The U.S. CPI exceeded expectations by 5% in May, the fastest year-over-year growth rate since August 2008, sparking market concerns about inflation. 10-year U.S. bond yields jumped on the news, once reverting to 1.53% to set a new daily high, and U.S. stocks began to fall before the bell, returning to below 1.50% at the beginning of the session, and have continued to move lower since then, hovering at a three-month low.
Some commentators say that the high CPI continues to be influenced by the base effect and the pressure of demand rebounding after being suppressed, and may not give a clear answer to the currently hotly debated inflation issue. Judging from the rapid retreat in U.S. bond yields, the bond market is in line with the Fed’s thinking that the current higher inflation is temporary and there is no guarantee that the Fed will start tapering QE soon. there are also comments that bond market traders are betting that the Fed will take a wait-and-see attitude.
U.S. stock futures fell after the CPI data was released, and the dollar index jumped briefly to a new intraday high for the week. But the dollar began to fall just before the U.S. stock market. Major U.S. stock indexes opened higher across the board, with real estate, technology, telecom and health care sectors rising in general. Leading technology stocks other than Apple rose, with Tesla and Amazon up around 2%, serving as upside drivers for the broader market. Bank stocks are still affected by the intraday decline in U.S. bond yields, and the financial sector is a drag on the broader market.
Small-cap stocks continued to underperform the broader market. A number of retail holdings plunged: GameStop (GME) opened lower and extended its midday losses to more than 20% after announcing a planned stock offering and SEC investigation into its securities trading activities; AMC Theatres, which had risen more than 4% at the beginning of the session, turned lower in early trading and fell more than 10% at midday; Clover Health (CLOV), which had risen more than 100% during Tuesday’s session and dived nearly 20% during Wednesday’s session Thursday’s session once fell more than 14%; Wednesday’s session had risen more than 70% of GEO Group (GEO) Thursday once fell 20%; Wednesday’s session had risen more than 46% of Clean Energy Fuels (CLNE) Thursday fell had reached 18%.
Commodities, in the media rumors of the United States to cancel sanctions on some Iranian oil executives, crude oil futures short dive, quickly stop rising back down, down nearly 2% during the day, but soon rebounded, and eventually hit a new high of at least two years again this week; CPI data show that inflation accelerated upward, precious metals gold and silver continue to rise, gold has not been able to close a week to regain the psychological barrier of $ 1900; copper and most base metals Back down, copper has not only failed to recover the $10,000 mark for a week, but also fell below $9,900 for the first time in a week.
In European markets, the European Central Bank raised its economic and inflation expectations and committed to significantly accelerate the pace of debt purchases during the epidemic emergency bond purchase program PEPP in the next three months, pan-European stock indexes closed higher for the fifth consecutive day, with BT soaring, supporting the telecom sector led by gains, while travel stocks, which previously benefited from the easing of restrictions on epidemic prevention and higher, fell back and led the market lower; Volkswagen fell 1.7% after reports of expected supply bottlenecks in the long term. Even the auto sector fell for a third straight day, and German stocks fell for a fourth straight day.
S&P hits record highs, Nasdaq hits one-month highs three times this week, leading tech stocks only Apple down, financials and industrials buck market leaders, small caps continue to underperform, GME leads retail holdouts
The three major U.S. stock indexes opened collectively higher, all in the opening nearly an hour and a half after a new daily low, the Nasdaq Composite Index turned down in the short term, the S&P 500 and the Dow Jones Industrial Average retracted most of the day’s gains, after which they all rebounded quickly. S&P rose above 4240 points at the beginning of the day to set a new intraday record high, up more than 0.7% during the day, the lunchtime gains remained at more than 0.5%. The Dow rose more than 290 points at the beginning of the day when it brushed a new high, up more than 100 points in the first half of the lunch session, and gradually retracted most of the gains near the end of the day. The Nasdaq maintained gains at lunchtime, once rose above 14,030 points, and then hit a new intraday high since May 7, up more than 0.8% during the day.
