Market analysis on May 14

Before the release of major US CPI data, the S&P 500 experienced a thrilling rebound, while the Nasdaq index rose for two consecutive days, reaching a record high. Small-cap indices rose more than 1%, driving overall market sentiment. Tesla's stock price rose by more than 3%. The chip stock index and Nvidia also performed strongly, rising for three consecutive days. Game Station shares continued their impressive gains, closing up about 60% and doubling the stock price within two days. Meanwhile, the Pan-European stock index continued its eight consecutive gains and continuously reached record highs in six trading days.

Google released its strongest AI model and launched an AI search engine, enhanced its voice capabilities, and directly competed with OpenAI's products. The news further fueled the market's enthusiasm for technology stocks.

The US producer price index (PPI) rose 2.2% year on year in April to a 12-month high, up 0.5% month-on-month, higher than market expectations. This led to a reduction in market expectations that the Federal Reserve might cut interest rates soon. Federal Reserve Chairman Powell pointed out the lack of progress in inflation in the first quarter, stressing that the Federal Reserve needs to be patient and wait for more evidence that inflation is cooling down before taking further action. After the PPI data was released, US Treasury yields rose briefly, but then declined. After Powell delivered his speech, the decline in yield narrowed somewhat.

In the commodity market, crude oil prices fell by more than 1%, hitting a nine-week low. Gold prices declined in the short term due to PPI data after an initial rebound. After the New York copper price hit a new high for two years in a row, the July contract surged 5.5% intraday due to shorting, approaching an all-time high, while London copper prices fell from a two-year high.

In terms of the Chinese market, the performance of Chinese securities was divided during the US market period. After Tencent's net profit surged 54% in the first quarter, its stock price closed up nearly 5%. Alibaba, on the other hand, fell 6% due to an 11% drop in net profit in the fourth quarter. NIO Auto is up 7%, while Extreme Krypton is down nearly 5%. The offshore renminbi fell below 7.24 in the intraday period, but then pulled up more than 100 points and turned upward. In the A-share market, although the overall decline was slight, the Hang Seng Index fell after rising. Technet stocks generally rose, and Xiaomi rose more than 3%.