On November 14th local time, the three major US stock indices rose significantly, with the Dow Index rising 1.43%, the S&P 500 Index rising 1.91%, and the Nasdaq Index rising 2.37%.
The S&P 500 index posted its largest daily gain since April. US bond yields have plummeted. The October CPI data in the United States raised hopes for the Federal Reserve to end its interest rate hike and increased investors' bets on next year's interest rate cut. The reduced risk of the US government's suspension further boosted market sentiment.
US stocks closed higher, with the Dow up nearly 500 points
On November 14th local time, the three major US stock indices significantly rose. The Dow Jones industrial average rose 489.83 points, or 1.43%, to 34827.70 points; The Nasdaq rose 326.64 points, or 2.37%, to 14094.38 points; The S&P 500 index rose 84.15 points, or 1.91%, to 4495.70.
Technology stocks led the way in gains, with Microsoft and Nvidia both reaching historic highs. NVIDIA also recorded its tenth consecutive day of gains.
On Tuesday, investors welcomed the highly anticipated CPI inflation data.
The US Department of Labor reported that the consumer price index (CPI) in October, adjusted for seasonal factors, rose 3.2% year-on-year, marking the lowest increase since July. The month on month increase in CPI in October was 0%, the lowest increase since July 2022.
Excluding volatile food and energy prices, the core CPI in the United States increased by 4% year-on-year in October, marking a new low since September 2021. The core CPI of the United States rose 0.2% month on month in October, marking a new low since July this year.
Economists surveyed by Dow Jones expected an average CPI increase of 0.1% month on month and 3.3% year-on-year in October; The core CPI index is expected to increase by 0.3% month on month and 4.1% year-on-year.
Two Federal Reserve officials gave speeches on Tuesday, cautiously welcoming CPI data showing a decline in US inflation.
Chicago Fed President Austan Goolsbee welcomed the latest data showing a decline in US inflation, but added that inflation is still some way from reaching the Fed's 2% target.
We are continuing to make progress, but there is still some way to go in the future, "Goolsbee said in a speech prepared for an event in Detroit on Tuesday. Previously released data showed a general slowdown in consumer price growth in October.
Goolsbee said, "Given that commodity inflation has already decreased, and service sector inflation excluding housing usually adjusts slowly, it is expected that the key to the next few quarters will still be residential price inflation. Overall, there will always be some bumps in the downward path of inflation
Richmond Fed President Thomas Barkin stated earlier on Tuesday that despite making "substantial progress" in curbing price pressures in recent months, he "does not believe that the path to the 2% inflation target will be smooth".
Barkin said, "The inflation data has decreased, but it has only partially reversed the surge in prices during the epidemic period. The increase in housing costs and housing prices is still higher than historical levels, and so is the inflation rate in the service industry
After the CPI was announced, Nick Timiraos, a well-known journalist known as the "mouthpiece" of the Federal Reserve and the "New Federal Reserve News Agency," bluntly stated that the Federal Reserve may have completed raising interest rates. Timiraos posted that the October employment and inflation reports strongly suggest that the last rate hike by the Federal Reserve this round occurred in July. The next Federal Reserve meeting will mainly discuss whether and how to modify the post meeting statement, and reflect the obvious fact that the Federal Reserve is standing still.
The US dollar index fell sharply on the 14th, and as of late trading in New York, the US dollar index, which measures the US dollar against six major currencies, fell 1.49% to 104.053.
The risk of a US government shutdown has decreased, and House Speaker Johnson's expediency spending bill has gained increasing support from Democrats.
Pramila Jayapal, the leader of the largest Democratic caucus in the House of Representatives, said on Tuesday that Johnson's temporary funding plan was a "huge victory" for the Democratic Party. Johnson previously told reporters that he is confident that the House of Representatives will vote to pass the bill.
The House of Representatives plans to vote on the temporary funding plan through a quick process on Tuesday afternoon, which requires the support of two-thirds of the members to pass. To reach this threshold, Johnson needs to receive a large number of support votes from Democratic lawmakers.
