The global epidemic situation is grim, India single-day new cases again hit a global high, Japan officially declared a state of emergency in Tokyo and other places. But the U.S. Markit manufacturing and services PMI preliminary value in April are record high, the number of new home sales in March hit a record high in 2006, the positive economic data to stimulate market optimism about the economic recovery, this week has fallen three days of the three major U.S. stock indexes rebounded collectively, the dollar weakened, U.S. bond prices fell back, yields rebounded. The popular Chinese stocks that bucked the market on Thursday rose even more and continued to outperform the broader market.
Bank stocks strongly supported the S&P. Google led by a number of leading technology stocks to support the S&P and Nasdaq. Earnings reports continue to affect some stocks, a quarter of data center revenue more than expected sharp decline and gross margins inferior Intel plunged, American Express reported lower-than-expected revenue in the first quarter, a sharp decline in credit card-related spending on travel and leisure; Honeywell’s commercial space business recovery is slow, is expected to be at the lower end of the expected full-year space business revenue, both stocks also fell, both curbing the Dow rally. And Snap, a social media company that has seen a larger-than-expected increase in users in the first quarter, moved higher.
Bitcoin fell below $48,000 intraday for the first time in nearly seven weeks after news that the Biden administration is proposing to double the capital gains tax hike for high-income earners spooked bitcoin investors. Dogecoin fell by at least 10% for the fourth straight day, with multiple cryptocurrencies plunging by double digits throughout the week. Bitcoin’s plunge coincided with a record discount of nearly 19% to the net asset value of GBTC, the world’s largest bitcoin fund at $35 billion, and the evaporation of nearly 20% of its market value over the week.
In commodities, the Biden administration’s efforts to cut carbon emissions and promote green energy performance inspired a rally in industrial metals led by copper, copper closed for the second day this week at a new high in more than nine years, and continued to accumulate gains throughout the week; precious metals were mixed, gold and silver fell back, palladium rebounded; along with the decline in the dollar, crude oil continued to rally, but failed to reverse the momentum of cumulative losses throughout the week.
In the European market, two consecutive days of gains in European stocks in the epidemic fears under the impact of the retreat, get copper and other metals driven by the mining stocks rose against the market, the whole week pan-European stock index and German stock index recorded the first one-week cumulative decline in eight weeks. And fund distribution platform Allfunds surged on its first day of trading, boosting the European IPO market, which was hit by a big drop in the debut of the British version of Hungry Deliveroo last month.
The Nasdaq posted its biggest gain in nearly three weeks, while the S&P rebounded on the back of strength from the financial and technology sectors.
The three major U.S. stock indexes generally moved higher on Friday, with the S&P 500 and Nasdaq Composite both opening higher and extending their gains to more than 1 percent at midday. The Dow Jones Industrial Average opened slightly lower than 11 points, the early part of the day that turned up, and has since maintained an upward trend, expanding to more than 200 points at midday.
Finally, the three major indices closed up collectively for the second day this week. The Dow closed up 227.59 points, or 0.67%, at 34,043.49 points, erasing some of Thursday’s losses. The S&P closed up 1.09% at 4189.17 points, the largest closing gain since April 15, the Nasdaq closed up 1.44% at 14016.81 points, the largest closing gain since April 5, and the S&P were erased all Thursday’s losses.
Small-cap stocks outperformed the broader market, with value stocks dominating the small-cap index Russell 2000 opening higher, closing up 1.76%. The tech-heavy Nasdaq 100 index closed up 1.3%.
This week, the three major stock indexes have accumulated losses, the Dow fell 0.46%, the S&P fell 0.13%, ending a four-week streak, partly due to the news of the Biden capital gains tax adjustment, they hit seven weeks and five weeks on Thursday, respectively, the biggest drop; the Nasdaq fell 0.52%, ending a three-week streak, three days this week have closed down more than 0.9%. The Nasdaq 100 fell 0.72%, underperforming the broader market, while the Russell 2000 rose 0.41%, outperforming the three major stock indexes.
Dow components, the bottom of the performance of the three announced earnings, Intel fell more than 5%, Honeywell fell more than 2%, American Express fell nearly 2%.
