The U.S. tech giants, which supported the broader market rally last week, partially extended their gains and once again took the lead in supporting the major U.S. stock indexes higher. Amazon and Apple, which will report earnings after market hours on Tuesday and Thursday, continued to rise, following last Wednesday when the prospect of low-cost car launches was emphasized, and Tesla, which is close to landing its self-driving system FSD in China, is seen as ushering in good revenue growth, and it has risen by double digits again in less than a week.
Apple rose nearly 4% at one point after the media said it re-grasped negotiations with OpenAI, iOS 18 or the addition of GPT bots, and Tesla, which opened with a gap, rose more than 18% intraday, surpassing last Wednesday after the earnings report, the strongest gain in three years. Morgan Stanley analyst Adam Jonas, who has long been bullish on Tesla, expects its stock price to rise by more than 80% in the next year from last Friday, believing that Musk's weekend visit to China is much more than just FSD, but a signal that "he's back" and that he is committed to helping the company weather the storm.
Affected by Tesla news, China's new energy vehicle stocks rose, "Wei Xiaoli" rose at least 3% when it refreshed its daily high, and Baidu rose more than 7% after the media said that Tesla would cooperate with it on maps and navigation functions. The China Concept Stock Index, which continued to outperform the market last week, eased its rally and still rose for six consecutive days. However, tech giants such as Google and Nvidia, which rebounded sharply last week, either retreated or their gains diminished, suppressing the broader market rally.
The currency market continues to focus on the Japanese yen. Last Friday, the Bank of Japan fell below 156, 157 and 158 after the intraday surge of the yen, Monday in the Asian market fell below the 160 mark in early trading, further refreshing the 1990 trough, and then a low level rose 3.5%, recovering 155, the media said that the Japanese Ministry of Finance intervened on the same day. According to the commentary, in view of the postponement of the Fed's interest rate cut and the expected high interest rate, the Japanese government will inevitably take action again this year, and there will be a long tug-of-war with the market.
The dollar index quickly turned lower intraday, briefly approaching a two-week low set on Friday. A number of other non-U.S. currencies rebounded, with the offshore yuan rising more than 300 points against the U.S. dollar intraday to break through 7.24, hitting a new high in a month. Bitcoin's decline has not changed, and the U.S. stock market fell below $62,000 and fell nearly $2,000 intraday, refreshing the lowest level since Israel was suspected of being attacked by Iran on April 19.
In the bond market, the Federal Reserve will announce its interest rate decision on Wednesday, and the U.S. Treasury Department announced its plan to refinance Treasury bonds for next quarter on the same day. On Monday, the Ministry of Finance announced an unexpectedly sharp increase in the size of second-quarter borrowings. The commentary noted that this is an expected outcome that does not take into account that the Fed will slow down its balance sheet reduction. After the quarterly borrowing scale was announced, U.S. Treasury yields recovered slightly and the overall decline did not change, with U.S. stock indexes giving up gains and the S&P and Nasdaq turning lower.
Among the bulk commodities, the profits of industrial enterprises above designated size announced by China over the weekend increased by 4.3% year-on-year in the first quarter, reversing the downward trend of last year, a variety of industrial metals led by London zinc rose together, and London copper closed above the $10,000 mark for the first time in two years; Israel and Hamas held ceasefire talks in Cairo, international crude oil and gold both fell intraday, the US oil front-month contract fell to the lowest level since the end of March, the dollar fell to help limit the decline in gold prices, gold futures closed slightly higher, and turned down after hours. Some commentators say that geopolitical tensions in the Middle East may ease temporarily, but they may increase tensions again at any time without warning. Last week's partial U.S. economic and inflation data hit Fed rate cut expectations and reflected the danger of stagflation, which was not conducive to the upside of oil prices.