The yield of US treasury bond bonds fell sharply on Tuesday, as the lower than expected inflation rate in October supported the market's judgment that the Fed's interest rate raising cycle will end. On Tuesday, the yield of US 10-year treasury bond bonds fell sharply by 18.3 basis points to 4.449%, the lowest in the session being 4.432%. The yield of two-year US treasury bond bonds fell 21.3 basis points to 4.828%, the lowest of 4.809% in the session.
NVIDIA has risen for ten consecutive days, with its stock price reaching a historic high
In terms of sectors, the 11 major sectors of the S&P 500 index rose across the board. The real estate sector and the utility sector led the gains with gains of 5.32% and 3.94%, respectively, while the energy sector showed the smallest increase at 0.54%.
Large technology stocks rose across the board. Tesla rose by over 6%, Ericsson rose by over 4%, Asmart and Intel rose by over 3%, Qualcomm, Broadcom, AMD, TSMC, Amazon, Meta, and NVIDIA rose by over 2%, Oracle, Boeing, Apple, and Google A rose by over 1%, while Microsoft and Netflix rose slightly.
Tesla rose 6.12% to close at $34.564 billion. Tesla China announced on November 14th that it will raise the price of the Model 3/Y rear wheel drive version, with the Model 3 rear wheel drive version increasing by 1500 yuan to 261400 yuan and the Model Y rear wheel drive version increasing by 2500 yuan to 266400 yuan. This is the third time Tesla has raised prices domestically since October 27th. Tesla officials attribute this round of intensive price adjustments to "cost issues," but the market seems more willing to believe that Tesla's move is aimed at repairing its severely declining profitability. At the same time, some industry insiders believe that this move is actually Tesla's pricing strategy. When domestic new energy vehicle companies have successively started to reduce prices, Tesla has taken the opposite approach or prepared for future policy adjustments, "that is, reserve space for future price reductions
Intel rose 3.09% to close at $1.743 billion. Intel announced that it will officially release the Intel Core Ultra processor Meteor Lake for the next generation AI PC on December 14th of this year. In addition, Intel has proposed the "AI PC Acceleration Program", which aims to implement artificial intelligence features for over 100 million PCs by 2025.
Amazon rose 2.25% to $8.242 billion in transactions. Snap has reached an agreement with Amazon. According to the agreement, Amazon will allow American users to purchase certain products provided on Snap's e-commerce platform directly from Snapchat, a social media application under Snap. This agreement is similar to the agreement signed between Amazon and the Meta platform. Users can purchase products directly from Amazon's Snapchat ads and checkout without leaving Snapchat. In the new experience, potential buyers can also view real-time pricing, Prime membership, delivery expectations, and product details for certain Amazon product advertisements on Snapchat.
Chip giant Nvidia rose 2.13% to $20.466 billion in transactions, with a total market value of nearly $1.23 trillion as of the latest close. At this point, the stock has risen for the tenth consecutive day and reached a new historical high. The company announced on Monday the launch of a new artificial intelligence (AI) chip, promising significant performance improvements compared to previous models. The company stated that the new generation AI chip H200 aims to train and deploy various artificial intelligence models. It is reported that the new H200 chip is an upgraded product currently used to train the most advanced large language model H100 chip, integrating 141GB of memory and being better at "reasoning". When used for reasoning or generating question answers, the performance is improved by 60% to 90% compared to H100.
Apple rose 1.43% to close at $11.169 billion. According to industry estimates, in order to comply with EU regulations, Apple will allow EU users to download non Apple official AppStore applications in the first half of next year. This method, also known as sideloading, means that users can download applications without using the Apple AppStore, so developers do not need to pay Apple 15% to 30% of the fees.
