Federal Reserve Chairman Jerome Powell mentioned for the second time in four days that the U.S. economy is entering an inflection point to accelerate growth, while warning of the risk of a surge in new crown cases, without mentioning a roadmap for tapering QE. The three major U.S. stock indexes were collectively higher in early trading, but leading technology stocks such as Tesla and Apple fell in unison during the day, dragging the S&P and Nasdaq to turn lower, but banks and energy stocks rose.
Goldman Sachs and JPMorgan Chase’s first-quarter profit far exceeded market expectations and revenue surged, though JPMorgan warned of sluggish loan demand. Goldman Sachs shares advanced, leading the Dow to a record high, and most other big U.S. banks rose generally, with only JPMorgan Chase falling. Lovecraft and Discovery, which were sold off after Tuesday’s explosion of Credit Suisse’s $2.1 billion after-hours Archegos burst related stocks, opened lower on Wednesday. Credit Suisse U.S. shares, on the other hand, turned up intraday.
Coinbase, the No. 1 cryptocurrency exchange, opened sharply higher on its first day of trading, and after Powell said cryptocurrencies are not a means of payment but a speculative tool, bitcoin and ethereum, which have been at record highs for days, retreated intraday and Coinbase gave back most of its gains. Blockchain concept stocks were mostly lower.
Crude oil futures surged after the International Energy Agency (IEA) raised its oil demand forecast for this year following OPEC, coupled with a sharp decline in U.S. crude inventories by nearly 6 million barrels last week beyond expectations. The U.S. dollar index continued to fall while U.S. bond yields rallied and gold resumed its downward trend. Industrial metals, led by copper, rose sharply as Goldman Sachs forecast copper prices to rise to $15,000, as it is essential for the global green energy transition.
In European markets, pan-European stock indexes reached new highs, led by energy stocks that benefited from copper and other metals and rising crude oil, and the parent company of LV, French luxury giant LVMH, which reported a surge in sales in the first quarter, closed at a record high, but German stocks fell to record highs. European government bond prices fell in tandem as yields rebounded.
IT sector led the decline in the S&P but the energy sector led the rise Blockchain concept stocks in Coinbase alone Archegos burst victim stocks Aiki fell
The three major U.S. stock indexes had mixed performance, with the Dow Jones Industrial Average the best performer and the Nasdaq Composite the worst. The Dow opened slightly lower than 8 points, the early part of the session that turned up, early rise above 33,900 points to set a new intraday record high, the largest intraday gain of more than 230 points, a percentage increase of nearly 0.7%, gradually retracted more than half of the gains in the afternoon. The S&P 500 and the Nasdaq opened collectively higher, but turned lower in the midday and early trading, respectively. The S&P rose more than 0.24% in early trading when it hit a new intraday high for the fifth consecutive session, and fell 0.5% at lunchtime when it set a new daily low. The Nasdaq rose nearly 0.27% in early trading when it hit a new intraday high for the second consecutive day since Feb. 16, and fell about 1% at lunchtime when it hit a new daily low.
In the end, only the Dow closed higher among the three major indices. The S&P closed down 0.41% at 4124.66, falling off the record closing high set on Tuesday. The Nasdaq closed down 0.99% at 13,857.84 points, down from Tuesday’s record closing high since Feb. 16, giving back most of Tuesday’s gains. The Dow closed up 53.62 points, or 0.16%, ending a two-day losing streak, erasing most of Tuesday’s losses.
The small-cap stocks that have been losing in the market for days finally raised their eyebrows, value stocks dominated by the small-cap index Russell 2000 rose more than 1% during the day, closing up 0.84%, performing far ahead of the three major stock indexes. Technology-heavy Nasdaq 100 index closed down 1.31%, inferior to the broader market.
