Stocks in Europe and the U.S. fell in tandem as investors worried that upward inflationary pressures were forcing central banks to pull back on easing. At a time of heightened inflation concerns, most commodities fell hard, with energy and mining stocks being the main drivers of the stock market’s downside, in addition to gold, a traditional hedge against inflation.
The minutes of the Federal Reserve’s last month’s meeting released during the U.S. stock market midday session implied that the Fed may consider adjusting its current accommodative policy if the economy continues to recover rapidly. After the release of the minutes, the U.S. dollar index refreshed its daily high and broke away from a two-and-a-half-month trough, the 10-year U.S. bond yield refreshed its four-day high, and the three major U.S. stock indexes, which had narrowed their losses, turned around and moved downward in the short term, with losses expanding. But in the chip stocks against the market higher and Google and some other leading technology stocks turned up mid-day support, technology stocks for the heavy Nasdaq 100 index turned up at noon, the Nasdaq had turned up in the short term, the S&P and the Dow fell significantly narrower.
After Musk boycotted bitcoin on the grounds that mining consumes a lot of fossil fuels and suspected that Tesla would sell off, China frequently signaled stronger regulation, with three major regulators joining forces to “block” virtual currency business by financial and payment institutions and the central bank warning against using virtual currencies as a means of payment, cryptocurrencies led by bitcoin plunged amid a variety of factors. The cryptocurrencies, led by Bitcoin, plummeted under the pressure of multiple factors. However, after “bull queen” Cathie Wood reiterated that bitcoin would rise to $500,000 and Musk hinted that Tesla would hold bitcoin until its target, cryptocurrencies continued to rally, narrowing their losses during the day, with bitcoin rising back to $10,000 from its intraday low.
Pan-European stock indexes hit their biggest losses in a month Three major U.S. stock indexes narrowed significantly Energy sector continues to lead S&P decline Blockchain stocks plunge, chip stocks buck market gains
The three major U.S. stock indexes opened lower collectively and set new daily lows in early trading, narrowing losses in midday trading. The Dow Jones Industrial Average fell below 33,500 points in early trading to hit a new intraday low since April 9, down nearly 590 points during the day, a percentage drop of more than 1.7%, narrowing to within 300 points in midday trading. The S&P 500 index fell 1.6% in early trading when it set a new intraday low for the last four days, and was down less than 1% at midday. The Nasdaq Composite Index (Nasdaq) was down more than 1.7% at the beginning of the session when it set a new four-day intraday low, and was down less than 0.7% at midday.
After the release of the Fed minutes, the Dow fell again to more than 300 points, once down more than 1%, the S&P once fell more than 0.9%, the Nasdaq had fallen nearly 0.8%. Midday Nasdaq 100 index short turn up when the semiconductor index rose more than 2%, the Nasdaq fell about 0.6%, the Dow narrowed to within 300 points, the S&P fell less than 0.5%. The end of the Nasdaq had a short turn up.
Ultimately, the three major indices collectively closed down for three consecutive days, following last Wednesday, down again for three consecutive days, but the decline were significantly narrower than the daily low. The Nasdaq closed down 0.03% at 13,299.74 points and the S&P closed down 0.29% at 4,115.68 points, both the lowest closing levels for four days this week. The Dow closed down 164.62 points, or 0.48%, at 33896.04 points, a new closing low since last Wednesday, May 12.
Small-cap stocks lost ground on the broader market, with the value-cap-dominated small-cap index Russell 2000 closing down 0.78%. The tech-heavy Nasdaq 100 closed up 0.15% to outperform the broader market.
S&P 500 of the 11 major sectors, Wednesday only up more than 0.3% of information technology and up 0.1% of telecommunications services two closed up, down in the sector, energy continued to fall more than 2% led by the decline, down more than 1% of materials followed by other sectors fell less than 0.8%, the bottom of the decline was down more than 0.1% of health care and fell nearly 0.2% of utilities.
