S&P closes higher in a thrilling manner, Apple drops over 1%, Chinese new energy vehicle stocks plummet together, offshore RMB rises by 300 points.

US inflation remains stubborn, with nominal CPI YoY rebounding from 3.2% to 3.7% in August, exceeding expectations, and MoM increasing by 0.6%, the largest increase this year, mainly driven by energy and gasoline prices. Core CPI increased by 0.3% MoM, accelerating for the first time in six months, and YoY increased by 4.3%, in line with expectations.

The market's bet on the Fed's decision to hold off on raising interest rates in September remains firm, with expectations of a 25 basis point rate hike in November rising to 40%. Investors are also awaiting Thursday's August PPI inflation and retail sales data, with retail sales expected to decrease from 0.7% to a growth of 0.1%.

The European Central Bank will announce its interest rate decision on Thursday, with the market estimating a 63% chance of a 25 basis point rate hike. This is higher than the approximately 40% on Monday and 25% a week ago, as insiders revealed that the ECB will forecast inflation in the eurozone to remain above 3% next year.

However, concerns about triggering an economic recession have arisen due to continued interest rate hikes. Industrial production in the eurozone fell by 1.1% in July, worse than the expected decline of 0.9%, further indicating that manufacturing continues to drag down growth. Germany is expected to revise its GDP outlook for this year to a contraction of up to 0.3%.

Dow Jones falls for two consecutive days, small-cap stocks at a three-week low, S&P Nasdaq slightly up, Apple drops more than 1%, Chinese new energy vehicle stocks decline together

On Wednesday, September 13th, the US stock market opened high, but within the first hour of trading, it briefly turned negative before rebounding again and reaching the daily high before noon. The S&P 500 index rose by a maximum of 0.4%, and the Nasdaq rose by a maximum of 0.6%.

Afternoon trading saw the Dow Jones fall by 100 points after rising by 120 points, with industrial giants 3M and Caterpillar both dragging down the index, with 3M falling by nearly 6% and Caterpillar falling by 2%. The Russell small-cap stocks were the only major index to remain in negative territory throughout the day, falling by 1%, and the S&P also briefly turned negative in the final trading session.

At the close, the US stock market showed mixed results. The Dow Jones fell for two consecutive days, erasing most of the gains since last Friday, while the S&P and Nasdaq rebounded slightly from the weekly lows. The Russell small-cap stocks fell to a three-week low after two days of gains:

The S&P 500 index rose by 5.54 points, or 0.12%, to 4467.44. The Dow Jones fell by 70.46 points, or 0.20%, to 34575.53. The Nasdaq rose by 39.97 points, or 0.29%, to 13813.58. The Nasdaq 100 rose by 0.4%, and the Russell 2000 small-cap stock index fell by 0.8%. The "fear index" VIX fell by more than 5% to 13.48.

The 11 major sectors of the S&P showed mixed performance on "US CPI release day," with utilities up 1.2%, consumer discretionary up 0.9%, telecommunications services up 0.4%, information technology/tech up more than 0.3%, and materials, industrials, and energy down by up to 0.76%, while real estate fell by 1%. Bank of Wealth stated that the US federal government is facing the shadow of a shutdown on October 1st, and advised investors to adopt a defensive position and prepare for the expected economic downturn. Former US Treasury Secretary Summers also mentioned that the probability of a soft landing in the US is only 30%, and the risks in the stock market cannot be ignored.

Most of the star tech stocks rose. "Metaverse" Meta and Microsoft both rose more than 1%, approaching their highest levels in a month and a half; Amazon rose 2.6% to its highest level since April last year, and Google A rose 1%, also approaching its highest level in 17 months; Tesla rose 1.4%, approaching its highest level in two months again. However, Apple fell more than 1% to its lowest level in nearly four weeks the day after the conference, and Netflix, which admitted limited advertising revenue, fell more than 5% to its lowest level in nearly three weeks.

Chip stocks rose in general but narrowed at the end of the day. The Philadelphia Semiconductor Index rose 0.6%, moving away from its two-week low. Intel fell 0.4%, failing to reach its highest level since July last year; AMD rose more than 2% and moved away from its two-week low, while Nvidia rose more than 1%, ending its five-day decline and moving away from its lowest level in nearly four weeks.

After-hours news revealed that the IPO of Arm, the largest IPO in the US this year and a chip design company, may have a price of $52 per share, which is $1 higher than the upper limit of the previously proposed price range. The fully diluted valuation is $55.5 billion, previously estimated at $54.5 billion.

AI concept stocks fluctuated. C3.ai fell more than 1%, approaching its lowest level in three and a half months. Palantir Technologies erased its 1.7% gain and remained at a high level for the month. BigBear.ai fell more than 6%, and SoundHound.ai erased its 2.7% gain and lingered at a low level for over three weeks. Musk stated that there is a high consensus on regulating AI, and Senate Democratic Leader Schumer stated that it could be enacted in a few months.

