Nasdaq rebounded, Nvidia rose 2.5%, Morgan Stanley dragged down Dow Jones, Li Auto fell nearly 13% after earnings, and gold and copper hit new historical highs

Federal Reserve officials reiterated a wait-and-see stance on interest rate decisions: Federal Reserve Vice Chairman Jefferson stated that the April CPI data was encouraging, but it is still too early to judge whether the recent inflation slowdown will persist in the long term; Raphael Bostic, President of the Federal Reserve Bank of Atlanta, who has voting rights on the Federal Open Market Committee (FOMC) this year, believes that the new "neutral rate" may be higher than the level of the past decade. It is expected that there may only be one interest rate cut this year, and the inflation rate will continue to decline in the next two years, but the pace of inflation decline will be lower than many people's expectations.

Market expectations for interest rate cuts in the next two years continue to decline, reversing the gains since the release of the US CPI data last Wednesday.

After Bostic's hawkish speech, US Treasury bond prices accelerated their decline for three consecutive days, with yields rising for three consecutive days, moving away from the lows set since the cooling of US April CPI growth announced last week. The US dollar index rebounded during the session, departing from the lows set over a month ago the day after the CPI announcement. Major US stock indices showed mixed movements. Chip stocks supported the rebound of the Nasdaq, while the Dow, which had hit historical highs for several days, fell back.

Before the earnings report was released after the market closed on Wednesday, Nvidia's target price was raised by several institutions. Stifel and Barclays are expected to raise their target prices by nearly 30% and about 20% respectively from last Friday's closing price. Nvidia rose nearly 3% during Monday's trading session. Morgan Stanley, optimistic about the prospects of high-bandwidth memory (HBM), upgraded its rating from underweight to equal weight and significantly raised its target price by 32.6%. Micron Technology rose by over 4% during trading. Microsoft, which launched a heavyweight AI PC before the developer conference, rebounded to a high point in over a month. After CEO Damon stated that Morgan Stanley will not repurchase many shares at the current price, JPMorgan Chase fell by over 4%, leading the decline among Dow components.

Chinese concept stocks, which surged last week, fell from their eight-month highs. After announcing first-quarter revenue growth exceeding expectations by 36% but guiding for second-quarter growth to slow to less than 10% above expectations, Li Auto's stock price plummeted by over 10%. GameStop, which has seen double-digit declines for three consecutive days, continued to experience huge fluctuations. After falling by over 10% during trading, it rebounded towards the end of the session. Following the launch of a weight loss drug that is over 80% cheaper than Novo Nordisk and Eli Lilly, affordable healthcare company Hims & Hers Health surged by over 30% during trading In the commodity market, precious metals and industrial metals continued to rise last week, with basic metals in London all rising. Supported by favorable policies in China to promote the real estate market, London copper rose above $11,000 for the first time during trading. New York gold futures and New York copper futures both hit new closing highs, with silver futures continuing to reach new highs since 2013. Financial market investors are flocking to the copper market due to expectations of worsening supply shortages, with BHP intending to acquire its competitor Anglo American mainly because of the latter's copper mines.

However, international crude oil failed to sustain its upward trend, bidding farewell to the high closing levels within the month, dropping by at least 1% at one point during trading. Commentators believe that rate cuts are beneficial for the economy and may help stimulate oil market demand. However, recent cautious statements from Federal Reserve officials, indicating a need to wait for more signs of inflation decline before starting rate cuts, have dampened oil prices. Geopolitically, the unfortunate death of the Iranian president in a helicopter accident and the postponement of the Saudi Crown Prince's visit to Japan due to King Salman's health issues did not have a significant impact on the oil market. Analysts point out that Iran's oil policy is expected to remain stable as the ultimate decision-making power on major national affairs lies in the hands of Iran's Supreme Leader, Ayatollah Khamenei; in Saudi Arabia, the market is accustomed to Crown Prince Salman's leadership in energy affairs.

Nasdaq hits record high, chip stocks rise over 2%, Microsoft rebounds, Google hits new high, retail investors rally in group stocks, Chinese concept stocks fall

The three major US stock indices opened with mixed movements. The Dow Jones Industrial Average, which opened slightly lower by nearly 14 points, turned slightly higher after the opening for over half an hour, rising by over 50 points and more than 0.1% at one point, then turned lower at the beginning of the afternoon session, dropping by over 210 points at the end of the session. The S&P 500 Index opened slightly higher and the Nasdaq Composite Index opened higher, maintaining an upward trend throughout the day, with the S&P rising by over 0.4% at the end of the morning session and the Nasdaq rising by over 0.8% at midday.

