U.S. stocks closed: The Dow fell nearly 200 points, the Nasdaq fell more than 150 points, Chinese concept stocks diverged, and Yixian e-commerce fell more than 12%.
Financial World 2024-03-16 05:53:32
According to news from the financial sector on March 16, investors are waiting for the Federal Reserve’s monetary policy decision next week. At the same time, data such as CPI and PPI this week show that U.S. inflation pressure is still rising, making the market reduce bets on the Federal Reserve’s interest rate cut before June. U.S. stocks collectively It closed down, with the Dow falling nearly 200 points, the S&P falling more than 30 points, and the Nasdaq falling more than 150 points; most technology stocks fell, with Amazon and Microsoft falling more than 2%, Google, Netflix, and Meta falling more than 1%; Chinese concept stocks The trend was divided, with Weibo rising by more than 4%, Ideal and Xpeng rising by more than 2%, Douyu falling by nearly 9%, and Yixian E-commerce falling by more than 12%.
As of the close, the Dow Jones Index fell 190.89 points, or 0.49%, to 38714.77 points; the S&P 500 Index fell 31.70 points, or 0.62%, to 5118.78 points; the Nasdaq Composite Index fell 155.35 points, or 0.96%, to 15973.17 points. The Dow Jones Industrial Average fell 0.02% this week, recording losses for the third consecutive week. The Nasdaq fell 0.7% this week and the S&P 500 fell 0.13%, both falling for the second consecutive week.
The spot gold price fluctuated around US$2,159.99 per ounce. The most actively traded April gold futures price in the New York Mercantile Exchange gold futures market fell by US$6 on the 15th to close at US$2,161.5 per ounce, a decrease of 0.28%. Spot platinum rose 1.5% to $940.95 an ounce; palladium rose 1.2% to $1,082.61 an ounce; silver also rose 1.7% to $25.25 an ounce.
West Texas Intermediate crude oil futures for April delivery on the New York Mercantile Exchange fell 22 cents, or 0.3%, to close at $81.04 a barrel, but the weekly gain reached 3.9%. Meanwhile, on the ICE Futures Europe exchange, global benchmark May Brent crude oil futures also fell 8 cents to $85.34 a barrel, a decrease of about 0.1%, but have risen 4% this week. Other energy products also showed strong gains. Gasoline prices rose nearly 0.7% in April to $2.72 per gallon, a weekly increase of 7.7%; heating oil prices rose 0.7% in April to $2.73 per gallon, a weekly increase of 3.3%. However, natural gas for April delivery fell, closing at $1.66 per million British thermal units, down 4.9%, resulting in a cumulative decline of 8.3% this week.
Popular Chinese concept stocks had mixed gains and losses, with the Nasdaq China Golden Dragon Index falling 0.41% and rising 3.83% this week. Haichuan Securities rose by more than 38%, WIMI Hologram rose by more than 20%, Youpin Auto rose by more than 17%, Yibang International rose by more than 14%, Huize and Ehang Intelligent rose by more than 12%, Financial OneConnect, Daily Cooking Up over 8%, Zhihu up over 6%, Hesai Technology, Secoo up over 5%, Chi-Med, Weibo up over 4%, Ambo Education, Baijiayun, I-Mab, Tuya Smart, Xiaoi Robotics rose by more than 3%, Uxin, Zhongchao Medical, Lufax, Quantum Song, Li Auto, Xpeng Motors, Yunmi Technology, Boqi Pets, 1Yao.com, Dada Group rose by more than 2%, and Lute Si, Baozun E-commerce, Huami Technology, Qudian, Green Hotels, JD.com, JinkoSolar, Huanju, Mogujie, ZTO Express, Huazhu, Bilibili rose by more than 1%, PINTEC, Dingdong.com Cai, BeiGene, Kaixin Auto, Yiren Jinke, Best Group, Pinduoduo, Xiaoying Technology, Sohu, Zhiwen Group, Shell, and Alibaba rose slightly.
Zhongjin Medical fell by more than 17%, Yixian E-commerce fell by more than 12%, Douyu, Fangduoduo, Suntech Institution fell by more than 8%, Four Seasons Education, Tuanche.com, Yuexiang Holdings fell by more than 7%, and Century Internet fell by more than 6%. %, Shuidi, Zai Lab, Mavericks Electric, Youdao, GDS fell more than 5%, Lexin, Aurora, Wuxin Technology, Medical Beauty International, Noah Fortune, Together Education, TAL fell more than 4%, 51Talk , Futu fell by more than 3%, Manbang, Yunji, Burning Stone Medicine, Kingsoft Cloud, Monster Charge, Amer Sports, Xinye Technology, Tiger Securities, Hong En, Jiayin Technology fell by more than 2%, BoSS Direct Recruitment, Cangu , TSMC, Huya, New Oriental, Phoenix New Media, Cheetah Mobile, Thunder, Qifu Technology, Zhizhi Education, Tencent Music, Ctrip fell more than 1%, The9th City, Energy Chain Smart Electronics, Gaotu, 36 Krypton, Baidu, Automobile brackets, NetEase, Vipshop, Atour, and Genetronics fell slightly.
On Thursday, the U.S. Department of Labor announced that the producer price index (PPI) for February rose more than economists expected. In February, PPI increased by 1.6% year-on-year, and the growth rate was higher than the expected value of 1.2%. The previous value was revised from 0.9% to 1%. In February, PPI increased by 0.6% month-on-month, expected to be 0.30%, and the previous value was 0.30%. Excluding food and energy prices, core PPI increased by 2% year-on-year in February, a growth rate higher than expected of 1.9% and the same as the previous value. Core PPI rose 0.3% month-on-month, which was lower than the expected 0.5% growth rate, but accelerated from 0.2% last month.
