Market analysis for February 22

Today is February 22nd. The US stock market fluctuated after the minutes of the Federal Reserve meeting were released. The decline in technology stocks caused the Nasdaq index to fall for the third day in a row, breaking new lows of nearly three weeks, while the S&P 500 index and the Dow Jones Industrial Average turned upward at the end of the session. Although Nvidia closed down 2.9% before the earnings report, its after-hours earnings report showed that fourth-quarter revenue, profit, and guidance for the next quarter all exceeded market expectations, prompting its stock price to rise sharply by more than 9% in after-market trading. At the same time, other chip stocks such as AMD and AI “Demon Stock” Ultra Micro (SMCI) also rose significantly after the market.

The French stock market hit a record high for the fifth day in a row, while the stock price of HSBC Holdings plummeted by more than 8% after the financial report. The minutes of the Federal Reserve meeting show that officials are generally worried that cutting interest rates too fast may cause the decline in inflation to stagnate. Most officials are more concerned about cutting interest rates too soon and deep-seated price pressure rather than the risk of keeping interest rates high for too long. After the minutes of the meeting were released, US bond yields picked up at an accelerated pace. Ten-year US bond yields were once close to a two-month high. The US dollar index rose in the short term, but then returned to a downward trend. The price of crude oil rebounded after the minutes of the meeting were released, approaching a three-month high, while the price of gold fell to a one-week high, but then the decline narrowed.

In the Chinese market, Chinese securities rebounded during the US stock period and closed up nearly 1%. Among them, Ideal Auto and Alibaba showed increases of more than 4% and 3%, respectively. The offshore RMB exchange rate against the US dollar broke through 7.19 in the intraday period, hitting a three-week high, but then fell by more than 200 points and eventually closed up slightly. After experiencing a surge and retreat, the Shanghai Composite Index still closed up nearly 1%. Net capital purchases from the north reached 13.6 billion yuan, a new high since July 28, 2023.

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