Market analysis on May 7

US stocks showed an uneven trend on Wednesday amid fluctuations in the earnings season. Although the Dow barely maintained five consecutive gains, setting a record for the longest continuous rise in more than four months, both the NASDAQ index and the S&P 500 index fell for a while. The stock prices of Disney and Palantir plummeted 9.5% and 15%, respectively, after the financial reports were announced. The latter recorded the biggest one-day decline in two years. Meanwhile, Reddit once surged nearly 20% in after-hours trading.

In the tech sector, Google closed up nearly 2% with positive dynamics after its new product launch, while Tesla fell nearly 4%. Chip stocks experienced a day of fluctuation, with Nvidia falling more than 3% during the intraday period. The European stock market performed well. The pan-European stock index hit a record high. After the financial report, UBS and Infineon rose 7.6% and nearly 13% respectively in the European stock market.

Apple launched the thinnest iPad Pro in history, equipped with an M4 chip, and iPad Air, Pencil, and Magic Control keyboards. Google snatched Apple to launch an affordable AI phone, selling the Pixel 8a for 499 US dollars, adding AI features without increasing the price. The new Pixel tablet costs 399 US dollars, which is a reduction in price compared to the previous generation.

The monetary policy outlook for the US economy is also the focus of market attention. The Minneapolis Federal Reserve Chairman's comments suggest that the Federal Reserve may keep interest rates high for longer. This statement has further fueled market concerns that the US neutral interest rate may be higher than expected. As a result, the US dollar index reached a new high and continued to break away from its low level for more than three weeks. Bitcoin fell by thousands of dollars in the intraday period and fell below $63,000. Furthermore, important US polls show that people's confidence in Federal Reserve Chairman Powell is close to an all-time low.

In the commodity market, crude oil and gold prices fell again after a brief rebound. Crude oil prices were close to seven-week lows. The price performance of Lunzinc and Luntong was strong. Lunzinc rose nearly 2% to a 13-month high, and Luntong broke through the 10,000 US dollar mark again a week later, close to a two-year high. Furthermore, cocoa futures surged 14% intraday, the biggest increase since 1960.

In the Chinese market, A-shares and Hong Kong stocks both showed a correction. The Hang Seng Technology Index fell 2%, and the A-share military and real estate sectors showed active performance. The performance of China Securities in the US market was also weak. The index plummeted by more than 2%, and the stock prices of Xiaopeng Motor and Ideal Auto fell by more than 6% and 3%, respectively. The offshore RMB exchange rate against the US dollar fell sharply in the intraday period, falling below the 7.22 mark.