On December 4th local time, the three major US stock indexes collectively closed lower, with the Dow Jones Industrial Average falling 0.11%, the S&P 500 Index falling 0.54%, and the Nasdaq falling 0.84%. US treasury bond bond yields rebounded, putting pressure on technology stocks.
In November this year, the US stock market achieved its second best performance since 1980. Some market insiders predict that the crazy rise of the US stock market will continue in December, supported by technical and seasonal factors.
According to the 144 form submitted by Meta founder Mark Zuckerberg to the Securities and Exchange Commission (SEC), he sold Meta Platforms stocks almost every day in November. The table shows that Zuckerberg has sold over 600000 shares and realized more than 180 million US dollars (approximately 1.3 billion yuan).
Coincidentally, Apple's Chief Accounting Officer Chris Kondo also disclosed last week the sale of nearly $1 million worth of Apple stock on Form 144. In addition, there are reports that Nvidia executives have also been cashing out recently.
Collective decline in US stocks
On the 4th local time, the three major US stock indexes collectively closed lower. As of the close, the Dow Jones Industrial Average fell 0.11% to 36204.44 points; The S&P 500 index fell 0.54% to 4569.78 points; The Nasdaq fell 0.84% to close at 14185.49 points.
The yield of US treasury bond bonds rebounded, and technology stocks came under pressure. On Monday, the yield of US 10-year treasury bond bonds rose 3.7 basis points to 4.261%, the highest in the morning to 4.299%.
Last Friday, the S&P 500 index hit its highest closing price since March 2022, bringing its gains so far this year to nearly 20%.
In November this year, the US stock market achieved its second best performance since 1980. Some market insiders predict that the crazy rise of the US stock market will continue in December, supported by technical and seasonal factors.
Last week, the last week of late November, the US stock market saw a slight pause in gains. But for those who are bullish on the stock market, the slowdown in the US stock market's gains last week indicates that the market is not currently experiencing the kind of excessive excitement that often occurs before a crash. Many market participants believe that this has actually accumulated momentum for the continued rise of the US stock market in December.
Frank Cappelleri, founder of CappThesis LLC, said, "The market can eliminate overbought conditions through price declines or the passage of time. So far, the S&P index has digested the overbought momentum through the passage of time. After experiencing such a strong rise in the US stock market in the first half of November, the temporary slowdown in its current rise should be seen as helpful."
Furthermore, based on historical performance, it is unlikely that there will be a large-scale sell-off in US stocks in December of previous years, as US portfolio managers tend to buy better performing stocks before the end of the year to increase fund positions. Driven by this seasonal factor, the US stock market typically performs strongly from the last five trading days of December to the beginning of the new year.
However, some investors believe that the current rebound in US stocks is unsustainable.
Morgan Stanley analyst Michael Wilson's latest view suggests that as bond yields fluctuate, the US stock market will come to a tumultuous end after rebounding in November. He pointed out in a report on Monday that "interest rates and stocks may experience short-term fluctuations" in December, followed by more constructive seasonal trends and the so-called "January effect" to support the stock market next month. Wilson expects the S&P 500 index to reach around 4500 points by the end of 2024, about 2% lower than its current level.
This week, the market will focus on Friday's non farm payroll data to further determine whether the Federal Reserve's interest rate hike cycle has ended.
The driving force behind the recent sharp rise in US stocks is the market consensus that the Federal Reserve has ended interest rate hikes.
Despite Federal Reserve Chairman Jerome Powell's attempt to suppress such interest rate cuts, investors still firmly believe that the Fed has ended its interest rate hikes. Powell stated that it is too early to expect policy relaxation now, and if needed to reduce inflation, the Federal Reserve will raise interest rates again.
According to the FedWatch tool of the Chicago Mercantile Exchange (CME), the market expects a 60% probability of the Federal Reserve cutting interest rates before the March meeting, compared to 21% just a week ago.
