Market analysis for April 4

Against the backdrop of Federal Reserve Chairman Powell's reaffirmation that interest rates may be cut during the year, the US stock S&P 500 and NASDAQ indices rebounded, and affected by Intel's sharp decline, the Dow Jones Industrial Average fell to a two-week low. The technology sector showed fragmentation. Intel plummeted by more than 8%, the biggest decline in more than two months, while Disney also fell by more than 3%, becoming a major drag on the Dow. Meanwhile, Meta rose nearly 2%, Tesla turned up after falling 2% at the beginning of the session, and the chip stock index rebounded. TSMC rose more than 1% in the US stock market, although Nvidia declined somewhat after rising 1% in early trading.

The US ISM service index for March fell short of expectations, and the price index unexpectedly fell to a four-year low, indicating that it is not consistent with the recent price trend of manufacturing and service sector PMI. According to the “small non-farmers” ADP employment report, the number of employed people in the US increased by 184,000 in March, the biggest increase since July last year.

After abandoning the electric vehicle project, Apple is exploring entering the smart home market and developing household robots as a new growth direction. After the ADP employment report was released, the 10-year US Treasury yield continued to rise, hitting a four-month high, while the two-year yield also reached a two-week high, but continued to decline after the ISM Services Index was released. Powell said that although the latest data shows a slight increase in inflation, the downward trend has not changed, and the Federal Reserve will have time to evaluate the data before deciding whether to cut interest rates. His speech caused the US dollar index to hit a new one-week low, and the yen exchange rate also narrowed its decline.

In terms of commodities, the price of crude oil reached a five-month high for the third day in a row, the price of gold reached a record closing high for the fifth day, while Bitcoin fell below $66,000 after hitting $67,000. The palm oil futures price (FCPO) broke through a 52-week high and reached $4407.

As for the Chinese market, as US stocks fluctuated, the China General Stock Index ended its four-day trend. Among them, Xiaomi fell nearly 4%, and Xiaopeng Motor and Ideal Auto both fell by more than 2%; the offshore RMB exchange rate against the US dollar rose sharply in the intraday period, breaking through 7.25. The A-share market fluctuated throughout the day. Cyclical sectors such as non-ferrous metals exploded, while the Hang Seng Technology Index fell by more than 2%, and treasury bond futures dived in late trading.

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