The three major U.S. stock indexes rose twice in a row, Tesla recorded the largest increase in three years, Google rose and fell back the next day, and the Chinese concept stock index rose for six consecutive days
The three major U.S. stock indexes collectively opened higher and basically maintained their gains after that. The Dow Jones Industrial Average rose more than 150 points, or 0.4%, at the beginning of the session, narrowed its gains to around 42 points in early trading, and then extended its gains to more than 100 points. The S&P 500 rose nearly 0.5% at the beginning of the session, and the Nasdaq Composite rose nearly 0.6% at the beginning of the session, turning lower in the early short term. After the U.S. Treasury announced the expected size of borrowing at midday, the three major indexes all refreshed their daily lows, the Nasdaq and the S&P both turned slightly lower, and the Dow rose less than 25 points in the day.
In the end, the three major indexes closed up collectively for two consecutive trading days, with the S&P and Nasdaq both updating their highs since April 12 set last Friday, but the gains were far less than last Friday. The S&P, which rose about 1% on Friday, closed up 0.32% at 5,116.17. The Nasdaq, which rose about 2% on Friday, closed up 0.35% at 15,983.08. The Dow closed up 146.43 points, or 0.38%, at 38,386.09, continuing to approach its highest level since April 12, which was refreshed last Tuesday.
The technology-heavy Nasdaq 100 index turned lower in early trading and then fell in midday trading, closing up 0.36%, refreshing the closing high since April 12 for two consecutive days. The Nasdaq Technology Market Cap Weighted Index (NDXTMC), which measures the performance of the technology constituents of the Nasdaq 100, fell as much as 0.9% at the start of the session to close down 0.46%, falling to its highest level since April 12 after Friday's rally. The Russell 2000, a small-cap index dominated by value stocks, closed up 0.7%, outperforming the broader market and rising for two consecutive days to its highest level since April 11.
Only two closed lower on Monday, with Google's communication services down nearly 2.1% and financials down nearly 0.2%. Among the sectors that closed higher in nine months, Tesla's consumer discretionary rose about 2%, utilities and real estate rose more than 1%, and interest-rate sensitive properties rose more than 0.8%.
Including Microsoft, Apple, Nvidia, Google's parent company Alphabet, Amazon, Facebook's parent company Meta, Tesla, the technology giant "Seven Sisters" mixed intraday, Tesla was the best performer, and Google, which rose after the announcement of its excellent earnings report and first dividend plan on Friday, led the decline.
After Tesla China confirmed that FSD is close to China, and Morgan Stanley analysts reaffirmed their overweight rating and gave a $310 price target price 82% higher than last Friday's close, Tesla opened up about 12%, rose about 18.2% at midday, closed up 15.3%, and rose more than 10% in one day after the first day after the earnings report was announced last Wednesday, refreshing the largest closing gain since March 9, 2021, and rebounding to the closing high since March 1 after stopping three consecutive gains last Friday.
Among the six major technology stocks of FAANMG, after Bernstein upgraded its rating to outperform the industry, believing that the market's concern about the Chinese market may be overdone, Apple, which ended its four-day winning streak on Friday, rose nearly 4% in early trading and closed up nearly 2.5%, and will rebound to the highest closing level since April 12, Amazon, which will report its earnings after trading on Tuesday, rose more than 2% at the beginning of the session and closed up nearly 0.8%, rising for two consecutive days and continuing to refresh the closing high since April 17, while Friday rose 10% after the announcement of the earnings report Alphabet closed down 3.3%, falling to the all-time high set by last Friday's rally, Meta, which rebounded slightly on Friday, closed down 2.4%, refreshing its lowest closing since Feb. 1 last Thursday after the announcement of its earnings report expected AI spending to soar, Microsoft's early trading fell nearly 2% and closed down 1%, approaching the low since Jan. 31 set last Thursday, and Netflix fell more than 1% at the beginning of the day, falling for two consecutive days.
