After the minutes of the Federal Reserve meeting hinted that Fed policymakers would have to wait longer to consider cutting interest rates, the recent data poured cold water on the market's expectations of interest rate cuts. The initial value of the US May comprehensive PMI released by S&P globally exceeded expectations and rose to 54.4, indicating the fastest expansion of corporate activities in more than two years. At the same time, the sub index showed that prices rose and inflation rose. The input price index of the comprehensive PMI was the second highest since September last year, the factory input price rose at the fastest rate in a year and a half, and the payment price and acceptance price of service providers also rose.
After the data was released, the price of US treasury bonds plunged and the yield rose in the intraday. The yield of two-year US treasury bonds sensitive to interest rates quickly rose to 4.90%, once rising nearly 10 basis points from the daily low; The US dollar index accelerated its rebound, rising and hitting a new high for more than a week during the session, exceeding the level of the US CPI in April before the release of the expected interest rate cut; The rising trend of major US stock indexes quickly abated, and the intraday decline occurred simultaneously. The Dow has never fallen so sharply since the US banking crisis in late March last year superimposed on the Federal Reserve's interest rate hike date.
Nvidia, the king of AI chips, lived up to the expectations of the public. Its first fiscal quarter performance and this fiscal quarter guidance once again exceeded the expectations by three digits, but it failed to boost the market as it did after the release of the previous quarterly report. Among the "seven sisters" of the technology giant, only Nvidia did not fall. The chip stock index turned lower. Intel and executives suggested that Boeing, which "burned money" this year and the aircraft delivery recovery was slow, joined hands to become the culprit of the Dow decline. On Thursday, the US stock market was just like Nvidia's "beautiful alone" show.
Nvidia's performance reflects the strong momentum of AI's calculation expenditure, CEO Huang Renxun said that the Blackwell chip, the strongest chip, was shipped in the second quarter and will bring a lot of revenue this year. The stock price rose by more than 10% in the session, exceeding the total market value of German listed companies, driving a number of AI concept stocks to rise sharply in the early session. Dell, which Huang Renxun called the key partner of Nvidia in promoting AI infrastructure, rose by about 10%, and then generally fell back, mostly turning down, including Nvidia's powerful rivals AMD The AI key "shovel seller" Broadcom and the AI "monster stock" ultramicro computer that has risen nearly 200% this year.
After the sharp rise on Thursday, NVIDIA's market value exceeded $2.5 trillion for the first time in history
Most of China Concept shares continued to decline, and China Concept shares that published financial reports were not spared, including NetEase, whose revenue in the first quarter increased 7.2% year on year, which was still lower than expected, Station B, whose revenue in the first quarter increased 12% more than expected, whose net loss expanded more than 21%, and Shell, whose revenue and profit in the first quarter sharply decreased, but the decline in revenue in the first quarter was lower than expected after Weibo rose more than 5%, Pinduoduo, however, rose nearly 9% after Wednesday's financial report. The media said that Alibaba was considering issuing US $5 billion of convertible bonds, and that Alibaba had exceeded 3% in the market.
In the foreign exchange market, when the US dollar turned higher after the PMI was announced, the non US currencies turned lower in the session, the Japanese yen and offshore RMB fell to the low level in more than three weeks, and the British pound fell from the two month high hit on Wednesday due to the British CPI hitting the expectation of interest rate cut. Cryptocurrencies such as Bitcoin also went down, and Ethereum hit a new high for more than two months in the session and fell. The SEC of the US Securities Regulatory Commission approved the Ethereum spot ETF product trading proposal of several exchanges, paving the way for the listing of the ETF. After SEC approval, Ethereum, which had fallen by more than 1% in the session, turned up.
Among the bulk commodities, while the dollar rebounded, the metal fell under pressure. However, the decline of industrial metals such as Luntong eased from Wednesday. The prospect of delayed interest rate cuts further hit gold, which fell by more than 2% for the first time in the session since inflation concerns were rekindled in the data at the end of April. The data worsened the prospects for the Federal Reserve to cut interest rates, and high interest rates will hit oil market demand for a long time. International crude oil was on a roller coaster during the session, and European stocks failed to maintain the rising trend after turning up during the session. The PMI of the United States continued to decline after the announcement, hitting a new low in three months. It rose more than 1% during the session and then fell more than 1%.
