Breakfast | Gold and silver skyrocketed, shocking Wall Street, Bitcoin back to $70,000 stimulating leading stocks to soar

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Overnight Market Update

US Stocks Rebound for a Day, Gold Hits New High Again, Bitcoin Surges to Historical High

The US stock market remained mostly flat in light trading, as investors prepared for economic data and bank earnings later this week, focusing on the US CPI to be released on Wednesday and the PPI on Thursday.

Among the three major US indices, only the Nasdaq rose for two consecutive trading days, up by 0.03%. The small-cap Russell 2000, dominated by value stocks, rose by 0.5%, outperforming the broader market.

Tesla rose by 4.9%, marking its largest single-day gain since March 18. Toyota gained 1.4%, announcing a major restructuring of its Daihatsu automotive business. Alphabet rose by 1.4%, Amazon by 0.06%, hitting record closing highs. Meta fell by 1.5%. Netflix dropped by 1.2%. Nvidia dropped by about 1%; Intel by 1.9%; Micron Technology by 0.5%.

The hot AI concept stocks cooled off. SoundHound fell by over 3%, Super Micro Computer (SMCI), BigBear.ai (BBAI) fell by over 2%, Astera Labs fell by about 2%. Coinbase rose by 6.67%. MSTR rose by over 5%. MARA fell by 2.55%.

Gold and silver mining stocks performed weakly. Barrick Gold fell by 0.84%. Newmont Corporation fell by 0.62%.

The Nasdaq Golden Dragon China Index (HXC) was nearly flat, halting a three-day decline. Li Auto rose by 4.8%, Nio fell by nearly 0.5%, XPeng fell by over 0.1%, Xiaomi fans fell by 0.2%. Bilibili rose by nearly 2%, Tencent fans rose by nearly 0.3%, NetEase rose by nearly 0.2%, Alibaba rose by less than 0.1%, while Baidu fell by over 3%, JD.com by 0.3%, Pinduoduo by 0.2%.

Blue Chips and Hot Stocks

Elon Musk: The first unmanned Starship will land on Mars within five years, and the first human landing on Mars will be achieved within seven years. Humans will be sent to the moon within five years.

Tesla reached a settlement over a fatal car accident involving an Apple engineer before 2018. An investigation by the National Transportation Safety Board pointed out that Tesla's failure to limit the use of the autopilot in this situation was a contributing factor. Tesla also admitted that the autopilot is designed for areas with "clear lane markings".

IM Motors apologizes: Xiaomi SU7 Max version uses SIC silicon carbide modules for both front and rear motors, error in IM L6 launch event labeling.

Media: Toyota to announce important cooperation with domestic giants during Beijing Auto Show

Recent reports indicate that Toyota's global intelligent driving solution will adopt a three-party joint solution model of "Toyota + Huawei + Momenta". This solution is different from Huawei's existing ADS advanced driver assistance system, with Momenta and Huawei providing software and hardware solutions respectively, deep cooperation and integration among the three parties.

Spot gold prices hit a new high again, with the expected gold production volume of listed gold mining companies in 2024 generally rising Citigroup: Under normal circumstances, it is expected that the price of copper will reach $10,000 per ton in the fourth quarter of 2024 and $12,000 per ton in 2026. During 2025 and 2026, cyclical demand growth will only slightly increase.

Commodity boom drives up British silver mining stocks, with silver prices approaching a five-year high and gold prices hitting a new high. Currently, the price of gold is nearly 85 times that of silver, while the long-term average is around 65 times, indicating that some investors consider silver to be "cheap" relative to gold.

Gold has surged since March, and Wall Street can't understand it

Gold has been soaring this year along with U.S. bond yields and the U.S. dollar, showing a significant deviation from the past negatively correlated pricing logic. Analysts suggest that this round of gold rally may no longer trade according to traditional macro central bank policy logic, as the current gold price and the size of gold ETFs are diverging, and the gold price's historical high cannot be fully explained by the gold buying demand of major central banks.

According to The Telegraph: Shell is considering delisting from the London Stock Exchange and listing on the New York Stock Exchange.

iMeigu: Expected to achieve a profit of 510 million to 534 million yuan in the first quarter, a year-on-year increase of 23% to 29%.

Chips and Artificial Intelligence

Elon Musk: The performance of Tesla's large model Grok 2.0 version will be "better than" ChatGPT-4, and xAI hopes to complete training for the next version of the chatbot Grok in May.

JPMorgan Chase CEO Damon: AI will bring about a steam engine-like revolution

This technology "can help almost all jobs." Damon also said that they are prepared for inflation pressures ranging from 2% to 8%, "or even higher," due to continued fiscal spending, transitioning to a green economy, and geopolitical turmoil.

Elon Musk: AI is expected to surpass the smartest humans next year

"If we define AGI as smarter than the smartest humans, I think it might be achieved next year, which is within two years."

Market news: The U.S. is set to grant Samsung $6-7 billion in chip subsidies next week.

Market news: The U.S. plans to provide a total of $11.6 billion in grants and loans to three chip factories of TSMC.

Microsoft's quantum computer runs 14,000 experiments without errors

Microsoft has partnered with the quantum computer hardware company Quantinuum to find a way to significantly reduce quantum computing errors when running experiments on quantum computers. Quantinuum provides the H2 computer (based on ion trap quantum bits), while Microsoft adds logical qubit software. The system's error rate is one in a hundred thousand, about 800 times better than the same quantum computer without Microsoft's logical qubits.

Cryptocurrency

Bitcoin surpasses the $70,000 mark again and briefly rises above $72,700, approaching the intraday historical high of over $73,700 set on March 14.

Bitcoin's fourth halving in history is expected to occur around the 20th of this month. The halving of Bitcoin mining block rewards, designed to limit supply, is seen as a potential stimulus for price increases and bullish market expectations Ethereum briefly touched $3700 per coin, the first time since March 16.

Swiss National Bank President: The central bank currently believes that there is no need to issue digital central bank currency for the general public.

Macro: Taking You Around the World

JPMorgan's Chief Market Strategist Marko Kolanovic: Calls on investors to buy utility and real estate concept stocks.

CME's "FedWatch" shows a 100% probability that the Fed will maintain interest rates in May.

Chinese Ministry of Finance: The fourth meeting of the two working groups between China and the United States is scheduled to be held in mid-April.

Chinese Premier Li Keqiang presided over a symposium with economic experts and entrepreneurs: Enhance the consistency of macro policy orientation and improve the effectiveness of macro policies in transmitting to the micro level.

Chinese Minister of Finance Liao Min and US Treasury Secretary Yellen held talks on issues such as the macroeconomic situation between China and the United States, bilateral economic relations, and cooperation in addressing global challenges.

People's Bank of China Governor Pan Gongsheng met with US Treasury Secretary Yellen.

Citi: Three Major Short-Term Risks Facing the Japanese Stock Market

The Nikkei 225 index has lost momentum and may remain weak in the short term due to several factors. First, major Japanese companies may provide conservative forward-looking guidance on performance. Secondly, if the Bank of Japan raises inflation expectations in the upcoming outlook report, the yen may strengthen, leading to speculation about early rate hikes. Finally, short-term stock investors may tend to shift from Japan to China.

Hong Kong Jockey Club CEO: Has invested over 10 billion in Guangdong, optimistic about the horse industry in mainland China