Although the 2-year 10-Year U.S. Treasury YieldThe curve inverted again, Wall Street got rid of the worries of economic recession on Monday (4th), and deployed growth stocks on dips. The four major indexes all closed in the red at the end,that fingerrose nearly 2%, the strongest gain.
In terms of political and economic news, Ukrainian President Volodymyr Zelensky on Monday blasted the Russian army’s intentional massacre of Ukrainian civilians as a “genocide”. Western heads of state such as Britain, the United States, and France condemned the Russian military’s actions as a war crime on Monday.
In this regard, the EU is discussing a fifth round of sanctions against Russia, and it is rumored that the EU may restrict the import and export of aircraft leasing, aviation fuel, as well as steel products and fine products.
Earlier, the German Defense Minister called on the EU to discuss banning Russian natural gas, but EU countries still have differences of opinion. The three Baltic countries (Estonia, Latvia and Lithuania) have taken the lead in rejecting the purchase of Russian natural gas.
In response to Western sanctions, Russian President Vladimir Putin announced that natural gas exports will be settled in rubles, which will be expanded to other commodities in the future. He also signed a presidential decree on Monday on retaliatory visa measures for “unfriendly countries” and abolished simplified entry visa procedures with the European Union. and announced the resumption of flights between 52 countries friendly to Russia, including China, on Saturday.
Due to the lack of progress in Ukraine-Russia talks, Saudi Arabia raised its oil prices to Asia in May, international oil prices rose to above $100 a barrel, and coal prices also hit a 13-year high, leading to intensified inflationary pressures, according to a CME report. The FedWatch tool sees a 76.6 percent chance of a 50-basis-point rate hike in May, and markets will continue to focus on Tuesday’s speeches by a number of Fed officials and the release of the Fed’s minutes on Wednesday.
The global epidemic of new coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States pointed out that the global number of confirmed cases has soared to 4.91, and the death toll has exceeded 6.15 million. More than 11.3 billion vaccine doses have been administered in 184 countries worldwide. The U.S. Food and Drug Administration (FDA) said that the composition of the current new crown vaccine may need to be adjusted to ensure that the vaccine is highly protective.
The performance of the four major U.S. stock indexes on Monday (4th):
- US stocksDow JonesUp 103.61 points, or 0.3 percent, to settle at 34,921.88.
- NasdaqThe index rose 271.05 points, or 1.9 percent, to end at 14,532.55.
- S&P 500 IndexUp 36.78 points, or 0.81 percent, to settle at 4,582.64.
- Philadelphia SemiconductorThe index rose 58.31 points, or 1.73 percent, to end at 3,424.95.
Focus stocks
The five kings of science and technology collectively rose. Apple (AAPL-US) rose 2.37%; Meta (formerly Facebook) (FB-US) rose 4.02%; Alphabet (GOOGL-US) rose 2.01 percent; Amazon (AMZN-US) rose 2.93 percent; Microsoft (MSFT-US) rose 1.79%.
Dow JonesConstituent stocks traded up and down. Salesforce (CRM-US) rose 3.11 percent; Home Depot (HD-US) rose 1.2 percent; Disney (DIS-US) rose 1.15 percent; Amgen (AMGN-US) rose 0.72%; Traveller (TRV-US) fell 1.85%.
half feeConstituent stocks received more dividends. AMD (AMD-US) rose 2.16%; NVIDIA (NVDA-US) rose 2.43 percent; Intel (INTC-US) rose 2.27 percent; Applied Materials (AMAT-US) rose 1.59%; Micron (MU-US) rose 1.96%; Qualcomm (QCOM-US) rose 4.64%.
Taiwan stocks ADR all closed higher. TSMC ADR (TSM-US) rose 1.95%; ASE ADR (ASX-US) rose 2.13%; UMC ADR (UMC-US) rose 3.18%; Chunghwa Telecom ADR (CHT US) rose 0.25%.
