U.S. stocks close: data strengthens expectations of interest rate cuts, S&P and Nasdaq rose more than 1%, and Micron rose nearly 9% after its earnings report

Following last week's CPI and PPI, Thursday's data brought good news that US inflation was cooling: the Fed's preferred inflation gauge, the core PCE price index, which was released at the same time as the final GDP value for the third quarter, did not stabilize at 2.3% as expected, but slowed to the Fed's target of 2.0%, the lowest growth rate in three years.

The annualized final value of GDP for the third quarter was revised down to 4.9%, slightly lower than expected, and the number of initial jobless claims in the United States last week, which was also released on Thursday, rose by 2,000 to 205,000 month-on-month, lower than the expected 215,000, and the number of applications was close to a record low, indicating that the labor market is still resilient, which is conducive to consumer spending, the main force supporting economic growth.

Economic data reinforced market expectations for a Fed rate cut. After the release of the PCE inflation indicator, U.S. Treasury bond prices turned up intraday, yields turned downward, the benchmark 10-year U.S. Treasury yield refreshed nearly a five-month low for several days, U.S. stocks regained 3.90% after the intraday rally, and the Federal Reserve has not been able to regain the 4.0% mark for a week after the meeting; Chip stocks performed outstandingly, and the stock price of memory chip giant Micron Technology, which benefited from the demand related to the AI boom, rose sharply after the revenue in the previous fiscal quarter and the guidance for the current fiscal quarter exceeded expectations, sending a positive signal of memory chip recovery.

The market is currently pricing in an 80% probability that the Fed will cut interest rates in March next year

The market expects the Fed to cut interest rates by a total of about 160 basis points next year

The U.S. dollar index accelerated its decline after the PCE release, approaching its four-month low set a week ago. Non-US currencies were able to move higher, with the pound rebounding after the release of the UK CPI inflation cooling data on Wednesday, the euro updating its highest level since late November after the Federal Reserve meeting last week, the yen, which fell sharply after the Bank of Japan insisted on easing, continued to rebound on Tuesday, and the offshore yuan, which fell below 7.16 intraday for the first time in a week, rose more than 200 points.

Among the commodities, after the announcement of PCE, gold quickly turned up, gold futures approached Tuesday's record high of more than two weeks; as the dollar retreated, some base metals such as copper also rebounded; international crude oil fell more than 2% intraday, and then weakened by the dollar, narrowed most of the decline, closing down for the first time this week. The commentary said that the growth of oil production in the United States and other American countries, as well as Angola's previous opposition to reducing oil production quotas, said that it would withdraw from OPEC, raising questions about OPEC's ability to collectively and unanimously reduce production, were the driving forces for oil prices to decline on Thursday. The Red Sea shipping crisis continues to support oil prices. However, some analysts believe that against the backdrop of slowing demand next year and record U.S. crude oil production, trade concerns caused by the Red Sea crisis may not necessarily support oil prices in the long run.

The Nasdaq rose more than 1%, chip stocks outperformed the market, Tesla led the blue-chip technology stocks, and the Chinese concept stock index rose more than 3% Nike dived after its earnings report

The Nasdaq Composite Index rose more than 1.2% at the beginning of the session, the S&P 500 rose nearly 1% in early trading, and the Dow Jones Industrial Average rose more than 300 points.

In the end, all three major indexes closed higher after Wednesday's sharp decline, their best weekly performance since December 13, and although they failed to erase Wednesday's biggest daily decline in more than two months or even nearly three months, they are all expected to accumulate gains this week.

The Nasdaq, which closed down 1.5% on Wednesday and posted its biggest drop since Oct. 20, closed up 1.26% at 14,963.87, approaching Tuesday's highest closing since Jan. 12. The S&P, which closed down 1.47% on Wednesday and its biggest drop since Sept. 26, closed up 1.03% at 4,746.75, close to Tuesday's Jan. 4 closing high. The Dow, which closed down 1.27% on Wednesday and posted its biggest drop since March October, closed up 322.35 points, or 0.87%, at 37,404.35, close to its all-time high for five consecutive sessions through Tuesday.

Other stock indexes also rebounded after falling more than 1% on Wednesday. The Russell 2000, a small-cap index dominated by value stocks, closed up 1.73 percent, near Tuesday's highest level since April. The tech-heavy Nasdaq 100 closed up 1.23%, and the Nasdaq Technology Market Cap Weighted Index (NDXTMC), which measures the performance of the technology constituents of the Nasdaq 100, closed up 1.41%, both trading near the all-time highs set on Tuesday.

