The S&P Index rose more than 1%; Nvidia closed up 3.6%, leading the tech giant, and Tesla closed down 2%; the chip stock index rose four times in a row; AI “monster” ultra-microcomputers rose nearly 16% and Dell rose 11%; AMC and many other retail group stocks fell more than 30% in the intraday; Buffett mysteriously held positions in Chubb and rose more than 6% after trading. China's stock index rebounded in a surprise way. Ali rose nearly 2%, while NIO closed down 8%, and JiKrypton and Xiaopeng Motors fell 3.5%. The Pan-European stock index hit record highs on the 7th. German, French and British stocks reached new highs. After the financial report, the German Commercial Bank rose more than 5%, and Merck rose nearly 5%. After the CPI was announced, the 10-year US Treasury yield dived by more than 10 basis points, and both hit a five-week low since the March CPI was announced; the yen rose more than 1% in the intraday period, and the offshore renminbi rose more than 300 points to 7.21, hitting a one-week high; Bitcoin rose 5,000 US dollars, breaking the 66,000 mark for the first time in more than three weeks; and gold rose more than 1% to a new high in more than three weeks. Crude oil fell more than 1% in the intraday period and then turned higher, breaking away from a nine-week low. Silver hit an 11-year high, rising more than 4% in the intraday period. Luntong rebounded 1% to a two-year high. New Zealand copper continued to approach the historical high of two years ago, rising nearly 5% at one point.
Heavy inflation indicators have rekindled the market's enthusiasm for the Fed to cut interest rates. The year-on-year growth of the US CPI and core CPI slowed as economists expected in March, with increases of 3.4% and 3.6% respectively; none of the April CPI month-on-month growth stabilized in March, but rather slowed to 0.3%, and core CPI growth slowed to 0.3% as scheduled. Growth slowed for the first time in half a year, and also cooled down after three consecutive months of higher growth than expected.
The commentator said that the CPI inflation index is finally taking a small step in the direction of Federal Reserve officials considering starting to cut interest rates. Although the data may bring some hope that inflation will resume a downward trend, Fed officials will want to see more data and gain confidence in cutting interest rates. The day before the CPI was announced, Federal Reserve Chairman Powell had indicated that the Federal Reserve needed patience to allow restrictive policies to work. Reporter Nick Timiraos, known as the “New Federal Reserve News Agency,” wrote that Wednesday's data is not enough to change the Fed's expectations on whether and when to start cutting interest rates. The Federal Reserve may still not act until September, and two CPI reports may be needed to strengthen the Fed's confidence.
After the CPI was announced, investors increased their bets on interest rate cuts in September. Intraday swap contract pricing showed that traders expected that the probability that the Federal Reserve would cut interest rates by 25 basis points by September would rise to more than 80%. The price of US Treasury bonds jumped intraday, and yields dived more than 10 basis points from intraday highs. The benchmark 10-year US Treasury yield hit a new low since April 10, when the March CPI surpassed expectations; the US dollar index fell rapidly and hit a new low since April 10; US stocks opened higher across the board, and the three major stock indexes all hit record closing highs. However, retail group stocks that were raging in the previous two days “faded away.” Many individual stocks such as Game Station and AMC plummeted by double digits in the market.
At a time when the decline of the US dollar accelerated, non-US currencies generally rose. The yen rose more than 1% against the US dollar in intraday time, and the offshore renminbi both reversed the three-day continuous decline. The euro and the British pound leveled off the decline since the US CPI was announced in March. The commentator said that the US dollar is the US dollar cross currency pair that is most sensitive to the trend of the US fixed income market so far. If US interest rate investors advance the expected Federal Reserve interest rate cut, this currency pair may also fluctuate the most. Cryptocurrency also rose. Bitcoin once rose more than 5,000 US dollars in the intraday period, breaking the 66,000 US dollar mark for the first time in more than three weeks.
Among commodities, after the CPI was announced, the increase in precious metals gold and silver rapidly expanded, with gold closing up more than 1%, hitting a high level since late April. Silver rose more than 4% in the intraday period, and futures earnings hit a new high since 2013; most industrial metals continued to rise. New York copper, which was historically emptied on Tuesday, continued to approach the historic high level set at the beginning of the Russian-Ukrainian conflict in 2022, but the gains subsided. After rising nearly 5% in the intraday period, most gains were spat back.
