The Nasdaq 100 index hit record highs for three consecutive days; the chip stock index hit a record closing record high. AMD closed down 3.5%, falling to an all-time high; Apple rose more than 1%, while Microsoft and Meta hit record highs and then fell, and Tesla fell more than 1%. The China Securities Index closed down more than 2%, losing six consecutive losses. Xiaopeng Motors fell more than 3%, and Baidu and Jingdong fell nearly 3%.
The 10-year US Treasury yield fell below 4.10% in the intraday period, down more than 10 basis points from last Friday's high. The US dollar index rebounded slightly after falling to an intraday low of nearly a week; before the Bank of Japan's decision, the yen broke away from a seven-week low. The offshore renminbi rose more than 100 points during the intraday period to recover 7.20.
Bitcoin fell more than $2,000 in the intraday period, falling below $40,000 to a seven-week low. Crude oil rebounded to a four-week high, reaching 80 US dollars at the petrol station. At one point, US oil rose more than 3%. Gold stopped rising two times in a row. Lun copper fell, Lun nickel hit a new low for nearly three years, and Lun lead rose three times in a row to a new high of more than seven weeks.
This week's earnings season is gradually reaching its climax. From Tuesday to Friday, several industry leaders will announce quarterly reports, including P&G and Johnson earnings before Tuesday, Netflix earnings for the day after the market, AT&T earnings for Wednesday, Tesla and IBM earnings for Thursday, Blackstone earnings for Thursday, Intel, T-Mobile, and American Express earnings for Friday.
Before the giants released their earnings reports, US stocks continued to collectively open higher on Monday. The two major stock indicators, the P500, the Dow, and Nasdaq 100 all continued their record highs last Friday, while some technology stocks failed to maintain their gains. Microsoft and Meta fell after hitting record highs in the market. Chip giants and AMD, which benefited from artificial intelligence (AI) demand, fell sharply in the intraday market. Nvidia, another AI chip giant, and the chip stock index both turned down in the intraday.
The market expects that, with the exception of Tesla's “Big Seven” of surgical technology, all six will continue to drive S&P's profit growth, and that after betting on AI, major technology companies will usher in a “very different” fate. Commentary said that expectations of resilient economic growth and steady corporate performance support Wall Street's risk appetite, and the rise in US stocks reflects the prospects of market pricing reflecting a soft landing. Meanwhile, after Meta CEO Zuckerberg announced new goals to enter the AI field in a big way by the end of this year, such as holding 350,000 Nvidia H100 video cards, investors are still betting on a major driving force that supported the rise in US stocks last year — the AI boom will continue until this year.
In addition to financial reports, several central bank monetary policy meetings this week are also the focus of the market. The market expects that the Bank of Japan, the European Central Bank, and the Bank of Canada may all stand still. The US GDP and the PCE price index, which the Federal Reserve favors inflation, which will be announced this week, may affect the prospects for the Federal Reserve to cut interest rates this year.
The price of US Treasury bonds rebounded in the intraday period, and the yield on the benchmark 10-year US Treasury bond fell intraday, falling more than 10 basis points from the more than a month's high set last Friday. The US dollar index fluctuated slightly before several central bank meetings, falling to a low level of nearly a week in the intraday period, and ended with a slight rebound. The yen broke away from the low level set last Friday for more than a month before the Bank of Japan announced its monetary policy decision on Tuesday, but the intraday gains came back and generally leveled off. Bitcoin continued its decline last week, falling below the $40,000 mark in the intraday period to its low since the beginning of December, falling more than $9,000 from the two-year high created by the first day of spot ETF listing more than a week ago.
Among commodities, while US stocks were rising, gold, a safe-haven asset, was suppressed. Gold, which had rebounded for two consecutive days, declined. Commenting that technical sell-offs and rising stock markets may be the two major factors limiting the interest of precious metal gold and silver buyers. Crude oil, which fell last Friday, rebounded strongly. At one point, US oil rose more than 3%, and oil closed at the $80 mark for the first time in almost a month. The geopolitical situation continues to drive up oil prices. Israel's attacks in the Gaza Strip show no sign of stopping. Despite being attacked by the British and allied forces, the Yemeni Houthis continued to attack merchant ships in the Red Sea. Russian energy company Novatek was forced to suspend some fuel export operations at the Baltic Sea pier due to the fire. Ukrainian media said the fire was caused by a drone attack. However, fundamentals may continue to drag down oil prices, and the US GDP to be announced this week may indicate a marked slowdown in economic growth.
