U.S. Stock Diary│The market rebounded and the index broke through the top. Nvidia returned to the prefix 9 (Michael M. Santiago via Getty Images)
U.S. stocks rose across the board, with the S&P 500 hitting a record closing high, technology stocks rebounding, and the Nasdaq rising more than 1.5%. The U.S. Consumer Price Index (CPI) rose by 3.2% year-on-year in February, higher than expected. The market is worried that the Federal Reserve will need to delay an interest rate cut. The market currently predicts that the chance of an interest rate cut at the earliest in June has dropped to 60%. The dollar strengthened, rising 0.5% against the yen, New York gold futures rose more than 1%, and the U.S. bond market fell. Bitcoin hit a new high before falling back to the $70,000 level.
Real-time quotations of U.S. stocks and foreign currencies, multi-country news
Market conditions on March 12 (Tuesday)
l The Dow Jones index rose 235.83 points, or 0.61%, to 39,005.49 points.
l The S&P 500 index rose 57.33 points, or 1.12%, to 5,175.27 points.
l The Nasdaq index rose 246.36 points, or 1.54%, to 16,265.64 points.
l New York oil futures for April delivery closed at US$77.56 a barrel, down US$0.37 or 0.5%.
l New York April gold futures closed at $2,166.1 an ounce, down $22.5 or 1.0%.
l The U.S. 10-year Treasury bond yield closed at 4.155%, up 5.1 points.
Technology stocks led gains again on Tuesday after profit-taking. Nvidia surged 7% to nearly $920, Facebook parent company Meta rose 3.3%, and Microsoft, Amazon, and AMD all rose 2% or more.
Oracle closed up nearly 12% due to its satisfactory performance and its announcement of an upcoming cooperation with Nvidia. IBM announced at an internal meeting that it would lay off employees in its marketing and public relations departments, and its stock price rose by more than 3%.
Boeing’s situation has attracted much attention. Its 737 Max project failed to pass 33 audits by the FAA. The company’s stock price continued to fall by more than 4% at the close of trading, and has fallen by nearly 30% since the beginning of the year.
Southwest Airlines said it was reassessing its full-year guidance for 2024 due to delays at its sole aircraft supplier, Boeing Co. Separately, the company’s first-quarter travel bookings were lower than expected. The company’s closing stock price fell nearly 15%, the largest single-day drop since March 2020.
Citi said that although market sentiment is biased towards bullishness, the upward momentum in major markets appears to have faded. “Investor sentiment towards U.S. stocks appears to be less optimistic, but has not turned to any bearish sentiment. The S&P 500 has only a small number of short positions left, and the Nasdaq Composite Index There are no short positions at all, but the pace of long positions and ETF inflows has slowed since late last year,” Citi analyst Chris Montagu wrote in a report.
The U.S. Department of Labor announced that the consumer price index rose 0.4% month-on-month in February this year, in line with expectations, and rose 3.2% year-on-year, 0.1% higher than expected. Core CPI excluding food and energy rose 0.4% month-on-month and 3.8% year-on-year. Both beat estimates by 0.1%.
At present, CPI is still well above the Federal Reserve’s 2% inflation target. At the same time, there is a risk of a rebound in overall inflation, and investors are worried that the Federal Reserve may delay an interest rate cut. According to data from the Chicago Stock Exchange’s “Fed Watch Tool”, the market’s current expected probability of the Federal Reserve cutting interest rates in June has dropped to close to 60%.
JP Morgan CEO Dimon said that there is still a possibility of a recession in the U.S. economy, and the Federal Reserve should wait before cutting interest rates. “The world is pricing in a soft landing, and the probability is 70-80%. I think, The likelihood of a soft landing over the next year or two is only half that number. The worst-case scenario would be stagflation.” He noted that the COVID-19 pandemic had distorted economic indicators, which he viewed with “a grain of salt.”
2024-03-12 21:35:30
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