The International Energy Agency (IEA) monthly report lowered this year's global oil demand growth forecast for the second month in a row, hitting oil prices, but there was a dramatic reversal in the international crude oil market, breaking away from the nine-week low set on Tuesday. After the CPI was announced, the US EIA crude oil inventory fell more than expected for the second week in a row last week as announced by the US Department of Energy, and crude oil, which fell by more than 1% in the intraday period, leveled up the decline.
The S&P Index rose more than 1%, and Nvidia led the tech giant's chip stock index, which rose four times in a row, and retail group stocks plummeted by double digits in the intraday period
The three major US stock indexes generally opened higher and moved higher. The increase in the Nasdaq Composite Index and the S&P 500 Index successively expanded to more than 1% in the midday session. The Dow Jones Industrial Average rose nearly 380 points and rose more than 0.9% at the end of the session, both of which set the highest intraday record. Eventually, they collectively closed for two consecutive days, both of which were the biggest increases since the announcement of the day non-farm payrolls contributed to interest rate cuts on May 3.
The NASDAQ closed up 1.4% to 16742.39 points, rising for three consecutive days, hitting a record high for two consecutive days. S&P closed up 1.17% to 5,308.15 points, closing at 5,300 points for the first time in history. The Dow closed up 349.89 points, or 0.88%, to 39908.00 points, breaking the closing record high set on March 28.
The Nasdaq 100 Index, which focuses on technology stocks, closed up 1.49% to a new high in closing history. The Nasdaq Technology Market Capitalization Weighted Index (NDXTMC), which measures the performance of technology constituents in the NASDAQ 100 Index, closed up 2.31%, setting new closing highs for two consecutive days, all rising for four consecutive days. The small-cap stock index Russell 2000, which is mainly value stocks, closed up 1.14%, rising for the 3rd straight until March 28.
Among the major sectors of the S&P 500, only Tesla's non-essential consumer goods did not close higher and largely closed down on Wednesday. IT, where chip stocks such as Nvidia are located, led the rise by nearly 2.3%, while real estate, utilities, and healthcare rose more than 1%.
Including Microsoft, Apple, Nvidia, Google parent company Alphabet, Amazon, Facebook parent company Meta, and Tesla, most of the tech giants closed up. Nvidia had the highest gain, while Tesla, which had the best performance on Monday and Tuesday, fell rapidly after rising nearly 1.4% at the beginning of the session. It fell 2.5%, closing 2% in early trading, falling 2%, down from the high level of closing since May 6, which had been rising for two days.
Among the six major FAANMG technology stocks, Microsoft closed up nearly 1.8%, rising two times to a high since April 11; Apple closed 1.2%, rising three days to a closing high; Alphabet closed 1.1%, rising for three days, setting a new closing record high; Meta closed up nearly 2.1%, rising for two days, breaking the high level since April 24 set last Friday; and Amazon fell more than 2% in early morning trading, closing down 0.6%, falling back to the low level since May 2; Netflix ended 1.7% in early morning trading Turned down, closed slightly lower, and continued to break away from Monday The highest level since April 16, created by the rebound.
Chip stocks generally continued to rise. The Philadelphia Semiconductor Index and semiconductor industry ETF SOXX closed up about 2.9% and 2.8%, respectively, outperforming the market and rising for 4 consecutive days until March 7. Among chip stocks, Nvidia closed up about 3.6%, and will continue to rise for the fourth to close on March 25; at the close, Broadcom and AMD rose more than 4%, applied materials rose more than 3%, Micron Technology and TSMC US stocks rose more than 2%, Intel, which had fallen more than 1% in early trading, rose 0.7%, while Arm fell more than 2%.
