The Fed did not let the SLR easing policy, seen as the driving force behind the banking sector’s big bond purchases, extend its duration, but neither the U.S. stock nor bond markets continued to be affected. U.S. bond yields remain near more than one-year highs, but the upward momentum has eased and the Nasdaq turned up mid-day on the back of leading technology stocks. Thursday thanks to the rise in U.S. bond yields and in the U.S. stocks a standout bank stocks retreated, becoming the main source of S&P downside.
During Friday’s European session, the Federal Reserve announced that the policy of easing banks’ Supplemental Leverage Ratio (SLR) will expire at the end of this month and did not decide to extend the term. This decision is contrary to the mainstream expectations of Wall Street, because market participants fear that once the banks sell U.S. debt, U.S. bond yields in the market when Inflation expectations are already high upward pressure will be greater. Since then, U.S. stock index futures fell collectively, and then quickly turned up; U.S. bond prices fell, yields short term upward.
There are comments that U.S. bond yields on the Federal Reserve’s SLR decision only appeared knee-jerk rise, the rapid rise did not continue, which may be “buy rumors sell facts” behavior. Wall Street News has pointed out that this Wednesday’s press conference by Fed Chairman Jerome Powell has been evasive on the issue of whether SLR relief has been extended, and there are already clues. Moreover, the long-term U.S. bond yields hit another year-plus high this Thursday shows that the market realized that the Fed’s decision to raise the RRP single counterparty limit on Wednesday was paving the way for the end of the SLR waiver, preparing commercial banks to give up deposits and margins upon the expiration of the SLR policy and driving short-end rates into negative territory, facilitating the collection of this liquidity over thereafter.
European stocks resumed their losses on Friday after France announced a blockade of 16 provinces, including Paris, with British, French, German and Western stock indexes all down more than 1% and pan-European stock indexes edging higher for the week, led by bank stocks retreating. Volkswagen fell for the first Time this week, still up big for the full week.
The dollar index continued to move higher on Friday and bitcoin rallied intraday but never managed to regain $60,000 as it did on Thursday. In commodities, Crude Oil rebounded but still plunged for the week, dragged down by Thursday’s heavy losses; precious metals were mixed on Friday, with Gold continuing to rise and silver retreating, but both accrued gains for the week; industrial metals mostly rose and also mostly accrued gains for the week, but copper and lead accrued losses.
Leading technology stocks rebounded, the Nasdaq rose more than 1% intraday, bank stocks fell
The three major U.S. stock index performance varies, the Nasdaq Composite Index in technology stocks to support the best performance, although more than once in the early trading turned down but about an hour after the opening of the stable up, and then a road up, a new daily high at lunchtime when up slightly more than 1%. The S&P 500 and the Dow Jones Industrial Average both opened lower, the S&P early in the day when the new daily low fell more than 0.7%, the end of the morning session turned up, after maintaining the upward trend. The Dow fell nearly 360 points at the beginning of the session, down about 1%, and narrowed to within 150 points at midday.
The S&P rose about 0.3% at midday when the Nasdaq set a new daily high. The S&P 500’s 11 major sectors, only three down at midday, including Thursday’s deficit rose financial fell nearly 1% led by the decline, industrial and materials fell less than 0.5%. Up in the sector, energy rose more than 1% to lead the way, telecommunications services rose about 1%, other sectors rose no more than 0.5%.
The end of the three major stock indexes and a wave of downside, the S&P turned down, the Dow fell to expand to more than 200 points. Finally, the three major indices only the Nasdaq closed up, the Dow and S&P fell for two days in a row, hitting a new low of more than a week.
The Nifty closed up 0.76% at 13215.24 points, out of the trough hit on Thursday since March 10; the S&P closed down 0.06% at 3913.10 points; the Dow closed down 234.33 points, down 0.71% at 32627.97 points, respectively, a new low since March 10 and 11 closing.
This week, the three major stock indexes are cumulative losses, the S&P fell 0.77%, the Dow fell 0.46%, both ending a two-week streak of gains, the Nasdaq fell 0.79%, giving back some of last week’s gains. This week’s cumulative decline mainly from Thursday’s plunge, the Nasdaq and S&P fell about 3% and 1.5%, respectively, the largest drop in three months, the Dow fell more than 150 points that day.
Small-cap stocks outperformed the broader market on Friday, with value stocks dominating the small-cap index Russell 2000 closing up 0.88%, having risen more than 1% during the day, but this week’s cumulative decline of 2.77% ran three major stock indexes.
By the close of trading, five of the major S&P sectors closed lower and six closed higher. Energy sector gains narrowed to less than 0.1%, led by gains of about 0.8% in telecommunications services and non-essential consumer goods, essential consumer goods, health care and utilities rose between 0.2% and 0.4%. Among the declining sectors, down more than 1% led by real estate and financials, industrials fell more than 0.7%, information technology and materials fell more than 0.2% and nearly 0.5%, respectively.
