On December 10, local time, the three major U.S. stock indexes fell, and the Dow fell for the fourth consecutive trading day. The market followed CPI inflation data this week to further assess the monetary policy path of the Federal Reserve.
Popular Chinese concept stocks fell across the board, with the Nasdaq Golden Dragon China Index (HXC) closing down 4.34%. In terms of individual stocks, Tiger Brokers fell over 14%, Futu Holdings and Bilibili fell over 11%, NIO and New Oriental fell over 7%, XPeng Motors fell over 6%, Pinduoduo, Li Auto, and others fell over 5%.
The Dow fell for the fourth consecutive day.
On December 10th local time, the three major U.S. stock indexes collectively fell. As of the close, the Dow Jones Industrial Average fell 154.10 points, or 0.35%, to 44,247.83 points; the Nasdaq fell 49.45 points, or 0.25%, to 19,687.24 points; and the S&P 500 fell 17.94 points, or 0.30%, to 6,034.91 points.
During the trading day, the Nasdaq rose to a high of 19887.08 points, setting a new intraday historical high.
Investors are now waiting for the release of the US Consumer Price Index (CPI) report on Wednesday, which may impact the Fed’s rate path at the meeting on December 17-18.
Economists surveyed by Dow Jones expect the data to rise by 0.3% month-on-month and 2.7% year-on-year. Last month, the data rose by 0.2% month-on-month and 2.6% year-on-year.
Investors will further assess the Federal Reserve’s monetary policy path based on CPI data. Analysts believe that the expected reading is unlikely to hinder easing (rate cuts), but if the data shows stagnant inflation progress, the possibility of the Fed cutting interest rates for the third consecutive time will decrease.
Overseas central bank news, traders also expect Europe and Canada to cut interest rates this week, and tend to believe that the Swiss central bank will cut interest rates by 50 basis points.
This Thursday, the European Central Bank is expected to cut interest rates for the fourth time this year, as economic prospects deteriorate and political turmoil grips the two largest economies in the region, France and Germany.
Bitcoin prices are lower. The news of Google’s launch of the latest quantum chip has sparked heated discussions in the crypto community on the topic of quantum computing attacks. As a result, the crypto market saw a sharp pullback, triggering a liquidation of $1.758 billion within 24 hours.
On Tuesday, US third-quarter labor costs were revised downward. After being revised downward for three months, the growth rate of US third-quarter labor costs was lower than the initial value, further proving that the job market is no longer a source of inflationary pressure.
Google’s quantum chip makes a major breakthrough
In terms of sectors, the S&P 500 index saw eight declines and three rises among the eleven major sectors. The real estate and technology sectors led the declines with drops of 1.63% and 1.26% respectively, while the communication services and consumer staples sectors led the gains with increases of 2.61% and 0.50% respectively.
Most large-cap tech stocks fell. AMD fell more than 8%, Oracle fell more than 6%, Broadcom, TSMC, Intel fell more than 3%, Nvidia, Qualcomm, AMD fell more than 2%, Microsoft, Amazon, ASML, Netflix fell slightly, Apple, Meta rose slightly, Tesla rose more than 2%, Boeing rose more than 4%, Google-Class A rose more than 5%.
Tesla rose 2.87%, with a turnover of $38.891 billion. Bank of America analyst John Murphy emphasized that Tesla’s goal is to deploy 1,000 Optimus robots by the end of 2025, mainly in its factories, which will accelerate training and potentially speed up their development and capabilities. Murphy also added that Optimus currently only uses a small portion of Tesla’s computing power, but as autonomous taxi technology advances, its resources are expected to expand. This could increase Optimus production from 2026 onwards and help reduce costs. Bank of America maintains a target price of $400 per share and a “buy” rating. In addition, Morgan Stanley has adjusted its target price from $310 per share to $400 per share and maintained an “overweight” rating.
