Dow Dips, Nasdaq Hits New High; Nvidia Soars 7%, GameStop Spikes 40%

Federal Reserve officials have once again adopted a cautious stance on interest rate cuts, with Kashkari stating that he has not completely ruled out the possibility of raising interest rates. It would require several months of positive inflation data to convince him that a rate cut is appropriate. The US stock market experienced a mixed situation. Technology stocks such as chip stocks supported the Nasdaq to reach a new historical high, while the S&P 500 fluctuated and fell multiple times during the session. The Dow Jones, which had its largest weekly decline since the Silicon Valley Bank triggered a banking crisis in March last year, also declined.

Media reports suggest that Musk's startup xAI plans to use Nvidia's H100 to develop supercomputers, with its connected chipsets expected to be four times the size of today's largest GPU clusters. Tesla's stock did not rise but fell, while Nvidia's stock price once surged nearly 8% during the session and has been continuously setting new closing highs since last week's release of excellent financial reports, leading the way for technology giants to support the market's rise. Data from China's Academy of Information and Communications Technology shows that iPhone sales in China increased by 52% year-on-year in April, and Apple's stock once rose by more than 1% at the beginning of the session. GameStop, which completed a private placement of over $900 million last Friday, opened with a gap of more than 20%.

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In the bond market, the US Department of the Treasury successively completed the auction of two-year government bonds with a scale of $69 billion and five-year government bonds with a scale of $70 billion on Tuesday. The bid multiples and the "tail" of the winning interest rates above the pre-issuance interest rates both reflected weak demand. The prices of US Treasury bonds accelerated their decline during the session, and the yield rose, surpassing the high levels set last week. The benchmark ten-year US Treasury yield once rose by about 10 basis points from the daily low, stabilizing above 4.50%, while the two-year US Treasury yield approached 5.0%, reaching a high level since early this month.

In the foreign exchange market, as the US Treasury yield increased and set new highs during the session, the US dollar index, which had earlier fallen to a low not seen in over a week, gradually recovered its losses. Non-US dollar currencies such as the euro turned down during the session, the British pound fell away from the high level it had reached earlier in the day, the offshore renminbi once again fell below 7.26 during the session, and refreshed the low level since the end of April. Cryptocurrencies also fell during the session, with Bitcoin, which had once risen above the $70,000 mark on Monday, falling below $68,000 at one point.

Commodities generally rose. Although the US dollar rebounded during the session, gold's rebound momentum remained unchanged. New York gold futures closed higher for the first time in five trading days, breaking away from the low level of the past two weeks. Shanghai and other places in China announced favorable policies for the real estate market, and industrial metals in London generally rose, with metals such as伦铜 ending a four-day losing streak. The escalation of tensions in the Middle East, the attack on a bulk carrier managed by Greece in the Red Sea, Israeli tanks entering the center of Rafah, and the United States entering the summer driving season all pushed up crude oil. US oil once rose by more than 3% during the session, not only reversing four consecutive closing declines but also approaching the $80 mark for the first time in over a week.

However, some comments suggest that the situation in Gaza is merely a warning to investors not to be overly aggressive in short selling, and it is not yet a strong bullish signal. The market will closely monitor the US PCE inflation indicator for April, which will be announced this Friday. If it supports the expectation that the Federal Reserve may cut interest rates earlier, it will boost the outlook for energy demand.

The Nasdaq continues to set new historical highs, the Dow Jones falls to a three-week low, Nvidia's stock has risen by 20% in three days after its financial report, and the China concept index has stopped a five-day decline.

The three major US stock indices opened with different performances. The Dow Jones Industrial Average generally opened lower and continued to decline, with a drop of more than 360 points, or more than 0.9%, at one point during the lunch break. The S&P 500, which opened higher, rose by more than 0.2% at the beginning of the session when it refreshed the daily high, but then fluctuated and fell multiple times, with a daily decline of more than 0.4% at one point during the lunch break, and then turned up at the end of the session. The Nasdaq Composite, which opened higher, maintained its upward momentum throughout the day, with a daily increase of nearly 0.7% when it set a new intraday historical high during the lunch break.

In the end, only the Dow Jones closed lower among the three indices. The Dow Jones, which closed slightly higher last Friday, closed down 216.73 points, or 0.55%, at 38,852.86 points,刷新ing the closing low since May 6. The S&P 500 closed up 0.02% at 5,306.04 points, continuing to move away from the closing low of 5,210.09 points set last Thursday, which was the lowest closing level since May 14. The Nasdaq closed up 0.59% at 17,019.88 points, setting a new closing historical high for two consecutive trading days.