Leading technology stocks, FAANMG six major technology stocks four closed up, Facebook closed up more than 4%, Nifty and Amazon rose more than 1%, Google parent company Alphabet rose nearly 0.3%, Apple fell more than 0.4%, Microsoft fell nearly 0.2%; early in the day had fallen more than 4% of tesla late turned up, closing up nearly 0.3%. Chip stocks rose collectively, Western Digital closed up more than 2%, Qualcomm and Nvidia rose nearly 1%, the semiconductor industry ETF SOXX rose more than 1%.
Big bank stocks fell, Wells Fargo closed down nearly 2.9%, JPMorgan Chase, Morgan Stanley, Goldman Sachs, Citi, Bank of America fell more than 1%.
Popular Chinese general rose, Chinese ETF KWEB rose more than 1%, CQQQ rose nearly 0.6%, Tencent Music rose more than 6%, Xiaopeng car, Akiyoshi rose more than 4%.
In the European market, just approaching a 13-month high pan-European stock index erased all Thursday’s gains, barely the third consecutive week of cumulative gains, up far less than the largest one-week gain in four months last week. The banking sector fell more than 2% on Friday to lead the pan-European index. German auto giant Volkswagen fell more than 2% on Friday, closing lower for the first time this week, and still had a cumulative gain of nearly 40% for the week, with the auto sector up nearly 4% for the week, its biggest one-week gain since early February.
U.S. bond yields temporarily off more than one-year highs
After the Fed’s SLR decision was announced, the U.S. 10-year benchmark Treasury yield rose more than 4 basis points in the short term, once rose above 1.74% to refresh the daily high, approaching Thursday’s intraday rise above 1.75% hit since January last year, but in the U.S. stocks before the opening had returned to 1.72% below, the U.S. stocks had briefly regained 1.73% in early trading, once dropped to 1.71% below the lunchtime, compared with the daily high back about 4 basis points.
By the time U.S. stocks closed, the 10-year U.S. bond yield was about 1.73%, up 2 basis points during the day; the 30-year U.S. bond was about 2.44%, down 1 basis point during the day.
Crude oil out of more than two weeks trough intraday rose more than 2% this week still fell more than 6% to the largest weekly decline in five months
International crude oil futures rebounded on Friday, European stocks had turned lower during the day, U.S. stocks turned higher again before the bell and have since held higher, U.S. WTI crude oil rose more than 2.8% during the day as U.S. stocks set new daily highs at midday, and Brent crude oil had risen more than 2.6% at midday. Commentary said that Thursday’s big sell-off provided an opportunity to take in on the downside.
Finally, WTI April crude oil futures closed up $1.42, or 2.37%, at $61.42 per barrel, still down 6.38% for the week, ending a three-week winning streak. Brent May crude oil futures closed up $1.25, or 1.97%, at $64.53/barrel, down 6.77% for the week, ending a six-week winning streak.
On Thursday, U.S. oil fell below $ 60 during the day, closing down more than 7%, and the closing of the cloth oil fell nearly 7%, both closing at a new low since March 2, respectively, the largest single-day decline since September last year and June last year, the after-hours decline of more than 9% at one point. As a result, this week, U.S. oil and oil prices are the biggest single-week decline since the week of October 2 last year.
Gold hit a three-week high and the largest weekly gain in two months, while copper closed above $9,000 for three days but was down slightly for the week
After hitting a new high of more than two weeks, New York gold futures accelerated to the upside, closing higher for the second consecutive day. comex April gold futures, closed up 0.5% at $1741.70 per ounce, a new high since February 25. This cycle gold cumulative rise of about 1.3%, the largest single-week gain since the week of January 22, for the first time in nearly two months a week up more than 1%, up two weeks in a row.
Other precious metals, New York silver ended a two-day streak of gains, closing down 0.11% on Friday, but the week rose 1.58%, and gold are up for two weeks. Platinum fell more than 1.4% on Friday, giving back most of Thursday’s gains and a slight cumulative decline for the week.
London base metals futures rose on Friday, except for tin, which ended a two-day streak of gains and fell to a one-week high. Copper rebounded slightly, closing above $9,000 for the third day in a row. Lead rose for the second day in a row, further breaking out of a four-month low. Nickel ended a three-day losing streak. Aluminum and zinc erased all of Thursday’s losses.
Most metals accumulated gains for the week. Zinc and tin rose for two weeks in a row, nickel ended a three-week losing streak and aluminum erased last week’s losses. Lead lost four weeks in a row and copper gave back some of last week’s gains.
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