Market analysis on May 10

The US stock market's performance fluctuated last Friday under the influence of hawkish remarks from senior Federal Reserve officials. Although the Dow achieved a rare eight-day rise, with a weekly cumulative increase of more than 2% and the biggest weekly gain in nearly five months, the gains of the S&P 500 index and the NASDAQ index were suppressed on Friday, and there were several short-term declines. Tesla's stock price continued to fall, closing for the fourth day in a row, while the AI concept stock Soundhound reversed the market and rose more than 7% after announcing earnings reports. $Novavax(NVAX.US)$ The stock price almost doubled, while Oklo, the first nuclear fission stock, plummeted by nearly 54% on the first day of listing.

In Europe, the pan-European stock index rose 3% this week, the biggest weekly gain in three months. Major stock indexes in Germany, France, and the United Kingdom all hit record highs. Among them, Infineon Technologies (Infineon Technologies) had a cumulative increase of 20% in the week after the release of the earnings report.

Federal Reserve Governor Bowman's remarks had a significant impact on market sentiment. She made it clear that, given the continuing pressure of US inflation, cutting interest rates this year does not seem appropriate. This stance intensified the market's expectations that the Federal Reserve will maintain a high interest rate policy, leading to an accelerated recovery in US bond yields after her speech, and two-year yields hit a new high for the week.

In the commodity market, crude oil prices fell sharply during the intraday period, but they maintained a rebound trend throughout the week. Gold prices, on the other hand, performed strongly this week, hitting a three-week high at the close and rising nearly 3% throughout the week. Copper prices on the London Metal Exchange returned above $10,000 per tonne this week, although tin prices declined somewhat this week.

In China, the consumer price index rose slightly by 0.3% year on year in April and turned to a month-on-month increase, while the year-on-year decline in the producer price index narrowed. This data has raised concerns in the market about a possible restart of inflation in China. The performance of the China General Stock Index was weak, and major technology stocks generally declined, but TSMC's US stock rose 4.5%, driven by a sharp increase in sales in April. The offshore RMB exchange rate against the US dollar fell sharply in the intraday period, once approaching a one-week low. Although the Shanghai Index closed slightly higher, the performance of the Hang Seng Index during the year has surpassed the S&P 500, thanks to the strong performance of the real estate sector.