Six of the S&P 500’s 11 major sectors closed lower and five closed higher on Wednesday. Declining sectors, down more than 1% of information technology and non-essential consumer goods led the decline, down nearly 0.9% of telecommunications services fell to the top, the bottom of the decline was down less than 0.1% of essential consumer goods. Rising sectors, up nearly 3% of the energy led the rise, followed by nearly 0.7% of the financial, the smallest gain was up more than 0.1% of the industrial.
Industry stocks, energy stocks rose collectively, the U.S. oil index fund, the U.S. Brent crude oil fund rose 4%. Large U.S. bank stocks only fell more than 1.8% JPMorgan Chase closed down, Goldman Sachs rose more than 2% to lead the Dow components, Morgan Stanley, Citi, Bank of America rose more than 1%, Wells Fargo rose more than 5%. In addition, Credit Suisse U.S. shares turned up in early trading, closing up 0.09%.
Leading technology stocks fell together, FAANMG six major technology stocks have fallen collectively at the beginning of the session, Facebook, Nifty closed down more than 2%, Amazon fell nearly 2%, Apple, Microsoft fell more than 1%, Google parent company Alphabet fell nearly 0.6%. Tesla turned down in early trading, closing down nearly 4%. Among other new energy auto stocks, Xiaopeng car fell more than 7%, Azera car, ideal car fell more than 3%. Chip stocks in general fell, the semiconductor sector ETF SOXX fell more than 1%.
In addition to Tesla, other companies conducting bitcoin-related business or investing in bitcoin Square, PayPal, MicroStrategy shares also fell, closing down more than 5%, nearly 3% and more than 13%, respectively.
Blockchain concept stocks mostly fell, MARA and RIOT fell more than 15%, the mining giant in the Chinese stocks Jia Nan Technology and Yibang International fell more than 7%, but Wednesday’s listing of Coinbase retained double-digit gains, its opening rose more than 50%, intraday gains had been more than 70%, Powell speech after the apparent narrowing of gains, closing up more than 31%.
Lovecraft and Discovery closed down nearly 8% and 5%, respectively, after being sold at a discount by Credit Suisse on Tuesday.
Among other volatile stocks, GameStop (GME) closed up more than 18.1 percent, ending a previous six-session losing streak at $166.53. The company, acting on its plan to transition from offline sales to e-commerce, announced on April 13 a voluntary redemption of $216.4 million in senior notes with a view to settling all existing debt.
Top mid-cap performers were mixed, with CQQQ, a mid-cap ETF, up nearly 0.2%, while KWEB fell more than 1%. Among individual stocks, Poundland, Douyu, Beili Beili, Tiger, Alibaba fell more than 1%, Tencent ADR fell more than 0.7%, Baidu fell more than 0.1%. While Tiger Securities rose more than 10%, FuTu Securities rose 5.8%, Zhihu rose more than 3%, while Vipshop, fog core technology rose more than 2%, Ctrip, fun headlines, with who learned more than 1%.
In Europe, the pan-European stock index rose for the second consecutive day, refreshing the closing record high set on Friday, up nearly 2.5% of mining stocks in the sector of basic resources and up 2% of oil and gas led the way. Individual stocks, LVMH closed up nearly 2.9%, the share price closed above 610 euros for the first time in history. Major European stock indexes varied on Wednesday, German stocks fell to record highs, Italian stocks ended a two-day winning streak, British and French stocks rose for two days, Western stocks ended a three-day losing streak.
Crude oil hit a new one-month high and the biggest gain in three weeks, up more than 5% intraday
International crude oil futures rose for the third consecutive day. After the release of the U.S. EIA crude oil inventories last week, U.S. WTI crude oil and Brent crude oil rose above $63 and $66, respectively, when U.S. stocks set a new daily high at midday, U.S. oil rose above $63.40, up more than 5.4% during the day, and Brent oil rose to $66.90, up slightly more than 5% during the day.
WTI May crude oil futures closed up $2.97, or 4.935%, at $63.15/barrel; Brent June crude oil futures closed up $2.91, or 4.57%, at $66.58/barrel, both hitting new closing highs for the main contract since March 17 and the largest closing gain since March 24.