AI concept stocks generally continued to rise and outperform the market. By the close, ultra-micro computers (SMCI) rose 15.8%. After Morgan Stanley raised its target price by 19% and was optimistic about the strong growth momentum of its AI servers, Dell (DELL) rose 11.2%; Astera Labs (ALAB), known as “Little Nvidia,” which sells data center interconnect chips, rose more than 7%, BigBear.ai (BBAI) rose 5%, Adobe (ADBE) rose nearly 2%, and C3.ai (AI) and Palantir (PLTR) rose more than 1%, Oracle (ORCL) 0.6%, SoundHound.ai (SOUN) rose nearly 0.4%.
Retail group stocks, which had surged in the previous two days, fell back. GameStation (GME), which closed up about 60% on Tuesday, opened down 17.3%, falling about 35.4%, closing down nearly 20% in early trading; AMC (AMC), which closed up 32% in early trading, fell 31.2% in early trading and closed down 20.2%; SunPower (SPWR), which closed up about 60% on Tuesday, fell 31.4% in the intraday session and received 29.2%. Koss (KOSS), which closed up nearly 41% on Tuesday, fell 31.5%, closed down 19.2% in early trading and closed down 19.2% in early trading on Tuesday.) It fell more than 9% in early trading and closed down 6.4%; Benefiting from a sharp rise in retail group stocks, the US stock forum Reddit (RDDT) fell more than 9% in early trading and closed down nearly 4.4%. The brokerage firm Robinhood (HOOD) fell nearly 2.5% in early trading and then turned up, closing up nearly 2.8%.
Popular Chinese securities generally rebounded. The Nasdaq Golden Dragon China Index (HXC) quickly fell after rising nearly 0.7% at the beginning of the session. It fell nearly 1.2% in early trading and turned up at the end of the session, closing slightly higher by 0.03%. It did not continue to fall from the closing high since September 2023, which was set by Monday's rebound of more than 3.7%. China's ETFs KWEB and CQQQ turned down in early trading, closing up about 1.2% and 0.6%, respectively. Most of the new car builders continued to decline. At the close of the market, NIO Auto fell nearly 8%, Krypton and Xiaopeng Motors fell 3.5%, Ideal Auto fell 1.8%, while Xiaomi Pink alone rose more than 1%. Among other individual stocks, Alibaba, which fell 6% after Tuesday's earnings report, rose nearly 1.9%, and Pinduoduo also rose nearly 1.9%. Baidu and B rose more than 1%, JD rose 0.8%, and Tencent Pink, which rose nearly 5% after Tuesday's earnings report, initially fell by about 1% in early trading, rose about 0.2% after the late trading session, and NetEase rose more than 0.1%.
The bank stock index rose sharply for two days. The overall banking index KBW Bank Index (BKX) closed up about 1%, continuing to set a new high since March 2023; the regional banking index KBW Nasdaq Regional Banking Index (KRX) closed up 0.3%, and the regional bank stock ETF SPDR S&P Regional Bank ETF (KRE) closed up nearly 0.4%, all continuing to hit high levels since January 30.
Among the most volatile individual stocks, Buffett's Berkshire Hathaway revealed that after buying nearly 26 million shares in the first quarter and that its holdings were the ninth largest in the quarter, property and accident insurance company Chubb (CB) rose more than 6% after the market. This individual stock was Berkshire's mysterious position revealed after three consecutive quarters of secrecy; losses in the first quarter were lower than expected; after announcing an agreement with AT&T to connect its space-based cellular broadband network to mobile phones, satellite communications service provider AST SpaceMobile (ASTS) surged more than 40% after the market; Division (CSCO) After the market, it was announced that earnings and revenue for the third fiscal quarter were higher than expected, and the stock price rose nearly 5% after the market; and after warning that economic and competitive pressure continued to market many customers and market demand, chemical product manufacturer Hawkins (HWKN) fell more than 6% after the market.
In terms of European stocks, interest rates on the pan-European stock index rose for nine consecutive trading days. The European Stoxx 600 Index closed at a record high for seven consecutive days. Stock indexes of major European countries rose sharply. After announcing GDP growth of 0.7% in the first quarter, leading the growth rate among the major economies in the Eurozone, the Spanish stock index rose more than 1%, leading among countries. French stocks set the highest closing record for two consecutive days. German stocks, which have fallen for two days in a row, and British stocks, which have risen twice in a row, have both set new high levels in closing history set last Friday.
