The U.S. and the EU reached a temporary truce on metals trade tariffs and began discussing overcapacity in steel and aluminum, seeking to “find a solution by the end of the year.
Senior Fed officials again to tighten monetary policy “fire”, pointing out that at a time of weak labor market, inflation is healthy. The central bank’s “second in command”, Vice Chairman Clarida said, April non-farm payrolls show that the U.S. economy has not made further substantial progress. This year’s FOMC members, Atlanta Fed President Bostic said that inflation is expected to fluctuate sharply in the coming months, it is difficult to judge the potential trend. Investors await the release of the minutes of the Fed’s April FOMC meeting on Wednesday afternoon EST to speculate on officials’ views on inflation.
In addition to inflation logic, markets continued to focus on the progress of the new crown outbreak, causing U.S. stocks to open lower on Monday. The World Economic Forum (WEF) announced the cancellation of its annual meeting in Singapore in August, citing a surge in confirmed cases in Singapore that prompted the government to tighten border controls and restrict economic activity. The WHO said the number of new cases and deaths from new coronary pneumonia globally has fallen for two consecutive weeks, but the situation in some countries is worrisome.
Inflation back in focus, tech and semiconductors lead declines as U.S. stocks collectively halt two-game winning streak, with mid-caps and small-caps outperforming the broader market
Led by technology and industrial stocks, U.S. stocks opened lower on Monday, May 17, collectively halting a two-game winning streak. Analysts say volatility will be the market’s near-term theme as inflation trends and monetary policy come into focus near the end of earnings season.
The S&P 500 opened 0.2% lower and fell as deep as 0.7% during the session. The Dow opened down more than 45 points, with the deepest intraday drop of more than 205 points or 0.6%. The Nasdaq opened nearly 62 points or 0.5% lower, and fell as deep as 1.3% during the session. The semiconductor and blockchain sectors all fell, while the pharmaceutical and non-ferrous sectors generally opened lower. Bitcoin and ethereum led the decline in cryptocurrencies, and Coinbase, the “No. 1 crypto exchange in the U.S.”, fell 7.8% and “broke”.
By the close of trading, the S&P 500 index closed down 0.25% at 4163.29 points. The Dow closed down 0.16% at 34,327.79 points. The Nasdaq closed down 0.38% at 13,379.05 points. The Russell 2000 small-cap index turned up 0.1%, after falling 1.2% and falling below 2,200 at one point during the session. The “panic index” VIX once rose 15% and regained above 21.
S&P 500 index 11 sectors, 3 major sectors closed up, 1 major sectors closed flat, 7 major sectors closed down; among them, the energy sector led the rise, followed by the materials sector; telecommunications business sector led the decline, followed by the utilities sector.
Last week, the S&P 500 index fell 1.4%, once fell 4% during the week, the Dow fell 1.1% in a single week, the Nasdaq fell 2.3%. All three major U.S. stock indexes posted their worst single-week performance since Feb. 26, with the Nasdaq’s four-week losing streak marking its longest losing cycle since August 2019. Money continued to flow from highly valued technology growth stocks to cyclical value stocks such as energy, financials and materials that are tied to the reopening of the economy.
Most of FAAMNG’s star tech stocks fell on Monday, with only Amazon and Google gaining. facebook closed down 0.2% after falling 1.4%, apple closed down 0.9% after falling 1.8%, Microsoft closed down 1.2% after falling 1.9%, and nifty closed down 0.9% after falling 2.1%, all halting two straight gains. Google parent company Alphabet halted losses and turned up 0.5%, and Amazon closed up 1.5%, both achieving a three-day gain streak.
Tesla, which was involved in the bitcoin scolding, fell as deep as 4.8% to close down 2.2%, down five days in six, and back near the two-month low since March 8 hit last Thursday. Tesla closed below $600 for the fourth consecutive day, down 36% from its record high of more than $900 set in late January; it had fallen 12% last week, the biggest one-week drop since February.
On the news, Tesla CEO Musk said during a visit to Germany that the company still plans to put its factory near Berlin into production by the end of the year, but there are growing doubts in Germany that Tesla will be able to go into production in 2021.