The ETFs related to the S&P and Dow Jones, SPDR S&P 500 ETF (SPY) and SPDR Dow Jones Industrial Average ETF (DIA), respectively closed up 0.07% and down 0.52%, with the latter setting a new low since May 6.Value-oriented small-cap index Russell 2000 fell by 0.14%, failing to continue to move away from the low point set on May 3rd after four consecutive days of decline last Thursday. The technology-heavy Nasdaq 100 index closed up by 0.32%, with the related ETF Invesco QQQ Trust Series 1 (QQQ) closing up by 0.38%, marking two consecutive days of historical highs. The Nasdaq Technology Market Capitalization-Weighted Index (NDXTMC), which measures the performance of technology sector components in the Nasdaq 100 index, closed up by 1.35%, marking three consecutive days of historical highs.

Among Dow Jones components, Merck led the decline with a 2.6% drop, while Johnson & Johnson, McDonald's, Visa, and Amgen all fell by more than 1%. In contrast, Intel and Home Depot rose by more than 1%. In the S&P 500 sectors, only three closed higher on Tuesday, with IT, where Nvidia is located, rising by nearly 1.4%, energy by nearly 1.1%, and communication services, where Google is located, by nearly 0.5%. Among the eight sectors that closed lower, financials, healthcare, and industrials all fell by more than 1%, while non-essential consumer goods, where Tesla is located, fell by less than 0.1%, with the smallest decline.

Including tech giants such as Microsoft, Apple, Nvidia, Google's parent Alphabet, Amazon, Facebook's parent Meta, and Tesla, the "Seven Sisters" saw mixed movements during the trading day, with most closing higher, except for Nvidia and Apple, which did not experience any decline during the session. Tesla, the worst performer among them, fell by about 3.4% in the early morning but later narrowed its loss to within 2%, closing down by 1.4%. After rebounding by over 3% last Friday, it began to approach the closing low set on Thursday, which was the lowest since May 13th.

Among the FAANMG group of tech stocks, Apple, which rebounded last Friday, initially rose by nearly 1.6% but turned negative by midday, roughly closing flat, failing to approach the closing high set on Tuesday since January 26th; Microsoft, which rebounded last Friday, initially fell by 0.8% but closed slightly higher, continuing to approach the closing record high set on Wednesday; Alphabet, which initially fell by nearly 0.7%, turned positive in the morning and rose by more than 1% by midday, closing up by 0.8%, continuing to move away from the closing low set on Thursday, which was the lowest since May 15th; Amazon, which had fallen for five consecutive days to a closing low since May 1st, initially fell by 0.7% but turned positive in the morning, closing up by nearly 0.8%; Meta, which initially fell by 0.7%, turned positive by midday, closing up by nearly 0.4%,刷新ing the closing high set on Friday since May 15th; Netflix, which initially fell by nearly 0.6%, turned positive several times and closed up by nearly 0.4%, continuing to approach the closing high set on Tuesday since November 2021.

Semiconductor stocks generally continued the upward trend from last Friday, with the Philadelphia Semiconductor Index and the semiconductor industry ETF SOXX both rising by more than 2% at midday, closing up by nearly 1.9% and nearly 1.7% respectively, marking two consecutive trading days of historical highs. Among semiconductor stocks, Nvidia rose by nearly 8% at midday, setting a new intraday high, and closed up by 7.1%, marking the third consecutive trading day of a closing historical high after announcing its earnings report last week, with a cumulative increase of 20.1% over three days; at the close, Arm rose by nearly 9%, AMD rose by more than 3%, Qualcomm and Micron Technology rose by more than 2%, Intel rose by more than 1%, and Broadcom, which initially turned negative and fell by more than 1%, turned positive at the end of the day and closed up by 0.3%.

Most AI concept stocks rose. The AI and robotics ETF Glb X Robotics & Artificial Intelligence ETF (BOTZ) closed up by 0.06%. At the close, Dell (DELL) rose by nearly 3.7%, BigBear.ai (BBAI) rose by nearly 2%, Oracle (ORCL) rose by more than 1%, C3.ai (AI) rose by nearly 0.3%, Palantir (PLTR) rose by nearly 0.2%, while Astera Labs (ALAB), known as "little Nvidia" and selling data center interconnect chips, fell by 4.3%, SoundHound.ai (SOUN) fell by nearly 3%, and Super Micro Computer (SMCI) fell by 1%.

Popular Chinese concept stocks generally rose. The Nasdaq Golden Dragon China Index (HXC) and the related ETF Invesco Golden Dragon China ETF (PGJ) both turned negative in the morning but rose by more than 0.8% at midday, closing up by 0.45% and nearly 0.5% respectively, rebounding after five consecutive days of decline to the closing low since May 1st.

