In May, PMI hit US stocks and bonds heavily, while Nvidia was "alone and beautiful".
The overnight, as the initial comprehensive PMI of the United States in May rose to a new two-year high above expectations, indicating that the price index rose rapidly, indicating that inflation was still stubborn, hitting interest rate cut expectations again, the market was hit by "double killing of stocks and bonds", and both bulk commodities and cryptocurrencies suffered heavy losses.
The three major indexes closed lower collectively. The Dow fell more than 1% to a two-week low, the Nasdaq closed down 0.39%, and the S&P 500 fell below 5300 points, hitting its closing low since May 14.
Under the S&P index, large cap stocks other than Nvidia were almost "wiped out", and only the IT sector where Nvidia is located in in 11 sectors barely rose 0.6%.
Nvidia once rose to 12% in the session, a record high in the session, closing up 9.3%, The closing price broke the 1000 dollar mark for the first time in history, and the company's market value stood at 2.5 trillion dollars for the first time.
Boosted by Nvidia, the "Seven Sisters" of technology stocks collectively rallied at the beginning of the session, but lost their momentum in the session. By the end of the session, they had given up all their previous gains.
US bond yields rise collectively 。 After the PMI data was released, the yield of two-year US Treasuries, which is more sensitive to interest rate policy, once rose nearly 10bp to a two-week high, and climbed 7bp to 4.94% within the day; The yield of 10-year US bonds once pushed up to 4.50%, up about 6bp within the day.
The swap market pricing shows that the expectation of the Federal Reserve's interest rate cut has been postponed from November to December.
In terms of bulk commodities and cryptocurrencies, Oil, gold and Bitcoin fell sharply.
Crude oil fell sharply for four days in a row, and US Oil closed 0.9% lower at 76.87 US dollars/barrel; Oil distribution fell 0.66% to 81.36 dollars/barrel, both hitting a three-month low.
Spot gold opened lower and moved lower. After PMI data was released, it accelerated its downward trend, falling nearly 2% within the day, about $50, and closing at about $2328.55/oz.
Bitcoin was accelerated to sell when it hit $70000. The short-term diving fell more than $3000 at one time, hovered around $66800 at the closing, and fell more than 4% within the day.
However, due to the announcement by the U.S. Securities Regulatory Commission (SEC) of plans related to spot ETF transactions in Ethereum, the rise of Ethereum continued.
The US dollar also rose slightly. As the expectation of interest rate cut fell back, the Federal Reserve may maintain the interest rate level at the current high level for a longer time, and the dollar rebounded, rising 0.09% within the day and above 105.1 at the close.
How will the market behave next?
Considering that the minutes of the Federal Reserve meeting released the previous day were "hawking", and several senior executives of the Federal Reserve have made intensive statements recently, saying that they may "not be in a hurry to cut interest rates", market confidence may continue to be weak.
Chris Low of FHN Financial said:
"The minutes remind people that although the Federal Reserve believes that it is unlikely to raise interest rates again, it does not rule out the possibility of raising interest rates if inflation performance is poor."
However, Nvidia's strong earnings momentum and steady economic growth may also bring upward space for S&P.
Andrew Tyler of JPMorgan's trading department believes that:
"As the AI theme continues to play its role and the fundamentals remain intact, we may continue to set new records."
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