Before the release of the heavyweight economic data GDP and PCE price index on Wednesday and Thursday, the US stock market continued to bear the downward pressure brought by tech giants, with seven major tech stocks including NVIDIA experiencing a simultaneous decline during trading. However, Apple saw an intraday rise after news of the cancellation of the electric car project and the transfer of multiple project employees to the AI project, helping to support the rise of the S&amp;P and Nasdaq.
Small-cap stocks continued to outperform the broader market, with commentators noting that small-cap stocks are the biggest beneficiaries of short selling. Several AI concept stocks surged. NVIDIA announced new partnerships with influential hardware and software manufacturers to advance AI technology in the telecommunications industry. They also announced an expansion of their collaboration with ServiceNow to drive the development of telecom technology. Prior to this, a concept stock SoundHound.ai, in which NVIDIA disclosed holdings, surged nearly 40% during trading. Chinese concept stocks continued to outperform the broader market, with LI AUTO experiencing a significant increase since the release of its earnings report on Monday.
If we compare it to the peak of the cryptocurrency bubble, there is still room for NVIDIA's stock price to rise.
Following the record-breaking sale of two-year and five-year US Treasury bonds on Monday, the US bond market faced another massive debt issuance challenge. On Tuesday, the US Treasury sold $42 billion in seven-year Treasury bonds, with the sale results being robust. After three consecutive months of tail yields higher than the pre-issued rates, there was no sign of weak demand for the first time since November last year. Following the announcement of the sale results, short-term downward pressure was seen on bond yields, with the benchmark 10-year Treasury yield erasing all gains and turning negative. The yield on the two-year Treasury bond, which is sensitive to interest rates, slightly widened its decline.
In the currency market, Japan's core CPI growth rate released on Tuesday was lower than expected, while US durable goods orders for January unexpectedly fell by 6.1% MoM, supporting the rebound of the yen against the dollar, breaking free from the recent two-week lows. The US dollar index continued to rebound after the durable goods orders were announced, with US stocks rebounding in early trading, but failing to approach the two-week lows set last week. Cryptocurrencies continued to rise, with Bitcoin accelerating its upward trend, surging nearly $6,000 during trading, exceeding $57,000, hitting a new high in over two years. Reports indicate that more institutions are preparing to launch cryptocurrency spot ETFs, with 10 companies, including Fidelity Investments, having submitted applications for the listing of Ethereum spot ETFs.
During trading, Ethereum hit a new high since April 2022.
In the commodity market, investors are paying attention to the OPEC+ production cut agreement. Media reports on Tuesday suggested that OPEC+ may extend the current production cut action at least until the second quarter, and possibly until the end of the year. The international crude oil prices rose by over 1% during the trading session, with U.S. oil not only rebounding from a two-week low but also reaching a high point seen in over a week.
<h2>Dow falls for two consecutive days, S&amp;P and Nasdaq rebound, small-cap stocks outperform the market for two days, Chinese concept stocks rise for five consecutive days</h2>
The three major U.S. stock indices opened higher, with mixed performance during the session. The Dow Jones Industrial Average initially turned lower and continued to decline. The S&amp;P 500 Index initially turned lower but rebounded multiple times in the morning session. The Nasdaq Composite Index briefly turned lower at the beginning of the session, rising nearly 0.4% at one point, then turned lower again at midday. At midday, when hitting a daily low, the S&amp;P and Nasdaq fell by over 0.2%, while the Dow dropped nearly 190 points, or close to 0.5%. Subsequently, the S&amp;P and Nasdaq rebounded, narrowing the decline in the Dow.
In the end, only the Dow closed lower among the three major indices, down by 96.82 points, or 0.25%, at 38,972.41 points, falling for two consecutive days from the record high set last Friday. The S&amp;P closed up by 0.17%, approaching the record high set last Friday. The Nasdaq, which fell for two days, closed up by 0.37%, not extending the decline from the closing high set on November 22, 2021.
The small-cap Russell 2000 index, dominated by value stocks, rose by 1.34%, outperforming the market for two consecutive days and rising for four days to a high not seen since February 15. The tech-heavy Nasdaq 100 index rose by 0.21%, while the Nasdaq Technology Market Cap Weighted Index (NDXTMC) measuring the performance of tech stocks in the Nasdaq 100 also rose by 0.21%, both approaching the record high set last Thursday.
In the S&amp;P 500's major sectors, only three sectors closed lower on Tuesday, with energy down by over 0.4%, healthcare down by nearly 0.3%, and consumer staples slightly down. Among the eight sectors that closed higher, utilities, which led the decline on Monday, rose by nearly 1.9%, followed by the communication services sector where Meta and Google are located, up by about 1%. Other sectors rose by less than 0.4%, with the IT sector where NVIDIA is located rising by less than 0.1%.
Including Microsoft, Apple, NVIDIA, Google's parent company Alphabet, Amazon, Meta's parent company Facebook, and Tesla, the seven major tech stocks saw a simultaneous decline for the third consecutive trading day. Tesla rose by 3.1% in the morning session, then turned lower during midday and the closing session, closing up by nearly 0.2% for two consecutive days, reaching a high not seen since February 16.