S&P 500 of the 11 major sectors, only down nearly 0.2% of utilities and consumer goods closed down on Friday, rising sectors, up more than 1.8% of the financial, up nearly 1.7% of materials and up more than 1.4% of information technology led, telecommunications services, industrial and non-essential consumer goods are also up more than 1%, the smallest gain is up nearly 0.6% of real estate. Energy was the bottom performer throughout the week, with health care the best performer.
Industry stocks, banking stocks stand out, banking ETFs rose more than 3%, the large U.S. bank stocks, Morgan Stanley rose more than 3%, Goldman Sachs, Citi, Bank of America rose more than 2%, JPMorgan Chase rose nearly 2%, in addition to Credit Suisse U.S. shares rose more than 4%.
Most of the leading technology stocks rose, FAANMG six major technology stocks only fell more than 0.6% Nifty closed lower, Google parent company Alphabet rose more than 2%, Apple rose 1.8%, Microsoft and Facebook rose more than 1.5%, Amazon rose nearly 1%. Tesla rose more than 1.3%.
Other technology stocks, Snap rose more than 7%, “Korea Amazon” Coupang rose more than 6%. Chip stocks in addition to Intel mostly higher, the semiconductor sector ETF SOXX rose more than 1.8%, AMD rose more than 4%.
Top Chinese stocks continued to outperform the broader market, with Chinese ETFs KWEB and CQQQ both up more than 2%. A number of Chinese stocks rose high, Uxin used cars rose nearly 60%, Doodle Intelligence rose over 16%, Zhihu, the first e-cigarette shares of fog core technology rose over 15%, Tiger Securities rose over 14%, Beili Beili rose over 7%, Vipshop, Futu Securities, Douyu rose over 5%, Huanju Times, Tiger rose over 4%, Poundland, Tusen Future rose nearly 4%, microblogging, Azera Motors, China Express rose over 3%, Lufax, Baidu, Xiaopeng car, ideal car, Stranger rose more than 2%, Alibaba, Tencent Music, Kingsoft Cloud, NetEase, Tencent ADR, Aiki Yi rose more than 1%.
In Europe, the pan-European stock index fell back after two days of consecutive gains, the third day of the week closed lower, and the German stock index, as in the last eight weeks, the first single-week cumulative decline. Among the sectors, real estate and health care, which fell more than 1%, led the decline, while basic resources, where mining stocks are located, rose more than 1% to lead the market. Among individual stocks, Allfunds closed up nearly 20.5% on its first day of trading on Friday, boosting the European IPO market, which was hit by a big drop in the debut of the British version of hungry Deliveroo last month.
Dollar index hits another seven-week low Bitcoin fell below $48,000 intraday for the first time in nearly seven weeks Dogcoin and many other cryptocurrencies plunged by double digits this week
The ICE Dollar Index (DXY), which tracks the exchange rate of a basket of six major U.S. dollar currencies, continued its downward spiral as U.S. stocks approached 90.80 at midday, hitting a new intraday low since March 2 and a new low for the second consecutive day since the beginning of March, with the largest intraday drop of nearly 0.6%.
By Friday’s U.S. stock market close, the dollar index was slightly above 90.81, down nearly 0.57% intraday and down more than 0.8% for the week, down three weeks in a row; the Bloomberg Dollar Spot Index fell 0.4%.
The offshore yuan (CNH), which just ended an eight-day streak, rebounded against the U.S. dollar on Friday to 6.4900 yuan at 5:59 p.m. Beijing time on the 24th, hitting a new high in the late New York session since March 17, following Tuesday and Wednesday this week, up 361 points from last Friday’s late New York session, up three weeks in a row.
CoinMarketCap data shows that mainstream cryptocurrencies fell across the board on Friday, with Dogcoin (DOGE) down nearly 17.5% in the last 24 hours, and Ripple (XRP), Litecoin (LTC) and Bitcoin Cash (BCH) down at least 12% by the end of the U.S. session.
Bitcoin (BTC) had fallen below $48,000 in early European trading and tested as low as $47,500, hitting a new intraday low since March 6, with a 24-hour decline of more than 12% at one point, since then the decline has narrowed, the U.S. stocks regained $50,000 during the day, and the U.S. stocks closed below $50,900, with a cumulative decline of nearly 5% in the last 24 hours, down more than $10,000 from last Friday’s U.S. stock close, and a cumulative decline of nearly 18% in the last Seven-day cumulative decline of nearly 18%.
