On Tuesday (May 14th) EDT, US stocks collectively closed up on Tuesday, with the Nasdaq hitting a new high. The market is waiting for the CPI data to be released in the United States tonight.
[US stock index]
In the news, Powell said overnight that the Fed’s next move is unlikely to be to raise interest rates, and it is more likely to maintain the policy interest rate at the current level. The Fed needs to be patient and wait for more evidence that high interest rates are curbing inflation and inflation continues to cool down, so it needs to keep interest rates at a high level for a longer period of time.
To a certain extent, Powell’s remarks were regarded as dovish by the market. Some commentators said that Powell once again hinted that the Fed might not cut interest rates at present, but denied that the interest rate hike had boosted US stocks. . Megan Horneman, chief investment officer of Verdence Capital Advisors, said that the market is a little overconfident, and they are used to Powell’s dovish remarks, but the longer inflation lasts, the greater the decline will be in the future.
In addition, the United States released the latest PPI data, and both the overall and core rose by 0.5% month-on-month, which was higher than market expectations. However, due to the downward adjustment of the data in March, the year-on-year increase of the overall PPI and core PPI was consistent with expectations. The market pays more attention to the CPI data tonight, so the performance of US stocks is limited.
American debt
The benchmark 10-year US bond yield dropped to 4.45%, while the 2-year US bond yield, which is most sensitive to the Fed’s policy interest rate, closed at 4.81%.
[Hot American stocks]
Among the popular US stocks, Microsoft rose 0.69%, Apple rose 0.62%, NVIDIA rose 1.06%, Google A rose 0.71%, Amazon rose 0.27%, Meta rose 0.82%, TSMC rose 3.77%, Tesla rose 3.29%, AMD rose 1.73% and Intel rose 1.77%.
It is worth mentioning that since Keith Gill, the "number one bull" who set off a retail war against Wall Street three years ago, returned to social media after three years and was suspected of making another bet, many retail investors rallied for the second consecutive day. Game stations and AMC cinemas have accumulated more than 100% in two days.
[global index]
In European stock markets, the FTSE 100 index rose slightly by 0.16% to 8428 points. The French CAC40 index rose slightly by 0.20% to 8226 points. Germany’s DAX index fell slightly by 0.14% to 18,716 points.
Major European stock indexes rose for the eighth consecutive day, the longest consecutive increase since November 2021. European stock markets have been rising all the way this year, with the Stoxx 600 index up nearly 9%, led by banks, media and technology stocks. Due to the low valuation and the improving economic situation, investors’ interest in European stocks has warmed up. Citigroup strategists said that investors significantly increased their bullish bets on European stock indexes last week.
In Asian stock markets, the Hang Seng Index fell slightly by 0.22% to 19,074 points. The index of state-owned enterprises fell slightly by 0.30% to 6741 points. The Nikkei 225 index rose 0.46% to 38,356 points.
[China index]
Overnight, Hang Seng Technology Index futures rose 0.50%, Nasdaq China Jinlong Index fell 0.21%, and FTSE China A50 Index fell 0.33%.
[China Stock Exchange]
In terms of popular Chinese stocks, Tencent Holdings (Hong Kong stocks) rose by 0.95%, Alibaba fell by 6.02%, Pinduoduo fell by 1.30%, Netease fell by 0.85%, Baidu fell by 2.12%, Ctrip rose by 1.46%, LI fell by 2.22%, Weilai rose by 6.93% and Xpeng Motors rose by 2.23%.
[foreign exchange commodities]
Because the PPI data of the United States in April exceeded expectations, the US dollar index once rushed to the intraday high of 105.47, and then retreated all the gains in the day and turned down, finally closing down 0.19% to 105.01.
Gold rebounded, with COMEX gold closing up 0.94% to $2,358 per ounce, aided by the fall in the yields of US dollars and US bonds and Powell’s continued interest rate hike. COMEX silver closed up 1.38% at $28.61 per ounce.
The market has intensified concerns that the Federal Reserve may continue to maintain high interest rates to fight inflation, and oil prices have adjusted back. WTI crude oil closed down 0.91% to 78.4 USD/barrel; Brent crude oil closed down 0.68% to $82.79/barrel.