Among the FAANMG six major tech stocks, Apple initially fell by nearly 0.5%, then rebounded, fell by nearly 0.9% at midday, and rebounded again after news of canceling the electric car project, rising by 1.5% at one point, and closing up by 0.8%, breaking the two-day decline and reaching a low not seen since November 6, 2023.
Microsoft started to decline slightly in the early trading session, closing down by less than 0.1%. Amazon maintained a downward trend throughout the day, closing down nearly 0.7%; while Meta initially turned upward, fluctuated in the midday session, and closed up by 1.1%; Alphabet rose by 0.8% in the morning session, then experienced a slight decline at midday before rising again, closing up by nearly 1%; Netflix maintained an upward trend throughout the day, closing up by 2.4%.
Overall, chip stocks experienced a decline during the trading session. The Philadelphia Semiconductor Index and the semiconductor industry ETF SOXX both turned downward in the early session, with gains of about 0.5% and 0.7% respectively in the morning, then turning downward again at midday, closing down by about 0.2% and 0.1% respectively. Among individual stocks, NVIDIA initially declined, dropping by over 2.4% in the morning, then rebounded continuously. It briefly turned upward at midday but closed down by nearly 0.5% after hitting a historical high in the previous three trading days; Arm fell by 5.6%, Intel initially declined in the morning and dropped by over 1% at midday, closing down by 0.6%; Broadcom fell by about 1%, while AMD initially dropped by around 2% but turned upward in the morning, closing up by over 1%; Micron Technology closed up by 2.7%.
Several AI concept stocks rose, outperforming the overall market. SoundHound.ai (SOUN), in which NVIDIA held 17 million shares at the end of last year, surged by 37.6% in the morning and closed up by nearly 19.3%. BigBear.ai (BBAI) rose by 38%, while C3.ai (AI) and Palantir (PLTR) surged by over 4% by the closing bell. On the other hand, Super Micro Computer (SMCI) initially dropped by over 7% but closed down by 2.9%, Adobe (ADBE) fell by about 2% at midday and closed down by 1.4%.
Popular Chinese concept stocks have outperformed the market for two consecutive days. The Nasdaq Golden Dragon China Index (HXC) closed up by 2.1%, marking a five-day winning streak and hitting a new closing high since December 29, 2023. Three new energy vehicle companies continued to rise, with LI AUTO surging by nearly 19% after releasing its earnings report on Monday, initially rising by over 10% and closing up by 11.8%. Nio, which initially rose by nearly 4%, closed up by 2.3%, while XPeng, which initially surged by over 3%, closed up by 1.7%. By the closing bell, Bilibili rose by nearly 2%, while Alibaba, Baidu, JD.com, and Pinduoduo all rose by over 1%.
In Europe, the pan-European stock index rebounded after a two-day winning streak. The STOXX 600 index approached the closing historical high set last Friday. Most major European stock indexes rose, with the German stock market hitting a new historical high for the fourth consecutive trading day. French and Italian stocks rebounded on Monday, with French stocks nearing the closing historical high set last Friday, while UK stocks fell for two consecutive days and Spanish stocks, which saw a slight rebound on Monday, fell back.
In terms of sectors, basic resources, including mining stocks, rose by nearly 1.7%, while the technology sector rose by about 1%, hitting a new high since December 2000. Among the constituents, ASML, the highest market value chip stock listed in the Netherlands, closed up by nearly 1.1%, marking a two-day winning streak and hitting a new closing high; while healthcare stocks fell by 0.15%, with Danish pharmaceutical company Novo Nordisk, the highest market value pharmaceutical company in Europe listed in Denmark and the developer of the weight-loss drug Wegovy, dropping by 4.5% at one point during the trading session and closing down by 1.2%. Among other individual stocks, Danish pharmaceutical company Zealand Pharma surged by nearly 36% on Monday after announcing breakthrough results in the second-phase trial of its experimental drug for treating fatty liver, potentially becoming another star weight-loss drug.
The market fell by 4.4%.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/0dd1e558-5cb6-4e49-be20-765a6b25a906.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/0dd1e558-5cb6-4e49-be20-765a6b25a906.png"/>
<h2>Steady Sale of Seven-Year U.S. Treasury Bonds, Short-Term Decline in Ten-Year U.S. Treasury Bond Yields</h2>
The yield on the 10-year benchmark U.S. Treasury bond fell below 4.26% in early European trading, hitting a daily low, dropping more than 2 basis points intraday. After the release of U.S. durable goods orders, the decline was erased and turned upward. Following the announcement of the sale results of the seven-year U.S. Treasury bonds at midday, the yield briefly fell below 4.28%, then reversed the increase and fell. Later, the increase expanded again, approaching 4.32% to hit a daily high, getting closer to the high of 4.35% reached on December 1, 2023, last Friday. By the end of the bond market, it was around 4.30%, rising more than 2 basis points intraday for two consecutive days.