Chip stocks were generally lower in early trading, but most closed higher. The Philadelphia Semiconductor Index and the semiconductor industry ETF SOXX, which opened lower, fell about 0.9% in early trading, and completely got rid of the decline at midday, closing up more than 0.6% and nearly 0.8% respectively, rising for six consecutive days to the highest level since April 11. Among chip stocks, Nvidia, which rose more than 15% last week, fell 2.8% at the beginning of the session, and closed up nearly 0.03% with the end of the session; Intel, which fell more than 9% last Friday after announcing its second-quarter guidance, fell more than 2% in early trading and closed down 1.6%; at the close, Micron Technology and Broadcom, which had fallen more than 1% in early trading, fell 0.4%; AMD and Qualcomm, which turned down in the short term at the beginning of the session, rose nearly 1.8% and 2.1% respectively, Texas Instruments rose more than 1%, Kelei rose 1%, Applied Materials rose 0.9%, and fell more than 1% in early trading TSMC's U.S. stocks rose 0.1%, while Amkor Technology (AMKR), which closed up 2.8%, rose nearly 7% after after-hours reporting first-quarter earnings and revenue and second-quarter guidance that were higher than expected.
AI概念股多数上涨。 收盘时，SoundHound.ai（SOUN）涨5%，早盘转涨的超微电脑（SMCI）涨近4%，C3.ai（AI）、Palantir（PLTR）涨超1%，，被称为“小英伟达”、出售数据中心互连芯片的Astera Labs（ALAB）涨0.8%，而BigBear.ai（BBAI）跌近3%，Adobe（ADBE）跌0.9%，甲骨文（ORCL）跌0.6%。
Most of the popular Chinese concept stocks rose. The Nasdaq Golden Dragon China Index (HXC), which rose nearly 9% last week, rose nearly 1% at the beginning of the session, and then fell 0.5% after quickly turning lower, closing up more than 0.5%, rising for six consecutive days to its highest closing level since March 13. Chinese ETF KWEB closed down 0.3%, and CQQQ closed up more than 1.4%. The overall rise of new car-making forces was that Li Auto closed up more than 7.6%, NIO, which rose nearly 4.9% at the beginning of the session, closed up nearly 2.5%, Xpeng Motors, which rose 3.3% at the beginning of the session, closed up 3.3%, and Xiaomi powder closed flat. Among other stocks, Baidu, which is rumored to cooperate with Tesla, rose more than 7.2% at the beginning of the session and closed up 5.6%, and by the close, Station B rose nearly 2%, Alibaba rose more than 1%, NetEase rose nearly 0.7%, and Tencent Fan Shan rose slightly, while Pinduoduo fell nearly 2% and JD.com fell more than 1%.
Bank stock indices fell in unison. The KBW Bank Index (BKX), the benchmark for the overall banking sector that rebounded slightly on Friday, closed down 0.1%, failing to stay close to its highest level since April 1 set on Wednesday, while the KBW Nasdaq Regional Banking Index (KRX) closed down 0.9% and the regional bank stock ETF SPDR S&P Regional Bank ETF (KRE) fell nearly 0.9%, both falling for three consecutive days to their lowest level since April 19.
Among the stocks that reported their earnings reports, AMC Cinemas (AMC) closed down 11.1% after its first-quarter EBITDA earnings were lower than expected and the second-quarter box office performance was still under pressure after last year's surge, SoFi Technologies (SOFI), a fintech company with higher-than-expected first-quarter profits but poor second-quarter guidance, closed down 10.5%, and education stock Chegg (CHGG) fell more than 7% after after-hours announcements of CEO changes and second-quarter revenue guidance was lower than expected. Fiscal 2nd quarter revenue and fiscal 3rd quarter guidance both fell below expectations Application Security Cloud F5 (FFIV) fell more than 9% after-hours after-hours guidance, online education platform Coursera (COUR) fell 15% after-hours after hours with second-quarter guidance that also fell short of expectations, and nutrition and wellness company Medifast (MED), which missed both first-quarter results and second-quarter guidance expectations, fell nearly 20% after-hours after-hours guidance.