The U.S. dollar index hit a nearly four-week low and the offshore yuan hit a three-week high. Bitcoin fell more than $3,000 after rising above $64,000 for the first time
After hitting a three-week low, the ICE U.S. Dollar Index (DXY), which tracks the exchange rate of a basket of six major U.S. dollar currencies, dipped further on Wednesday, with U.S. stocks falling below 91.58 at midday, hitting a new intraday low since March 18 and falling nearly 0.79 percent during the day.
By Wednesday’s U.S. stock market close, the dollar index was below 91.64, down nearly 0.24% on the day; the Bloomberg Dollar Spot Index fell 0.2% to a new three-week low, nearing a record low after the March Fed FOMC meeting.
The offshore yuan (CNH) rose for the third day in a row along with the weaker dollar. At 5:59 p.m. Beijing time on the 15th, the offshore yuan was trading at 6.5316 yuan against the dollar, recovering the 6.54 handle at the end of the day in New York for the first time since March 24.
Mainstream cryptocurrencies were mixed on Wednesday. Bitcoin (BTC) rose above $64,000 before the European stock market, once approaching the $65,000 mark, the second consecutive day of record intraday highs, after Powell’s speech, U.S. stocks fell below $61,500 at lunchtime to refresh the daily low, down more than $3,400 from the intra-day high, a percentage drop of more than 5%, U.S. stocks closed above $62,000, down more than 1% in the last 24 hours.
Market value after bitcoin, the second largest cryptocurrency ethereum (ETH) in the European shares before the market had briefly rose above $ 2,400, the third consecutive day of new intraday highs, U.S. stocks had fallen below $ 2290 in early trading to refresh the daily low, down 5% from the intraday high, after Powell’s speech, U.S. stocks were once close to fall below $ 2,300 at lunchtime, U.S. stocks closed at $ 2,340 above the 24-hour cumulative rise of more than 2%.
10-year U.S. bond yields come out of two-week trough, swap spreads narrow sharply
After falling to a two-week trough on Tuesday, the yield on the benchmark 10-year U.S. Treasury note rallied on Wednesday, and U.S. stocks had hit a new daily high of 1.65% during the day, with the largest intraday increase of more than 3 basis points.
By the time U.S. stocks closed, the 10-year U.S. bond yield of about 1.63%, up more than 1 basis point during the day; 30-year U.S. bond yield of 2.31%, up 2 basis points during the day; 2-year U.S. bond yield of 0.16%, up less than 1 basis point during the day. Yields on U.S. bonds of all maturities fell on Wednesday, and by the end of the day in New York, the 10-year U.S. bond yield was above 1.63%, and the 30-year yield rose less than 2 basis points during the day, while the 2-year rose 0.2 basis points and the 5-year rose nearly 2 basis points.
Long-term dollar swap spreads narrowed sharply as both the 10-year and 3-year swap spreads fell to their lowest levels since March 19.
European government bond prices fell collectively on Wednesday, British bond yields rose for two days in a row, and the German bond yields that have been moving down for days finally rebounded. British 10-year benchmark Treasury yields rose 3 basis points to 0.80% during the day; German bond yields also rose 3 basis points to -0.26% during the same period.
Copper rose nearly 2% to recover $9,000, a three-week high Gold fell back to near a one-week low
London base metals futures closed up collectively for the second consecutive day on Wednesday, both up two days in a row, with copper hitting a three-week high and closing at the $9,000 mark for the first time in the last four days. LunLead and LunTin hit new highs in over a month and a month and a half, respectively. Aluminum rose above $2,300 to a new high in three years.
New York gold futures just reversed a two-day losing streak resumed its decline. COMEX June gold futures closed down about 0.7% at $1736.30 per ounce, giving back most of Tuesday’s gains and approaching the closing low set on Monday since April 5. But silver futures in New York rose for the second day in a row, closing above $25 for the second day in a row.
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