The Dow Index hit a record high for three days, and the NASDAQ rebounded to a two-year high; Tesla rose more than 4% to lead blue-chip technology stocks, and Microsoft rose more than 1% before the earnings report; the chip stock index stopped two consecutive declines, and AMD closed exorbitantly and did not continue to fall below its historical high. The China Securities Index fell 1%, falling three times in a row, with Pinduoduo falling more than 8% and New Oriental falling by more than 4%. After the US Treasury announced a reduction in its first-quarter borrowing forecast, the rise in US stocks widened, and the decline in US bond yields widened. The 10-year yield broke 4.10%, hit a new low of more than a week, and rebounded to a new high of more than six weeks. The US dollar index fell for a while.
The offshore renminbi fell by more than 100 points to close to 7.20 in the intraday period, then turned higher several times. Bitcoin surged above $43,000 in the intraday period and hit a new high of nearly two weeks. Crude oil rose more than 1% in the intraday period and then fell by more than 1%, ending three consecutive gains and falling to a two-month high. Gold has rebounded to a one-week high. Lun nickel fell by more than 2% and stopped rising for four consecutive years, while copper rebounded, approaching a four-week high.
Tech giants' earnings season is at its peak this week. The Federal Reserve and the Bank of England will announce the first monetary policy meeting resolution of the new year, the US Treasury will issue bonds for the new quarter, and the US will release the non-farm payrolls report for the last month of 2023. Among them, the three chip and application giants, Microsoft, Google, and AMD, are within easy reach, announcing financial reports after the market on Tuesday. The artificial intelligence (AI) boom, the main driver of US stocks, is facing a major test.
Currently, the market generally expects the Federal Reserve to keep interest rates unchanged this week. Some investors believe that the Federal Reserve may abandon the previous trend of raising interest rates. After the PCE price index, which is the core indicator favoring inflation, which was announced last Friday, slowed to a three-year low year on year, reporter Nick Timiraos, known as the “New Federal Reserve News Agency,” wrote an article on Saturday that US inflation continued to be moderate in December, providing a possibility for the Federal Reserve to consider cutting interest rates this year. The Federal Reserve is expected to stand still this week, and the monetary policy statement may remove the language implying that the next step is more likely to raise interest rates rather than cut interest rates.
The giant's earnings report hit. Before the two major central bank decisions and major economic data arrived, US stocks fluctuated slightly, had mixed ups and downs at the beginning of the session, and rose slightly in early trading. European and American bond prices have risen sharply, and yields have collectively declined. Investors expect that expectations of recent interest rate cuts may be suppressed after the Federal Reserve meeting this Wednesday. The US dollar index rebounded and hit a new high since the Federal Reserve's interest rate meeting last month in less than a week, and the euro hit a new low during the same period. Meanwhile, Bitcoin accelerated its upward trend and rose by thousands of US dollars in the intraday period, reaching 43,000 US dollars for the first time in almost two weeks.
At noon, the US Treasury announced that the expected scale of first-quarter borrowing unexpectedly did not increase but declined. US stock gains expanded, major stock indexes locked in gains, and the decline in US bond yields widened, and the benchmark 10-year US Treasury yield hit a low level for more than a week; the US dollar index regained its gains and fell for a while; and the increase in gold increased.
Among commodities, international crude oil leveled off an increase of more than 1% in the intraday market, stopping rising for three days and falling to a high level for almost two months. Commentary said that the rise in crude oil in the Asian market was affected by the attack on the US military base on the Syrian-Jordanian border in the Middle East and the Red Sea situation. Since then, investors have begun to pay attention to the Chinese property market and have begun to re-evaluate risk premiums, because the Middle East crisis has not directly affected oil market supply so far.
The Dow hit a record high for three days, Tesla rose more than 4%, led the blue chip technology stock index, stopped two consecutive declines, and the stock index fell three times in a row
The three major US stock indexes all turned down at the beginning of the session and hit new highs at the end of the session. The Dow Jones Industrial Average rose more than 60 points and rose nearly 0.2% in early trading, then turned down a few times before breaking out of the decline in midday trading, and the increase extended to over 200 points at the end of the session. The S&P 500 index rose nearly 0.2% and fell more than once in early trading. The Nasdaq Composite Index rose more than 1% at the end of the session.
