Zhitong Finance APP learned that the serious weakness of the economy, the continuous high inflation, the prominent employment problems and other stagflation concerns, the US stock market on Monday opened low and went low, the S&P 500 index lost the 4,000 point mark, for the first time since April 2021, the NASDAQ hit more than 4%.
As of the close, the Dow fell 653.67 points, or 1.99%, at 32245.70 points; the Nasdaq fell 521.41 points, or 4.29%, at 11623.25 points; and the S&P 500 fell 132.10 points, or 3.20%, at 3991.24 points. Chinese stocks and technology stocks plunged, with Ideal Auto (LI.US) falling more than 9%, Alibaba (BABA. US) fell more than 5 percent, Tesla (TSLA. US) fell more than 9%, Apple (AAPL. US) fell more than 3%.
Germany's DAX30 fell 2.15%, Britain's FTSE 100 fell 2.32%, France's CAC40 fell 2.75%, and Europe's Stoxx 50 fell 2.82%.
The Nikkei 225 fell 2.53%, South Korea's KOSPI fell 1.27%, Singapore's Straits Times fell 0.51%, Vietnam's VN30 fell 4.31%, Indonesia's Jakarta Composite fell 4.42%, Thailand's SET fell 1.54%, the Philippine Composite Fell 1.59%, India's Mumbai 30 fell 0.67%, and Malaysia's Kuala Lumpur Composite Fell 0.97%.
【Forex】The US dollar rises. The basket of dollar indexes (DXY), which measures the greenback against six major currencies (euro, Swiss franc, yen, Canadian dollar, british pound and Swedish krona), closed up 0.07 percent at 103.74.
【Cryptocurrency】Cryptocurrencies fell. Bitcoin fell more than 8% at $31,152.4/coin; Ethereum fell more than 10% at $2282.72/coin. According to CoinGecko data, the current market capitalization of cryptocurrencies is $1.498 trillion, with a 24-hour decline of 9.2% and a 24-hour trading volume of $143.09 billion. The current market capitalization of Bitcoin is 39.4% and the market capitalization of Ethereum is 18.4%.
【Gold】Gold fell. COMEX June gold futures closed down 1.3%, the biggest one-day decline in the latest week at $1858.60 an ounce.
【Crude oil】International oil prices plummeted. WTI June crude oil futures closed down $6.68, or 6.09 percent, at $103.09 a barrel. Brent July crude futures closed down $6.45, or 5.74 percent, at $105.94 a barrel.
【Base metals】LME copper closed down $177 at $9238/mt. LME aluminum closed down $87 at $2755/mt. LME zinc closed down $157 at $3615/mt. Lead closed down $78 at $2154/mt. Nickel closed down $1891 at $28,185/mt. LME tin closed down $2221 at $37119/mt.
【Macro News】
The Fed's Financial Stability Report warns of deteriorating market liquidity. In its semi-annual report released on Monday, the Fed warned that liquidity conditions in major financial markets were deteriorating due to rising risks from the Russian-Ukrainian conflict, monetary tightening and high inflation. The Fed said in the report: "According to some indicators, the liquidity of the recently issued US cash Treasury bonds and stock index futures markets has declined since the end of 2021. "While recent liquidity deterioration has not been as extreme as some past events, the risk of a sudden significant deterioration appears to be above normal levels," the report said. In addition, since the outbreak of the conflict between Russia and Ukraine, liquidity in the oil futures market has been sometimes tight, while some of the other affected commodity markets have been significantly dysfunctional. ”
Minneapoli Fed President Kashkali believes inflation will return to normal. Minneapoli Fed President Kashkali said he believes inflation will return to normal, though it will take longer than he expected. He acknowledged that he believes "inflation is temporary" and that the price spike will not last, saying that persistent imbalances between supply and demand have led to the highest levels of inflation in more than 40 years. While the Fed's monetary policy tools can help curb demand, they can't do much to get supply to keep pace with demand. In an interview with the show, Kashkari said: "I believe we will bring inflation back to the 2% target, but I am not confident in how much burden we will have to bear and how much help we will get from the supply side." ”
Atlanta Fed President Bostic expects the Fed to need 50 basis points of consecutive rate hikes. Atlanta Fed President Bostic said he expects the Fed to need to raise rates two to three more 50 basis points, but there will be no bigger rate hikes to lower high inflation, noting that he has seen signs of peaking supply pressures. "Given my expectations for the next three to four months of economic development, I think a 75 basis point hike is a low probability outcome," Bostic said. He noted that freight companies are no longer rejecting business as they used to be, and transportation bottlenecks are easing.
