is slower, inflation is moderately high, and fiscal stimulus is more limited. The bank believes that if the oil price shock persists, it will create conditions for the Federal Reserve to implement a more accommodative monetary policy.
A credit fund with a scale of $33 billion is facing redemption requests exceeding 7%. According to media reports citing insiders, Cliffwater's flagship private credit fund, managed by the alternative investment advisory and fund management company Cliffwater, may receive redemption requests surpassing 7%. The Cliffwater Loan Fund, which manages approximately $33 billion in assets, belongs to the interval fund category. Sources indicate that the company has yet to decide whether to impose restrictions when redemptions reach 5% or 7%. The fund's redemption window will close on Tuesday. Cliffwater is the latest private credit institution to encounter investor withdrawals. The industry, valued at $1.8 trillion, is witnessing investors pulling out due to concerns over loan quality and exposure to software companies potentially affected by artificial intelligence. Recently, Blackstone and BlackRock were compelled to impose redemption limits, signaling emerging liquidity crises in the UK and US private credit markets.
US Existing Home Sales Unexpectedly Rise in February as Improved Affordability Boosts Demand. Data released Tuesday by the National Association of Realtors (NAR) showed that existing home sales in the US unexpectedly rose in February, while the previous month’s figures were revised upwards, thanks to declining mortgage rates and moderate asking price increases. Contract closings grew by 1.7%, translating to an annual rate of 4.09 million units, surpassing market expectations. A notable development in the housing market has been improved affordability, driven by recent declines in mortgage rates and modest home price appreciation. NAR's monthly housing affordability index, which reflects changes in home prices, median incomes, and borrowing costs, is currently at its most favorable level since 2022. NAR Chief Economist Lawrence Yun stated, "Housing affordability is improving, and consumers are responding. However, there is still a long way to go to return to pre-pandemic levels of transaction activity." The report revealed that the median price of existing homes sold last month increased by 0.3% year-over-year to $398,000, marking one of the smallest increases since the pandemic-driven real estate boom. The inventory of existing homes for sale rose by 4.9% year-over-year to 1.29 million units, representing the highest February level since 2020.
[Stock News]
Boeing Delays Delivery of Some 737 MAX Aircraft Due to Wiring Issues. Boeing (BA.US) announced it would delay the delivery of some 737 MAX aircraft after discovering wiring issues in newly produced planes, posing a new setback to the company's plan to accelerate deliveries to customers. On Tuesday, Boeing revealed that abrasion marks were found on wires in undelivered aircraft, tracing the issue back to a machining error. The company did not disclose the specific repair measures required or the number of affected aircraft. A Boeing spokesperson indicated that repairs for each aircraft might take only a few days; however, this delay could slow down overall aircraft delivery progress for the month. Despite this, the company remains committed to its goal of delivering approximately 500 737 MAX aircraft to customers this year. Boeing also stated on Tuesday that it delivered 43 narrow-body 737 aircraft to customers in February. Last month, the company delivered a total of 51 aircraft, marking the highest February delivery volume since 2017.
The Pentagon Introduces Google AI Agents to Automate Non-Classified Routine Tasks. A senior official from the US Department of Defense announced that Google (GOOG.US, GOOGL.US) is deploying AI agents for approximately 3 million personnel within the Department to automate routine tasks. Emil Michael, the Under Secretary of Defense for Research and Engineering, stated that Google’s Gemini AI agents can independently execute tasks assigned by users, initially operating on non-classified networks. He added that the Department of Defense is in discussions with Google regarding the deployment of these agents onto classified cloud platforms. In a blog post on Tuesday, Google Vice President Jim Kelly noted that this new functionality will enable civilian and military personnel within the Department of Defense to create AI agents using natural language. Google has previously faced internal criticism for its collaboration with the Department of Defense. In 2018, thousands of employees protested the company's involvement in Project Maven, a Pentagon initiative leveraging AI to analyze video data from overseas drone operations. This backlash ultimately led Google to refrain from renewing the project contract.
NVIDIA Expands Investment in Thinking Machines, Providing AI Chip Support. NVIDIA (NVDA.US) is making a new round of investments in the artificial intelligence company Thinking Machines Lab and providing chips to assist in training and running the startup's AI models. The company was founded by former OpenAI executive Mira Murati. In a statement on Tuesday, Thinking Machines announced that under a multi-year agreement, it would utilize NVIDIA's upcoming Vera Rubin AI accelerators. These chips, expected to be deployed early next year, will provide Thinking Machines with computing power equivalent to at least 1 gigawatt. NVIDIA did not disclose specific terms of the deal or specify whether the investment would be in cash, chips, or a combination of both. Both companies described the investment as “significant.”
Google, Tesla, and Other Companies Promote Lower Electricity Prices by Leveraging Idle Grid Capacity. According to reports, a new coalition comprising companies such as Google (GOOG.US, GOOGL.US) and Tesla (TSLA.US) aims to address energy affordability challenges by utilizing underutilized capacity within the power grid. Amid rising electricity prices driven by artificial intelligence data centers and other demands, energy affordability has become a central issue. The coalition, named Utilize, plans to collaborate with state legislators, regulators, utility companies, and others to resolve electricity cost challenges by improving grid operations, while balancing reliability and construction speed. Coalition officials stated they plan to soon release a study by the Brattle Group showing that US consumers could save up to $180 billion over the next decade through systematic improvements. Members of Utilize also include air conditioning giant Carrier, service deployment company Sparkfund, electric panel firm SPAN, and data center developer Verrus.
Amazon Issues Longest 50-Year Bond to Raise Capital for AI Development. Amazon (AMZN.US) is returning to the bond market, joining the wave of corporate financing aimed at leading the artificial intelligence boom. According to informed sources, the company plans to issue bonds across up to 11 maturities, ranging from 2 to 50 years. Initial pricing discussions for the longest-dated tranche of the offering (maturing in 2076) indicate a spread of approximately 155 basis points above US Treasury yields. HSBC Holdings, Citigroup, Goldman Sachs, and JPMorgan will lead the underwriting of the bond issuance. This represents the latest in a series of large bond offerings by major cloud computing companies, as they prepare to invest hundreds of billions of dollars in building AI infrastructure. So far, investor demand has remained strong, with recent bond issues frequently seeing subscription levels several times the issuance size.