February PPI data shows that U.S. inflation is still accelerating. Affected by this, U.S. bond yields climbed on Thursday, with the benchmark 10-year U.S. Treasury note once reaching 4.29%. The PPI index, a measure of wholesale inflation, exceeded expectations, leading investors to speculate that the Federal Reserve is unlikely to ease monetary policy early.
Prior to the release of the PPI index, the U.S. Department of Labor also released the much-watched U.S. Consumer Price Index (CPI) report for February this Tuesday. Data show that the U.S. CPI rose 0.4% month-on-month and 3.2% year-on-year in February. The year-on-year increase in CPI data exceeded expectations, leading the market to bet that the Federal Reserve will not start cutting interest rates until at least the summer.
The Federal Reserve will hold a monetary policy meeting on March 19-20. At present, the agency is widely expected to keep interest rates unchanged for the fifth time in a row. The focus of the meeting will be the “dot plot” of the Federal Reserve’s new interest rate hike path. In December, policymakers’ median forecast called for three rate cuts of 25 basis points each in 2024. To be sure, federal funds futures are pricing in a 99% chance the Fed will keep rates on hold at next week’s monetary policy meeting, according to CME’s FedWatch tool.
LSEG’s Rate Probability app showed traders have reduced the odds of a Fed rate cut in June to 60% from about 67% Wednesday night; for 2024, the market is now pricing in fewer than three rate cuts, down from about two weeks ago. Three to four times, down from about seven at the end of last year. But Mark Luschini, chief investment strategist at Janney Montgomery Scott, said recent economic data may raise questions about whether the Fed believes inflation has cooled enough to begin cutting interest rates later this year.
“The road to achieving the 2 percent inflation target, at least recently, has been anything but easy. I think that’s enough to dampen the enthusiasm of market participants,” Luschini said.
“Price pressures look more stubborn and the process of stabilizing inflation is taking longer than expected, creating potential headwinds for the tech-driven rally,” said Kyle Rodda, senior market analyst at Capital.com.
For much of the past month and a half, Fed officials have taken turns suppressing market expectations that it would cut interest rates as early as March.
Federal Reserve Chairman Jerome Powell said at a congressional hearing last week that the Fed’s confidence is close to the level required to cut interest rates. However, market expectations for the Fed’s easing policy have been tempered recently by the hot inflation data, and swap contracts forecasting changes in interest rates are pricing in a rate cut of just under 75 basis points before the end of the year.
A preliminary report released by the University of Michigan on Friday showed that the U.S. consumer confidence index fell to 76.5 in March, slightly lower than 76.9 in February. Americans’ expectations of the outlook have remained largely unchanged since January. The current U.S. consumer confidence index is higher than the historical low reached when inflation peaked in June 2022, but lower than the average level before the new crown pandemic. U.S. consumer information data for March showed that U.S. consumers were slightly less optimistic about the economy, but they continued to expect inflation to cool further. This could be a potential sign that price increases will continue to slow.
India will lower import taxes on certain electric vehicles for companies that commit at least $500 million in investment and manufacturing facilities over three years, officials said on Friday, which could support Tesla Inc’s entry into the country. market plan.
The policy is a big win for Tesla because it is in line with policies the company has been lobbying for in New Delhi. In July last year, Tesla proposed building a factory in India, but hoped that India would cut import taxes. Musk also complained that India’s import taxes were the highest in the world.
RBC Capital Markets reiterated Tesla’s “buy” rating with a target price of $298.
Cathie Wood, a well-known American investor, warned that Nvidia now is very much like Cisco back then, and may have room for a sharp decline, which may even be as high as 50%.
Microsoft told EU antitrust regulators on Friday that Alphabet’s Google has an advantage in generative artificial intelligence because of its large amounts of data and AI-optimized chips. The above remarks made by Microsoft executives are said to be in response to a question and consultation raised by the European Commission in January this year regarding the monopoly and market competition of generative artificial intelligence.
Oracle said Thursday it will add generative artificial intelligence capabilities to its enterprise software product line, intensifying competition with Microsoft and other technology companies to sell the technology to enterprise customers. Oracle’s cloud-based software products are critical to many businesses’ finance, supply chain and human resources departments. The new features are designed to save these users time through tasks such as generating reports, summarizing complex data or drafting job descriptions, the company said.
Apple has reached a $490 million settlement to resolve a class-action lawsuit. The lawsuit accuses CEO Tim Cook of defrauding shareholders by concealing declining iPhone demand overseas. It is also reported that Apple has completed the acquisition of AI company DarwinAI, a move that will enhance Apple’s competitiveness in the AI field. DarwinAI is a company focusing on the research and development of AI technology. Since its establishment in 2017, the company has attracted multiple rounds of financing, with a total financing amount of US$15.5 million.
BofA Securities issued a report stating that Super Micro Computer (SMCI)’s competitive advantages include its system helping to quickly integrate new technologies and shorten time to market; it is competitive with leading artificial intelligence CPU/GPU/ASIC including Intel, Nvidia and AMD. Provider partnerships; the ability to customize configurations for specific customer applications, etc.
Bank of America’s revenue and EPS forecasts for AMD were significantly higher than market expectations. The bank reiterated its “buy” rating and raised its target price from $1,040 to $1,280.
JD.com said it does not plan to make an acquisition bid for British electronics retailer Currys. Elliott Advisors previously announced on the 11th that after multiple attempts to contact the Currys board of directors but were rejected, Elliott was unable to make a better acquisition offer for Currys based on the public information it had. As a result, Elliott confirmed it does not intend to make a takeover bid for Currys.
Software provider Adobe issued weak sales guidance. Beauty chain Ulta released a full-year profit forecast that largely missed analysts’ expectations.
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2024-03-15 21:53:32
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