Nasdaq Rebounds; Nvidia Up 2.5%; J.P. Morgan Drags Dow Down; Li Auto Dips 13% Post-Earnings; Gold, Copper Hit New Highs
Federal Reserve officials reiterated their wait-and-see stance on interest rate decisions: Vice Chairman Jefferson stated that the April CPI data was encouraging, but it is too early to determine whether the recent slowdown in inflation will persist in the long term. Atlanta Fed President Bostic, who has voting rights at the Federal Open Market Committee (FOMC) meetings this year, believes that the new "steady state" interest rate may be higher than the level of the past decade. He expects only one rate cut this year, and inflation rates will continue to decline in the next two years, but the pace of decline will be lower than many people expect.
Following Bostic's hawkish speech, U.S. Treasury prices accelerated their downward trend, falling for three consecutive days, with yields rebounding for three days in a row, continuing to move away from the lows set in early April after the release of the U.S. April CPI growth cooling. The U.S. dollar index accelerated its rebound, bidding farewell to the lows set the day after the CPI release. Major U.S. stock indices showed mixed performance. Chip stocks supported the rebound of the Nasdaq, while the Dow, which had been setting new historical highs for several consecutive days, fell back.
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Before the earnings report to be released after the market close this Wednesday, Nvidia was raised to a higher target price by several institutions. Stifel and Barclays' new target prices are expected to rise by nearly 30% and about 20% respectively compared to last Friday's closing price. Nvidia once rose by nearly 3% during trading on Monday. Morgan Stanley, which is optimistic about the prospects of high-bandwidth memory (HBM), upgraded its rating from underweight to equal weight and significantly increased its target price by 32.6%. Micron Technology once rose by more than 4% during trading. Microsoft, which launched a major AI PC before the developer conference on Tuesday, rebounded to a high level not seen in more than a month. However, after CEO Dimon said that the bank would not buy back many shares at the current price, JPMorgan Chase fell by more than 4%, leading the Dow Jones component stocks.
Chinese concept stocks, which had risen sharply last week, fell from their eight-month high. After reporting a better-than-expected 36% increase in first-quarter revenue but a guidance for the second quarter that was expected to slow down to less than 10%, Li Auto's stock price plummeted by more than 10%. GameStop, a retail investor stock that had suffered double-digit declines for three consecutive days, continued to experience significant fluctuations, falling by more than 10% during the day before rebounding to close higher, not continuing to fall away from the high level set by "retail leader" Roaring Kitty over a week ago, who hinted at a surge after returning to social media. After launching a weight loss drug that is more than 80% cheaper than Novo Nordisk and Eli Lilly, Hims & Hers Health once rose by more than 30% during trading.
In commodities, precious metals and industrial metals continued the upward trend from last week, with all basic metals in London rising, continuing to be supported by China's policy to promote the real estate market, with伦铜 trading above $11,000 for the first time during the session. New York gold and copper futures both set new historical closing highs, and silver futures continued to reach new highs since 2013. Financial market investors flocked to the copper market due to expectations of worsening supply shortages, and BHP's recent interest in acquiring rival Anglo American is mainly because of the latter's copper mines.
However, international crude oil failed to maintain its upward momentum, bidding farewell to the closing high within the month, with a drop of at least 1% at one point during the session. Comments suggest that interest rate cuts are good for the economy and may help stimulate oil market demand. However, recent cautious remarks from Federal Reserve officials, who said they would wait for more signs of inflation decline before starting to cut interest rates, have hit oil prices. In terms of geopolitics, the Iranian president unfortunately died in a helicopter accident, and the Saudi crown prince postponed his visit to Japan due to the health issues of King Salman, with no significant impact on the oil market. Analysis points out that Iran's oil policy is expected to continue to be stable, as the final decision-making power on major national affairs is in the hands of Iran's Supreme Leader Khamenei; in Saudi Arabia, the market is accustomed to Crown Prince Salman's leadership in energy affairs.
The Nasdaq closed at a historical high, with chip stocks up more than 2%, Microsoft rebounding, Google hitting a new high, retail investor stocks rebounding strongly, and Chinese concept stocks falling back.
The three major U.S. stock indices opened with mixed performance. The Dow Jones Industrial Average, which opened slightly lower by nearly 14 points, turned slightly higher after more than half an hour, once rising by more than 50 points, or more than 0.1%, and turned negative again at the beginning of the afternoon session, falling by more than 210 points at the day's low. The S&P 500, which opened slightly higher, and the Nasdaq Composite, which opened higher, maintained their upward momentum throughout the day, with the S&P 500 rising by more than 0.4% at the end of the morning session, and the Nasdaq once rising by more than 0.8% during the afternoon session.