New forces in car manufacturing rose, with NIO, which had risen by 3.7% during the session, closing up by nearly 1.5%, XPeng Motors, which had risen by 3.4%, closing up by 2.9%, and Ji氪, which turned positive at midday, closing up by nearly 5.4%. Ideal Auto, which had risen by nearly 3.2% and then turned negative, closed up by 0.3%. Among other stocks, NetEase rose by nearly 0.8% at the close, while Pinduoduo fell by nearly 5%, JD.com fell by more than 1%, Alibaba fell by nearly 0.9%, Baidu fell by 0.5%, Tencent's pink sheet fell by nearly 0.3%, and Bilibili fell by less than 0.1%.

Among more volatile stocks, GameStop (GME), which announced after last Friday's close that it had completed an at-market offering raising over $930 million, opened up by 21.6%, rose to 40.3% at the beginning of the midday, and closed up by 25.2%; Insmed (INSM), a biopharmaceutical company that announced the results of a late-stage trial showing that its drug can significantly reduce the annual rate of pulmonary exacerbations in non-cystic fibrosis bronchiectasis, plans to submit a Biologics License Application to regulators in the fourth quarter, closed up by 118.5%; Robinhood (HOOD), which disclosed after the close that its board had approved a $1 billion share repurchase plan, fell by 0.2% during the session but rose by more than 5% in after-hours trading; and DraftKings (DKNG) and Flutter Entertainment's US stock (FLUT) both fell by 10.3% and 7.7% respectively after the Illinois Senate approved a weekly budget bill over the weekend that included a tax increase on sports betting.

In terms of European stocks, the pan-European index, which rebounded on Monday, returned to a downward trend. The Stoxx Europe 600 index refreshed its closing low since May 8th. Major European national stock indices fell, with German, French, Italian, and Spanish stocks falling back after rising together on Monday, and British stocks, which were closed on Monday, fell for five consecutive trading days. Among the sectors, leisure and entertainment fell by nearly 2.8%, leading the decline, due to Flutter Entertainment, listed in London, following the US stock market and falling by 7.4%.The yield on the 10-year U.S. Treasury note rose by 10 basis points at one point, with the two-year yield reaching a near four-week high.

The iShares U.S. Treasury Bond ETF (GOVT) closed down 0.45%, falling back to its lowest level since May 3rd after a slight rebound last Friday.

The yield on the 10-year benchmark U.S. Treasury note fell below 4.45% during the European stock market morning session to hit a daily low, then accelerated upwards after the U.S. stock market opened, breaking through 4.50% in the morning session. It once rose above 4.54% during the noon session, reaching a high not seen since May 3rd, recovering about 10 basis points from the daily low. By the end of the bond market, it was around 4.55%, up more than 8 basis points during the day, erasing the decline that ended the two-day consecutive increase last Friday.

The two-year U.S. Treasury yield, which is more sensitive to interest rate prospects, once approached 4.90% before the U.S. stock market session to hit a daily low, and once approached 4.98% during the U.S. stock market noon session, reaching a high not seen since May 1st. By the end of the bond market, it was around 4.98%, up more than 3 basis points during the day, marking four consecutive days of increases.

The U.S. Dollar Index (DXY), which tracks the basket of exchange rates of the dollar against the euro and six other major currencies, was mostly in decline on Tuesday, once falling below 104.40 during the European stock market session, hitting a session low not seen since May 16th, with a daily drop of more than 0.2%. It gradually recovered its losses during the U.S. stock market session, turning positive at noon and once breaking through 104.60 to hit a daily high, with a slight daily increase.

By the end of the bond market on Tuesday, the U.S. Dollar Index was around 104.60, slightly up during the day and roughly flat after two consecutive days of decline; the Bloomberg U.S. Dollar Spot Index, which tracks the exchange rates of the dollar against ten other currencies, rose 0.1% during the day, once falling nearly 0.2% before the U.S. stock market session, turning positive at noon, not continuing to fall away from the high reached last Thursday, which was the same period high since May 13th, and rebounded after two consecutive days of decline.

Among non-U.S. currencies, the Japanese yen, which rebounded on Monday, fell back, with the dollar against the yen once rising to 157.20 after the U.S. stock market closed, equal to the high hit last Thursday, which was the highest since May 1st, with a daily increase of 0.2%; the euro against the dollar once approached 1.0890 during the European stock market session, hitting a high not seen since May 16th, with a daily increase of nearly 0.3% before continuing to fall, once breaking below 1.0860 at noon during the U.S. stock market session and slightly turning negative, closing near 1.0860, roughly flat with Monday's level; the pound against the dollar once touched 1.2800 before the U.S. stock market session, hitting a high not seen since March 21st, which was set on the day the UK CPI was released last Wednesday, with a daily increase of nearly 0.3%, also turning negative at noon during the U.S. stock market session, once breaking below 1.2760, and closing below 1.2770, with a slight daily decrease.