The Nasdaq 100 hit a record high for 3 days, and the chip stock index closed at a record high, but then fell after Microsoft and Meta hit a new high
The three major US stock indexes collectively opened higher for three consecutive trading days and maintained gains throughout the day. The Dow Jones Industrial Average rose more than 240 points and 0.6% in early trading, and the S&P 500 index rose nearly 0.6% in early trading, all of which hit record highs in intraday trading. The Nasdaq Composite Index rose more than 0.8%.
In the end, the three major indices closed higher for three consecutive trades. The Dow closed up 138.01 points, or 0.36%, to 38001.81 points, closing above 38,000 points for the first time in history. S&P closed up 0.22% to 4850.43 points, and both set record closing highs set last Friday. The NASDAQ closed up 0.32% to 15360.28 points, breaking the closing high since January 4, 2022 for two consecutive trading days.
The Nasdaq 100 Index, which focuses on technology stocks, rose nearly 0.8% at the beginning of the session, turning down in the short term and closing up about 0.01%. The Nasdaq Technology Market Capitalization Weighted Index (NDXTMC), which measures the performance of technology components in the NASDAQ 100 Index, rose more than 1% at the beginning of the session, then recovered most of its gains and closed up 0.24%, all reaching record closing highs for three consecutive trading days. The small-cap stock index Russell 2000, which is mainly value stocks, closed up 2%, outperforming the market, smoothing the decline from last Friday, and breaking its closing high since January 8.
Among the major sectors of the S&P 500, only three sectors closed down on Monday. Utilities and Tesla's non-essential consumer goods fell more than 0.5%, and essential consumer goods fell nearly 0.5%. Among the eight sectors that closed, the leading industry rose more than 0.7%, the other sectors rose less than 0.5%, and communication services of Google and Meta rose slightly.
Chip stocks generally declined in early trading, and may have stopped for two straight days. The Philadelphia Semiconductor Index and semiconductor industry ETF SOXX rose about 1.5% and 1.6% respectively at the beginning of the session. They turned down slightly about an hour after opening, then turned higher at the end of early trading, closing up nearly 0.3% and more than 0.3%, respectively, breaking the historical closing highs set last Friday. Among individual stocks, Nvidia rose 1.4% at the beginning of the day, fell less than an hour later, fell 0.7% in early trading, and then turned up, closing up nearly 0.3%, hitting record highs for three consecutive trading days. Micron Technology closed up nearly 2%, Intel turned down several times in the intraday, closing up nearly 0.2%, while the slightly higher AMD market quickly turned down after setting a record high. It fell about 5.8%, closed down nearly 3.5% in early trading, and fell to a record high for four consecutive days. Arm closed down 1.9%.
Some of the leading technology stocks turned lower in the intraday period. Among them, Tesla, whose target price was lowered by 9.2% to $345 by Morgan Stanley, rose slightly more than 1% in early trading, turned down about an hour after opening, closed down 1.6%, and fell back to its closing low since November 1 after a slight rebound last Friday. Among FAANMG's six major technology stocks, Apple, which paid off anti-monopoly fines of 1.2 billion rubles in Russia, closed up 1.2%, rising for three consecutive trading days, breaking the closing high since December 21; Netflix, which will release earnings reports on Tuesday, turned down in early trading and closed up nearly 0.6%, rebounding after falling back last Friday; while Microsoft rose nearly 0.5% at the beginning of the market, a record high during the opening session, and soon fell 0.5%, falling to the high closing record set for two consecutive days; Facebook's parent company Meta had an initial rise of 1.2%, breaking the closing record high for 2 consecutive days. A record high in mid-day trading, turning down, closing down 0.4 %; Google's parent company Alphabet turned down at the end of the session, closing down nearly 0.2%, leaving the two-year high that was refreshed last Friday; Amazon turned down at the beginning of the session and closed down nearly 0.4%, falling to the closing high since April 2022, which was refreshed for two days last Friday.
Most AI concept stocks continue to rise. By the close, C3.ai (AI) rose more than 6%, SoundHound.ai (SOUN) rose 7%, BigBear.ai (BBAI) rose more than 10%, Palantir (PLTR) rose nearly 5%, while Adobe (ADBE), which turned down in early trading, fell more than 1%.