However, the gasoline demand announced by the US Department of Energy on Wednesday rose to the highest level since November last year, bringing some support to oil prices before the beginning of the summer driving season this weekend. In addition, Russia announced on Wednesday night that due to "technical reasons", the Russian output exceeded the OPEC+production quota in April, and will soon submit a compensation plan for production reduction. According to the analysis, given the recent weak oil price, the OPEC+oil production decision-making meeting to be held on June 1 is more likely to maintain the current production reduction policy at least until the end of September.
The three major US stock indexes turned down in the same session, and only Nvidia closed up. The chip stock index turned down. The AI concept stock rose and fell back. The general stock index fell for four consecutive times
The three major US stock indexes collectively opened higher, and fell rapidly after the US PMI data was released at the beginning of the session. The Dow Jones Industrial Average opened slightly higher by more than 20 points and then fell rapidly. It fell by more than 1% in the afternoon and expanded to more than 600 points in the late afternoon. The S&P 500 index rose nearly 0.7% at the beginning of the session, fell by more than 0.1% in the morning, and fell again in the afternoon after a slight rise, falling by more than 0.9%. The NASDAQ Composite Index rose nearly 1.2% at the beginning of the session, and fell more than 0.7% after turning down in the afternoon.
Finally, the three indexes closed down for two consecutive days. The Dow fell 605.78 points, or 1.53%, to 39065.26, the largest percentage decline since March 22, 2023, breaking the closing low since May 8. S&P closed 0.74% lower at 5267.84, a new closing low since May 14. The Nasdaq Composite Index closed 0.39% lower at 16736.03, continuing to fall from its record closing high as of Monday and Tuesday.
Although the market value of Nvidia, the constituent stock, soared by $230 billion a day, the market value of S&P 500 evaporated by about $500 billion a day
S&P and Dow related ETFs SPDR S&P 500 ETF (SPY) and SPDR Dow Jones Industrial Average ETF (DIA) fell 0.73% and 1.51% respectively, the latter closing at a new low since May 8.
The small cap stock index Russell 2000, which is dominated by value stocks, closed 1.6% lower, losing the overall market for three consecutive days and falling for three consecutive days to the lowest level since May 3. The NASDAQ 100 index, which is dominated by technology stocks, closed 0.44% lower, and the related ETF Invesco QQ Trust Series 1 (QQ) closed 0.45% lower, both continuing to fall from the closing record high set on Tuesday. The NASDAQ Technology Market Value Weighted Index (NDXTMC), which measures the performance of technology industry constituents in the NASDAQ 100 Index, rose 0.45%, breaking the closing record set on Tuesday.
The main US stock indexes opened higher and moved lower on Thursday, with the Dow leading the decline, and the small cap stock indexes lost the overall market for three consecutive days
The Dow component stocks fell all the time in the session. After the CFO predicted that cash flow this year would be negative and aircraft delivery in the second quarter would not rise month on month, Boeing closed down nearly 7.6%, and Intel fell more than 4%, ranking the second. Among the major sectors of the S&P 500, only the IT sector of Nvidia rose by nearly 0.6%. Among the ten sectors that closed down, except for materials, which fell by nearly 0.9%, other sectors fell by at least 1%, led by property, which fell by more than 2%.
The Dow component stocks all closed down on Thursday, of which nearly 100 points of decline of the Dow was due to the sharp fall of Boeing
Including Microsoft, Apple, Nvidia, Google's parent company Alphabet, Amazon, Facebook's parent company Meta, Tesla, among the "seven sisters" of technology giants, Nvidia closed down in the external market except Nvidia. Among them, the worst performing Tesla dish rose about 1% at the beginning and then quickly turned down, closing down 3.5%, falling more than 3% for two consecutive days, erasing the rise of Tuesday's big rebound and falling to the lowest level since May 13 for two consecutive days.
