Breakfast | SPDR S&P 500 hits a new high, "most bullish AI stock" drops for the fourth consecutive time, NVIDIA options speculation is outrageous

Good morning! A great day starts with making money.

Today, the Osaka Exchange and the Tokyo Stock Exchange are closed for the Vernal Equinox holiday.

Overnight and This Morning Market Update

S&P 500 hits new high, Dow posts largest gain in three weeks

The Federal Reserve is holding a two-day monetary policy meeting, and the meeting results will be announced tomorrow morning. U.S. stock indices have risen for two consecutive days, with the S&P hitting a new closing high, the Dow reaching its highest level in over three weeks with the largest gain since February 22, and the Nasdaq 100 and Nasdaq both hitting their highest levels since March 13.

Meta fell by 0.2%, Tesla dropped by 1.4%, Apple rose by 1.4% to its highest level since March 1. Netflix increased by 0.4%, reaching its highest level since the end of 2021. Nvidia rose by 1%, analysts noted that the highly anticipated AI conference did not bring any surprises other than the powerful AI chip Blackwell GB200. Nvidia doubled its long position in SPDR S&P 500, rising by about 2%, while AMD fell by nearly 5%.

Adobe rose by 1.4%, continuing to move away from an eight-month low, Oracle turned positive by 1%, hitting a new closing high for two consecutive days. Super Micro Computer fell by about 9%, C3.ai dropped by 2.6%, SoundHound.ai rose by 1%. MicroStrategy fell by nearly 6%, Coinbase dropped by over 4%, Riot Platforms fell by 3%.

Among popular Chinese concept stocks, JD.com fell by 0.9%, Baidu dropped by 0.6%, Pinduoduo fell by 0.8%; Alibaba declined by 0.1%, Nio dropped by 6.3%, Li Auto fell by 0.9%; XPeng rose by 0.7%, EHang Intelligent rose by over 15%.

Blue Chips and Hot Stocks

Ant Group has initiated an organizational upgrade and appointed Han Xinyi as the group's president.

Tesla announced that its mini-program is now open to the public, allowing more electric vehicle users to share its over 800 charging stations and more than 4600 charging piles.

SpaceX: Starship is expected to launch again in about six weeks. Starlink will not IPO in 2024. Starlink is expected to become profitable by the end of 2023.

XPeng's revenue in the fourth quarter of 2023 exceeded 13 billion yuan, a year-on-year increase of 154%, with a car gross margin of 4.1%. XPeng will launch more than 10 new models in the next three years, with the first new brand car Q3 set to be launched. The new brand will officially debut at the Beijing Auto Show, with its first model set to be launched and delivered in the third quarter. The hardware cost of the new model XNGP will decrease by 50% in the second half of the year, accelerating the popularization of advanced intelligence.

Indonesian officials: BYD's Indonesia factory aims to start commercial production in early 2026.

Xiaomi Group's revenue in the fourth quarter of 2023 was 73.24 billion yuan, exceeding market expectations of 72.51 billion yuan; adjusted net profit was 4.91 billion yuan, exceeding market expectations of 3.77 billion yuan. Lu Weibing responded to the pricing of Xiaomi cars: they may be a bit expensive, but he believes they will be accepted. Xiaomi phones this year will break through the price range of 6000 yuan to 10,000 yuan.

According to Axios, U.S. Transportation Secretary Buttigieg stated that Boeing has real quality control issues.

Market news: Boeing is considering selling its subsidiary DRT and has explored the option of splitting off Argon Berkshire Hathaway accelerates its buyback pace, with a total repurchase amount of about $2.2 billion to $2.4 billion as of March this year.

Chips and Artificial Intelligence

"Super Micro Computer (SMCI.O)", the "hottest AI stock", plans to issue an additional 2 million shares.

Huang Renxun stated that global annual spending on data center equipment will reach $250 billion, with NVIDIA's share higher than other chip manufacturers.

NVIDIA CFO: New products will be launched by the end of this year; there may be supply constraints.

Speculation on NVIDIA's options is outrageous! Some are betting that the stock price will double this week. As of the close of the U.S. stock market on Tuesday, there were over 37,000 open contracts for call options on NVIDIA with a strike price of $1940 expiring this Friday. NVIDIA is becoming a casino for YOLO traders.

U.S. President Biden announced funding to expand chip production for Intel, with Intel set to receive billions of dollars in funding on Wednesday.

Saudi Arabia plans to invest $40 billion in AI and may consider creating its own AI company.

Virtual Currency

In the early Asian market, cryptocurrencies continue to decline, with Bitcoin falling below $62,000 and Ethereum dropping below $3,200.

The world's largest pension fund, the Government Pension Investment Fund (GPIF) of Japan, announced that it will explore the possibility of diversifying part of its investment portfolio into the Bitcoin field.

During a period of low liquidity, a seller sold over 400 bitcoins in a short period of time, causing a flash crash in the price of Bitcoin on the BitMEX platform, dropping to an astonishing $9,000 at one point, while the price of Bitcoin on other exchanges remained above $66,000.

MicroStrategy's Chairman Michael Saylor sold 1,848 shares of the company's stock, cashing out $3.09 million. In the past month, MicroStrategy's stock price has more than doubled.

IPO Opportunities

Didi Chuxing submits listing application to the Hong Kong Stock Exchange.

Macro: A Look at the World with You

Nick Timiraos: There are two camps within the Federal Reserve on interest rate cuts.

Wells Fargo: No change expected at this Fed meeting, rate cut likely in June.

Mixed Views on Whether there is "Frenzy" in U.S. Stocks

Savita Subramanian, Head of U.S. Stocks and Quantitative Strategy at Bank of America, believes there is little evidence that the frenzy over artificial intelligence is pushing the market into bubble territory, with strong earnings and U.S. economic resilience providing further upside potential. Chief Investment Strategist Michael Hartnett stated that the "Tech Seven Giants" and the cryptocurrency sector are showing rapid price appreciation and other bubble characteristics.

The Bank of Japan raised interest rates for the first time in 17 years, ending an 8-year period of negative interest rate policy, making it the last major economy to abandon negative interest rates.

Changes in the membership of the People's Bank of China's Monetary Policy Committee, with Yi Huiman, Liu Shijin, Cai Fang, and Liu Guoqiang stepping down, and Wu Qing, Xuan Changneng, Huang Yiping, and Huang Haizhou joining The Hong Kong Legislative Council unanimously passed the "National Security Law" on March 23, which will come into effect upon promulgation