Popular Chinese securities generally declined, outperforming the general market. The Nasdaq Golden Dragon China Index (HXC) fell more than 4% at the beginning of the session and closed down 2.2%. It fell for six consecutive trading days, and continued to hit a closing low for more than a year. KWEB and CQQQ closed down about 2.8% and 3.9%, respectively. The three new car builders fell sharply. Xiaopeng Motor closed down 3.1%, Ideal Auto closed down 2.8%, and NIO Auto fell more than 1%. Among other individual stocks, by the close, Tencent fan fell more than 3%, Baidu fell nearly 3%, Jingdong fell nearly 3%, Station B fell more than 2%, Alibaba and Pinduoduo fell more than 1%, and NetEase fell nearly 0.9%.
Among the volatile individual stocks, farmers' giant ADM (ADM) closed down 24.2% after responding to the US Securities Regulatory Commission's request to voluntarily investigate the accounting operations of the nutritional products business and announced an immediate leave of absence for the chief financial officer; biomedical company Gilead Sciences (GILD) closed down about 10.2% after announcing the disappointing results of its phase III clinical study of Trodelvy's lung cancer treatment.
European stocks followed the rise in the US stock market, and the pan-European stock index, which fell last Friday, rebounded. The European Stoxx 600 index smoothed out last Friday's decline and did not continue to close at its closing low since December 5, which was refreshed last Wednesday. Most of the major European countries' stock indexes rose on Monday.
Among the various sectors, technology closed up about 2%, partly benefiting from the Dutch lithography giant ASML, which was upgraded by Bernstein to increase its holdings, up nearly 3.1%, surpassing Nestlé in market capitalization, ranking third in European stocks. The banking sector closed up 1.3%. Among the constituent stocks, Barley, which is favored by Morgan Stanley, rose 2.8%. Among other individual stocks, Commerzbank, which was downgraded by the Bank of America to outperform the market, fell 3.4%, and Ferrari fell 2.2%, dragging down the Italian stock index.
The 10-year US Treasury yield broke 4.10% in the intraday period and fell more than 10 basis points from last Friday's high
European treasury bond prices have risen sharply, and yields have declined. By the end of the bond market, the UK 10-year benchmark yield closed at 3.90%, down about 2 basis points during the day; the 2-year British bond yield closed at 4.26%, down about 1 basis point during the day; the yield on the benchmark 10-year German treasury bond closed at 2.29%, falling about 5 basis points during the day, continuing to break from the six-week high that rose above 2.35% last Thursday; 2-year German bond yield closed at 2.68%, down about 5 basis points during the day from December 1, when it rose above 2.73% last Friday.
The yield on the US 10-year benchmark treasury bond rose above 4.13% in early Asian trading, rising about 1 basis point during the day, and breaking 4.10% in the middle of the day. The US stock market dropped 4.07% to a new daily low, falling about 5 basis points during the day. It fell more than 12 basis points from the first day of the December 13 Federal Reserve interest rate meeting, which was refreshed by 4.20% last Friday. It did not hit a new high since December 13 for the first time in the last four trading days. It was about 4.11% at the end of the bond market, down about 1 basis point during the day. The sun is falling.
The 2-year US bond yield, which is more sensitive to interest rate prospects, rose above 4.41% at the beginning of the European session, and rose about 3 basis points during the day. Early trading of US stocks fell 4.36% to a new daily low, falling about 2 basis points during the day, breaking 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 4.39%, rising nearly 1 basis point during the day, rising for 2 consecutive trading days.
The US dollar index rebounded slightly before the Bank of Japan's decision, and the yen broke away from a seven-week low, Bitcoin fell below $40,000 in the intraday period and hit a seven-week low
The ICE dollar index (DXY), which tracks the exchange rate of a basket of six major currencies including the US dollar against the euro, was in a downward trend for most of Monday. It continued to fall from its high intraday level since December 13, which was refreshed by 103.70 last Wednesday. It was close to 103.10 in early Asian trading, breaking the low since last Tuesday, falling nearly 0.2% during the day. European stocks and early US stocks rose for a short period of time. It was close to 103.40 to a new daily high of 103.371.
By the close of the US stock market on Monday, the US dollar index was above 103.30, up less than 0.1% during the day; the Bloomberg US Dollar Spot Index, which tracks the exchange rate of the US dollar against ten other currencies, rose about 0.1%, and the US dollar index rebounded after two consecutive days of decline.