Leading technology stocks were mixed: Tesla closed down more than 2% of the worst performance, FAANMG six major technology stocks, the end of the morning session turned up Facebook closed up more than 1% of the best performance, the afternoon session turned up Google parent company Alphabet, Nifty and Microsoft were up 0.4%, nearly 0.3% and more than 0.2%, Apple and Amazon fell throughout the day, but the decline narrowed at midday, respectively Apple and Amazon fell throughout the day, but losses narrowed at midday, closing down more than 0.1% and 0.01%, respectively.
Among industry stocks, metals and mining stocks fell collectively, with Century Aluminum down more than 11%, Teck Resources down more than 10% and Alcoa down more than 9%. Energy stocks fell collectively, the largest U.S. oil ETF USO fell more than 3%, the Dow’s only energy component Chevron fell nearly 2.8%. Most of the chip stocks rose, the semiconductor industry ETF SOXX and Philadelphia Semiconductor Index are up nearly 2%, stocks ADI rose nearly 5%, MRVL, MXIM rose more than 4%, AMD rose more than 2%, Qualcomm, TSMC rose more than 1%, the Dow constituents Intel rose nearly 1%.
Bitcoin decline dragged down the blockchain concept stocks together, cryptocurrency exchange first stock Coinbase (COIN) fell nearly 6%, hitting a new closing low in a month of listing, Riot Blockchain (RIOT) and Marathon Patent (MARA) fell more than 5%, Overstock (OSTK) fell more than 2%. Among blockchain-concept Chinese stocks, bitcoin mining giant Kanan Technology (CAN) fell 13%, Ninth City (NCTY) dropped nearly 12%, China Net Carrier (CNET) fell more than 2% and Xunlei (XNET) dropped more than 1%.
In addition to Tesla, most other stocks that hold bitcoin or support bitcoin payments are also down, with MicroStrategy down more than 6%, Square down more than 1%, and Paypal up more than 0.2%.
Popular Chinese stocks rose and fell, Poundland and Ctrip, which reported much better-than-expected results after the bell on Tuesday, both rose about 4%, NetEase, Beili Beili, Zhihu, Jingdong, Xiaopeng Auto rose more than 1%, and Ideal Auto rose more than 0.7%, while Vipshop fell more than 11%, NetEase Youdao, Aqiyi fell more than 4%, Azera dropped more than 2%, Tencent Music fell more than 1%, Alibaba fell nearly 0.6%, and Tencent ADR fell nearly 0.4%.
Wednesday, Europe’s major stock indexes generally fell more than 1%, the pan-European stock index and Britain, France, Italy and Western stock indexes are the largest decline since April 20, the German stock index is the largest closing decline since January 27. Among the sectors, mining stocks in the basic resources fell more than 4% to lead the decline, followed by the oil and gas sector fell nearly 3%, highlighting the impact of the commodity selloff.
The U.S. dollar index came out of a more than two-month low, with many cryptocurrencies falling more than 20 percent. Bitcoin once fell more than $13,000 to nearly break $30,000 before rebounding to $10,000.
The ICE dollar index (DXY), which tracks the exchange rate of a basket of six major currencies, held gains in the European and U.S. trading sessions, with U.S. stocks approaching a new daily high of 90.30 at midday, up about 0.6% during the day, coming out of a trough set on Tuesday when it fell below 89.70 since late February this year.
By the close of U.S. stocks on Wednesday, the dollar index was above 90.19, up nearly 0.5% on the day; the Bloomberg Dollar Spot Index rose 0.5%.
CoinMarketCap data shows that mainstream cryptocurrencies plunged across the board on Wednesday, with the 13th largest cryptocurrency by market capitalization, Litecoin (LTC), down nearly 30% in the last 24 hours, the 10th largest cryptocurrency, Bitcoin Cash (BCH), down more than 28%, and the seventh, sixth and third largest cryptocurrencies, Ripple (XRP), Dogcoin (DOGE) and Coin On Coin (BNB), down more than 25% each by the close of U.S. stocks. BNB) fell more than 25%, 24% and 23%, respectively.