Major U.S. stock indexes rebounded across the board on Thursday, with small-cap indices performing the best relative but not yet recovering to their pre-day highs before Wednesday's crash

The major sectors of the S&P 500, which were wiped out on Wednesday, rebounded, with Tesla's consumer discretionary closing up more than 1.4% to lead, Google and Meta's communication services, chip stocks in IT, medical and industrial all rose more than 1%, and materials rose about 1%.

Chip stocks rebounded overall and outperformed the market. The Philadelphia Semiconductor Index and the semiconductor industry ETF SOXX, which closed down nearly 3% on Wednesday, closed up about 2.8%, approaching the all-time high of closing on Tuesday. Among the S&P 500 constituent stocks, Micron Technology, whose revenue in the first fiscal quarter exceeded expectations by nearly 16%, and Micron Technology, which had a stronger guidance for the second fiscal quarter, rose more than 9% at the beginning of the session and closed up about 8.6%, a new closing high since February last year.

Leading tech stocks, which have mostly retreated on Wednesday, rebounded. The best-performing Tesla closed up nearly 3%, still out of a week-long low set by Wednesday's nearly 4% decline, despite suspension issues investigated by the Norwegian Highway Authority and media revelations that the lack of production of 4680 batteries could threaten the Cybertruck's mass production.

Among the six major technology stocks of FAANMG, Google's parent company Alphabet, which rose against the market on Wednesday, closed up 1.5%, rising for five consecutive days, refreshing the closing high since October 11, Facebook's parent company Meta closed up nearly 1.4%, following Monday and Tuesday, hitting a record closing record high on the third day of the week, Amazon closed up 1.1%, approaching the all-time high set on Monday, Microsoft closed up nearly 0.8%, and Netflix closed up 0.5% , began to approach the all-time high set on Tuesday, and the media said that Apple published a paper to solve the problem of "running a large model on mobile phone memory", Apple rose more than 1% at the beginning of the session, and turned down in early trading, closing down less than 0.1%, falling for two consecutive days to the lowest level since December 11.

Including Apple, Microsoft, Alphabet, Meta, Nvidia, Tesla, Amazon, seven major technology stocks rebounded overall on Thursday, due to the impact of Apple's downturn, intraday short-term decline.

Seven major technology stocks, including Tesla, rebounded overall on Thursday, and had a short-term intraday decline due to Apple's turn to fall

AI概念股多数追随大盘反弹。 到收盘，BigBear.ai（BBAI）涨超4%，Palantir（PLTR）涨2%，SoundHound.ai（SOUN）涨近2%，，Adobe（ADBE）涨近0.7%，而C3.ai（AI）盘初曾涨超4%，收跌1%。

Popular Chinese concept stocks rebounded strongly and outperformed the market. The Nasdaq Golden Dragon China Index (HXC) closed up nearly 3.2%, approaching Tuesday's highest level since Dec. 1. Chinese ETFs KWEB and CQQQ closed up nearly 3.5% and 2.7%, respectively. The three new automakers that fell sharply on Wednesday failed to rise together, with NIO closing up about 4.7%, Xpeng Motors closing up 1.4%, and Li Auto closing roughly flat. Among other stocks, by the close, Jinko Solar and Daqo New Energy rose nearly 9%, Baidu, which held the company's intelligent computing conference, rose more than 5.7%, JD.com and Gaotu Education also rose nearly 6%, Station B rose more than 5%, Alibaba rose nearly 4%, Tencent Pink Sheet, NetEase rose more than 2%, New Oriental rose more than 1%, and Pinduoduo fell more than 1% intraday and closed up 0.2%.

Among the more volatile stocks, Boeing (BA), which delivered the 787 Dreamliner directly to Chinese customers for the first time in 2019, rose 2.8% during the session before giving back most of its gains to close up nearly 0.7%, and Catalyst, which launched Agamree, the treatment for rare disease Duchenne muscular dystrophy (DMD), after being overweight by Oppenheimer analysts and setting a price target of $30, more than double Wednesday's close Pharmaceuticals (CPRX) closed up 12.4%, while Carnival Cruises (CCL), which suffered a weaker-than-expected loss and higher-than-expected revenue in the fiscal fourth quarter, closed up 6.2%.

Nike (NKE), which closed up 0.9%, reported after-hours revenue in the second quarter that was lower than expected, announced plans to cut costs by $2 billion, and warned that revenue in the second half of fiscal year 2024 would be weaker, and the stock price fell rapidly after hours, once falling more than 6% after hours; Cybersecurity company BlackBerry (BB), which missed revenue guidance for the fiscal fourth quarter, closed down 12.7%, and human resources company Paychex (PAYX), which lost revenue in the fiscal second quarter, closed down 7%.

