As emerging memes such as Aethlon Medical and Wendy’s took the lead, the US stocks opened slightly higher on Wednesday (9th). Before the deadline, the Dow Jones Industrial Average was almost flat, the Nasdaq Composite Index rose 0.5%, the S&P 500 rose 0.2%, fees rose 0.6%, and the 10-year U.S. Treasury yield fell below 1.5%, hitting 1 Month low.
Due to the lack of obvious catalysts in the stock market, major US stock indexes have seen little volatility this week. Before the release of key inflation data on Thursday (10th), investors mostly held a wait-and-see attitude.
On the eve of the announcement of the May Consumer Price Index (CPI), concerns about increased inflation have eased slightly. The 10-year U.S. Treasury yield fell below 1.5% on Wednesday, the first time since May 7, and was reported at 1.486% before the deadline.
The fall in U.S. Treasury yields means that, instead of thinking that inflation is a short-term phenomenon, the expectation that inflation will continue to heat up until the Fed decides to reduce debt purchases is no longer strong. The market generally predicts that considering that the labor market is still relatively weak. The Fed will remain dovish.
The boom of emerging memes stocks continues, and Aethlon Medical (AEMD-US) Soared 400% at the opening, Clover Health (CLOV-US)、Wendy’s(WEN-US) And ContextLogic(WISH-US) Also extended Wednesday’s gains. AMC Entertainment (AMC-US),blackberries (BB-US) And GameStop(GME-US) And so on, the trend weakened.
As of 21 o’clock on Wednesday (9th) Taipei time:
- The Dow Jones Industrial Average rose 5.26 points or 0.02%, temporarily reporting 34,605.08 points
- The Nasdaq Composite Index rose 63.16 points or 0.45%, temporarily at 13,988.07 points
- The S&P 500 Index rose 7.76 points, or 0.18%, to 4,235.02 points temporarily
- Fees and a half rose by 18.65 points or 0.59%, temporarily at 3189.87 points
- TSMC ADR rose 0.56% to 116.57 per share U.S. dollar
- The 10-year U.S. Treasury yield fell to 1.486%
- New York light crude oil rose 0.33% to 70.28 per barrel U.S. dollar
- Brent crude oil rose 0.51% to 72.59 per barrel U.S. dollar
- Gold rose 0.17% to 1897.70 per ounce U.S. dollar
- U.S. dollarThe index fell 0.17% to 89.925 points
Benefited from the attention of social media, American medical insurance company Clover Health closed up nearly 86% on Tuesday (8th), and continued to rise after the market opened on Wednesday.
Campbell Soup announces that its Q3 revenue for fiscal 2021 will decrease 12% annually to 1.98 billionU.S. dollar, EPS reported 52 cents after adjustment, both lower than market expectations. Due to the increase in raw materials and transportation-related costs, Campbell Soup lowered its full-year financial forecast.
The regulatory document pointed out that Lordstown Motors, an electric vehicle start-up, said that due to insufficient funds on hand, the company may have difficulty in starting mass production of electric vehicles, and is even unable to determine whether it will continue to operate until the end of the year. Management is still evaluating funding options, including issuing new shares or lending to partners, governments and financial institutions.
Today’s key economic data:
- 22:30 Taipei time will announce the increase and decrease of EIA crude oil inventory last week, the previous value-5.079 million barrels
Wall Street analysis:
Jeffrey Kleintop, chief global investment strategist at Charles Schwab, believes that the recent trend of meme stocks shows that people seem to have more free time than in the past, cash flow is good, and people clearly feel confident, compared to the economy. In the early stages of the recovery, people generally lacked the confidence to take these risks.
Observing the performance of the broader market, Kleintop is optimistic that there is room for rotation in cyclical stocks and value stocks, and the upside potential of some international assets surpasses that of US assets in the short term.
Luc Filip, head of private banking investment at SYZ Private Banking, believes that the discussion on how long inflation will last at this stage or in the future is the key in the near term, which may cause market volatility. The higher-than-expected CPI last month caused considerable pressure in the market. .