In the end, the three major indices collectively closed higher. The Dow rose for three consecutive trading days, and both the NASDAQ and S&P rebounded after ending a five-day streak of gains last Friday. The Dow closed up 224.02 points, or 0.59%, to 38333.45 points, a record high for three consecutive days. S&P closed up 0.76% to 4927.93 points, breaking the record closing record high set last Thursday. The NASDAQ closed up 1.12% to 15628.04 points, breaking its closing high since January 3, 2022.
The small-cap stock index Russell 2000, which is mainly value stocks, closed up 1.67%, outperforming the market and rising for two consecutive trading days, breaking the closing high since January 2. The Nasdaq 100 Index, which focuses on technology stocks, closed up 1.01%, and the Nasdaq Technology Market Capitalization Weighted Index (NDXTMC), which measures the performance of technology constituents in the Nasdaq 100 Index, closed up 1.13%, all rebounded and refreshed the historic closing high set last Thursday.
Among the major sectors of the S&P 500, only energy, which was dragged down by falling crude oil, closed down 0.2% on Monday. Among the ten sectors that closed up, Tesla's non-essential consumer goods rose by nearly 1.4%, Microsoft's IT rose nearly 1%, Meta's communications services rose by about 0.9%, and finance rose the smallest increase of 0.3%.
Most of the leading technology stocks closed higher. The capital expenditure for the 2024 fiscal year is expected to exceed $10 billion, higher than analysts' expectations, and Tesla closed up 4.2%. After a sharp drop of nearly 14% in a week of earnings announcements last week, it rebounded for two consecutive days, and continued to break out of the closing low since May 19, 2023.
Among FAANMG's six major technology stocks, Microsoft and Google's parent company Alphabet, which will release financial reports after the Tuesday market, both showed mixed results. Microsoft maintained gains of 1.4% throughout the day, breaking the record closing record high set last Thursday. Alphabet turned up midday trading and closed up nearly 0.7%, creating a record closing record high for four consecutive trading days; Facebook parent company Meta closed up nearly 1.8% for five consecutive trading days; Netflix had a record closing record high for five consecutive trading days; Netflix had fallen more than 1% and closed up 0.4% in early trading Japan, continue to set a new two-year high; Amazon closed up 1.3%, rising for five consecutive trading days, and continuing to break the closing high since April 2022; while Apple fell more than 1% in early trading, closing down 0.4%, falling four consecutive trading days until January 18; it fell back after rising 18% last week.
Chip stocks generally turned up during the intraday period. The Philadelphia Semiconductor Index and semiconductor industry ETF SOXX turned up in midday trading, closing up slightly more than 1%, breaking out of the closing low since January 18, which was refreshed for two days. Among individual stocks, Nvidia closed up nearly 2.4%. After falling back on Friday, AMD fell more than 1% in early trading and closed up more than 0.3% due to a rebound in late trading. It did not continue to fall below the historical closing high set last Thursday. Intel, which plummeted nearly 12% last Friday after the financial report was released, fell nearly 2% to close 0.4% in early trading.
AI concept stocks generally rose and outperformed the market. At the close, ultra-micro computers (SMCI) rose more than 4%, breaking the record closing record set last Thursday. Palantir (PLTR) also rose more than 4%, C3.ai (AI) rose nearly 4%, SoundHound.ai (SOUN), Adobe (ADBE) rose more than 2%, and BigBear.ai (BBAI) rose more than 1%.
Popular Chinese securities generally continued to decline. The Nasdaq Golden Dragon China Index (HXC) fell more than 2.4% in early trading and closed down about 1%, falling for three consecutive trading days. Both KWEB and CQQQ ETFs fell more than 3% in early trading. Among individual stocks, at the close of trading, Pinduoduo fell more than 8%, New Oriental fell more than 4%, NetEase fell nearly 3%, Tencent Fan fell more than 2%, JD and B stations fell more than 1%, Alibaba and Xiaopeng Motors fell about 0.6%, while Baidu closed slightly. NIO Auto generally leveled off, Ideal Auto rose 0.7%, and Jinshanyun rose nearly 0.8%.