Among various sectors, rising expectations of US interest rate cuts also led to a decline in European bond yields. Interest rate sensitive real estate closed up 3.6%, technology rose nearly 1.1%, and healthcare rose nearly 0.7%. Thanks to the lower than expected profit decline in the first quarter, the German-listed pharmaceutical company Merck closed up 4.8%. Among the other individual stocks that announced financial reports, the quarterly profit surpassed expectations and hit a ten-year high, Commerzbank rose 5.1%; the annual organic revenue growth guide, Experian, a good London-listed consumer credit reporting data company, surged 8.1%, leading the way in Stoke's 600 constituent stocks; while Finnish biofuel producer Neste, which lowered its renewable product profit guidelines this year, fell 14.8%, leading the decline among Stoke's constituent stocks.
After CPI, 10-year US Treasury yields dived more than 10 basis points to a five-week low
The price of European treasury bonds rose sharply, and yields followed the decline in US bonds in the intraday period. By the end of the bond market, the yield on the UK 10-year benchmark treasury bond was about 4.06%, falling by about 11 basis points during the day, breaking 4.06% in early trading, breaking the low level since April 10; the yield on 2-year British bonds was about 4.23%, down about 7 basis points during the day; the yield on the benchmark 10-year German treasury bond was about 2.42%, down about 13 basis points during the day. After the US CPI was announced, it had broken 2.42%, breaking the low level since May 7; the 2-year German bond yield was about 2.89%, down about 9 basis points during the day.
The yield on the US 10-year benchmark treasury bond rose above 4.45% in early Asian trading. After the US CPI was announced, it quickly fell below 4.40% to 4.34%, breaking the low since April 10 set last Tuesday, falling below the 50-day EMA and falling below the 100-day EMA. The intraday decline was slightly more than 10 basis points. By the end of the bond market, it was about 4.34%, falling about 10 basis points during the day.
The 2-year US Treasury yield, which is more sensitive to interest rate prospects, reached a new high of 4.83% in early Asian trading. Before the CPI was announced, it quickly fell 4.71%, breaking the low since April 5, falling below the 50-day EMA and 200-day EMA. It fell by more than 11 basis points during the day, about 4.72% at the end of the bond market, falling nearly 10 basis points during the day, and the yield on other US bonds falling for 3 consecutive days.
The US dollar index hit a five-week low, and the yen rose more than 1% during the intraday period, and Bitcoin rose 5,000 US dollars to break through the 66,000 mark
The ICE dollar index (DXY), which tracks the exchange rate of the dollar against a basket of six major currencies, including the euro, reached a new daily high of 105.10 at the beginning of the Asian market and maintained its decline after turning down. After the US CPI was announced, the decline widened rapidly and fell below 104.50. The decline of US stocks narrowed in early trading and rose to 104.80. The decline widened again. US stocks fell below 104.30 after closing. It fell nearly 0.7% during the day, refreshing the low since the US CPI fell on the same day in March.
By the end of the foreign exchange market on Wednesday, the US dollar index was in the 104.30 line, falling nearly 0.7% during the day, falling for 3 consecutive days; the Bloomberg US Dollar Spot Index, which tracks the exchange rate of the US dollar against ten other currencies, fell about 0.6% during the day, falling continuously for 2 days to April 9.
Among non-US currencies, the yen, which fell for three days in a row, rebounded during the intraday period. The dollar fell below 154.80 against the US stock market in early trading, falling close to 1.1% during the day. US stocks closed slightly below 155.00 and fell about 1% during the day; EUR/USD rallied after the US CPI was announced, and US stocks were close to 1.0890 after closing, breaking the high level since April 9, rising more than 0.6% during the day; GBP/USD approached 1.2690 after closing, breaking the high level since April 10, and rising close to 0.6% during the day.