Finally, the three major indices collectively closed higher for the first time this week. The S&P and Nasdaq both rebounded. The S&P closed up 0.47% at 4239.18 points, refreshing the closing high set on May 7. The Nasdaq closed up 0.78% at 14,020.33 points, closing at a new high since April 29 and a new high since April 30 on Tuesday. The Dow ended a three-day losing streak, closing up 19.10 points, or 0.06%, at 34,466.24, coming off a closing low set on Wednesday since May 26.
Small-cap stocks underperformed the broader market for the second consecutive day, with the value-cap-dominated small-cap index Russell 2000 staying down after turning lower in early trading to close down 0.68%. The tech-heavy Nasdaq 100 closed up 1.05%, outperforming the broader market for the second consecutive day.
Dow components, Walgreens rose 3%, Merck, Amgen rose more than 2%; Caterpillar fell more than 3%, Goldman Sachs fell more than 2%. The S&P 500’s 11 major sectors closed up 6 on Thursday, 5 closed down. Up in the sector, up more than 0.9% of real estate led the rise, followed by a 0.75% increase in information technology, the smallest increase in health care also had a gain of 0.6% or more. Declining sectors, down more than 1.2% of the industrial and down more than 1.1% of the financial led the decline, materials fell more than 0.7%, the bottom of the decline was down more than 0.1% of energy.
Most of the leading technology stocks closed up, Tesla rose nearly 1.9%. FAANMG six major technology stocks, only down 0.8% Apple closed down, Amazon rose more than 2%, Google parent company Alphabet and Microsoft rose more than 1%, Facebook rose nearly 0.7%, Nifty rose 0.3%. Chip stocks rose generally, semiconductor sector ETF SOXX rose more than 1%; AMD rose more than 2%, NXP, Applied Materials rose more than 1%.
The last two days popular retail holdings in the stock, Wednesday closed up more than 38% GEO Group (GEO) closed down nearly 20%, Wednesday closed up more than 31% Clean Energy Fuels (CLNE) closed down 15.6%, Wednesday closed up more than 19%, 14.5% and 10.5% respectively Atomera (ATOM), Cleveland -Cliffs (CLF) and Clovis Oncology (CLVS) closed down 10.5%, more than 1% and 5.4%, respectively; Clover Health (CLOV), which closed down 23.6% on Wednesday after closing up nearly 86% on Tuesday, closed down more than 15%.
Among other retail holdouts, GameStop (GME) closed down more than 27%, its biggest one-day drop since March 24, while AMC Theatres closed down more than 13% and Koss Electronics (KOSS) fell more than 6%.
In Europe, the Euro Stoxx 600 index closed at a record high for the fifth consecutive day. Among individual stocks, Britain’s largest broadband and mobile operator British Telecom (BT Group) rose nearly 6.6%, pushing European and British stocks higher in the broader market. The telecoms sector led the gains on Thursday, but only five of the Stoxx 600 sectors closed higher on Thursday, with 13 closing lower and all other national stock indices falling except for British stocks. VW fell 1.7%, dragging the auto sector down for three days in a row, and German stock indexes fell for four days in a row.
The 10-year U.S. bond yield regained below 1.50% after a short jump and tested 1.44% below a three-month low
After the release of May CPI data, the U.S. 10-year benchmark Treasury yield jumped briefly, once rising above 1.53% to refresh the daily high, up more than 4 basis points during the day, the U.S. stocks once tested 1.44% at lunchtime, refreshing the intraday low since early March, to the U.S. stocks closed at about 1.44%, down about 5 basis points during the day.
Most European government bonds continued to rise in price on Thursday, but British bonds retreated and British bond yields reversed their back-to-back days of declines. The British 10-year benchmark Treasury yield rose 1.7 basis points to 0.747% during the day; the German bund yield fell 1.2 basis points to -0.256% during the same period. The Italian bond yield fell the most in the marginal zone, dropping 3.4 basis points during the day.
The dollar index turned lower after hitting a four-day high. Cryptocurrencies mostly fell but bitcoin rose above $38,000 intraday to hit a one-week high
After the release of the U.S. CPI data, the ICE U.S. Dollar Index (DXY), which tracks the exchange rate of a basket of six major currencies in the U.S. dollar, rose above 90.30, refreshing this week’s four-day intraday high, up more than 0.2% intraday, U.S. stocks began to fall back before the bell, U.S. stocks turned lower at the beginning of the session, having briefly fallen below 90.00 in early trading to refresh the daily low, down 0.15% intraday.