The pizza chain Domino's Pizza (DPZ), whose revenue and profit in the first quarter were higher than expected, rose nearly 6% intraday, and media giant Paramount Global (PARA) rose nearly 4% intraday and closed up nearly 2.9% after the media said that its board of directors was ready to fire CEO Bob Bakish as early as Monday, and after the market announced that the CEO would step down, be replaced by the CEO's office and quarterly earnings were higher than expected, but the revenue was lower than expected, it rose slightly less than 1% after hours; Woodward (WWD), an aircraft parts maker that reported better-than-expected revenue in the fiscal second quarter and raised its full-year guidance, rose more than 6% in after-hours trading, while sensor technology company Sensata Technologies (ST), which reported better-than-expected first-quarter results, rose more than 17% in after-hours trading.
In European stocks, the pan-European stock index, which rebounded last Friday, barely closed higher. The Euro Stoxx 600 index closed up less than 0.1%, updating its highest close since April 8, when it closed up 1.1% on Friday. Stock indices of major European countries were mixed. Last Friday's rebound in German, French and Spanish stocks retreated, and Spanish Prime Minister Sanchez, who revealed last week that he was considering resigning, announced on Monday that he chose to remain in office, but the impact of the resignation turmoil on his prospects for staying in office was questionable, and the Spanish stock index led the decline, while British stocks closed slightly higher, rising for three consecutive days, and all three days of record highs, Italian stocks rose for two consecutive days.
Among sectors, healthcare rose more than 0.4% as Dutch-listed medical system giant Philips jumped nearly 29.4% to a more than two-year high after announcing it had agreed to pay $1.1 billion for respiratory device-related injuries recalled in the United States and a lower-than-expected settlement, while the banking sector closed down more than 0.3%, mainly due to Deutsche Bank's closing down more than 8.6% after announcing that legal provisions from litigation related to the acquisition of Postbank would hurt profitability in the second quarter and for the full year.
The yen briefly regained 155 after falling below 160 intraday, and the dollar index turned lower intraday, once approaching a two-week low
The ICE U.S. Dollar Index (DXY), which tracks a basket of six major currencies such as the U.S. dollar against the euro, was close to 106.10 at the beginning of the Asian market to refresh the daily high, up more than 0.1% during the day, and the yen quickly turned down when the yen soared in the Asian market, once falling below 105.50, approaching the low since April 12 near 105.40 before last Friday's rally, falling more than 0.4% during the day, and the U.S. stock market had tested 105.90 at the beginning of the session, erasing most of the declines, and then the decline expanded again, and it was tested at 105.50 at noon.
By the close of trading on Monday, the U.S. dollar index was above 105.60, down nearly 0.3% on the day, and the Bloomberg dollar spot index, which tracks the greenback against 10 other currencies, fell about 0.4% on the day, updating its lowest level since April 11, and the U.S. dollar index retreated after rebounding on Friday.
Among the non-U.S. currencies, the yen rebounded sharply after hitting a new low since 1990 for a week, and the dollar against the yen rose above 160 to nearly 160.20 in early Asian trading, refreshing the high since 1990 for six consecutive trading days, rising nearly 1.2% in the day, diving in the Asian market, and falling below 154.60 at the beginning of the European market, falling about 2.4% in the day, down 3.5% from the daily high, the largest intraday amplitude since the end of 2022, and the U.S. stock market closed slightly above 156.00, down nearly 1.5% in the day; The euro rose above 1.0730 in pre-market trading, updating the high since April 11, up about 0.4% on the day, and the pound against the dollar rose to 1.2570 at midday, also updating the high since April 11, up more than 0.8% on the day.
The offshore yuan (CNH) against the US dollar at the beginning of the Asian market short-term turn down and refresh the daily low of 7.2694, after maintaining the rally, the US stock market rose to 7.2348 at noon, refreshing the intraday high since March 25, up 346 points from the daily low, Beijing time on April 30 at 4:59, the offshore yuan against the US dollar reported 7.2439 yuan, up 248 points from the end of New York last Friday, rebounded after stopping three consecutive gains on Friday.