The offshore renminbi (CNH) was as low as 7.2422 against the US dollar in early Asian trading. After the US CPI was announced, it quickly rose to 7.2056 and rose 342 points during the day, breaking 7.21 for the first time since May 6, breaking the high level since May 6. At 4:59 Beijing time on May 16, the offshore renminbi was 7.2179 yuan against the US dollar, up 219 points from the end of Tuesday in New York, and rebounded after three consecutive days of decline.
After the US CPI was announced, Bitcoin (BTC) quickly surpassed 64,000 US dollars, rising above 65,000 US dollars and 66,000 US dollars in early trading and 66,000 US dollars respectively. At the end of the session, it broke through the 66,000 US dollar mark for the first time since April 24. It rebounded slightly more than 5,000 US dollars and more than 8% from the intraday low level of early Asian trading. US stocks were above 66,000 US dollars at the close. It rose more than 7% in the last 24 hours and fell to 66,000 US dollars after closing.
Crude oil fell more than 1% in the intraday period and then rose to break away from a nine-week low
International crude oil futures reversed in a V-shape after falling during the session. At the time of the Asian market's intraday high, US WTI crude oil rose above 78.70 US dollars and rose more than 0.9% during the day. Brent crude oil was close to 83.10 US dollars, up more than 0.8% during the day. European stocks turned down in early trading, and turned up in the short term after the US CPI was announced. When US stocks hit a new low in early trading, US oil fell to 76.70 US dollars, down 1.7% during the day, oil fell below 81.10 US dollars and fell 1.6% during the day. US EIA crude oil inventories were announced and turned higher at the end of early trading.
Eventually, crude oil, which fell back on Tuesday, rebounded. WTI's June crude oil futures closed up $0.61, or 0.79%, to $78.63 per barrel; Brent crude oil futures for July closed up $0.37, or 0.45%, to $82.75 per barrel, and both broke away from the monthly contract closing low since March 12, which was refreshed on Tuesday.
US gasoline and natural gas futures have rebounded. NYMEX June gasoline futures, which fell back to a new low since February 21, closed up 1.5% to $2.4968 per gallon; NYMEX June natural gas futures closed up 3.51% to 2.416 US dollars/million British thermal units, breaking the four-month high.
New Zealand copper continues to approach the record high CPI two years ago, and after that, gold rose more than 1%, and silver hit an 11-year high
London basic metals futures continued to mostly rise on Wednesday. Lunnickel, which led the rise, rose more than 2% and rebounded to a high level since late April. Luntong, which fell back on Tuesday, also rebounded, rising slightly more than 1%. It closed above $102 million for the first time in two years, and hit a new high since April 2022 after Monday. Lunxi Aluminum closed up nearly 1.9%, approaching 2,600 US dollars, a record high in three weeks. It also rose for three consecutive days with Lunxi and Lun Lead. For the third day in a row, Lun Xi hit a new high since November last year, and for the third day, Lunxi hit a new high since late April. Meanwhile, lunzine fell to a high level since March of last year, which was set for four days in a row.
New York copper rose for five consecutive days, while COMEX July copper closed up 0.6% to 4.9245 US dollars/pound, hitting a two-year closing high for three consecutive days. It continued to approach the historic closing high set by copper on March 4, 2022. It rose to 5.128 US dollars during the intraday period, and rose nearly 4.8% during the day.
After the US CPI was announced, New York gold futures quickly rose to 2,385 US dollars, and spot gold was close to 2,379 US dollars. After a short-term decline in US stocks at the beginning of the market, the upward trend accelerated. Midday futures for US stocks rose above $2,396, up more than 1.5% during the day. Spot gold rose above $2,390 and rose nearly 1.4% during the day, all hitting new highs since April 22.
By the close of midday US stock futures, COMEX's June gold futures closed up 1.48%, the biggest increase since April 5. They rose for two consecutive days to $2394.9 per ounce, breaking the closing high since April 19 set last Friday. At the close of the US stock market, spot gold was above $2,387, up nearly 1.3% during the day.
New York futures rose for two days in a row. COMEX silver futures closed up about 3.6% to 29.73 US dollars/ounce in July, setting a new high for the main contract since February 15, 2013. After closing, the increase in silver futures further expanded, rising to 29.98 US dollars, up nearly 4.5% from Tuesday's close.
