---
title: "The S&P Nasdaq Composite fell for the first time in six days, with the Chinese concept index dropping more than 2%. Onshore and offshore renminbi briefly rose above 7.13 yuan."
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/102929298.md"
description: "The November FOMC minutes from the Federal Reserve did not suggest a rate cut, and officials unanimously agreed to maintain restrictive interest rates for a period of time. US stocks retreated from their three-month highs, with Microsoft and Nvidia falling from their all-time highs. Although the third-quarter earnings report was positive, Nvidia's stock fell more than 6% after hours. The positive earnings report boosted BIDU-SWR, which rose nearly 2% against the market trend, while Douyu's stock fell more than 8% at one point. US bond yields hit a daily high after the release of the FOMC minutes, but then fell again, with long-term bond yields hovering at a two-month low. Oil prices fell more than 1% during the day, with US oil closing lower for the first time in three days, while Brent crude rose in the late session and continued to rise for three consecutive days. The US dollar rebounded from its two-and-a-half-month low, with both onshore and offshore renminbi rising nearly 400 points during the day, and Bitcoin's decline narrowed, rising back above $37,000. Gold rose more than 1% and broke through $2,000 to reach its highest level this month, while London copper hit a two-month high once again."
datetime: "2023-11-21T21:34:26.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/102929298.md)
  - [en](https://longbridge.com/en/news/102929298.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/102929298.md)
---

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# The S&P Nasdaq Composite fell for the first time in six days, with the Chinese concept index dropping more than 2%. Onshore and offshore renminbi briefly rose above 7.13 yuan.

The minutes of the November FOMC meeting of the Federal Reserve showed that officials unanimously agreed to "cautiously proceed with further rate hikes". If progress in combating inflation is insufficient, further tightening will be implemented. However, ongoing changes in financial conditions will affect monetary policy, and interest rates should remain restrictive for a period of time.

US existing home sales in October fell for the fifth consecutive month to the lowest level in thirteen years since August 2010. The month-on-month decline of 4.1% and the year-on-year drop of 14.6% were both higher than expected. The combined backlog of high house prices, high interest rates, and low inventory has widened the decline in US bond yields.

European Central Bank President Lagarde reiterated that now is not the time to declare victory over inflation, and future policy will depend on subsequent data. Several members of the governing council this week stated that market expectations for the ECB to start cutting interest rates in the first half of next year are overly optimistic.

US stocks retreated from their three-month highs, with the S&P 500 and Nasdaq ending their five-day winning streak. Microsoft and Nvidia fell from their all-time highs, and the China concept index dropped more than 2%.

On Tuesday, November 21, while waiting for Nvidia's earnings report and the minutes of the Federal Reserve meeting, the three major US stock indexes opened lower. The Dow Jones Industrial Average fell nearly 100 points within the first 10 minutes of trading, and the Nasdaq, which rose more than 1% yesterday, extended its decline to about 1%. The Nasdaq Composite Index, which is weighted by market capitalization of technology stocks, and both Microsoft and Nvidia fell from their all-time highs. The Russell 2000 small-cap index fell 1.3% at the close.

At the close, the Dow Jones Industrial Average retreated from its three-month high since August 14, and both the S&P 500 and Nasdaq ended their five-day winning streak. The S&P 500 fell below its highest level since August 1, and the Nasdaq fell below its highest level since July 31. The Russell 2000 small-cap index retreated from its two-month high since September 20. The Nasdaq 100 fell below 16,000 points, missing its highest level in nearly two years since January 2022:

> The S&P 500 index fell 9.19 points, or 0.20%, to close at 4,538.19. The Dow Jones Industrial Average fell 62.75 points, or 0.18%, to close at 35,088.29. The Nasdaq Composite Index fell 84.55 points, or 0.59%, to close at 14,199.98.
> 
> The Russell 2000 small-cap index fell 1.3%, the Nasdaq 100 fell 0.6%, and the Nasdaq Technology Index (NDXTMC), which measures the performance of technology companies in the Nasdaq 100, fell 0.8% from its all-time high. The "fear index" VIX fell slightly but remained in the range of 13, hitting a two-month low since September 15.
> 
> ![Image](https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/eab7880a-f29e-4091-b8ef-304d44fad682.jpeg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) The S&P 500 and Nasdaq end their five-day winning streak, small-cap stocks turn lower this week.