The yield on the 2-year U.S. Treasury bond, which is more sensitive to interest rate prospects, fell below 4.67% in pre-market trading, hitting a daily low, dropping more than 5 basis points intraday. After the release of U.S. durable goods orders, the decline narrowed, and the U.S. stock market rose above 4.70% at the opening. After the completion of the seven-year U.S. Treasury bond sale, the decline slightly expanded, briefly falling below 4.69%. The decline narrowed again towards the end of the U.S. stock market session, erasing the decline and testing the high of 4.72%, hitting a daily high. It rose slightly intraday, approaching the high of 4.74% reached on December 11, last year, after rising above 4.74% last Friday. By the end of the bond market, it was around 4.72%, falling nearly 3 basis points intraday, the second consecutive day of decline in the last five trading days after a rebound on Monday.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/fe0ead88-ead8-48a5-87ca-d954a230c288.jpeg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/fe0ead88-ead8-48a5-87ca-d954a230c288.jpeg"/> Yields on U.S. Treasury bonds of various maturities showed mixed performance on Tuesday, with short-term yields declining and long-term yields leading the gains.
<h2>After Durable Goods Orders, U.S. Dollar Index Reversed Gains, Bitcoin Briefly Surged Nearly $6,000, Breaking $57,000</h2>
The ICE U.S. Dollar Index (DXY), which tracks the U.S. dollar against a basket of six major currencies including the euro, fell below 103.60 in pre-European trading, continuing to approach the low of February 2 that fell below 103.50 last Thursday, dropping 0.2% intraday. After the release of U.S. durable goods orders, the U.S. stock market rebounded, with early gains pushing the index above 103.90 to hit a daily high, rising nearly 0.1% intraday, before reversing and approaching 103.70 at midday.
By the end of Tuesday's U.S. stock market session, the U.S. Dollar Index was slightly above 103.80, falling slightly intraday for two consecutive days. The Bloomberg Dollar Spot Index, which tracks the U.S. dollar against ten other currencies, remained flat compared to Monday's levels, failing to sustain the rebound seen on Monday.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/2da79b54-5e09-45cd-b1b8-a0aeb6b5ee05.jpeg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/2da79b54-5e09-45cd-b1b8-a0aeb6b5ee05.jpeg"/> U.S. Dollar Index Returns to Pre-U.S. CPI Release Lows Two Weeks Ago
In non-dollar currencies, the yen rebounded on Monday, hitting a near two-week low. The USD/JPY fell below 150.10 in pre-European trading, hitting a daily low, down 0.4% intraday, moving away from the high of February 13th above 150.80 reached on Monday. The EUR/USD rose above 1.0860 in early European trading, up nearly 0.2% intraday. The GBP/USD tested 1.2700 in early European trading, approaching the high of February 2nd at 1.2710 reached last Thursday. Offshore Chinese Yuan (CNH) against the USD hit a daily high of 7.2073 in early Asian trading, later falling to a daily low of 7.2149 during the US session, down 76 points from the high, breaking below 7.21 for three consecutive trading days. At 5:59 AM on February 28th Beijing time, the offshore Chinese Yuan against the USD was at 7.2139, down 27 points from the New York closing on Monday, falling for four consecutive days after rising for six days.
Bitcoin (BTC) rose above $57,000 during European trading, reaching above $57,200 in early US trading, hitting new highs since December 2021 for two consecutive days. In the last 24 hours, it rose by nearly $6,000, up over 10%, before retracing some gains. It fell below $57,000 in early US trading, testing $56,200, then rose back above $57,000 at midday, closing above $56,800, up over 4% in the last 24 hours.
Crude oil futures saw a rebound. When European stocks hit a daily low on Tuesday, US WTI crude oil fell below $77.20, Brent crude oil dropped to $82.1, down over 0.5% intraday. However, US stocks turned higher before the session, with US oil rising to $79 at midday, up over 1.8% intraday, while Brent oil rose to $83.7, up about 1.4%.
Ultimately, oil prices rose for two consecutive days, each day up over 1%. WTI April crude oil futures closed up over 1.66% at $78.87 per barrel, hitting a high since February 16th, while Brent April crude oil futures closed up nearly 1.36% at $83.65 per barrel, moving away from the low since February 14th set last Friday.
The U.S. WTI crude oil has risen by over 1% for two consecutive days, closing in on the high since early November last year.
London nickel and tin rose by over 1%, while copper halted its two-day decline. Gold rebounded, approaching a two-week high.
Most London base metal futures rose on Tuesday. Nickel and tin, which fell by over 1% on Monday, rose by over 1%. Nickel approached the high set last Friday since November last year, while tin bid farewell to the low set over the past two weeks on Monday. Copper, which fell by over 1% on Monday, rebounded slightly, not moving away from the high set three weeks ago on Thursday. Aluminum, which closed flat on Monday, moved away from the low set since late January.
Zinc temporarily bid farewell to the high set nearly three weeks ago after two consecutive rises, while lead, which hit a new high for over two weeks, fell slightly, ending its five-day rise.
New York gold futures, which halted two consecutive rises on Monday, maintained an upward trend throughout Tuesday. European stocks hit a daily high of $2049.1 in early trading, rising by 0.5% during the day.
In the end, COMEX April gold futures closed up by 0.26% at $2044.10 per ounce, nearing the high of $2049.40 reported last Friday and the closing high of $2051.7 reported on February 7.
Spot gold hit a daily high above $2039.50 in early European trading, rising by 0.4% during the day. After the release of U.S. durable goods orders, it continued to give back gains, closing slightly above $2030 when the U.S. stock market closed, with a slight decline during the day.