Nvidia fell 2.69% for the fourth consecutive trading day with a turnover of $28.412 billion. On the evening of December 9th, the State Administration for Market Regulation announced that it had launched an investigation into Nvidia for suspected violations of the Anti-Monopoly Law of the People’s Republic of China and the announcement of the decision on the anti-monopoly review of the acquisition of Mellanox Technology Limited by Nvidia with additional restrictive conditions approved by the State Administration for Market Regulation. Nvidia responded on Tuesday, “We are happy to answer any questions from regulatory authorities about our business.”
Google Class A shares rose 5.59% to a new high since mid-July, with a turnover of 9.832 billion US dollars. Google announced on Monday the latest quantum computing chip Willow, which solves a key problem that has plagued for more than 30 years - exponentially reducing errors, and has achieved amazing results in the Random Circuit Sampling (RCS) benchmark test. According to Google, it completed a calculation in less than 5 minutes, which would take ‘10 to the power of 25’ years to run on today’s fastest supercomputer Frontier.
Oracle fell 6.67%, with a turnover of $4.583 billion. Oracle’s quarterly revenue announced was in line with market expectations, disappointing investors. In recent weeks, investors have pushed Oracle’s stock price to a historical high due to the enthusiasm for its cloud business. Oracle stated in a Monday statement that its second-quarter revenue was $14.1 billion, a year-on-year increase of 9%. Revenue from the cloud infrastructure business, which has been closely followed, jumped 52% to $2.4 billion, in line with market expectations. As of November 30, remaining contractual debt (a measure of orders) was $97 billion, lower than the previous quarter’s $99.1 billion. Earnings per share, excluding certain items, were $1.47, slightly lower than the market expectation of $1.48. Total cloud revenue (including infrastructure and applications) was $5.9 billion, with analysts’ average estimate at $6 billion.
AMD fell 8.20%, with a turnover of $3.402 billion. AMD recently announced that NASDAQ has approved the company’s request to delay the submission of financial reports. This exception allows the company to submit its 10-K annual report for the period ending June 30, 2024, and its 10-Q quarterly report for the period ending September 30, 2024, by February 25, 2025. During the exception period, the company’s common stock will continue to be listed on the NASDAQ Global Select Market. The company currently expects to submit all necessary reports before February 25, 2025. AMD CEO stated on Tuesday that he believes the company will not be delisted from NASDAQ.
Financials mostly fell. Hartford Financial, UBS, Allstate Insurance fell more than 2%, Barclays, Regional Financial, Goldman Sachs, American International Group, Morgan Stanley, Travelers Insurance fell more than 1%, Wells Fargo, MetLife, Mizuho Financial, Capital One Financial, JPMorgan Chase, Bank of America fell slightly, Bank of New York Mellon, Bank of America, Deutsche Bank, Citigroup, Schwab rose slightly, BlackRock, MasterCard, Visa, American Express rose more than 1%.
Energy stocks mostly fell. US energy fell by more than 1%, with Chevron, ConocoPhillips, Schlumberger, Duke Energy, Shell, ExxonMobil, and Chevron all falling slightly, Marathon Oil remaining flat, BP (US), Apache Corporation, and Imperial Oil rising slightly, and Petrobras rising by more than 1%.
Popular Chinese concept stocks fell, and the Nasdaq China Golden Dragon Index (HXC) closed down 4.34%. Tiger Brokers fell more than 14%, Futu Holdings, Bilibili fell more than 11%, Weilai, New Oriental fell more than 7%, Xpeng Motors fell more than 6%, Pinduoduo, Li Auto, Tencent Music fell more than 5%, iQiyi, NetEase, Zeekr, JD.com, Baidu, Ctrip fell more than 4%, Huya fell more than 3%, Miniso, Alibaba fell more than 2%, Vipshop fell more than 1%, and Kingsoft Cloud rose slightly.
(Source: Securities Times)
Source: East Money
Author: Securities Times