[Highlights]
Powell: It is unlikely to raise interest rates in the next step. We need to wait for more evidence that inflation is cooling down.
Powell said that the Fed’s next move is unlikely to be to raise interest rates, and the Fed is more likely to maintain the policy interest rate at the current level. He predicted that inflation would go down, but the inflation data in the first quarter of this year reduced his confidence, which made the Fed unable to give whether or when it could lower interest rates. "New Fed News Agency" wrote that Federal Reserve Chairman Powell confirmed that the Fed plans to maintain interest rates at the highest level in more than 20 years, waiting for evidence that inflation will resume to slow down, and Powell kept a wait-and-see attitude towards inflation and interest rates.
Google launches a new version of search engine with generative AI function.
Google said on Tuesday that it will launch a new version of its search engine, including search results written by artificial intelligence. This is one of the most significant reforms since the establishment of this iconic Internet portal. Google began to use artificial intelligence to answer users’ questions last year, but users must first register the trial version of the product. Google said at its annual I/O Developers Conference that this new search engine with AI Overviews will be launched to American users this week, and will be launched to users in more countries in the next few months, covering more than 1 billion users before the end of this year. For this company, which has become synonymous with search, the biggest change of "Google Search" is that some responses to queries will now be more narrative, so that people don’t have to click on various links.
XAI, an artificial intelligence startup owned by Musk, is close to reaching a $10 billion server rental agreement with Oracle Bone Inscriptions.
XAI, an artificial intelligence startup owned by Musk, has been negotiating with Oracle Bone Inscriptions executives to spend $10 billion to rent a cloud server from Oracle Bone Inscriptions in the next few years. The deal will make xAI one of Oracle Bone Inscriptions’s biggest customers, as Musk tries to quickly catch up with competitors, who have spent billions of dollars on dedicated servers needed to train and run conversational artificial intelligence. The transaction scale of 10 billion is comparable to that of two leading artificial intelligence developers, OpenAI and Anthropic, with larger competitors than Oracle Bone Inscriptions.
Novo Nordisk will study whether its weight loss drugs can help reduce alcohol consumption.
Novo Nordisk is exploring whether its diet pills can help people reduce their drinking. It is reported that Novo Nordisk is planning to conduct a study, the main purpose of which is to measure the effect of experimental drugs on fibrosis in patients with liver disease, and the secondary goal is to observe whether experimental drugs can change the daily drinking amount of subjects. The mid-term trial is expected to start recruiting subjects this month.
Qiaoshui Q1 favors technology stocks most! Significantly increase the holdings of the seven US stock giants
Amazon is the largest newly-opened stock in Qiaoshui in the first quarter. The world’s largest hedge fund has more weight in holding technology stocks than any other sector, and its position weight in consumer stocks has dropped the most. The top two positions are still S&P ETF and emerging market ETF, but technology stocks quickly rank among the top six positions. After almost clearing positions last year, Apple was heavily increased, and Pinduoduo and Procter & Gamble were reduced for several consecutive quarters.
HHLR’s position in the first quarter: the first awkward position is still AMD in Pinduoduo Jiancang.
According to the latest 13F document disclosed by HHLR Advisors, a subsidiary of Gaochun, the concentration of the top ten awkwardness stocks in the first quarter was 84.57%, and Pinduoduo’s position increased by 16.62%, ranking first with a market value of 29.77%. Established 912,400 shares of AMD, making it the sixth largest heavyweight share with a market value of 3.58%, and reduced its holdings of Shell, Microsoft, Salesforce and DoorDash among the original ten positions, so DoorDash was squeezed out of the top ten. In addition, it reduced its holdings of Baidu, Alibaba and JD.COM.
New york copper futures are historically short-selling
New Zealand copper futures soared 5.5% in July, reaching $5.026/pound, just one step away from the all-time high of $5.0395 set in March 2022 in the early days of the Russian-Ukrainian conflict. Traders said that today’s New Zealand copper was forced to empty, causing copper cargo ships to be transshipped to the United States. It is expected that traders with long copper positions in July will make profits, or extend to further contracts in the future to take advantage of huge futures discounts.