Bitcoin (BTC) fell below $40,000 during the Asian trading session, and European shares accelerated their decline during the day, once approaching the $30,000 mark to hit a new low since late January this year, dropping $13,000 from the intra-day high, a percentage drop of more than 30%, but U.S. shares quickly recovered lost ground during the session and regained $40,000 at midday, narrowing the gap with the intra-day high to more than $3,000 and narrowing the 24-hour decline to 8% Around the same time, U.S. stocks closed above $40,000, down more than 7% in the last 24 hours.
The second largest cryptocurrency after Bitcoin in terms of market capitalization, Ether (ETH) fell below $1,900 during the European stock market, with some platforms approaching the $1,800 mark, hitting a new low since late March, down more than 40% from the intraday high, with U.S. stocks once back on $2,900 at midday, still down about 15% in 24 hours, and U.S. stocks closing below $2,700, down more than 20% in 24 hours.
Domestic coking coal fell, iron ore fell nearly 8% foreign crude oil hit a three-week low less than a week again fell 3%
Domestic industrial commodities futures fell in general, daytime iron ore futures fell more than 4%, rebar, hot coils fell more than 5%, crude oil fell more than 2%. Overnight black system is a full-line plunge. Coking coal fell, down 7.98%, power coal once fell, closing down 7.81%, iron ore fell 7.92%, threads and hot coils also fell more than 7%, coke fell more than 6%, stainless steel fell 3.79%.
WTI June crude oil futures closed down 3.25% at $63.36/barrel; Brent July crude oil futures closed down 2.98% at $66.66/barrel, both hitting new lows since April 27, closing down around 3% again after last Thursday, May 13.
Copper is close to $10,000, a new two-week low and the biggest drop in more than seven months
Domestic non-ferrous metals fell in tandem. Copper and aluminum closed down about 2% during the day and 2.77% and 2.74% respectively in the overnight session, while nickel closed down 4.13%, zinc 3.51%, lead 0.71% and tin 2.73% in the overnight session.
London base metal futures fell on Wednesday, at least by more than 2%. Copper ended a two-day streak of gains, closing down $404, or 3.88%, barely holding the $10,000 mark, the lowest level since the May 6 close above $10,000, and the biggest drop in more than seven months. Zinc, lead, nickel and tin all ended their three-day streaks of gains, with tin closing down 2.86% off a 10-year high and nickel hitting a near three-week low. Aluminum fell for two days in a row, hitting a new low of nearly three weeks.
Gold five consecutive positive again hit a new four-month high, silver fell more than three months high, platinum hit a new low of nearly three weeks
New York gold futures rose for five consecutive days, COMEX June gold futures closed up 0.7% at $1881.50 / ounce, three consecutive days since January 7, the main contract closed at a new high, up still less than Monday, Monday rose 1.6% to the largest gain since May 6.
In addition to gold, all other precious metals fell on Wednesday. New York silver futures closed down 1% to say goodbye to a three-day winning streak, falling from the closing high set on Tuesday since February, but closed above $ 28 for the third consecutive day. Platinum fell for a second straight day, closing down 1.93 percent to a new low since April 29. Palladium ended a four-day streak of gains, falling off the one-week high set on Tuesday.
British and German bonds rally 10-year U.S. bond yields rise above 1.69% intraday
European bond prices were mixed on Wednesday, with British and French German bonds rebounding and yields falling back, and yields on bonds of countries in the periphery moving up. British 10-year benchmark Treasury yields fell 2 basis points to 0.848% during the day, intraday had fallen to 0.834%, down more than 3 basis points during the day; the same period of German government bond yields fell 0.7 basis points to -0.11% during the day, the U.S. stocks had fallen to -0.127% before the market, down more than 2 basis points during the day. Italian, Spanish and Greek government bond yields rose 1.0, 0.7 and 0.3 basis points, respectively, over the same period.
U.S. 10-year benchmark Treasury yields in the European stock market retracted more than 2 basis points of the rise turned down, U.S. stocks turned up again at lunchtime, once rose above 1.69% at lunchtime to refresh the intraday high since last Thursday, up more than 5 basis points during the day, to the U.S. stocks closed at nearly 1.68%, up nearly 4 basis points during the day, roughly back to the level before the release of the U.S. CPI in April last Wednesday.
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