In the early morning of Beijing time on the 21st, the US stock market closed up and down on Thursday. The Dow rose 300 points, while the Nasdaq and the S&P 500 fell. Nvidia fell after hitting a new high. The number of US initial jobless claims last week was higher than expected, and the real estate and manufacturing indexes were lower than expected. The Federal Reserve's Kashkari said it would take one to two years for inflation to return to the target level of 2%.
The Dow rose 299.90 points, or 0.77%, to 39134.76; The Nasdaq Composite Index fell 140.64 points, or 0.79%, to 17721.59; The S&P 500 index fell 13.86 points, or 0.25%, to 5473.17.
US markets were closed Wednesday for the June holiday.
All three major stock indexes of the US stock market are expected to record gains this week. The S&P 500 index hit its 31st record high this year on Tuesday. Due to the continuation of the AI boom and the resilience of economic growth, it is expected to continue to support corporate profits, especially in the field of technology.
Nvidia closed 3.54% lower on Thursday, losing its No. 1 spot in the US stock market. This AI darling and chip manufacturer surpassed Microsoft And become the most valuable company in the world. Against the background that the AI boom continues to boost the stock market, NVIDIA's share price has risen by 164% since 2024.
As NVIDIA consolidates its position as the market leader in the booming AI theme market, at the beginning of June this year, NVIDIA's market value has exceeded Apple 。
"Nvidia is still the most important stock in the world," Chris Weston, director of research at Pepperstone, said in a report.
However, Weston warned that the overall performance of the index market was poor and the market participation was flat, suggesting that the rise was based on an unstable foundation. "The fact remains that the market is fully optimistic about the rising trend of AI related stocks and large technology stocks. In view of the lack of clear immediate risk, the path with the least resistance is the rising stock index."
Scott Chronert, head of US equity strategy at Citigroup, wrote in a report on Tuesday: "We still believe that Wall Street (i.e. the S&P 500 index) is splitting up with the corporate sector (the basis of the US economy). Is it strange? There is no doubt that generative AI, as a driving force for sustained growth, is currently infiltrating into the US stock market environment."
Nevertheless, some commentators noted that although the downturn in the economic base has not yet completely affected the US stock market, which has reached new highs, the rise of US stocks, except for the largest technology companies, lacks market breadth, and this situation may continue to deteriorate.
R. J. Thomas Fitzpatrick, managing director of O 'Brien and Associates, said: "The AI theme has a feeling very similar to the style of the US stock market in 2000-2001, but as we know, the market may remain irrational for a longer time than your ability to repay debts. The day of liquidation will come, but at the moment, it is difficult for you to stop the speeding train."
Sam Stovall, chief investment strategist of CFRA Research, said that as three major adverse factors would depress stock prices, the US stock market would suffer a correction.
The Wall Street veteran pointed out that the stock market has performed strongly so far this year, and the S&P 500 index rose by 15% in 2024. However, he predicted that the benchmark index would fall by 5% due to negative interest rates, inflation and stock valuation. The inflation rate is declining, but it is still higher than the Federal Reserve's target of 2%, leading the Federal Reserve officials to predict that the interest rate will be cut only once by the end of this year.
Neel Kashkari, governor of the Minneapolis Federal Reserve Bank, said on Thursday that the central bank would return inflation to the target level of 2%, but it is estimated that it may take one to two years.
Kashkari said in the fireside conversation at the annual meeting of the Michigan Bankers Association on Thursday: "It will take a little time to fully return to 2%, but I believe we can achieve this goal."
He stressed that the path of interest rates will depend on the economy, and he hoped to better convey the central bank's response mechanism to future economic data. The fundamentals of the U.S. economy are very stable and strong, and "I hope this situation can continue". But he said there was some evidence of weakness in some areas.
He also commented on the trade-off between the Fed's dual mission - stabilizing prices and full employment.
With regard to the proposal of the Federal Reserve to increase the capital requirements of large banks, Kashkari said that he was surprised by the degree of opposition to the plan. "In the end, we only had five or six banks to provide services for the whole country - I think this is not the best choice for the American economy."
On the economic data side on Thursday, the number of Americans applying for unemployment benefits for the first time last week was almost unchanged, while the data of the previous week rose sharply. These data tend to fluctuate around holidays and school holidays.
Data released by the US Labor Department on Thursday showed that the number of people applying for unemployment benefits for the first time had decreased by 5000 to 238000 by the week ended June 15. As of June 8, the number of people who continued to apply for unemployment benefits rose to 1.82 million. In the past year, the number of people applying for unemployment benefits has been very low, because the labor market has shown resilience in the face of high prices and high interest rates. The average number of initial claims for unemployment benefits rose to 2327500 in four weeks, the highest level since September last year.
Focus stocks
Nvidia received attention. The stock reached a new high. On Tuesday, Nvidia officially replaced Microsoft in the United States and became the enterprise with the highest market value in the world.
It is reported that, Tesla The new force in the generative AI field created and led by CEO Mask xAI's "AI supercomputing system" will be Dell It was jointly constructed with the ultramicro computer. Dell and Ultramicro will provide server racks for Musk's AI startup xAI.
Tom Narayan, an analyst with Royal Canadian Capital Market, maintained Tesla's buy rating and lowered the target price from $293 to $227.
Paijie Investment Analyst Harsh Kumar maintains AMD Buy rating, maintain the target price of 175 dollars.
Brent Thill, an analyst with Jeffrey, maintained Microsoft's buying rating and maintained its target price of $550.
Justin Post, analyst of Bank of America Securities, maintained Google Buy rating and maintain the target price of $200.
It is reported that after announcing to invest 7.8 billion euros on the 15th of last month to build new cloud service facilities serving Europe, Amazon It also announced plans to invest another 10 billion euros in Germany to upgrade logistics networks and cloud service facilities.
Amazon announced on its official website on Wednesday that it plans to invest 10 billion euros, or about 10.7 billion dollars, in Germany. Including the 7.8 billion euros announced by the company in May, Amazon confirmed that it plans to invest 17.8 billion euros in Germany.
Centennial The Group announced that it had reached a final privatization agreement.
accenture Proposed acquisition of Italian network service company Fibermind.
TSMC Reaching a new high. With the surge of AI related demand and the possible price increase in 2025, many big banks have raised the target price of TSMC.
Goldman Sachs To Netease "Buy" rating and target price of $125.
In other markets, the price of WTI futures for July delivery on the New York Mercantile Exchange rose 60 cents, or 0.73%, to close at 82.17 dollars per barrel.
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