In the end, only the Dow closed lower, down 196.82 points, or 0.49%, at 39,806.77 points, falling from the closing record high set last Friday after rebounding and closing above 40,000 points for the first time. The Nasdaq, which fell for two consecutive days, closed up 0.65%, at 16,794.88 points, setting a new closing historical high. The S&P 500 closed up 0.09%, at 5,308.13 points, rising for two consecutive days, continuing to approach the closing historical high set last Wednesday. The S&P and Dow-related ETFs SPDR S&P 500 ETF (SPY) and SPDR Dow Jones Industrial Average ETF (DIA) closed up 0.12% and down 0.46%, respectively.
The small-cap index dominated by value stocks, the Russell 2000, closed up 0.32%, approaching the high set last Wednesday since March 28 after falling for two consecutive days, with the iShares Russell 2000 ETF (IWM) closing up 0.22%. The technology-heavy Nasdaq 100 Index closed up 0.69%, with the related ETF Invesco QQQ Trust Series 1 (QQQ) closing up 0.7%; the Nasdaq Technology Market Value-Weighted Index (NDXTMC), which measures the performance of technology stocks in the Nasdaq 100 Index, closed up 1.21%, all setting new closing historical highs set last Wednesday.In the Stoxx 600, the technology sector closed up nearly 0.9%, with ASML, the highest-valued chip stock listed in Europe, closing up nearly 1.4%. The rise in metals such as copper pushed the basic resources sector, where mining stocks are located, up by about 0.7%. Among other stocks, after Morgan Stanley downgraded Volkswagen to underweight, citing profit declines and potential trade disputes, the German automaker closed down 1.7%.
U.S. Treasury yields rose for three consecutive days. The iShares U.S. Treasury Bond ETF (GOVT) closed down 0.1%. The U.S. 10-year benchmark Treasury yield broke below 4.10% in the Asian morning session and rose to a session high of 4.4531% from below 4.41% during European trading hours, continuing to move away from the low of below 4.31% it hit on Thursday before turning down, which was the lowest since April 5. By the end of the bond market, it was around 4.44%, up about a basis point for the day.
The 2-year U.S. Treasury yield, which is more sensitive to interest rate prospects, also accelerated its rise from European trading hours, rising to 4.9457% at the end of U.S. trading hours, and breaking above 4.85% after the U.S. market closed, recovering more than four basis points from the intraday low below 4.81%, continuing to move away from the low of approaching 4.70% it hit last Thursday, which was the lowest since April 5. By the end of the bond market, it was around 4.85%, up nearly three basis points for the day.
The U.S. Dollar Index (DXY), which tracks a basket of exchange rates against six major currencies including the euro, fell slightly below 104.40 during the Asian session, not reaching the European stock market opening before it shook off the downward trend. After Bostic's speech before the U.S. stock market, the daily increase expanded, breaking through 104.60 to reach a new high for the day, up nearly 0.2% for the day, moving away from the low of below 104.10 it hit last Thursday, which was the lowest since April 10 when the U.S. March CPI was announced.
By the end of the currency market on Monday, the U.S. Dollar Index was above 104.60, up nearly 0.2% for the day; the Bloomberg U.S. Dollar Spot Index, which tracks the exchange rate of the dollar against ten other currencies, rose more than 0.1% for the day, not continuing to approach the low for the same period since April 9, which was set last Wednesday, and rebounded after falling on Friday.
Among non-U.S. currencies, the yen fell for three consecutive days, with the dollar rising to 156.30 against the yen after the U.S. stock market closed, up more than 0.4% for the day, continuing to move away from the low of 153.60 it hit last Thursday, which was the lowest since May 6 over two days; the euro fell against the dollar during European trading hours, breaking below 1.0840 during European trading hours to reach a new low for the day, failing to continue approaching the high of approaching 1.0900 it hit on Thursday, the highest since March 21; the pound rose against the dollar during U.S. trading hours, breaking through 1.2720 at noon U.S. stock market,刷新ing the high hit on Friday since April 9.
The offshore renminbi (CNH) against the U.S. dollar hit a new high of 7.2316 in the Asian morning session, quickly turned down, and maintained the downward trend. It hit a new low of 7.2470 in the U.S. stock market morning session, continuing to fall away from the high of breaking through 7.21 before turning down last Thursday, which was the highest since May 6. It fell 133 points for the day. At 4:59 a.m. Beijing time on May 21, the offshore renminbi against the U.S. dollar was reported at 7.2469 yuan, down 132 points from last Friday's New York close, falling for three consecutive trading days.