02015

NVDA

The Dow Jones Industrial Average fell for two consecutive days, while the SPDR S&P 500 approached historical highs and the Nasdaq rebounded. Small-cap stocks rose by over 1%, outperforming the market for two days. The tech giants, known as the "Seven Sisters," saw three consecutive days of declines, with Nvidia falling from its record high and Apple briefly rising by over 1%. SoundHound, an AI concept stock held by Nvidia, surged nearly 20%. Chinese concept stocks rose by over 2% for the fifth consecutive day, hitting a new high for the year. Li Auto rose by nearly 12%, while Nio surged by over 2%. The German stock market hit a record high for the fourth consecutive day, with ASML rising by over 1% to a new high. The seven-year U.S. Treasury bond auction was stable, and the yield on the ten-year U.S. Treasury bond briefly declined. After durable goods orders, the U.S. dollar index briefly rose. Offshore renminbi fell for the fourth consecutive day, breaking below 7.21 again during trading. Bitcoin briefly surged to nearly $6,000, breaking above $57,000 during trading to reach a new high in over two years. Crude oil rose for two consecutive days, with daily gains exceeding 1%, and U.S. oil hit a new high in over a week. Gold rebounded, approaching a two-week high. London nickel and tin rose by over 1%, while London copper halted a two-day decline.

Wallstreetcn

LI AUTO-W

NVIDIA

Li Auto

NASDAQ narrowly avoided a third consecutive decline, with NVIDIA falling more than 2% at one point, LI AUTO surged by double digits for two consecutive days after its earnings report, and Bitcoin hit a new high again.