Among the most volatile individual stocks, the cleaning energy company Bloom Energy (BE) fell more than 7% in early trading to close 4.6% after agreeing to terminate the Amazon acquisition agreement due to lack of regulatory approval and said it would lay off 31% of employees; after being downgraded by the Bank of America to reduce its holdings due to expected zero revenue growth from 2023 to 2025, the clean energy company Bloom Energy (BE) fell more than 7% in early trading to close 4.6%; while financial services company SoFi Technologies (SOFI), whose profit and revenue for the fourth quarter were higher than expected Closing up 20.2%; biotech company Beam Therapeutics (BEAM) closed up 16.5% after J.P. Morgan upgraded the rating to increase holdings and raised the target price, considering the current price to be an attractive entry point and optimistic about its market share growth; after equipment leasing company WillScot Mobile Mini announced that it had reached a $3.8 billion acquisition agreement, the inter-company leasing company McGrath RentCorp (MGRC) closed 10.7%; it was upgraded by Bank of America to buy due to accelerated revenue growth ZoomInfo Technologies (ZI), a software-as-a-service (SaaS) company that provides market confidence, closed up 6.1% after believing that its newly launched AI products have the potential to drive growth.
In terms of European stocks, the pan-European stock index rose for four consecutive trading days. After closing at a new high since January 17, 2022 last Friday, the European Stoxx 600 Index reached a new closing high since January 13, 2022. Most of the major European countries' stock indexes fell. German stocks and British stocks, which had been rising for three days, and Italian and Spanish stock indexes, which rebounded last Friday, fell, while French stocks, which led the rise among countries last week, closed slightly higher, rising for four consecutive days.
Among the various sectors, oil and gas closed up about 0.9%, while Telecom closed down nearly 0.8%, due to the 4.5% drop in Finnish company Elisa, which was downgraded by brokerage firm Inderes to reduce its holdings. Banking and financial services fell by nearly 0.6% and 0.3%, respectively, causing Italian and Spanish stock indexes to lead the decline among European countries. Among other individual stocks, Swiss building materials giant Holcim, which announced that it would divest its North American business, rose 4.7%. Germany's Bayer fell 4.9% after being ordered to pay US$2.25 billion in compensation due to lawsuits related to cancer caused by Herbicides produced by Monsanto.
After the US Treasury's borrowing forecast was announced, the decline in US bond yields widened, and the ten-year yield hit a new low of more than a week
European treasury bond prices have risen sharply, British bond yields have continued to decline, and German bond yields have declined. According to ECB Euro Short-Term Interest Rate (ESTR) forward contract pricing, the market on Monday expects the ECB to cut interest rates by 149 basis points throughout this year, while the price fully reflects the ECB's interest rate cut by 25 basis points in April.
By the end of the bond market, the UK 10-year benchmark yield closed at 3.87%, down about 9 basis points during the day, and the 2-year British bond yield closed at 4.24%, falling about 8 basis points during the day, all at the same time low since January 16; the yield on the benchmark 10-year German treasury closed at 2.23%, falling by about 6 basis points during the day. European stocks had broken 2.23% intraday, breaking the low level since last Tuesday; the 2-year German bond yield closed at 2.57%, down about 6 basis points during the day, at the same time low since January 12.
The yield on the US 10-year benchmark treasury bond rose above 4.14% in early Asian trading, then continued to decline. After the US Treasury's loan forecast was announced, it fell below 4.06% in late trading, breaking the low level since January 17, away from the high level since the first day of the December 13 Federal Reserve interest rate meeting, which forced a 4.20% refresh last Friday. It fell more than 8 basis points during the day. By the end of the bond market, it was about 4.07%, falling nearly 7 basis points during the day.
The 2-year US Treasury yield, which is more sensitive to interest rate prospects, rose to a new high of 4.35% in the Asian market. After the Treasury's borrowing forecast was announced, US stocks fell 4.31% to a new low of 4.30%, away from the high level since January 5, which was close to the 4.42% refresh last Friday. By the end of the bond market, it was about 4.32%, falling about 3 basis points during the day, and the 10-year US Treasury yield both rebounded last Friday and fell.
The US dollar index rebounded to a new high in more than six weeks, and Bitcoin rose above 43,000 US dollars in the intraday period and hit a new high in nearly two weeks
The ICE dollar index (DXY), which tracks the exchange rate of the dollar against a basket of six major currencies, including the euro, remained strong. It was only close to 103.40 when European stocks fell to a new daily low before the market. The US stock market rose above 103.80 in early trading, breaking the intraday high since December 13, which was set last Tuesday. It rose nearly 0.4% during the day and accelerated its decline in midday trading.
By the close of the US stock market on Monday, the US dollar index was above 103.40, rising slightly during the day, barely stopping the decline after falling back last Friday; the Bloomberg US dollar spot index, which tracks the exchange rate of the US dollar against ten other currencies, fell slightly during the day. US stocks rose nearly 0.2% in early trading and turned down in mid-day trading, and failed to successfully rebound after falling back last Friday.