Bullish Tesla and other innovative technology stocks, the “bullish queen” Cathie Wood’s flagship fund ARKK fell 3.2% after closing down nearly 1%, the share price forced back down to $100, last Thursday had fallen below this mark and hit a six-month low.
Chip stocks fell in general, but the end of the decline narrowed. Philadelphia Semiconductor Index fell 2.6% after closing down 0.9%, once forced under the 2,900-point round figure, stopping two consecutive gains, last week’s cumulative decline of 4.2%. TSMC fell more than 2%, Nvidia and Qualcomm fell more than 0.3%, Intel narrowly turned up, AMD turned up. Western Digital (WDC) rose more than 6%, refreshing its intraday high above $77 since mid-July 2018.
In addition to Tesla, U.S. stocks of new energy vehicles are up. Nikola once rose 11%, Canoo rose more than 3% after hours and then rose 8%, Fisker rose nearly 7%. lordstown once jumped 22%, the largest intraday gain since late February, closed up 14.6% and rose for two consecutive days to the highest since May 5, will be June 21 to 25 for investors, analysts, customers Among the Chinese “three idiots”, Azera and Xiaopeng rose more than 1%, and Ideal Auto rose nearly 2%.
U.S. photovoltaic stocks fell collectively, Sunworks fell more than 6%, JinkoSolar, Sunrun fell more than 3%. Lithium battery concept stocks also fell, listed in the U.S. Chilean mining chemical fell more than 10%, Chile’s ruling coalition in the “Constituent Assembly” members of the election setback, or encourage higher taxes on the mining industry, but solid-state battery maker QuantumScape rose 7% after closing up 1%.
AT&T, the U.S. telecom giant, divested Time Warner and merged it with Discovery, creating a new media giant with a market cap of $150 billion that will rival Nifty, Disney and other streamers. discovery C shares rose more than 21% at one point and closed up 3% to a one-week high. AT&T rose more than 5% before turning lower and closing down 2.7%, stopping a two-game winning streak. Disney fell more than 2%, falling for two days to its lowest in nearly four months since Jan. 29, and once lost $170 during the day.
Chinese stocks again outperformed the broader U.S. stock market, with most popular stocks bucking the market and the China Technology Index ETF up 1.4%. Misty Core Technology and Doodle Smart rose more than 8%, High Way rose more than 5%, Lufthansa rose 3%, Tencent ADR rose about 2%, Baidu and Beili Beili rose more than 1%.
Other stocks with big changes include.
Audemars Piguet Airbnb down over 6%, IPO share lockup expires today. The Children’s Place (PLCE) up nearly 16%, Wedbush upgrades rating to outperform. China’s Ctrip up nearly 4%, upgraded to Hold at Morgan Stanley. Zhihu, China’s largest Q&A-style online community, rose more than 7% at one point and turned down more than 1% in the closing bell, with first-quarter revenue jumping 150% far more than expected and the advertising ratio dropping to 45% from 62% last year, showing the value of its content is being released quickly.
The pan-European Stoxx 600 index edged down 0.05% on Monday, with the deepest intraday drop of 0.5%, led by a decline of over 2% in the travel and leisure sector. Major country stock indices were down more than 0.1%, with only Italy’s FTSE MIB closing up 0.4% and Spain’s IBEX up 0.1%. ICE EU carbon emissions trading permits (futures prices) fell 1.7%, off the all-time high set on Friday.
In news, the U.K., France, Spain, Portugal and the Netherlands all eased epidemic restrictions as vaccination rates improved. FE analysis said inflation and epidemics are the focus of market attention after earnings season. Oppenheimer chief investment strategist John Stoltzfus noted that markets will remain shaky until second-quarter earnings provide more clarity on the outlook.
The dollar fell commodity currencies rose, digital currency leaders once fell 10% in tandem, bitcoin briefly lost 43,000
The dollar index fell as deep as 0.2% on Monday, still standing above the 90 mark and trading at one-week lows. The euro rose 0.1 percent against the dollar, standing steady above 1.21. The British pound rose 0.3% against the dollar, back above 1.41 and near a three-month high. The dollar fell 0.2 percent against the yen, forcing 109 below.