Ethereum (ETH), the second largest cryptocurrency in terms of market capitalization after Bitcoin, fell below $2,100 in early Asian trading, down more than 20% from its all-time high of $2,640 in Thursday’s session, and closed below $2,370 in the U.S., down more than 7% in 24 hours.
Cryptocurrencies have collectively accumulated losses this week, with XRP down more than 31.9%, DOGE down 30.2%, BCH down more than 24.5% and LTC down 22% in the last seven days by the end of the U.S. stock market.
U.S. bond yields rebounded but still fell throughout the week European bonds were mixed
U.S. 10-year benchmark Treasury yields had been below 1.54% before the U.S. stock market, close to the intraday low of about a week set by Thursday approaching 1.53%, the U.S. stock market opened significantly higher, the early test of 1.58% to refresh the daily high, the maximum intra-day rise of more than 4 basis points, to the U.S. stock market closed at 1.55% above, up nearly 2 basis points during the day.
Yields on U.S. bonds of all maturities generally climbed on Friday, with cumulative declines throughout the week and greater declines in long bond yields. By the end of the day in New York, the 10-year U.S. bond yield was nearly 1.56%, a cumulative decline of more than 2 basis points this week, and the 30-year U.S. bond yield rose nearly 1.6 basis points during the day, a cumulative decline of about 3 basis points this week; the 2-year and 5-year rose about 1 and 2.6 basis points during the day, respectively, a cumulative decline of about 0.4 and 1.4 basis points this week.
European government bond prices fluctuated slightly on Friday, with mixed gains and losses, as British bonds continued to fall and German bonds rebounded. British 10-year benchmark Treasury yield rose 0.3 basis points to 0.744% during the day; German bond yields fell 0.5 basis points to -0.257% during the same period. British bond yields fell by about 2 basis points in total this week, falling for two consecutive weeks, while German bond yields rose by 0.5 basis points in total, climbing for four consecutive weeks.
Copper hit a new nine-year high for the second time this week, up three weeks in a row. Gold and silver ended a two-week winning streak with palladium approaching a record high.
London base metals futures rose on Friday, except for tin, which fell for two days in a row, falling further away from more than nine years highs. Copper, aluminum and nickel rebounded, with copper rising above $9,500 and closing at a new nine-year high for the second time this week, aluminum returning to a nearly three-year high and nickel hitting a two-week high. LunLead rose for two days in a row, hitting a new seven-week high for the second time this week. Zinc rose for three days in a row, hitting a one-week high.
The base metals all accumulated gains this week except for zinc, which ended a two-week streak of gains. Copper rose more than 3% for the second week in a row, and tin, aluminum and lead all rose for three weeks in a row. The nickel partly erased last week’s losses.
Among the four commodities, gold, silver, copper and oil, copper was the best performer this cycle.
New York gold and silver futures fell for the second consecutive day, ending a two-week winning streak for the week. COMEX June gold futures closed down 0.2% at $1,777.80 per ounce, falling further away from the main contract closing high set on Wednesday since February 24, down about 0.1% for the week, up about 2% last week, the biggest one-week gain since the week of December 18 last year. Silver futures closed down 0.4%, with a cumulative loss of 0.11% for the week.
Other precious metals rebounded, platinum futures closed up 2%, up 2% for the week. NYMEX June palladium futures closed up 0.5% at $2857 per ounce, approaching the record closing high set on Wednesday, up about 3% for the week.
Crude oil rose more than 1% for two consecutive days, still accumulated losses this week
International crude oil futures rose for a second straight day, but still accumulated losses for the week, largely stemming from Wednesday’s drop of more than 2%, the largest closing decline since April 5.
WTI June crude oil futures closed up $0.71, or 1.15%, at $62.14/barrel, down about 1.60% for the week; Brent June crude oil futures closed up $0.71, or 1.08%, at $66.11/barrel, down 0.99% for the week, both giving back some of last week’s gains. Last week, the U.S. oil and cloth oil were up 6.42% and 6.09%, the largest single-week gain since the week of March 5.
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