German Chancellor Scholz: Germany needs greater social cohesion and economic transformation. On the 9th local time, German Chancellor Scholz pointed out at the Federal Congress of the German Trade Union Federation that Germany needs stronger social cohesion and economic transformation. Scholz also revealed that in the coming weeks, a new reform coalition will be formed in the Chancellery, allowing companies, trade unions and industry associations to plan the largest economic transformation since the beginning of industrialization, hoping to keep Germany ahead of the curve in industry and high technology. Scholz promised that the federal government would invest more in this regard, strengthen the training system for young people and create well-paid and future-oriented jobs.
【Individual Stock News】
Musk acquires Twitter (TWTR. US) is still at risk? Hindenburg revealed that he was short twitter. Short-selling agency Hindenburg Research warned on Monday that if the world's richest man, Elon Musk, abandons his acquisition of Twitter, the deal runs the risk of being repriced. The company also revealed that it was shorting Twitter, and Twitter shares fell nearly 4% at one point during the session. Hindenburg noted in a report: "Musk has all the initiative. It is believed that if Musk's bid for Twitter disappears tomorrow, Twitter's market value will fall 50% below its current level. As such, we see this as a significant risk that Musk's acquisition of Twitter will be repriced at a lower price. ”
Luckin Coffee (LKNCY. US) said it is not seeking to list in Hong Kong at this time. Luckin Coffee announced that the company's management is focused on providing customers with outstanding products and services by executing business strategies. The Company remains committed to the U.S. capital markets and strives to increase long-term value for shareholders. Luckin Coffee will continue to follow the development of the capital market and evaluate all avenues to provide value to stakeholders, but is not currently seeking to list in Hong Kong.
Microsoft (MSFT. US) launches a new cybersecurity service to help customers fend off ransomware and hacking. Microsoft is expanding its security business offerings with three new services designed to help enterprises detect and respond to cybersecurity incidents. Microsoft is one of the leaders in cloud computing software and infrastructure, which means that its technology has become the backbone of many enterprises of different sizes. This enables Microsoft to not only deliver security software to its customer base, but also to provide consulting-oriented services in a market where demand far exceeds supply.
ford (F.US) intends to sell 8 million shares of Rivian (RIVN. US) shares. As Rivian Automotive's post-IPO lock-up period ends on May 8, Ford plans to sell its 8 million shares of the self-proclaimed "Tesla Killer" electric car company. According to sources, Ford will sell the shares with the help of Goldman Sachs Group. In March, Rivian reported revenue of $54 million in the fourth quarter of last year, below market expectations. The company said it expects to produce 25,000 electric pickups and SUVs this year. JPMorgan Chase will also reportedly help an unknown seller sell between 13 million and 15 million shares of Rivian.
【Big Bank Rating】
Susquehanna: Lowered zillow (Z.US) target to $41 to maintain a "neutral" rating
Argus: Commodity prices continue to rise and XOM. US) price target to $104
Oppenheimer: DragKings (DKNG. US) price target lowered to $24 to maintain the "outperform" rating
Komo: On FuboTV (FUBO. US) long-term business model skeptical downgraded to "reduce holdings"
Citi: Q1 results disappointing down On Shopify (SHOP. US) price target to $432
This article originated from Zhitong Finance Network