In the end, only the Dow closed lower among the three indices, down by 196.82 points or 0.49%, at 39,806.77 points, falling from the record high of over 40,000 points set after last Friday's rebound. The Nasdaq, which fell for two consecutive days, closed up by 0.65% at 16,794.88 points, setting a new closing high since last Wednesday. The S&P closed up by 0.09% at 5,308.13 points, rising for two consecutive days and approaching the closing high set last Wednesday. The ETFs related to the S&P and Dow, SPDR S&P 500 ETF (SPY) and SPDR Dow Jones Industrial Average ETF (DIA), closed up by 0.12% and down by 0.46% respectively.

The small-cap Russell 2000 index, dominated by value stocks, closed up by 0.32%, approaching the high set since March 28 after falling for two consecutive days, with the iShares Russell 2000 ETF (IWM) closing up by 0.22%. The tech-heavy Nasdaq 100 index closed up by 0.69%, with the related ETF Invesco QQQ Trust Series 1 (QQQ) closing up by 0.7%; the Nasdaq Technology Market Cap Weighted Index (NDXTMC), which measures the performance of tech stocks in the Nasdaq 100 index, closed up by 1.21%, setting new closing highs since last Wednesday

The three major U.S. stock indexes had mixed performances on Monday, with the Dow closing down, the S&P slightly up, and the Nasdaq rebounding.

Among the Dow components, Morgan Stanley fell by 4.5%, far exceeding the declines of other components, Cisco fell by over 2%, Caterpillar rose by over 1.8%, and Microsoft, which rose by over 1%, led the gains.

Including Microsoft, Apple, Nvidia, Google's parent company Alphabet, Amazon, Meta, the parent company of Facebook, and Tesla, the tech giants "Seven Sisters" saw mixed performances. Tesla, which had risen for two consecutive days, performed the worst, closing down by 1.4% and failing to continue approaching the closing high since May 6 set last Tuesday.

Among the FAANMG six major tech stocks, Microsoft, which had fallen for two consecutive days, rose by 1.2%, hitting a new high since April 11; Apple initially turned higher and rose by over 1%, closing up by over 0.6%, rising for six consecutive days and hitting a new closing high since January 29; Alphabet rose by 1.5% in early trading, closing up by nearly 0.5%, rising for six consecutive days and hitting a new record closing high for four days; Netflix rose by nearly 3.2%, rising for two consecutive days to a high since November 2021; while Amazon initially rose by over 1% but turned lower in the afternoon, closing down by over 0.6%, falling for three consecutive days and hitting a new low since May 1; Meta closed down by nearly 0.7%, falling for three consecutive days to a one-week low.

Chip stocks rebounded after several days of decline. The Philadelphia Semiconductor Index and the Semiconductor Industry ETF SOXX closed up by about 2.2%, outperforming the broader market, hitting a new closing high since March 7 after falling for two consecutive days. Among chip stocks, Nvidia rose by over 2.9% in early trading, closing up by about 2.5%, hitting a new closing high since March 25 set last Wednesday after falling for two consecutive days; by the close, Micron Technology, which had risen by nearly 4.6% in early trading, rose by about 3%, Qualcomm rose by 2%, AMD and Broadcom rose by over 1%, and Intel rose by nearly 0.9%.

Overall, popular Chinese concept stocks fell. The Nasdaq Golden Dragon China Index (HXC), which rose for three consecutive days last Friday and hit a new high since September 2023 for two days, closed down by nearly 1.7%, while the related ETF Invesco Golden Dragon China ETF (PGJ) fell by 1.5%. Chinese concept ETFs KWEB and CQQQ fell by nearly 1.2% and 0.6% respectively.

Among the new forces in the electric vehicle sector, Li Auto, which announced its financial report before the market opened, opened down by 8.7%, with the decline expanding to over 10% later. It fell by 16.5% in early trading, marking the largest intraday decline since October 2022, and closed down by 12.8%. Nio closed down by 1.1%, while XPeng closed up by 0.6%. ZEEKR, which rose by nearly 6% in early trading, closed up by 4.3% Among other individual stocks, at the close, Haidilao's US stock (HDL), which rose 14% on its first day of listing last Friday, fell more than 6%. Baidu, Dong, and Tencent's fan singles fell more than 1%, Alibaba, which fell nearly 1.8% at the opening, fell 0.3%, Netease fell 0.2%, and Pinduoduo rose 0.4%.