Bitcoin (BTC) continued to rise overall on Monday, breaking through the $70,000 mark at the end of U.S. trading hours, up more than $4,000, or more than 6%, from the intraday low in the Asian morning session. It was above $70,000 at the close of U.S. trading hours, up more than 6% in the last 24 hours, and broke through $70,200 after closing,刷新ing the intraday high since April 12.This week, the U.S. Securities and Exchange Commission (SEC) is expected to announce whether it will approve the listing of a spot ETF for the second-largest cryptocurrency, Ethereum (ETH). The market is eagerly anticipating the approval of the ETF, and Ethereum (ETH) has seen its trading price surge since the U.S. stock market's midday session. After the U.S. stock market closed, it broke through $3,600, reaching a high not seen since April 11, with a nearly 18% increase during the day.
Crude oil ends three-day rally, bidding farewell to this month's high
International crude oil futures fluctuated several times during the trading session but ultimately closed lower. West Texas Intermediate (WTI) crude oil reached a daily high of $80.6 during the U.S. stock market's morning session, with a nearly 0.7% increase for the day. Brent crude oil approached $84.50 before the European stock market session, also reaching a daily high with a 0.6% increase for the day. After turning negative during the U.S. stock market's morning session and刷新ing a daily low during the afternoon session, U.S. oil fell below $79.20, with a 1.1% decrease for the day, while Brent oil approached $83.10, with a drop slightly over 1% for the day.
In the end, crude oil, which had been rising for three consecutive days, fell back. Last Friday, for the first time since April 30, WTI June crude futures closed above $80, but ended down by $0.26, or 0.32%, at $79.80 per barrel. Brent July crude futures also fell by $0.27, or 0.32%, to $83.71 per barrel, both bidding farewell to the high closing prices set last Friday since April 30.
The U.S. oil ETF, United States Oil Fund LP (USO), closed down by 0.31%, and the Brent oil ETF, United Sttes Brent Oil Fund LP (BNO), closed down by 0.16%, both falling back after three consecutive days of gains.
New York futures gold and copper hit record highs for two consecutive days, while silver hit an 11-year high for four consecutive days
London base metal futures closed higher across the board on Monday, with lead leading the way with a gain of over 2.7% for two consecutive days, continuing to set new highs since March last year. Copper, nickel, and lead all closed up by more than 2%. Copper once rose by more than 4% during the Asian trading session, breaking through $11,000 for the first time in history, but ended below $10,900, still刷新ing the closing record high set in March 2022, and continued to rise for four consecutive days with nickel. Nickel reached a new high since August last year. Lead, which stopped rising for four consecutive days last Friday, rebounded to a high since April 2022. Aluminum rose for two consecutive days, and tin rose for six consecutive days, both setting new highs since late April for two and six consecutive days, respectively.
New York copper futures, which rebounded by more than 4% last Friday, continued to rise, with COMEX July copper futures closing up by 0.57% at $5.079 per pound,刷新ing the closing historical high set last Friday, and once rose to $5.199 during the trading session, with a nearly 3% increase for the day. The U.S. Copper Index Fund (CPER) closed up by nearly 0.5% for two consecutive days, continuing to set historical highs.
Before the European stock market session, New York gold futures once broke through $2,450 to $2,454.2, setting a new intraday high, with a more than 1.5% increase for the day. Spot gold once slightly broke through $2,450,刷新ing the intraday high set last Friday, with a nearly 1.5% increase for the day. During the European stock market session, it once turned negative, with gold futures approaching $2,411, and spot gold falling below $2,408, both with nearly a 0.3% decrease for the day. At the beginning of the U.S. stock market session, it shook off the downward trend, and after the speech by Federal Reserve official Bostic, the increase expanded. During the U.S. stock market's afternoon session, gold futures once broke through $2,440, and spot gold once approached $2,340.
By the end of the U.S. stock market's afternoon session, COMEX June gold futures closed up by 0.87% for two consecutive days, at $2,438.5 per ounce,刷新ing the closing historical high set last Friday. The SPDR Gold Trust (GLD) closed up by 0.4%. At the close of the U.S. stock market, spot gold was above $2,420, with a more than 0.4% increase for the day.New York silver futures rose for five consecutive days, with COMEX July silver futures closing up over 3.7%, at $32.426 per ounce. This marks four consecutive trading days of hitting new closing highs since 2013, with intraday gains reaching nearly 4.8%, peaking at $32.75. The iShares Silver Trust (SLV) closed up nearly 0.7%.