2023-05-25 13:51:21
The optimistic financial forecast previously released by the US chip company Nvidia drove up artificial intelligence (AI)-related stocks. In addition, the progress of the US debt ceiling negotiations further boosted market sentiment. The major US stock indexes rose and fell on Thursday (25th) reciprocity, among whichNasdaqThe index rose more than 1% under the blessing of Huida’s better-than-expected financial forecast.
before the deadline,Dow Jones Industrial Averagefell nearly 40 points or nearly 0.2%,Nasdaq Composite Indexrose more than 150 points or 1.2%,S&P 500 Indexup nearly 0.5%,Philadelphia SemiconductorThe index rose more than 4%.
Before the U.S. stock market opens,NasdaqFutures rose, and the stock prices of chip manufacturers generally rose. Huida’s better-than-expected financial report ignited the rise of artificial intelligence (AI) concept stocks. Among them, Huida (NVDA-US) rose more than 25% before the market, and the stock price continued to rise in early trading and rose 22%.
Huida surprised even the most bullish analysts on Wall Street with its guidance for second-quarter revenue, which has slowly pushed the company’s market capitalization toward a peak of $1 trillion.
Foreign media analysis pointed out that this is another sign that investors are willing to pile into promising technology stocks, despite growing concerns about the Chinese economy and a potentially catastrophic debt default in the United States. Fitch Ratings has warned that the US’ triple-A rating is under threat, even as politicians are expected to reach a deadline to reach an agreement to raise the debt ceiling.
Yields on U.S. bonds due early next month soared above 7 percent yesterday, with yields on June 1 and June 6 rising by more than a percentage point. These securities are considered the most likely to fail if the U.S. government exhausts its borrowing capacity. Meanwhile, a row over the debt ceiling in Washington raised risks to the Fed’s assessment as Fed officials considered pausing rate hikes.
In terms of economic data, the U.S. Department of Commerce announced on Thursday the revised value of the annual growth rate of the U.S. gross domestic product (GDP) in the first quarter. The real GDP (gross domestic product) after seasonal and inflation adjustments grew by 1.3%, better than the previous The preliminary and expected 1.1% growth rate released last month was sharply weaker than the 2.6% increase in the fourth quarter of last year.
At the same time, the annual growth rate of personal consumption expenditures (PCE) in the United States in the first quarter was revised to 3.8%, which was revised up by 0.1 percentage points. It was expected to be 3.7% and the previous value was 3.7%. The data highlighted a slowdown in the U.S. economy, and the high inflation fever is lingering, with closely watched inflation indicators revised upwards across the board.
In addition, the U.S. Department of Labor announced on the same day that the number of people claiming unemployment benefits for the first time last week was 229,000, which was lower than market expectations of 250,000. As weak as imagined.
As of 21:00 on Thursday (25th) Taipei time:
Focus stocks:
Huida (NVDA-US) rose 22.28 percent to $373.42 a share in early trade
Huida’s revenue in the first quarter reported US$7.192 billion, and its net profit increased by 26% year-on-year and 44% quarter-on-quarter, both exceeding Wall Street analysts’ expectations. What shocked the market was that Huida’s outlook for the second quarter’s revenue also far exceeded expectations, reaching $11 billion, 53% higher than analysts’ estimates.
Best Buy (BBY-US) rose 2.93 percent to $71.18 a share in early trade
Best Buy announced its last-quarter results before the market, with revenue of $9.47 billion, better than market expectations of $9.54 billion; adjusted earnings per share were reported at $1.15. The company maintained its full-year financial forecast unchanged, estimating capital expenditures of approximately $850 million.
Snowflake(SNOW-US) fell 14.06% in early trade to $152.23 per share
US cloud data company Snowflake’s first-quarter revenue reported US$623.6 million, an increase of 48% from US$422.4 million in the same period last year; Both the quarterly and full-year revenue outlook fell short of Wall Street analysts’ expectations, and the stock price fell more than 12% before the market.
Today’s key economic data:
- In the first quarter of the United States, the real GDP quarterly growth rate was revised to 1.3%, expected 1.1%, and the previous value was 2.6%
- In the first quarter of the United States, the PCE quarterly growth rate was revised to 4.2%, expected 4.0%, and the previous value was 3.9%
- In the first quarter of the United States, the core PCE quarterly growth rate was revised to 5%, expected 4.9%, and the previous value was 4.4%
- U.S. personal real spending in the first quarter increased at a revised 3.8% annualized rate, compared with 3.7% expected and 1% previously
- The number of people claiming unemployment benefits in the United States reported 229,000 last week, compared with 250,000 expected and 225,000 previously
- The number of Americans continuing to receive unemployment benefits last week was reported at 1.794 million, expected to be 1.8 million, and the previous value was 1.799 million
Wall Street Analysis:
Gilles Guibout, director of European equity strategy at AXA Investment Management, said that Huida was a surprise for US stocks yesterday, but overall the market has little reason to continue to rise: interest rates have not fallen, global economic growth has not rebounded, and corporate earnings forecasts for the year are flat. Stock valuations are already at a decent level.
Larry Adam, chief investment officer of Raymond James Financial, is optimistic about large technology companies, saying that the technology industry will reinvent itself time and time again.
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