U.S. stocks close: the Fed's "dovish sound" pushed the index to open low and go high, and the national defense industry rose sharply across the board
Cai Lian News Agency, October 10 (Editor Shi Zhengcheng) Although there are risk factors of Palestinian-Israeli conflict, under the impetus of a number of Fed officials publicly pacifying the market, the US stock market opened low and went high to close up collectively. By Monday's close, the S&P 500 was up 0.63% at 4,335.66, the Nasdaq was up 0.39% at 13,484.24 and the Dow Jones Industrial was up 0.59% at 33,604.65.
(Minute chart of the three major indexes, source: TradingView)
During the trading session, Fed Vice Chairman Jefferson said that officials are in a "cautious" position with the recent rise in US Treasury yields; More importantly, the Fed's "hawkish representative" and Dallas Fed President Logan also said that the recent rise in long-term Treasury yields means that the need for further Fed tightening has been reduced.
Well-known macrojournalist Nick Timiraos stressed that Logan's speech today is well worth reading: for the Fed, the reasons for the recent sell-off in Treasury bonds are very important. If it were just a higher rate hike path, it might not trigger a change in path, but a higher term premium "has a completely different meaning."
In terms of subject matter concepts, it is also very easy to clarify today. First, the iShares MSCI Israel ETF (EIS) plunged 7.11% on Monday amid the impact of the Israeli-Palestinian conflict. Even with the Bank of Israel's public protection, the exchange rate of the new shekel remained under pressure.
For the same reason, the US stock defense industry and energy sectors collectively strengthened. For example, F-35 fighter manufacturer Lockheed Martin closed up 8.93%, Northrop Grumman, the world's largest radar maker, rose 11.43%, electronic information systems supplier L3Harris rose 9.96%, and General Dynamics rose 8.43%. In addition, ParaZero, an Israeli drone security solution provider, jumped 132%, but the company's market value rose by only $16 million.
In addition, the sharp rise in crude oil prices also triggered a surge in energy stocks, with ExxonMobil and Occidental Petroleum both rising more than 3%.
On the other hand, as a number of airlines announced the suspension of Israeli routes, such as United Airlines and American Airlines fell by more than 4%.
Popular stock performance
All 11 sectors of the S&P 500 rose on Monday, led by energy (3.54%) and industrials (1.61%).
Technology weights also followed the broader market to open low and higher, Apple rose 0.85%, Microsoft rose 0.78%, Amazon rose 0.23%, META, which is about to go on sale of new MR devices on Tuesday, rose 0.93%, Google-A rose 0.61%, Tesla fell 0.33%, Nvidia fell 1.07%, and Intel fell 0.36%.
The Nasdaq China Golden Dragon Index fell 0.94%. Alibaba fell 1.41%, Tencent ADR rose 0.03%, Baidu fell 0.88%, Pinduoduo rose 1.25%, JD.com fell 1.28%, NetEase rose 3.11%, NIO fell 4.36%, Li Auto fell 4.48%, and Xpeng Motors fell 10.30%. It is worth mentioning that the well-known financial website SeekingAlpha gave Xpeng Motors the reason for its decline, mentioning that the company just shipped 750 G9 and the international version of P7i to Israel two weeks ago as "the first stop into the Middle East market." But for a company that delivered 15,000 new cars last month, the decline also seems to show the emotional side of the U.S. stock market.
Other company news
Google Cloud on Monday unveiled Vertex AI Search, an artificial intelligence search feature for healthcare, that it says can help healthcare professionals quickly extract accurate clinical information from different types of medical records.
Lisa O'Malley, senior director of cloud AI product management at Google Cloud, told the media that if a doctor wants to know a patient's medical history, they may no longer need to read medical records, faxes and electronic health records. They only need to search for questions such as "What medications has this patient taken in the last 12 months?" " and so on.
Tech giant NVIDIA will cancel an in-person meeting of its annual AI summit scheduled for October 15-16 in Tel Aviv, Israel, due to concerns about Israel's security situation. According to the original plan, NVIDIA will present its latest progress in the field of artificial intelligence at the artificial intelligence summit, and NVIDIA CEO Jensen Huang will also deliver a keynote speech. The company called it "the first meeting of developers, business leaders, and AI researchers."
According to the latest data from S3 Partners, a well-known data platform, the net short position of the catering sector in the US stock market has increased by $815 million in the past 30 days, and well-known listed catering companies such as McDonald's, Chiporay Mexican Barbecue, Daden Catering, and Starbucks are also the stocks with the largest increase in net short value.
According to Ihor Dusaniwsky, managing director of S3 Predictive Analytics, the entire catering sector is currently suffering from a "double whammy" - high interest rates suppressing consumption and increasing GLP-1 drug users.
(Cai Lian News Agency, Shi Zhengcheng)