Popular Chinese concept stocks fell. ETF KWEB fell 0.6%, CQQQ fell more than 1%, and the Nasdaq Golden Dragon China Index (HXC) fell 0.6%, falling below 6800 points and approaching the two-week low set last Friday.

Among the Nasdaq 100 constituents, JD.com fell 0.1%, Baidu fell 0.4%, and Pinduoduo fell 0.6%. Among other individual stocks, Alibaba fell 0.8%, Tencent ADR fell 1.3%, Bilibili fell more than 2%, new energy vehicles generally fell, NIO fell 4.7%, and XPeng fell more than 3%. The European Commission plans to launch an anti-subsidy investigation into Chinese electric vehicles to protect European manufacturers. Regional bank stocks fell 1%, approaching a two-month low. The industry benchmark, the KBW Bank Index (BKX), which rose 1.7% yesterday, reversed its gains and fell 0.9%, ending its three-day rally and moving away from the monthly high. On May 4th, it hit its lowest level since October 2020. The KBW Nasdaq Regional Bank Index (KRX) fell nearly 1%, reaching its lowest level since November 2020 on May 11th. The SPDR S&P Regional Banking ETF (KRE) dropped 1.2%, hitting its lowest level since October 2020 on May 4th.

Regional bank stocks fell 1%, approaching a two-month low.

Citigroup, one of the "Big Four" banks in the United States, rose 1.7% and led the way, announcing a restructuring and layoffs in its management team. Goldman Sachs also rose over 1%, boosting the Dow Jones Industrial Average. Regional banks, on the other hand, experienced a collective decline. Western Alliance Bancorp and Zions Bancorporation both fell over 2%, Keycorp dropped nearly 3%, and PacWest Bancorp fell over 1%.

Other notable stock movements include:

• Ford Motor Company reached a five-week high with a 3.7% increase, while General Motors reached a one-month high with a 2.5% increase. UBS gave a "buy" rating and set a target price of $15 for Ford, representing a 21% upside potential, citing the resilience of its Pro business segment.

• American Airlines hit a four-and-a-half-month low, dropping 5.7%, due to rising fuel prices and increased costs from a new labor agreement. Budget airline Spirit Airlines also fell over 6%, as it adjusted its revenue and profit margin expectations for the third quarter due to rising costs.

• Other airline stocks also declined, with United Airlines falling nearly 4%, Southwest Airlines dropping 1.7%, and the S&P 500 Airlines Index hitting a three-month intraday low since June 1st.

• Moderna opened 9% higher and closed with a more than 3% increase, rebounding from a three-week low, while Pfizer rose over 1% before slightly declining, hovering near its lowest level since February 2021. The Centers for Disease Control and Prevention (CDC) recommended that all Americans aged 6 months and older receive the latest COVID-19 vaccines from both companies.

• Moderna also announced that its mRNA flu vaccine achieved a series of key objectives in the final stage of clinical trials, and the company will soon apply for regulatory approval for its administration.

• LVMH Group's European stocks fell 0.7%, while its ADRs in the US dropped 1.4% and approached the eight-month low set last Thursday. Barclays Capital Limited downgraded its rating to "neutral" from "overweight," previously. European stocks fell, with the pan-European Stoxx 600 index down 0.32%. Major sectors and national stock indexes all declined, with retail stocks leading the market with a nearly 1% drop, while automotive stocks, which had risen 2%, also fell slightly. The Eurozone STOXX 50 index fell more than 0.4%, with component stock Bayer falling more than 4.6%.

US Treasury yields fell in the afternoon, with the two-year yield falling below 5%, and the benchmark yield erasing its weekly gains

Signs of rising inflation caused US Treasury yields to rise slightly at the beginning of the US stock market, but they fell in the afternoon. The US Treasury Department auctioned $20 billion in 30-year US Treasury bonds, with a bid rate of 4.345%, continuing to hit a two-year high since May 2011.

The two-year yield, which is sensitive to monetary policy, fell below the 5% level after a decline, reaching a low of 4.96%, still hovering near the monthly high. The 10-year benchmark yield fell 3 basis points to 4.23% after a decline, erasing the gains of the week.

The two-year yield fell below 5%, and the benchmark yield erased its weekly gains.

The 10-year German bond yield, the benchmark for the eurozone, rose after the release of US CPI data and then fell back, rising less than 1 basis point at the end of the day, after rising nearly 5 basis points to 2.69%.

The two-year German bond yield, which is more sensitive to monetary policy, rose more than 4 basis points, and the short-term bond yield rose relatively large due to traders raising expectations for a rate hike by the European Central Bank this week.

The 10-year Italian bond yield, which has a higher debt burden than peripheral countries, rose to 4.492% at one point, the highest in six months since mid-March. At the same time, UK bond yields generally fell more than 5 basis points, with the 10-year benchmark yield falling nearly 7 basis points at the end of the day.