By Thursday’s U.S. stock market close, the dollar index was slightly below 90.08, down 0.05% for the day; the Bloomberg Dollar Spot Index fell 0.1%. The dollar index’s volatility eased significantly this Thursday compared to its performance on Friday after the release of the weaker-than-expected May nonfarm payrolls report, which saw the dollar index dive intraday and fall more than 0.5% intraday.
Bitcoin (BTC) had risen above $38,400 during the European stock market, hitting a new intraday high since the Asian market early last Friday, June 4, up more than 10% in 24 hours, and has since continued to fall, closing the U.S. stock market at $36,500 above, up nearly 0.9% in the last 24 hours.
The second largest cryptocurrency after Bitcoin in terms of market capitalization, Ether (ETH) had regained $2,600 after the European stock market to set a new daily high, and then gradually moved lower intraday to turn lower, with U.S. stocks falling below $2,500 at midday and U.S. stocks closing below $2,500, down about 4% in 24 hours.
CoinMarketCap data shows that most of the mainstream cryptocurrencies retraced Wednesday’s gains on Thursday, and by the close of the U.S. stock market, the fourth largest cryptocurrency by market capitalization, BNB, had fallen more than 4% in the last 24 hours, the 11th and 13th largest cryptocurrencies, Bitcoin Cash (BCH) and Litecoin (LTC), both fell more than 3%, the fifth largest cryptocurrency, Cardano (ADA), fell nearly The sixth largest cryptocurrency, Dogecoin (DOGE), fell more than 2%, and the seventh largest cryptocurrency, Ripple (XRP), fell more than 1%.
Crude Oil Rebounds After Flash Crash U.S. Oil Rebounds to $70, Hits Over Two-and-a-Half-Year High for Second Time This Week
International crude oil futures flash crash intraday. After news broke that the U.S. had lifted sanctions on a number of former Iranian oil executives, U.S. WTI crude and Brent crude dived intraday. For about ten minutes, U.S. oil fell more than 1.8% intraday and Brent oil fell more than 1.7%, both hitting new intraday lows in the last three days, having fallen below $68.70 and $71, respectively, but rebounded quickly thereafter.
Finally, WTI July crude oil futures closed up 0.47% at $70.29/barrel, refreshing the new closing high for the main contract set on Tuesday since October 16, 2018, and closing above $70 for the second day this week; Brent August crude oil futures closed up 0.41% at $72.52/barrel, refreshing the closing high for the main contract set on Tuesday since May 16, 2019 Highs.
Gold and silver rise for two straight days Gold fails to recover $1,900 for sixth straight day Copper ends three-day streak, falls below $9,900 for first time in a week
Most London base metal futures fell on Thursday, with only aluminum and nickel continuing to rise for the third straight day, with aluminum hitting a new high for the month and nickel hitting a new high for more than three months.
Copper and zinc ended a two-day streak of gains, with copper closing at $9,890 per ton, falling below $9,900 for the first time in a week and closing below $10,000 for the sixth consecutive session, and zinc falling off a one-week high. LON Tin fell for two days in a row, falling further away from its 10-year high, but still held on to $31,000, closing at $31,195/mt, closing above $30,000 for the fifth consecutive day. LunLead ended a three-day streak of gains and fell off a one-week high.
Copper futures in New York continued to fall, with Comex July futures closing down 1% to close below $4.50/lb.
New York gold futures closed slightly higher for two consecutive days, still failed to recover the psychological barrier of $ 1900, Thursday hovered below $ 1900. COMEX August gold futures again closed up nearly 0.1% at $ 1896.40 per ounce, but has been six consecutive days, since last Tuesday, always closed below $ 1900.
New York silver futures also rose for two days in a row, COMEX July silver futures closed up 0.1% at $28.03 per ounce, a new high since last Wednesday. Platinum fell for three days in a row, with NYMEX July platinum futures closing down 0.5% at $1,146/oz, a new low for the main contract closing since March 5. Palladium ended a three-day losing streak, with NYMEX September palladium futures closing up 0.2% at $2,777.70/oz.