Among non-US currencies, the euro fell below 1.0800 against the US dollar in early trading, breaking the low level since December 13, and gradually smoothed out most of the losses. US stocks fell nearly 0.2% at the close; GBP/USD was close to 1.2660 in early trading, far from the high level since January 12, which was refreshed by 1.2770 after the UK PMI was announced last Wednesday, falling more than 0.3% during the day. US stocks rebounded slightly after falling 1.2700 at the end of the session; the US yen rebounded slightly during the closing of the day; the US yen rebounded slightly by less than 0.1% during the closing of the day; the US yen rebounded slightly by less than 0.1% during the closing of the day; the US yen rebounded slightly by less than 0.1% during the closing of the day; the US yen rebounded slightly by less than 0.1% during the closing of the day; the US yen rebounded slightly by less than 0.1% during the closing of the day; the US yen rebounded slightly by less than 0.1% during the closing of the day; the US yen rebounded slightly by less than 0.1% during the closing of the day; the US It fell below the US stock market at noon against the yen At 147.30, down 0.6% during the day, it is not close to the one-week low since January 16, which fell below 146.70 last Wednesday.
The offshore renminbi (CNH) rose to a new daily high of 7.1852 against the US dollar in early Asian trading, then fell to 7.1969 before the market, breaking the intraday low since last Tuesday and approaching 7.20 for the first time since Tuesday, falling 117 points from the daily high. Since then, it has risen slightly several times. At 5:59 Beijing time on January 30, the offshore RMB was 7.1,875 yuan against the US dollar, up 10 points from the end of the New York session last Friday, and rebounded after two consecutive days of decline.
Bitcoin (BTC) fell below $41,700 when the US stock market hit a new low in early trading, then quickly climbed back to 42,000 US dollars and 43,000 US dollars. At one point, it dropped to a new high level since last Tuesday on January 16, rising more than 1,600 US dollars from the daily low, up about 4%. US stocks hovered around the $43,200 line at the close of the day, rising about 3% in the last 24 hours.
Crude oil rose more than 1% in the intraday period and then fell by more than 1%, ending three consecutive gains and falling to a two-month high
International crude oil futures rose about 1.5% in early Asian trading on Monday. European stocks continued to decline after falling in mid-day trading. When US stocks hit a new low in midday trading, US WTI crude oil was close to 76.40 US dollars, falling 2.05% during the day. Brent crude oil approached 82 US dollars, falling about 1.8% during the day.
In the end, crude oil, which had been rising for three days, closed down. WTI crude oil futures for March closed down 1.58% to $76.78 per barrel; Brent crude oil futures for March closed down 1.38% to $82.40 per barrel, and US oil both fell to new closing highs in the past two months since the end of November, which was set for two consecutive days last Friday.
US gasoline and natural gas futures fell sharply. NYMEX February gasoline futures closed down 2.89% to $2.2285 per gallon, farewell to the high level since October 27, which had been refreshed for two days last Friday; NYMEX February natural gas futures, which rebounded last Friday, closed down 8.19% to 2.4900 US dollars/million British thermal units, falling to the high level since January 17, which was refreshed by more than 5% last Friday.
Lunnickel fell more than 2%, and copper rebounded close to a four-week high, and gold rebounded to a one-week high
London basic metals futures mostly fell on Monday. Lunnickel, which led the decline, fell by more than 2%. After four consecutive gains, Helun Aluminum fell to its high levels since the end of December and three weeks respectively. After rising for five days, Renxi fell more than 1%, and Lunzinc fell for three consecutive days, and continued to fall below the three-week high level set last Wednesday. Meanwhile, Luntong rebounded, which stopped rising three times in a row last Friday, approaching the high level since the end of December set last Thursday. Lunn lead rose for two days in a row, refreshing the two-month high set last Tuesday.
New York gold futures maintained gains throughout the day on Monday. US stocks reached a new daily high of 2037.2 US dollars before the market, rising nearly 1% during the day. In the end, COMEX February gold futures closed up 0.40% to 2025.40 US dollars/ounce, breaking the closing high since Tuesday after closing slightly last Friday.
Spot gold rose to a new daily high above 2037.40 US dollars before the market, rising more than 0.9% during the day. After the US Treasury's loan forecast was announced, the increase in gold prices expanded, and once rose above $2,035.
Editor/Somer