Among the six major technology stocks of FAANMG, Microsoft, which had reached a record high for two consecutive days, rose 0.7% at the beginning and fell 0.8% at midday; At the beginning of the day, the apple market quickly turned down, closing down 2.1%, and fell back two days after rising for seven consecutive days to the closing high since January 26; Alphabet rose by nearly 1.1% at the beginning of the session, and fell by nearly 1.7% after turning down in the early session, continuing to fall from the closing record high set for five consecutive days as of Tuesday; The Meta, which rose 1.4% at the beginning of the session, turned down several times later, ending 0.4% lower, and began to fall to the lowest level since May 3 set on Tuesday after rebounding on Wednesday; At the beginning of the session, Amazon rose nearly 0.9% and fell rapidly, closing down 1.1%, hitting the closing low since May 1 after closing flat on Wednesday; Netflix rose slightly in the morning and fell again in the afternoon, closing down nearly 0.8%, falling for two consecutive days after hitting the closing high since November 2021 on Tuesday.
The seven technology giants, including Nvidia and Tesla, rose early on Thursday and gave up most of their gains later
Chip stocks fell in the overall session and failed to continue the rebound on Wednesday. The Philadelphia Semiconductor Index and the semiconductor industry ETF SOXX rose 2.5% and 2.4% respectively at the beginning of the session, but turned down in the afternoon, closing slightly lower and falling nearly 0.6% respectively, leaving Wednesday's closing high since March 7. Among chip stocks, Nvidia rose more than 7% in the opening session and expanded to 10% in the early session. It rose 12% in the session, a record high in the session, and closed 9.3% higher, breaking the $1000 mark for the first time in history; It is expected that after the global semiconductor industry excluding memory chips will see its revenue grow by 10% this year, TSMC's US stock market rose nearly 3% in the afternoon, and then gave up most of its gains; AMD, which rose 4.6% at the beginning of the day, turned down in the morning, closing down more than 3%; Intel fell 4.3% at the beginning of the session; Broadcom, which rose more than 2.6% at the beginning of the session, and Micron Technology, which rose more than 4% at the beginning of the session, both turned lower in the afternoon.
Nvidia rose by more than 10% in the session, and its market value soared by 230 billion dollars a day
AI concept stocks rose and fell in the session, mostly ending lower. AI and robot human stock ETF Glb X Robotics&Afl Intelligence ETF (BOTZ) rose more than 2% at the beginning of the session and rose slightly in the afternoon. Dell (DELL) rose 10.1% in the morning trading and closed up nearly 4%. BigBear. ai (BBAI), which rose nearly 8.7% at the beginning of the trading, fell more than 1% in the afternoon trading and closed up nearly 0.7%; In contrast, SMCI rose 11.3% at the beginning of the session and closed down 3% after turning down in the afternoon. C3.ai (AI) and SoundHound.ai (SOUN) turned down at the beginning of the session, closing down 3.8% and 1.6% respectively. Palantir (PLTR), which rose nearly 1.7% at the beginning of the session, closed down more than 2%. Astera Labs (ALAB), known as "Little Nvidia" and which sold interconnect chips in data centers, also turned down in the early session, closing down 4.2% after rising nearly 4.8% at the beginning of the session.
Popular Chinese concept stocks continued to decline as a whole. The low opening NASDAQ Golden Dragon China Index (HXC) closed down 3.7%, and the related ETF Invesco Golden Dragon China ETF (PGJ) also fell 3.7%, which will fall for four consecutive days to the closing low since May 1. China probability ETF KWEB and CQQQ closed down nearly 2.7% and 1.3% respectively.
Among the China Concept stocks that announced their financial reports before the session, at the closing, Station B fell 12.4%, Shell fell nearly 10%, NetEase fell 3.7%, and Weibo, which had risen more than 5% in the morning, fell 0.9%. Among the new car making forces, Weilai Auto, which fell about 10% in the afternoon, closed down 8.4%, Xiaopeng Auto, which fell 9.7% in the morning, closed down 7.4%, the ideal car, which fell more than 6% in the afternoon, closed down 5.7%, and Polar Krypton, which fell nearly 3% in the morning, closed down 2.6%. Among other stocks, JD fell 4.5%, Alibaba fell more than 2%, Baidu fell nearly 1%, and Tencent Powder fell 0.9% by the end of the day. Pinduoduo, which rose sharply in the morning after Wednesday's financial report, rose nearly 9% and closed up nearly 4.5%.