Tech stocks had mixed performance. Meta, the "metaverse" company, fell 0.9% and ended its three-day winning streak, retreating from its two-year high. Amazon fell 1.5%, retreating from its highest level in 19 months. Microsoft fell more than 1%, retreating from its all-time high. Apple fell 0.4% and ended its five-day winning streak, retreating from its highest level in three and a half months. However, Netflix rose 0.1%, hitting a four-month high, Google A rose 0.5% to a four-week high, and Tesla rose 2.4%, approaching a four-week high.

 Large tech stocks wiped out most of yesterday's gains.

**Chip stocks fell across the board.** The Philadelphia Semiconductor Index fell nearly 2%, breaking away from a three-and-a-half-month high since August 1. Intel fell 2.5% off its 19-month high, AMD fell about 2% off its five-month high, Broadcom fell 1.5% after the China Market Regulatory Authority conditionally approved its acquisition of Weir's shares, and VMware fell 5%. Nvidia fell nearly 1% without reaching its all-time high, with earnings showing total revenue and data center revenue exceeding expectations, but it fell more than 6% after hours.

**AI concept stocks fell across the board**, but C3.ai rose 1.7% off its one-week low; SoundHound.ai fell 4.5% further away from its two-month high, BigBear.ai fell 4.7%, and Palantir Technologies fell more than 7% below its two-year high.

On the news front, Nvidia's supply of redesigned H20 sample cards for the Chinese market may have to wait until mid-next month. Tesla is reportedly close to reaching an agreement to build a factory in India within two years. Amazon's former CEO Bezos sold 1.67 million shares last week, cashing in $240 million, and may sell another 8 to 10 million shares worth about $1 billion this week. Brokerage firm Oppenheimer raised its rating on AI software supplier C3.ai to Buy, with the latest target price suggesting a further 43% increase, optimistic about accelerated revenue growth.

**Popular Chinese concept stocks followed the decline of the US stock market.** ETF KWEB fell 2.5%, CQQQ fell 2.2%, and the Nasdaq Golden Dragon China Index (HXC) fell 2.2%, breaking below 6,600 points and falling from its six-week high for the second day in eight days.

Among the Nasdaq 100 constituents, JD.com fell 1.7%, Baidu rose nearly 2%, and Pinduoduo fell 1.2%. In other individual stocks, Alibaba rose 0.6%, Tencent ADR fell nearly 2%, and Bilibili fell nearly 3%. NIO fell 3.7%, Xiaopeng Motors fell 4.6%, and Li Auto fell 3.6%. iQiyi and Miniso fell more than 9%, Ctrip fell more than 10%, Douyu fell nearly 6%, and Tuniu erased its initial 8.5% gain and closed flat.

On the news front, Baidu's Q3 revenue exceeded expectations, with a year-on-year increase of 6%, and profits increased by 23%. The number of users of Wenxin Yiyu reached 70 million. Li Yanhong stated that the advertising system of Wenxin's large-scale model reconstruction will bring hundreds of millions of yuan in incremental revenue in the fourth quarter. Douyu CEO Chen Shaojie was arrested by Chengdu police around November 16, 2023. Miniso's Q3 revenue was 3.7912 billion yuan, and it rose more than 4% before the market opened. Tuniu's Q3 net profit turned losses into gains, and the transaction volume of multiple live streaming accounts exceeded 100 million yuan in August, rising nearly 7% before the market opened. Banking stocks rose and then fell back. The industry benchmark, the KBW Bank Index (BKX) on the Philadelphia Stock Exchange, fell 1.2%, dropping from its three-month high since August 14th. It had reached its lowest point in three years since September 2020 at the end of October. The KBW Nasdaq Regional Bank Index (KRX) fell 2%, dropping from its high since September 1st. It had reached its lowest point since November 2020 on May 11th.

![Image](https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/8740807a-96ef-4f81-bb1a-1b6c51a53fe0.jpeg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Other stocks with significant changes include:

> Several US retailers released their earnings reports. Moody's Investor Service stated in a research report yesterday that Americans are losing their purchasing power, which will put pressure on holiday sales in the fourth quarter. It is expected that year-end sales will grow "moderately" by 1% to 3%, compared to a 5.1% growth in the same period last year.
> 
> Leading home improvement retailer Lowe's fell more than 3% due to poor third-quarter revenue and a larger-than-expected decline in same-store sales. Best Buy, a leading consumer electronics retailer, fell 7.6% and then closed down 0.7%. Although its third-quarter profits exceeded expectations, its revenue was disappointing. It lowered its sales outlook for the year before "Black Friday" and predicted a continued slowdown in consumer electronics sales and a decrease in purchases of large items.
> 
> Among clothing retailers, American Eagle fell nearly 16% to a six-week low. Although its third-quarter revenue and profits exceeded expectations, its annual operating profit guidance was not favorable. Abercrombie & Fitch fell more than 9% and then rose more than 2%, reaching a two-year high. Its third-quarter sales increased by 20% YoY, turning a loss into a profit. It raised its annual revenue and profit margin guidance. Its stock price has risen by more than 210% this year.
> 
> Discount clothing store Burlington Stores rose nearly 21% to a three-month high. Its third-quarter profits and same-store sales exceeded expectations, and it raised the lower limit of its annual profit guidance range. Kohl's fell nearly 14% and then closed down more than 8%. Although its third-quarter profits exceeded expectations, its same-store sales were not satisfactory. Dick's Sporting Goods rose more than 12% and then closed up more than 2% to a three-month high. After its earnings report exceeded expectations, it raised its annual profit guidance.
> 
> Warehouse automation company Symbotic rose 40% to a three-and-a-half-month high. Its third-quarter revenue increased by 25% YoY and achieved profitability. It exceeded expectations for next quarter's revenue guidance and expects YoY growth.
> 
> Ford Motor Company fell the most, down 2.3%, due to poor demand for electric vehicles and rising labor costs. It will cut its $3.5 billion investment plan for the Michigan battery factory and reduce new factory hires. It also announced a buyback of up to 51 million shares before the market opened.

European stocks fell, with the pan-European Stoxx 600 index falling 0.09%. The index dropped from its two-month high since September 20th, with the retail sector leading the gains by rising 0.7%, while the automotive sector fell 1.6%. Italian stock index fell more than 1.3%, leading the decline in national indices, with the banking index falling more than 1.9%. The Spanish stock price of ZARA's parent company, Inditex, reached a historic high.

## **10-year U.S. Treasury yield hits daily high after the release of the Fed minutes, then falls back to a two-month low**

Before the release of the Fed minutes, U.S. Treasury yields collectively declined. The two-year yield, which is more sensitive to monetary policy, fell the most by 5 basis points to 4.86%, and the 10-year benchmark yield fell the most by 4 basis points, briefly falling below 4.40%, hitting a two-month low and falling for four consecutive days.

The U.S. Treasury auctioned $15 billion of 10-year Treasury Inflation-Protected Securities (TIPS) with a bid rate of 2.180%, the highest since 2009. The short-term yield of the 10-year TIPS rose more than 3 basis points to a daily high of 2.1845%, rising more than 6.5 basis points intraday.

After the release of the minutes, the two-year Treasury yield traded at 4.88%, down 3 basis points intraday. The 10-year benchmark yield traded at 4.41%, narrowing its decline to over 1 basis point, after briefly hitting a daily high of 4.44% when the minutes were released.

 U.S. Treasury yields rise and fall, long-term yields hover at a two-month low

The 10-year German bund yield in the eurozone fell more than 4 basis points to less than 2.57% at the close, hitting a two-and-a-half-month low of 2.55% last Friday. The two-year yield fell 3 basis points, falling below 3% again, hitting a five-month low of 2.92% last week.

**Other European bond yields fell across the board**. The 10-year yields of France and Spain fell more than 4 basis points, the Italian benchmark yield fell 3 basis points, the Greek benchmark yield fell 6 basis points, and the UK benchmark yield fell 2 basis points, but the two-year yield rose more than 1 basis point.

After Moody's upgraded the credit ratings of Italy and Portugal, the yields of these heavily indebted peripheral countries continued to narrow the spread with German bunds, reaching their narrowest levels in two months and nearly four months respectively on Monday, indicating an improvement in market risk sentiment.

## **Oil prices fall more than 1% during the day**, **U.S. oil falls for the first time in three days, while Brent oil rises at the end of the day and rises for three consecutive days**

U.S. oil fell for the first time in three days after strong gains in the previous two days, but Brent oil rose for three consecutive days. WTI January futures fell by $0.06, or nearly 0.08%, to $77.77 per barrel. Brent January futures rose by $0.13, or 0.12%, to $82.45 per barrel. WTI crude oil fell the most by $0.90 or 1.2%, briefly dropping below $77, hitting a four-month low last week. Brent crude oil fell by $0.89 or 1.1%, hitting a daily low below $82, and falling below $77 to a four-month low last week.