Among non-US currencies, the yen rose in the intraday period, breaking out of a seven-week low, and then fell. The US dollar rose to a new daily high of 148.30 in early Asian trading on Monday. The US stock market was close to 147.60 and fell more than 0.3% during the day, falling from the high level since November 28, when it rose to 148.80 last Friday. US stocks hovered around the 148.10 line at the close of the day, and then fell 0.1% during the day. The stock closed below 1.0890 and fell by about 0.1% during the day. It failed to continue to break away from the low level since December 13, which fell below 1.0850 last Wednesday; GBP/USD rose 1.2730 before the US stock market to a one-week high since last Monday, January 15. It rose nearly 0.3% during the day, breaking away from the low level since December 13, which fell below 1.2600 last Wednesday. US stocks closed above 1.2700 and rose less than 0.1% during the day.
The offshore renminbi (CNH) fell from 7.21 to 7.2103 against the US dollar in early Asian trading. US stocks recovered 7.20 after completely breaking out of the decline in early trading and rose to 7.1931 in midday trading, rising 172 points from a daily low, continuing to break away from the low level since November 17, when it fell below 7.23 last Wednesday.
Bitcoin (BTC) continued its decline last week. It fell below $39,500 in midday trading, falling below the $40,000 mark for the first time since December 4, breaking the intraday low since December 3, falling more than $2,400 and nearly 6% from the daily high above $41,800 in early Asian trading, falling more than $2,000 and nearly 6%. It is far from the high level since December 2021 created by the first day of the Bitcoin spot ETF listing last Thursday. The US stock closed back above $40,000 in the last 24 hours. It fell about 4%.
Crude oil has rebounded to 80 dollars at a high level in the past four weeks, and US oil once rose more than 3%
International crude oil futures turned higher in the intraday session on Monday. At a new intraday low in the Asian market, US WTI crude oil fell below $72.90 and fell nearly 0.8% during the day. Brent crude oil approached 77.80 US dollars, falling nearly 1% during the day. European stocks maintained their gains after the pre-market, and accelerated their upward trend since before the market. When US stocks hit a new high in midday trading, US oil was close to 75.80 US dollars, rising more than 3.2% during the day. The oil rose above $80.50, rising more than 2.5% during the day.
In the end, WTI crude oil futures for February, which stopped two consecutive days last Friday, closed up 1.42% to 75.19 US dollars/barrel; Brent crude oil futures for March closed up 1.91% to 80.06 US dollars/barrel, closing above $80 for the first time since December 26, and US Oil both hit closing highs since December 26.
US gasoline and natural gas futures had mixed ups and downs. NYMEX gasoline futures for February, which stopped rising for five consecutive days last Friday, closed up nearly 3.5% to 2.2378 US dollars/gallon, a new high since November 29; NYMEX February natural gas futures closed down 3.97% to 2.419 US dollars/million British thermal units, breaking the low since December 20 for two consecutive trading days, falling for five consecutive days.
Luntong fell back to Lun nickel, hit a new low for nearly three years, and lead rose three times in a row, and gold stopped rising two times in a row
London basic metals futures mostly fell on Monday. After two days of continuous gains, Luntong declined slightly and was unable to continue breaking away from the two-month low set last Wednesday. Lunlu, which rebounded last Friday, fell back to a low level for more than five weeks. Lunzinc fell for five consecutive days, hitting a new low since mid-December for four consecutive trading days. Lunnickel fell for two consecutive days, hitting a new low since the end of March 2021 on both days. Meanwhile, lead rose continuously from the 3rd to the end of November. Lunxi evened out the seven-day decline that stopped last Friday, and refreshed the high level since the end of December.
New York gold futures fell for most of the day. They only turned up in early Asian trading and European stock trading. They reached a high of 2034.1 US dollars in early Asian trading, rising more than 0.2% during the day, while US stocks reached as low as 2017.4 US dollars at the beginning of the market, falling nearly 0.6% during the day.
In the end, COMEX February gold futures closed down 0.35% to 2022.2 US dollars/ounce. After two consecutive days of gains, they fell back and began to fall to the closing low since December 13, which forced $2006 to fall to a new low on Wednesday.
Spot gold fell to a new daily low below the 2017 dollar level at the beginning of the US market. It returned to the intraday level on Thursday, January 28, and fell more than 0.6% during the day.
Editor/Somer