Analysts say the dollar’s strength is now more positively correlated with U.S. bond yields, and recent gains in metals and crude oil have also supported commodity-based currencies, with the Canadian dollar, Australian dollar and Norwegian krone rising against the dollar on Monday.
Bitcoin, the largest cryptocurrency in terms of market capitalization, fell back below the $4.30 mark or 10% in U.S. midday trading, and was back above 44,000 in late U.S. trading, hitting $42,102 to a three-month low in 24 hours. Ether, the second largest cryptocurrency by market capitalization, also fell 10% at one point to trade at $3,228 a line, with the daily low forcing the $3,100 mark, and U.S. stocks back above $3,300 in late trading.
According to Bitcoin Home statistics, the cryptocurrency market has seen a total of 234,000 people blow up in the past 24 hours, with a blow-up amount of $14 billion and a maximum blow-up order of $90 million. In the early hours of Monday morning Beijing time, Tesla CEO Musk’s response was interpreted as “Tesla may have sold its bitcoin holdings”, triggering bitcoin to fall more than $6,000 to lose the $43,000 mark and ethereum to fall more than 14% to lose $3,300. Musk later clarified that Tesla had not sold any bitcoin, and bitcoin once regained $45,000.
Gold highest in three and a half months on safe-haven demand, silver back to $28, copper halts three straight losses
COMEX June gold futures closed up 1.6% at $1,867.60 per ounce, up 2% intraday for the biggest gain since May 7.
Spot gold rose four days in a row, up $25 or 1.4% during the day on Monday, the daily high broke through $1868 to the highest in three and a half months, is also the first time since February 2 broke through the $1860 round figure. Spot silver rose as high as 2.9% and rose above the $28 round figure.
Analysts say spot gold has broken through its key 200-day technical average, tamping upward momentum. Investors with safe-haven needs are reverting to gold as a hedge against high inflation, and stable U.S. bond yields are also improving the attractiveness of gold in the short term, which does not offer yield.
The weaker U.S. dollar has led to a general rise in London base metal futures, with copper halting a three-game losing streak and closing up $132 to $10,373 per ton, closing above $10,000 for the eighth consecutive day and reapproaching the record high set last week. Domestic black futures overnight mixed, iron ore rose more than 3.7%, asphalt rose 4.8%, power coal fell more than 2%.
International oil prices rose more than 1% near a week high, WTI back to $ 66 cloth oil back to $ 69
U.S. oil WTI June crude oil futures closed up 1.37% at $66.27/barrel, Brent July crude oil futures closed up 1.09% at $69.46/barrel. WTI rose as high as $1.01 or 1.5% during the day, returning to above $66 for the first time since May 13, and Brent oil rose as high as $0.88 or 1.3%, returning to above $69, both close to one-week highs. Highs.
NYMEX June gasoline futures rose as high as 1.6 percent to a daily high of $2.16 per gallon, as the largest U.S. fuel pipeline network Colonial Pipeline resumed operations, the U.S. East Coast “gasoline shortage” has eased.
Analysts say oil prices are holding steady, indicating that confidence in a healthy oil market remains intact and that downward pressure on oil prices is limited unless there are unpredictable negative impacts. The market is both bullish on improving demand in Europe and the United States, and also worried about low consumption in Asia due to the epidemic.
Inflationary logic sends US and European Treasury yields generally higher, 10-year US bond yields rebound from one-week lows
10-year U.S. bond yields rose by up to 1.2 basis points during the U.S. session, with a daily high of 1.647%. U.S. stocks traded flat at 1.635% after midday and rose slightly to 1.649% in late trading; it had fallen to 1.605% during Asian trading on Monday, once down 3 basis points and hitting a one-week low.
During the session, the 10-year German bond yield rose 2 basis points to the highest level in nearly two years. 10-year British bond yield rose 1 basis point to 0.87%. France, Italy, Spain and Greece’s base bond yields rose more, all nearly 3 basis points.
Analysis says the 10-year U.S. bond yield touched 1.68% last week, near a 10-week high, driven by a surge in U.S. CPI inflation in April. With inflation picking up significantly in the coming months, global central banks are bound to gradually shift to less accommodative policy support and Treasury yields will be even higher.
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