 After a 1% drop in oil prices, trading remained flat.

As the market awaits the OPEC+ meeting over the weekend to discuss further production cuts, a senior official from the International Energy Agency (IEA) revealed that even if OPEC+ extends the production cuts until next year, the oil market in 2024 will still face a slight oversupply.

The TTF Dutch natural gas futures, the European benchmark, fell by 5%, returning to a six-week low. ICE UK futures fell by over 6%, hitting a daily low and falling below 110 pence/therm. US natural gas fell by over 1% to a nearly seven-week low.

## **The US dollar rebounded from a two-and-a-half-month low, with onshore and offshore RMB rising nearly 400 points and breaking through 7.13 yuan.**

Before the release of the Federal Reserve minutes, the US dollar index DXY, which measures against six major currencies, fell by 0.3% to 103.18, hitting a two-and-a-half-month low since August 31. The US stock market slightly rebounded and rose above 103.50 during trading, and after the release of the minutes, the increase expanded to 103.70.

 The US dollar rebounded from a two-and-a-half-month low.

The euro fell below its three-month high against the US dollar but remained above 1.09. The pound rose by 0.2% and remained above 1.25, hitting a two-month high. Bank of England Governor Bailey stated that "it is too early to consider a rate cut." The yen briefly rose above 148 and approached the 147 level against the US dollar, rising by 0.8% at its highest point during the day, reaching a two-month high for the fourth consecutive day. Investors expect the Bank of Japan to tighten monetary policy next year.

Both onshore and offshore RMB continued to rise for the second consecutive day, with the increase expanding to nearly 400 points and both breaking through the 7.13 yuan level during the initial trading of US stocks. The offshore RMB crossed above the 200-day moving average, reaching the highest level in nearly four months since the end of July, rising for the fourth consecutive day and accumulating an increase of nearly 1300 points. The offshore RMB narrowed its gains to 220 points during the closing of US stocks, hovering around 7.14 yuan. The onshore RMB closed at 7.14 yuan, up 255 points.

**Mainstream cryptocurrencies fell overall but narrowed their losses at the end of the day.** Bitcoin, the largest cryptocurrency by market capitalization, briefly fell below $37,000, deviating from the highest level since April last year reached last week. The second-largest cryptocurrency, Ethereum, fell by 2% to $1,990, having risen above $2,100 at the beginning of the month to a seven-month high. The US Department of Justice will reach a settlement with Binance to end the criminal investigation, imposing a fine of $4.3 billion, and Zhao Changpeng will plead guilty to money laundering charges and resign. Bitcoin's decline narrowed in the late trading session, rising above $37,000.

**Gold rose more than 1% and broke through $2,000 to reach a monthly high, while London copper hit a two-month high again.**

The decline in the US dollar and US bonds lifted the price of gold. COMEX December gold futures closed up 1.08% at $2,001.60 per ounce, the highest since October 31. COMEX December silver futures closed up 1.08% at $23.869 per ounce.

Before the release of the Federal Reserve minutes, spot gold rose nearly $30 or 1.5% intraday, reaching above the psychological level of $2,000 for the first time since November 3, and hitting the highest level since October 31. After the release of the minutes, gold maintained a 1% increase.

Some analysts believe that the market's expectation of the Federal Reserve ending rate hikes has led to short covering in gold, and strong purchases of precious metals by Asian central banks combined with a slowdown in US inflation have supported the price of gold. India's gold imports in October soared to the highest level in 31 months.

**Gold rose more than 1% and broke through $2,000 to reach a monthly high.**

The weakening of the US dollar and the strengthening of the renminbi have led to a rise in most London industrial metals:

> The "Copper Doctor," which rose nearly 2% yesterday, rose another 0.2% and reached $8,486, the highest in over two months since September 15. Copper's breakthrough of the key technical level of the 200-day moving average of $8,465 may generate further upward momentum.
> 
> London aluminum, which rose 1.7% yesterday, rose another 0.6% to a two-week high. London zinc fell 0.7%, doubling its inventory in a week to a three-month high. London lead fell slightly, falling from yesterday's intraday high of $2,300, the highest since May last year. London tin rose 0.5% and approached $25,000, moving away from the one-week low. London nickel continued to approach $17,000, but still lingered at the two-and-a-half-year low since April 2021.

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