Market analysis on March 7

Today is July 3rd. Federal Reserve Chairman Jerome Powell's latest testimony last night did not cause market surprises, helping the three major US stock indices stop their previous two-day downward trend. Among technology stocks, with the exception of Nvidia, other “Seven Sisters” tech giants generally did not perform well. Tesla led the decline for the third day in a row, falling more than 2%. Meanwhile, chip stocks performed strongly, with Nvidia, AMD, and TSMC's US stocks all closed higher and hit record highs.

In Powell's testimony in the House of Representatives, he said that it may be appropriate to cut interest rates this year, but emphasized that the Federal Reserve needs to have more confidence in inflation before taking action. At the same time, he mentioned that the draft new bank capital increase regulations may have major changes. After this speech, the decline in US Treasury yields accelerated. The yield on ten-year treasury bonds hit a new monthly low, and the decline in the US dollar index widened and hit a new monthly low.

The Beige Book report issued by the Federal Reserve shows that although economic activity has increased slightly in most regions, it is becoming more and more difficult for companies to pass on rising costs to consumers, and consumers' sensitivity to price changes has increased.

In the commodity market, crude oil prices stopped the previous two-day downward trend. U.S. crude oil prices broke away from a one-week low and rose more than 3% at one point. Gold prices hit record highs for four consecutive days, and spot gold also reached a record high after a lapse of three months. The price of Bitcoin once rebounded sharply to above $67,000, although it is still not close to the record high set on Tuesday.

In the Chinese market, during the US stock trading period, the overall performance of China Securities was better than the general market. The China Securities Index closed up nearly 2%, JD surged 16% after announcing financial reports, and NIO and Xiaopeng Motor also rose sharply, respectively. The offshore renminbi rebounded intraday, surpassing 7.21 and rising sharply. The A-share market experienced volatile adjustments. The three major indices fell slightly, but the Hang Seng Technology Index rose more than 2%, and the 10-year treasury bond yield fell below 2.3%.