Corporate News
Tesla (TSLA-US) rose 5.61 percent to $1,145.45 a share. Tesla reported over the weekend that it delivered a record 310,048 vehicles in the first quarter, slightly above market expectations of 309,158 vehicles, as the company overcame the unusually difficult challenge of “supply chain disruptions and China’s zero-epidemic policy.”
Twitter (TWTR-US) surged 27.13% to $49.97 a share, its biggest gain since it went public in 2013.
Tesla CEO’s latest filing on Monday shows that Musk holds a 9.2% stake in Twitter, making him Twitter’s largest shareholder. The investment bank Wedbush judged that Musk’s holding of this seriously undervalued stock is a Cinderella story for the bulls. Musk’s attempt to change Twitter may have just started, and he will make greater changes to Twitter’s future operating strategy.
AMD(AMD-US) rose 2.16 percent to $110.53 a share. AMD has acquired five-year-old cloud services provider Pensando Systems for $1.9 billion to continue expanding its data center business.
JPMorgan (JPM-US) rose 0.46 percent to $135.91 a share. JPMorgan Chief Executive Jamie Dimon pointed out that direct exposure to Russia is limited, but it could still lose about $1 billion over time.
Global coffee chain giant Starbucks (SBUX-US) fell 3.72 percent to $88.09 a share. Starbucks founder and executive chairman Howard Schultz (Howard Schultz) has just returned to the role of interim CEO on his first day when he announced that he would cancel the stock buyback and put all the funds into operations. Starbucks pledged to spend $20 billion in treasury stock and dividends over the next three years in October last year, but the company ended fiscal 2021 without buying any of its own stock due to the impact of the pandemic on sales.
After it was reported that the Chinese regulatory authorities planned to allow the U.S. to fully obtain the audit reports of Chinese companies listed in the U.S., the ADRs of Chinese concept stocks continued to rise, and Li Auto ADR (LI-US) rose 5.21%, Alibaba ADR (BABA-US) rose 6.62%, Bilibili ADR (BILI-US) surged 16.55%, iQiyi ADR (IQ-US) surged 16.74%.
Economic data
- US February factory orders monthly growth rate reported -0.5%, expected -0.5%, the previous value of 1.5%
- The final monthly growth rate of US durable goods orders in February was -2.1%, expected -2.2%, the previous value – 2.2%
Wall Street Analysis
Tech stocks dominated after a rough start to the yearthat fingerThe past few weeks have nearly halved their year-to-date losses, helped by gains in growth stocks and strong economic data.that fingerIt is down about 9.8% from its all-time closing high in November last year.
Art Hogan, a market strategist at National Securities, said the fact that technology stocks sold the most at the beginning of the year and is now able to recover half of their losses proves that the sell-off at the beginning of the year was too great.
Fed officials have recently expressed confidence in controlling inflation and achieving a soft economic landing, and the rebound in U.S. stocks may be in anticipation of the arrival of the Goldilocks Economy. However, Lisa Shalett, chief investment officer of Morgan Stanley Wealth Management, pointed out , the Fed has limited experience in the operation of the balance sheet, the execution risk is high, and may not be able to control inflation with limited economic damage.
Nomura U.S. senior economist Robert Dent estimates that the risk of a recession is about 35% to 40% from this year to the end of 2024. The Fed will take very aggressive measures to control inflation and ensure that the labor market is truly cooled and the economy is in recession. Possibly in 2024.
JPMorgan Chase CEO Dimon mentioned in his annual shareholder letter on Monday that the U.S. economy rebounded from the epidemic, high inflation and accompanying high interest rates, the Russian-Ukrainian war and the humanitarian crisis. These three factors may reshape the next few decades. What the global market looks like.
Morgan Stanley U.S. stock strategist Michael Wilson believes that the bear market rally in U.S. stocks is over, and the macroeconomic background that is no longer loose is eroding corporate profits. Investors are advised to turn to bonds or defensive stocks when economic growth slows.
The figures are updated before the deadline, please refer to the actual quotation.