Retail investors rallied together, with GameStop (GME) falling more than 10% in early trading, dropping over 14.7% at noon, experiencing double-digit declines for four consecutive days. It almost wiped out all the gains from last Monday and Tuesday when Roaring Kitty hinted on social media over a week ago that it would focus on betting. It closed up nearly 4.1% after turning higher at the end of the day. BlackBerry (BB) also turned higher at the end of the day, closing up 2%, not falling for four consecutive days. AMC Theatres (AMC), which fell for three consecutive days, closed up 9.8%; Koss (KOSS) rose nearly 8% in early trading.

AI concept stocks rose overall. The AI and robotics ETF, Global X Robotics & Artificial Intelligence ETF (BOTZ), closed up 1%. At the close, SoundHound.ai (SOUN) rose 8.5%, BigBear.ai (BBAI) rose nearly 6%, Super Micro Computer (SMCI) rose 1.8%, and C3.ai (AI) rose nearly 0.5%.

Among the stocks with significant fluctuations, after launching an affordable weight loss drug, healthcare company Hims & Hers Health Inc. (HIMS) rose more than 30% in early trading, closing up 27.6%. Competitor Eli Lilly (LLY) closed up 1.7%; Faraday Future (FFIE), which surged over 2100% last week, rose 118% at the opening and closed up 74.8%; web development company Wix.com (WIX), which exceeded first-quarter expectations and raised its full-year free cash flow guidance, closed up 23.8%; after a state-owned oil company in the UAE announced the acquisition of a 11.7% stake in the Rio Grande LNG export project in North America, US energy company NextDecade (NEXT) closed up 14.8%; Norwegian Cruise Line (NCL), which raised its full-year profit guidance for the second time in three weeks due to strong demand, closed up 7.7%; semiconductor test equipment manufacturer Teradyne (TER) closed up 5.8% after being upgraded to a buy rating by Goldman Sachs, believing in the cyclical recovery of its system-on-chip (SoC) design testing business.

U.S. Treasury yields rise for three consecutive days

The iShares US Treasury Bond ETF (GOVT) fell 0.1%. U.S. Treasury yields have risen for three consecutive trading days. The yield on the 10-year benchmark Treasury note in the U.S. fell below 4.10% in early Asian trading, rose from below 4.41% to above 4.45% during European trading, reaching an intraday high of 4.4531%, continuing to move away from the low of 4.31% set on April 5th before turning lower on Thursday, closing around 4.44% at the end of the bond market, up about one basis point intraday The 2-year US Treasury yield, which is more sensitive to interest rate prospects, also accelerated its rise from the European stock market session, with the US stock market rising to 4.9457% in the final trading session, breaking through 4.85% after the US stock market closed, rising more than 4 basis points from the intraday low below 4.81%, continuing to move away from the low of 4.70% touched last Thursday and refreshing the low since April 5th, reaching around 4.85% by the end of the bond market session, rising nearly 3 basis points during the day.

The yields of various maturities of US Treasuries rose for the third consecutive trading day on Monday, with the upward trend relatively moderate.

The US Dollar Index rebounds, Bitcoin rises by over $4,000 during the session, breaking through the $70,000 mark, and Ethereum rises by nearly 20%.

The ICE US Dollar Index (DXY), which tracks a basket of six major currencies including the euro, fell below 104.40 during the Asian session, but rebounded slightly during the day, avoiding the decline before the European stock market opened. After the pre-market speech by Boston Fed President, the intraday gain expanded, breaking through 104.60 to refresh the daily high, rising nearly 0.2% during the day, moving away from the low of 104.10 touched last Thursday when the US March CPI was announced on April 10th.

By the end of Monday's forex market session, the US Dollar Index was above 104.60, rising nearly 0.2% during the day; the Bloomberg Dollar Spot Index, which tracks the US dollar against other ten currencies, rose by over 0.1% during the day, not approaching the low reached during the same period since April 9th after falling back last week.