Bitcoin (BTC) fell below $62,000 at the beginning of the U.S. stock market, and some platforms tested $61,900, refreshing the low since falling below $60,000 last Friday on April 19, down nearly $2,000 or about 3% from the daily high at the beginning of the Asian market, and the U.S. stock closed above $63,000, down about 1% in the last 24 hours.
Treasury yields continue to trade off five-month highs
The U.S. 10-year benchmark Treasury yield was above 4.66% in early Asian trading to refresh the daily high, and then continued to decline, U.S. stocks fell below 4.61% at midday, down more than 5 basis points in the day, away from the high since November 2, 2023, which rose above 4.73% last Thursday, and was about 4.61% at the end of the bond market, down about 5 basis points in the day, and fell for two consecutive days.
The 2-year U.S. Treasury yield, which is more sensitive to the outlook for interest rates, was above 4.99% at the beginning of the Asian session, and U.S. stocks broke through 4.97% at midday to refresh the daily low, falling nearly 3 basis points during the day, continuing to break away from the high since November 14, 2023, which rose above 5.02% last Thursday, and was about 4.98% at the end of the bond market, down about 1 basis point during the day.
Crude oil fell more than 1%, halting two consecutive gains, and U.S. oil hit a one-month low
International crude oil futures were basically in a downward trend throughout the day on Monday, and the U.S. WTI crude oil only turned up in early European trading, and when the U.S. stock market refreshed its daily low at noon, U.S. oil fell to $82.4, down more than 1.7% during the day, and Brent crude oil approached $88.1, down nearly 1.6% during the day.
In the end, crude oil, which had risen for two consecutive days, fell. WTI crude oil futures for June delivery closed down $1.22, or 1.45%, at $82.63 a barrel, refreshing the lowest closing level of the front-month contract since March 27, while Brent crude oil futures for June delivery closed down $1.10, or 1.23%, at $88.40 a barrel, down from the highest since April 16, which was refreshed on Friday.
U.S. gasoline and natural gas futures continue to be mixed. NYMEX May gasoline futures closed down about 0.6% at $2.7487/gal, retreating after rising for four consecutive days to refresh their highs since April 16, while NYMEX June natural gas futures closed up 5.56% at $2.0300/MMBtu on Friday, after Friday's May natural gas contract closed at its lowest since August 1995.
London zinc rose 3.5%, London copper closed above $10,000 for the first time in two years, and gold futures rebounded on the third day and then turned down
Base metals futures in London rose on Monday. London zinc, which led the rally, rose 3.5% to close above $2,900 for the first time since the end of March last year, and London nickel and London tin both rebounded after falling back on Friday. London nickel is not yet close to the high set last week since September, and London has not fallen to the one-week low set last Wednesday. London copper rose more than 1.7% for four consecutive days, and after rising above $10,000 in intraday trading last Friday, it closed above this mark for the first time since late April 2022. London lead, which closed flat on Friday and stopped three consecutive gains, refreshed its high since November last year. London aluminum rose for two consecutive days, continuing to break away from the low level set last Thursday in more than a week.
When the Asian market refreshed the daily low in early trading, New York gold futures fell to $2331, down about 0.7% during the day, spot gold fell to $2320, down nearly 0.8% during the day, European stocks before the market, intraday and U.S. stocks in early trading have turned up many times, when the U.S. stock market refreshed the daily high at midday, gold futures rose to $2358.9, up about 0.5% during the day, and spot gold was close to $2346.70, up nearly 0.4% during the day.
At the close, COMEX June gold futures closed up 0.45% at $2,357.7 an ounce, rising for three consecutive days, continuing to break away from the low level of the close since April 4 last Wednesday, but turned slightly lower after the close. Spot gold also turned lower at midday after refreshing daily highs, and U.S. stocks closed below $2,340, down less than 0.1% on the day.
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