Among the stocks that announced the financial report, although the revenue of the first fiscal quarter was higher than expected, the cloud computing company Snowflake (SNOW) still closed down 5.4%; VF Corp (VFC), a clothing and footwear company whose quarterly revenue was lower than expected and EPS profit unexpectedly reported a loss, closed down 2.9%; Intuit (INTU), the company that developed the tax software TurboTax, fell 7% after the hour after the hour after the announcement of the profit guidance for the fourth fiscal quarter was lower than expected; After the announcement of the second quarter subscription revenue guidance lower than expected, the enterprise finance and human capital management software company Workday (WDAY) fell more than 10% after the hour; And LiveRamp Holdings (RAMP), an advertising technology company with better than expected performance in the fourth fiscal quarter and strong guidance in this fiscal quarter and the whole year, closed up 6%; After the session, after announcing that their revenue and profit in the fourth and first quarters were higher than expected, the shoe company Deckers Outdoor (DECK) rose 8% after the session, and the discount department store Ross Stores (ROST) rose 7% after the session.
The two-year US bond yield after the US PMI once rose nearly 10 basis points to a two-week high
US Treasury Bond ETF (GOVT) fell 0.24%, falling for two consecutive days to its lowest level since May 13. The yield of the benchmark 10-year U.S. government bond had pushed down 4.40% before the US stock market, and soon after the announcement of the US PMI, it rose above 4.48%. The US stock market had pushed up 4.50% in the morning trading, and it has refreshed the high since May 14. It has rebounded more than 9 basis points from the daily low. By the end of the bond market, it was about 4.48%, up about 6 basis points within the day.
The yield of two-year US bonds, which is more sensitive to the prospect of interest rates, fell below 4.86% in the early morning trading of European stocks, and quickly rose above 4.90% after the announcement of the US PMI. The US stock market rose above 4.95% in the early trading, hitting a new high since May 2, and rebounded nearly 10 basis points from the daily low. By the end of the bond market, it was about 4.94%, and rose about 7 basis points within the day. As a whole, the US bonds with other maturities had risen for two consecutive days. This week, it only fell on Tuesday.
The yield of US bonds of all maturities rose for two days in a row, and the yield of short-term bonds continued to rise at the top after the US PMI. The US dollar index rose and hit a new high of more than a week. Bitcoin fell more than 3000 dollars in the intraday. Ethereum fell after hitting a new high of two months
The ICE dollar index (DXY), which tracks the exchange rate of a basket of six major currencies, including the dollar against the euro, fell below 104.70, a new daily low, and fell nearly 0.3% on the day before the US stock market. After the US PMI was announced, it rose in a straight line. The US stock market turned higher in the morning, rose above 105.10 in the afternoon, and rose nearly 0.2% on the day. After the US CPI reached its highest level since the April CPI was announced last Wednesday, May 15, It also set a new intraday high since May 13.
By the end of Thursday's foreign exchange market, the dollar index was above 105.10, up nearly 0.2% within the day; The Bloomberg US dollar spot index, which tracks the exchange rate of the US dollar against ten other currencies, rose by about 0.1% on the day, hitting the highest level since May 13 at the same time, and both the US dollar index and the US dollar index rose for four consecutive days.
The Bloomberg dollar spot index continued to rebound after the release of the US PMI, turning to a higher level in more than a week
Among non US currencies, after the announcement of the US PMI, sterling fell rapidly against the US dollar at the beginning of the US stock market, while the euro fell against the US dollar in the morning. In the afternoon, sterling fell below 1.2690, which was the highest since March 21 when it rose above 1.2760 after the announcement of the UK CPI on Wednesday. The euro fell below 1.0800, which was the lowest since May 14; The yen turned down in the session, falling for two days in a row. The dollar rose against the yen after the US PMI was announced. The US stock market rose to 157.20 in the morning, hitting a new high since May 1, with an intraday rise of nearly 0.3%.
The offshore RMB (CNH) rose to a fresh daily high of 7.2496 against the US dollar in the European stock market, and then continued to fall back. After the announcement of the US PMI, it turned down and accelerated its downward trend. The US stock market fell to 7.2596 in the morning trading. After hitting a new low since April 30 on Wednesday, it broke a new low since April 29, and fell 100 points from the daily high. At 4:59 on May 24, Beijing time, the offshore RMB was at 7.2578 yuan against the US dollar, It was down 36 points from the late trading in New York on Wednesday, and fell for two consecutive days after stopping three consecutive falls on Tuesday.