In the non-US currency market, the Japanese yen fell for three consecutive days, with the USD/JPY rising to 156.30 after the US stock market closed, up over 0.4% during the day, continuing to move away from the low of 153.60 touched last Thursday and refreshed on May 6th; the EUR/USD turned lower during the session, with European stocks falling below 1.0840 to refresh the daily low, failing to approach the high near 1.0900 touched on March 21st; the GBP/USD turned higher during the session, rising above 1.2720 at midday, refreshing the high since April 9th created last Friday.

Offshore Chinese Yuan (CNH) rose to a daily high of 7.2316 against the US dollar in the early Asian session, quickly turned lower and maintained a downward trend, with the US stock market hitting a daily low of 7.2470 in the early session, continuing to move away from the high of 7.21 touched on May 6th before turning lower last Thursday, falling by 133 points during the day. At 4:59 am on May 21st Beijing time, the offshore Chinese Yuan against the US dollar was quoted at 7.2469 yuan, down 132 points from the New York closing price last Friday, falling for three consecutive trading days Bitcoin (BTC) continued to rise overall on Monday, with the US stock market breaking through the $70,000 mark at the end of the day. It rose more than $4,000 from the intraday low in the early Asian session, up over 6%. By the close of the US stock market, it was above $70,000, rising over 6% in the past 24 hours. After the close, it briefly rose above $70,200, hitting a new high since April 12.

This week, the US Securities and Exchange Commission is expected to announce whether it will approve the listing of the second largest cryptocurrency, Ethereum (ETH), spot ETF. The market is anticipating the approval of the ETF, with the price of Ethereum (ETH) rising during the US stock market midday session. After the US stock market closed, it rose above $3,600, hitting a new high since April 11, with an increase of nearly 18% intraday.

International crude oil futures ended a three-day rally and bid farewell to the high within the month. Crude oil prices fluctuated during the day but ultimately closed lower. US WTI crude oil rose to $80.6 during the early US stock market session, up nearly 0.7%, while Brent crude oil approached $84.50 before the European stock market session, up 0.6%. However, after the US stock market turned lower in the midday session and hit a new daily low, US oil fell below $79.20, down 1.1%, and Brent oil approached $83.10, with a slight drop of over 1%.

In the end, crude oil, which had risen for three consecutive days, fell back. WTI June crude oil futures, which closed above $80 for the first time since April 30 last Friday, fell by $0.26, or 0.32%, to $79.80 per barrel. Brent July crude oil futures fell by $0.27, or 0.32%, to $83.71 per barrel, both marking a departure from the high closing levels set on April 30 since last Friday.

The US Oil Fund LP (USO) fell by 0.31%, and the Brent Oil Fund LP (BNO) fell by 0.16%, both ETFs falling after a three-day rally

New York gold and copper futures hit consecutive closing record highs for two days, silver futures hit an eleven-year high for four days in a row

London base metal futures closed higher across the board on Monday, with London zinc leading the gains by over 2.7%. London copper, nickel, and lead all closed up by over 2%, with London copper breaking above $11,000 during the Asian session, surpassing this level for the first time in history. It closed below $10,900, still setting a new closing record high since March 2022.

Before the European stock market opened, New York gold futures briefly rose above $2,450 to $2,454.2, hitting an intraday historical high, with a gain of over 1.5%. Spot gold also briefly exceeded $2,450, setting a new intraday historical high from last Friday, with an increase of nearly 1.5%. During the European stock market session, gold prices turned lower, hitting a daily low, with futures approaching $2,411 and spot gold falling below $2,408, both down nearly 0.3% intraday. At the beginning of the US stock market session, after a speech by Federal Reserve official Bostic, the decline was reversed, with gold futures briefly rising above $2,440 and spot gold approaching $2,340.

By the time of the US stock market midday close, COMEX June gold futures closed up by 0.87%, rising for two consecutive days to $2,438.5 per ounce, setting a new closing historical high from last Friday. SPDR Gold Trust (GLD) rose by 0.4%. At the US stock market close, spot gold was above $2,420, with an intraday gain of over 0.4%.

Spot gold hits an intraday historical high from last Friday

New York silver futures rose for five consecutive days, with COMEX July silver futures closing up by over 3.7% to $32.426 per ounce, hitting a new high for the fourth consecutive trading day since 2013, reaching as high as $32.75 during the day, with an intraday gain of nearly 4.8%. iShares Silver Trust SLV rose by nearly 0.7%.

Spot silver rises above $32 for the first time since 2013