The offshore renminbi (CNH) against the dollar once hit a daily high of 7.2573 in the Asian morning session, turned negative before the European stock market session and maintained the downward trend, once falling to 7.2645 during the U.S. stock market session, losing 7.26 for three consecutive trading days, hitting a low not seen since last Friday, April 29th, falling 72 points from the daily high. At 4:59 AM Beijing time on May 29th, the offshore renminbi against the dollar was reported at 7.2636 yuan, down 47 points from the New York close on Monday, falling back after ending three consecutive days of decline on Monday.

Bitcoin (BTC), which once rose above the 70,000 U.S. dollar mark on Monday, turned negative during the session and failed to continue the rebound. It once tested 69,800 U.S. dollars in the early Asian session to hit a daily high, once broke below 67,400 U.S. dollars during the U.S. stock market noon session, with some platforms falling below 67,300 U.S. dollars, falling more than 2,000 U.S. dollars from the daily high, nearly 4%, and was above 68,500 U.S. dollars at the close of the U.S. stock market, with a drop of more than 1% in the last 24 hours.Ethereum (ETH), the second-largest cryptocurrency by market cap after Bitcoin, once turned positive and hit a daily high above $3,920 during European trading hours. After the European market handover, it continued to decline, falling below $3,800 to below $3,780 during the US stock market session, a drop of about 4% from its daily high. At the close of the US market, it was above $3,830, down about 1% for the day, moving away from the high of over $3,970 set on Monday, the highest since March 14th.

US oil prices rose by more than 3% during the session, reversing four consecutive closing declines. Brent crude oil has risen for two consecutive days to reach its highest level this month.

International crude oil futures generally maintained an upward trend on Tuesday. When the US stock market hit its daily high during the lunch break, US WTI crude oil, which did not have a closing quote on Monday, rose to $80.26, up nearly 3.3% for the day, while Brent crude rose to $84.55, up more than 1.7% for the day.

In the end, crude oil closed higher across the board. WTI July crude oil futures, which had fallen for four consecutive days as of last Friday, closed up $2.11, or 2.71%, at $79.83 a barrel, reaching the highest closing level since May 17th; Brent July crude oil futures closed up $1.12, or 1.35%, at $84.22 a barrel, rising for two consecutive days and reaching the highest level since April 30th.

The US oil ETF, United States Oil Fund LP (USO), closed up 3.07%, and the Brent oil ETF, United Sttes Brent Oil Fund LP (BNO), closed up 2.91%, both rising for two consecutive days after four consecutive declines, reaching the highest closing level since April 30th.

London aluminum rose by more than 2% to a new high in nearly two years, while London copper, tin, and lead ended their four-day losing streak. New York gold futures closed higher for the first time in five days.

London base metal futures, which were closed on Monday, all rose on Tuesday, with gains of at least 1%. Leading the way, London aluminum rose by nearly 2.6%, marking two consecutive days of gains and reaching a closing high not seen since June 2022, set last Tuesday. London tin, which fell to a new low in over a week on Friday, also closed up by more than 2%, along with London copper and lead, which rebounded after four consecutive days of losses. London copper, which hit a new low in over a week on Friday, rose by more than 1.7%, still nearly 3.6% below the historical closing high set on Monday last week. London lead, which fell to a one-week low on Friday, rose by 2%. London zinc, which fell to a one-week low on Friday, rose by 1.4%. London nickel continued to move away from the one-week low set last Thursday.

Gold generally continued the upward trend from Monday on Tuesday. New York gold futures, which did not have a closing quote on Monday due to a holiday, rose throughout Tuesday, hitting a daily high of $2,365.5 before the US stock market session, up more than 1.3% for the day. Spot gold, which fell below $2,341 during the European stock market morning session, down more than 0.4% for the day, turned positive during the European trading session and hit a daily high above $2,360 before the US stock market session, up nearly 0.6% for the day, continuing to move away from the lows of below $2,326 and $2,326.3 set on Friday last week, the lowest since May 9th.

By the close of the US stock market session, COMEX June gold futures, which had fallen for four consecutive days as of last Friday, closed up 0.94% at $2,356.5 per ounce, bidding farewell to the closing low of $2,334.5 reported on Friday, which was the lowest since $2,322.3 on May 8th. The SPDR Gold Trust (GLD) closed up 1.05%, rebounding for two consecutive trading days after falling to its lowest level since May 8th last Thursday. At the close of the US stock market, spot gold was above $2,350, up about 0.3% for the day.