The rally in European stocks took a break for a while, and the pan-European stock index stopped two consecutive gains. There are comments that the prospects for a year-end Christmas rally are starting to fade as recent remarks by Fed officials hit the prospect of interest rate cuts and the recent rise in oil prices has increased the risk of upside inflation. The Euro Stoxx 600 index fell to its highest closing level since Jan. 20 last year, which was refreshed on Wednesday for two consecutive days. Stock indexes of major European countries mostly closed down, with British stocks rising for three consecutive days and French stocks rising for two consecutive days retreating, German stocks and Italian stocks falling for two consecutive days, while Spanish stocks fell slightly higher on Wednesday.

Among the sectors, automobiles, which closed down more than 0.8%, and real estate, which fell nearly 0.8%, led the decline, while healthcare closed up nearly 0.2% against the market. Among individual stocks, British oil and gas company Harbour Energy surged 21.1% after a $11.2 billion deal to buy Wintershall Dea's non-Russian oil and gas assets in stock and cash, while Commerzbank, which received Eurocentral approval to buy back up to 600 million euros in shares, closed up 1.3%.

The yield on 10-year German bonds hit a nine-month low in a row The yield on 10-year US bonds rose after hitting a new low in nearly five months

European government bond prices generally continued to rise, but the rally moderated significantly, and yields fell less than on Wednesday due to the UK CPI. By the end of the bond market, the yield on the British 10-year benchmark government bond, which fell by more than 10 basis points on Wednesday, was reported at 3.52%, roughly unchanged from the same period on Wednesday, and European stocks were close to 3.48% intraday, refreshing an eight-month low for two consecutive days, and the 2-year British bond yield closed at 4.02%, down 5 basis points during the day, continuing to refresh the seven-month low.

By the end of the bond market, the yield on the benchmark 10-year German government bond, which fell below 2.0% for the first time in nine months, closed at 1.96% on Wednesday, down 1 basis point on the day, and the U.S. stock market was close to 1.94% before the market, refreshing the low since March 20 for two consecutive days, and the 2-year German bond yield closed at 2.44%, down 2 basis points during the day, and fell below 2.44% intraday, refreshing the low level in nearly nine months for two consecutive days.

The U.S. 10-year benchmark Treasury bond yield in the European stock market had been tested 3.90% to refresh the daily high, after the shock fell, the U.S. PCE announced after the decline expanded rapidly, the U.S. stock market at the beginning of the session once fell below 3.83%, two consecutive days to refresh the intraday low since July 27, down about 2 basis points in the day, since then continued to rise, U.S. stocks erased all the declines in early trading, at noon had regained 3.90%, to the end of the bond market about 3.89%, up more than 4 basis points in the day, erasing about half of Wednesday's decline.

The 2-year U.S. Treasury yield, which is more sensitive to the outlook for interest rates, rose above 4.38% in early trading in European stocks, rising more than 5 basis points in the day, and after the announcement of the U.S. PCE, it also quickly erased all the gains in the day, and the U.S. stock market broke through 4.30% in early trading to refresh the daily low, down more than 3 basis points in the day, and began to approach the half-year low of 4.28% last Thursday, and the U.S. stock market turned up in early trading, about 4.35% at the end of the bond market, up about 2 basis points in the day, and rebounded after two consecutive days.

U.S. Treasury yields of all maturities rebounded after collectively turning down on Thursday, and short-term bond yields fell the most on Thursday this week

After PCE, the U.S. dollar index accelerated its decline, approaching a four-month low, and the offshore yuan rose more than 200 points after falling below 7.16

The ICE U.S. Dollar Index (DXY), which tracks a basket of six major currencies such as the U.S. dollar against the euro, basically maintained a downward trend throughout Thursday, only before the European stock market had a short-term turn to refresh the daily high of 102.449, and the decline continued to expand after the European stock market opened, the U.S. PCE inflation indicator was announced, and the U.S. stock market accelerated its decline before the market and fell below 102.00, and the U.S. stock market fell below 101.80 to 101.773 after the close, down nearly 0.6% during the day ), extremely close to the low since August 4, which was refreshed last Thursday, fell more than 0.6% during the day.

By the close of trading on Thursday, the U.S. dollar index hovered at 101.80, down about 0.6% on the day, and the Bloomberg dollar spot index, which tracks the greenback against 10 other currencies, also fell about 0.6%, at its lowest level since July 31, and the dollar index both retreated after rebounding on Wednesday and fell for the second day of the week.