Oil prices rose by about 1% during the day to a ten-month high, then fell slightly, and supply risks pushed European natural gas to a new daily high at the end of the day

The prospect of supply tightening, as well as the rise in inflation and the resulting increase in expectations of further interest rate hikes, which may disrupt demand, among other factors, caused oil prices to fall slightly during the US stock market. WTI October crude oil futures fell $0.32, or 0.36%, to $88.52 per barrel. Brent November futures fell $0.18, or 0.19%, to $91.88 per barrel.

US crude oil WTI rose nearly 1% to $89.64 per barrel during European stock market trading, reaching the highest intraday level in ten months since November last year, but then fell and fell below the $89 integer level, with a maximum decline of 0.6%. Brent also rose 0.8% to $92.83 per barrel at one point, reaching a ten-month intraday high, but fell below $92 after a decline. Yesterday, oil prices rose by 2%.

The oil price increased by about 1%, reaching the highest level in ten months before turning downward. The International Energy Agency (IEA) warned that the restriction of crude oil supply by Saudi Arabia and Russia could cause sharp fluctuations in oil prices and lead to a significant supply shortage in the fourth quarter. However, the IEA lowered its forecast for demand growth during that period by 600,000 barrels per day. Meanwhile, four oil ports in Libya, which were closed due to natural disasters, have reopened on Wednesday, putting pressure on oil prices in the short term.

However, the front-month futures price of Brent crude oil has a premium of $4.68 per barrel compared to the six-month futures, reaching a ten-month high. This indicates a tightening supply in the market. Bank of America believes that continued supply cuts could push Brent oil prices above $100 per barrel before the end of the year.

At the end of the day, the TTF Dutch natural gas, the European benchmark, reached a new daily high and rose by more than 6.5%. The ICE UK natural gas also rose by more than 8% to a daily high. The increased global supply risk has intensified concerns in the market about fuel supply before the arrival of the European winter heating season.

In terms of news, the LNG loading of at least three cargo ships at the Freeport LNG plant in Texas, USA, has been canceled due to power outages. Manufacturers at some major factories in Norway are facing difficulties in completing their work. Chevron expects the scale of recent strikes that have disrupted the market in the past few weeks to expand further at two LNG terminals in Australia. However, the US natural gas futures, which rose by more than 5% yesterday, fell by 2%.

CPI The US dollar rose briefly after the CPI data and then fell sharply, hovering at a one-week low. The offshore renminbi rose by a maximum of 320 points, breaking through 7.27 yuan.

The DXY, which measures the US dollar against six major currencies, rose by about 20 points shortly after the CPI data was released, and then quickly fell by about 30 points. The US stock market turned slightly lower to 104.70 during the midday trading session and then rebounded in the late session, still hovering at a one-week low. On Monday, it experienced the largest single-day decline in two months.

The US dollar rose briefly after the CPI data and then fell sharply, but rebounded in the late session, still hovering at a one-week low.

The euro against the US dollar turned slightly lower but remained above 1.07, while the pound rose slightly and approached 1.25, both hovering near one-week highs. The yen against the US dollar fell the most, reaching around 147.70, gradually approaching the ten-month low set last week. On Monday, it rose by more than 1%, marking the largest increase in two months. The offshore renminbi briefly broke through 7.27 yuan, rebounding more than 320 points from the previous day's closing price, reaching a one-and-a-half-week high.

Mainstream cryptocurrencies are rising across the board. Bitcoin, the largest cryptocurrency by market capitalization, rose by 0.5% and remained above $26,000, reaching a one-week high. On Monday, it hit a three-month low. The second-largest cryptocurrency, Ethereum, rose by 0.6% and surpassed $1,600, further distancing itself from the six-month low. Bitcoin rose 0.5% and held above $26,000.

Spot gold fell below $1,910, hitting a three-week low, while London metals rose, with zinc up about 2% to a six-week high.

Gold futures fell for the second consecutive day, with COMEX December gold futures closing down 0.13% at $1,932.50 per ounce, hitting a three-week low, and silver futures falling nearly 1%. Spot gold fell the most, down 0.4%, and once again fell below $1,910, reaching its lowest level in over two weeks since August 25th.

Some analysts believe that spot gold briefly fell after the release of CPI data, but then rose by about $5, mainly because the market expects that this inflation data may not lead to significant changes in the Federal Reserve's interest rate strategy. Economic challenges in Europe will bring safe-haven buying.

Spot gold fell below $1,910, stabilizing at a three-week low.

The weakening of the US dollar and lower US bond yields have led to a rise in London industrial metals. The economic indicator "Dr. Copper" rose 0.3% and returned to $8,400, while London aluminum rose 1% and returned to $2,200, both reaching a one-week high.

London zinc rose about 2% and broke through $2,500, reaching a six-week high. Nickel, which fell more than 2.7% yesterday, rose 0.7% and returned above $20,000, moving away from its four-week low. Tin, which fell 1% yesterday, rose 0.6% and rebounded from its monthly low.