Zuckerberg sold Meta stocks to cash out nearly $200 million
In terms of sectors, the eleven major sectors of the S&P 500 index fell six times, rose four times, and remained flat. The communication service sector and technology sector led the decline with declines of 1.37% and 1.31% respectively, while the real estate sector and medical sector led the rise with gains of 0.53% and 0.21% respectively, while the financial sector closed flat.
Large tech stocks generally fell, with Intel falling more than 3%, Nvidia and Netflix falling more than 2.5%, Google A falling nearly 2%, Microsoft, Amazon, Facebook parent companies Meta and Tesla falling more than 1%, and Apple falling nearly 1%.
Facebook parent company Meta closed down 1.48% on Monday, dropping more than 3% at one point. However, in terms of annual performance, Meta has accumulated an increase of nearly 166% so far this year. According to Zuckerberg's 144 form submitted to the Securities and Exchange Commission (SEC), he sold Meta Platforms stocks almost every day in November.
According to Table 144, Zuckerberg's most recent stock sell-off was last Friday, when he sold 28009 Meta stocks for nearly $9.05 million.
There is also a column in Table 144 called "Last 3 Months" selling records, which shows that Zuckerberg has been selling 28009 shares every trading day since November 1st, except for weekends and Thanksgiving on the 23rd. A total of over 600000 shares have been sold, with a realized capital of over 180 million US dollars (approximately 1.3 billion yuan).
It is worth mentioning that this is also the first time since November 2021 that the entity managing the wealth of the Zuckerberg family has sold Meta's stocks.
Coincidentally, Apple's Chief Accounting Officer Chris Kondo also disclosed last week the sale of nearly $1 million worth of Apple stock on Form 144.
In addition, there are reports that Nvidia executives have also been cashing out recently. The latest data shows that in November, Nvidia's executives and directors sold or submitted documents planning to sell approximately 370000 shares of the company's stock, valued at approximately $180 million. If all these stocks are sold, it will be the largest monthly reduction in at least 6 years (based on US dollar value).
Google A fell 1.96%, and according to reports, the company will delay the debut of its next-generation generative artificial intelligence (AI) model Gemini, which will now be delayed until at least January next year. Gemini is the most powerful conversational artificial intelligence developed by Google to date, described as a multimodal AI chatbot capable of processing multiple types of data. It is reported that it can generate original text, images, and other types of content; Summarize the text according to user requirements; It can also help software engineers write code, etc.
Cryptocurrency concept stocks collectively rose, with Riot Platforms up nearly 9%, Marathon Digital up over 8%, Jia Nan Technology and Microstrategy up nearly 7%, and Coinbase up over 5%. In the market, Bitcoin broke through $42000, setting a new high for the year.
Uber rose over 2%, and the S&P Dow Jones Industrial Average announced last Friday that travel company Uber will be included in the S&P 500 index.
Faraday Future ("FF") and Abu Dhabi Investment Office (ADIO) announced that they will reach a cooperation agreement, with Faraday Future falling more than 6% in the future. ADIO will collaborate with FF to seek opportunities to establish regional headquarters, manufacturing factories, and advanced research and development centers in Abu Dhabi, as well as expand the UAE capital market. ADIO will also allocate resources, work with FF to develop an industry regulatory framework, and promote the development of intelligent autonomous vehicle solutions and applications. In addition, FF will also explore opportunities for cooperation and technology transfer with various universities in Abu Dhabi. FF recently released a limited edition FF 91 2.0 Futurist aiFalcon model in the Middle East to join the Smart Driving Vehicle Industry Cluster (SAVI) in Abu Dhabi, the capital of the United Arab Emirates.
Most popular Chinese concept stocks fell, with TAL down more than 5%, NetEase down nearly 5%, Yum China down nearly 4%, Futu Holdings and Weibo down more than 3%, Baidu, Vipshop, and JD.com down more than 2%, Pinduoduo, Tencent Music, Ideal Automobile, Alibaba, and Ctrip down more than 1%; Bit numbers rose by over 11%, NIO rose by over 2%, and Xiaopeng Motors, Douyu, and iQiyi rose by over 1%.