Bitcoin (BTC) hit a record high of US $70000 in the European stock market in the short term, and then continued to decline. The PMI in the United States accelerated its decline after the announcement. The US stock market once fell below US $66800 in the afternoon, with some platforms falling slightly below US $66900, breaking the low since May 20, falling more than US $3000, or nearly 5%, from the daily high, Far from the peak since April 8, which rose above $71900 on Tuesday, the US stock market hovered around $66800 at the close, and fell more than 4% in the last 24 hours.
Bitcoin fell more than $3000 after it went back to the $70000 threshold in the short term
Ethereum (ETH) continued to rise. European shares rose above $3940 in the day, hitting a new high since March 14. After the announcement of the U.S. PMI, most of the gains were reversed, falling below $3800, and rising again to $3800 in the afternoon. After the closing of the U.S. stock market, it fell below $3700, down more than 6% from the daily high. In the last 24 hours, the decline was more than 1%. After the SEC approved the revision of relevant rules for listing spot ETFs, Ethereum rose rapidly, once approaching US $3890, and the increase expanded to more than 1% within 24 hours.
Ethereum rose above US $3940 in the session and hit a new high for more than two months. Later, it turned down. After the US SEC approved the Ethereum ETF listing related proposals of the exchange, it turned up crude oil, rose more than 1% in the session for four consecutive sessions, and then fell to a three-month low
International crude oil futures rose in the morning in European stocks. At the beginning of the day's high in the U.S. stock market, WTI crude oil in the United States rose above $78.60, up 1.4% on the day. Brent crude oil rose to $83, up 1.3% on the day. After the announcement of the U.S. PMI, it continued to fall back, and the U.S. stock market turned down in the morning. When the afternoon market hit a new low since February 26, U.S. crude oil fell below $76.50, down nearly 1.5% on the day. Oil distribution once fell below $81.00, It was at the lowest level since mid February and fell nearly 1.2% on the day.
Finally, crude oil fell for four consecutive days. WTI July crude oil futures closed down 0.70 dollars, or 0.90%, at 76.87 dollars/barrel; Brent crude oil futures for July closed down 0.54 dollars, or 0.66%, at 81.36 dollars per barrel, and both U.S. oil and Brent crude oil closed at a three-month low.
US WTI crude oil rose in the morning in European stocks, and the US stock market hit a new daily high at the beginning of the day. US stocks fell in the morning and fell to a three-month low in the afternoon
The US oil ETF United States Oil Fund LP (USO) closed 0.55% lower, and the oil distribution ETF United Sttes Brent Oil Fund LP (BNO) closed 0.44% lower, both falling four days in a row to the lowest level since March 12.
Lunyi fell by more than 1% and Luntong fell for three consecutive times New York gold hit the biggest decline this month
London base metal futures mostly continued to decline on Thursday, but the decline was generally far less than Wednesday. Lunyi, which fell 4.4% on Wednesday, led the decline by more than 1%, fell to a week-long low, far from the high set on Monday since August last year. Lunyi Copper, Lunyi Lead and Lunxi all fell for three consecutive days. Luntong, which fell more than 4% on Wednesday, closed slightly lower, and Lunqian continued to fall from their record highs set on Monday and their highs since April 2022. Lunxi hit a new weekly low. Lunqian, which fell more than 3% on Wednesday, ended down less than 0.4%, continuing to fall from the highest level since June 2022. Lunzin, which fell to the highest level since February last year, ended flat on Wednesday.
Gold opened lower and moved lower on Thursday, accelerating its decline after the US PMI was announced. When the US stock market hit its low level since May 9 in the afternoon, spot gold fell below $2331, down 2% on the day, and gold futures in New York fell to $2332.4, down more than 2.5% on the day.
By the noon gold closing of the US stock market, COMEX June gold futures closed down 2.33%, and after April 30, it closed down more than 2.3% again, at 2337.2 US dollars/ounce, breaking the closing low since May 8, falling for three consecutive days. SPDR Gold Trust (GLD) closed 2% lower, falling for two consecutive days to its lowest level since May 8. At the close of the US stock market, spot gold was below $2332, falling nearly 2% during the day, and gold futures were far away from the intraday record high set on Monday.