The Bloomberg Dollar Spot Index fell intraday near its lowest level since early August after Fed Chair Jerome Powell's meeting last week

Among the non-US currencies, the pound rebounded against the US dollar after the announcement of the British CPI on Wednesday, and the US stock market was close to 1.2700 after the release of the PCE, up nearly 0.5% in the day, and last Thursday forced 1.2800 to refresh the high since August 22, the yen rose for two consecutive days, and the dollar against the yen was close to 142.00 in early U.S. stocks, down slightly more than 1% , continuing to bid farewell to the high since last Wednesday's Fed decision at 145.00 on Tuesday, began to fall to the low since July 31 set by 141.00 last Thursday, and the euro rose above 1.1000 against the dollar after the close of U.S. stocks, updating the high since November 29 after the U.S. stock market broke through this mark last Thursday, and rose nearly 0.7% during the day.

The offshore yuan (CNH) fell to 7.1606 against the dollar in early European trading, falling below 7.16 intraday for the first time since last Wednesday, and European stocks basically maintained their gains after the intraday rally, and the US PCE rose to 7.1348 after the announcement to refresh the daily high, up 258 points from the daily low. At 5:59 on December 22, Beijing time, the offshore yuan was quoted at 7.1436 yuan against the US dollar, up 71 points from the end of New York on Thursday, rebounding after falling back on Wednesday, and rising for the second day in the last five trading days.

Bitcoin (BTC) fell below $43,400 in early Asian trading to refresh the daily low, and then generally rose, U.S. stocks rose above $44,200 before the market, close to Wednesday's rise above $44,300 to refresh the high since December 9, up nearly $900 from the daily low, up 2%, and then gave up some of the gains, before the U.S. stock opened has fallen $44,000, and the U.S. stock closed above $43,800, up less than 1% in the last 24 hours.

Bitcoin rose above $44,000 intraday before retreating

Crude oil fell for the first time this week, falling from its intra-month high, narrowing most of its losses after falling more than 2% intraday

International crude oil futures fell generally on Thursday, although European stocks turned higher before the market, but European stocks remained down after turning lower in early trading. When U.S. stocks refreshed their daily lows in pre-market, U.S. WTI crude fell below $72.50, and Brent crude traded near $77.80, down about 2.4% on the day, before gradually paring most of its losses.

In the end, crude oil ended a three-day winning streak and closed lower for the first time this week. WTI crude futures for February delivery closed down 0.44% at $73.89 a barrel, while Brent crude futures for February delivery closed down 0.39% at $79.70 a barrel, both falling from Wednesday's closing high since Nov. 30.

U.S. WTI crude oil fell more than 2% intraday before erasing most of the losses

U.S. gasoline and natural gas futures were mixed. NYMEX January gasoline futures, which fell slightly and closed roughly flat on Wednesday, closed down 1.92% at $2.1585 a gallon, down from Tuesday's highest since Nov. 29, while NYMEX January natural gas futures, which fell for two consecutive days, closed up 5.11% at $2.5720/MMBtu, a new Dec. 8 hit a Dec. 8 high, partly benefiting from a larger-than-expected drop in U.S. EIA natural gas inventories released by the U.S. Department of Energy on Thursday.

London copper rebounded to a nearly three-week high, and gold rebounded near a more than two-week high

London base metals futures continued to be mixed on Thursday. London copper erased Wednesday's decline, refreshing Tuesday's record since the 1st of this month, closing close to $8,600. London nickel rose for three consecutive days and continued to approach. London aluminum did not continue to fall from the six-week high set on Monday. The lead fell to a two-week high on Friday, which was tied for two consecutive days. Lianglianyang's Lunxi retreated, failing to stay close to the nearly two-month high set last Thursday. London zinc continued to fall off Tuesday's highest level since mid-November.

On Wednesday, the New York gold futures that stopped the two yangs turned up intraday, and the Asian market fell to $2043.3 when the intraday low was refreshed, down more than 0.2% in the day, and then turned up more than once, and the US PCE not only quickly turned up after the announcement, but also completely got rid of the decline, and the US stock market refreshed the daily high of $2058 in early trading, up 0.5% in the day.

Finally, COMEX gold futures for February delivery closed up 0.18% at $2,051.3 an ounce, approaching the highest level since December 1 after rising above $2,050 on Tuesday, and closed higher for the third day of the week.

Spot gold also rebounded on Thursday, renewing its daily high near Tuesday's high