Microsoft rose 0.98% to close at $99.18 billion. The stock hit a new high in both intraday and closing history on Tuesday. Wells Fargo Bank raised Microsoft's target price from $410 to $425. In addition, according to the third quarter position report disclosed by Wells Fargo Bank, Microsoft and Apple remain heavy holdings of the institution.
Financial stocks rose almost entirely. Bank of America and Regional Finance rose by over 6%, Bank of America and BlackRock rose by over 5%, Morgan Stanley rose by over 4%, Citigroup, Goldman Sachs, UBS Group, MetLife, Wells Fargo, and Mizuho Finance rose by over 3%, Barclays, Deutsche Bank, First Capital Finance, and New York Mellon Bank rose by over 2%, JPMorgan Chase, American Express, Credit Suisse Wealth Management, and AllStar Insurance rose by over 1%, Visa, Hartford Finance, and MasterCard American International Group saw a slight increase, while Traveler Insurance saw a slight decline.
BlackRock rose 5.43%. According to the third quarter report, BlackRock significantly reduced its holdings in technology giants such as Apple and Google in the third quarter, but also increased its holdings in technology stocks such as Amazon, Meta Platforms, and Tesla. In terms of financial data, BlackRock recorded year-on-year growth in net revenue and profit for the third quarter, with a total revenue of $4.522 billion, a year-on-year increase of 5%. The net profit was 1.604 billion US dollars, a year-on-year increase of 14%; The adjusted net profit was $1.642 billion, a year-on-year increase of 13%.
Wells Fargo Bank rose 3.21%. According to insiders, Wells Fargo's corporate and investment banking departments are laying off 40 to 50 employees, becoming the latest large financial company to lay off employees in a more than a year long trading drought. A person familiar with the matter, who declined to be named because the decision has not yet been made public, said that in order to reduce costs, the bank is cutting some positions as a managing director and more junior positions. According to insiders, some affected employees received news this week. A spokesperson for the bank did not immediately comment.
Energy stocks rose across the board. US Energy rose by over 4%, Duke Energy rose by over 3%, Cameron Petroleum, Marathon Petroleum, Apache Petroleum, and Brazilian Petroleum rose by over 2%, while Chevron, Shell, Imperial Petroleum, BP, ExxonMobil, Western Petroleum, and ConocoPhillips rose slightly.
US WTI crude oil futures closed flat on Tuesday, taking back earlier gains. On Tuesday, the West Texas Intermediate Crude Oil (WTI) futures for December delivery on the New York Mercantile Exchange closed at $78.26 per barrel.
Popular Chinese concept stocks rose generally, with the Nasdaq China Golden Dragon Index rising by over 2%. Xiaopeng Automobile rose by over 8%, Huya, Jinshan Cloud rose by over 7%, NIO rose by over 4%, JD, NIO, Tencent Music, Bilibili rose by over 3%, Baidu and iQiyi rose by over 2%, Alibaba and Pinduoduo rose by over 1%, Ideal Automobile, Ctrip, and Futu Holdings rose slightly, while New Oriental, Laohu Securities, and NetEase fell slightly.
Xiaopeng Motors rose 8.54%. On the evening of November 13th, Xiaopeng Motors announced that the initial delivery of the acquisition of Didi's intelligent vehicle development business assets had occurred on November 13th. After the initial delivery, all Didi member companies had become wholly-owned subsidiaries of Xiaopeng Motors, and their financial performance would be included in Xiaopeng Motors' consolidated financial statements. It is reported that as the second brand created by Xiaopeng Automobile, the new brand model will form a differentiated positioning with Xiaopeng's existing brand products, focusing on the "150000 price range". At the performance meeting of the previous second quarter, He Xiaopeng, chairman of Xiaopeng Auto, disclosed that he would launch a full autonomous vehicle in the mainstream 150000 class market to promote the popularization of automobile intelligence.
Tiger Teeth rose 7.6%. Huya announced its third quarter results, with a total revenue of 1.65 billion yuan, a year-on-year decrease of 30.7%; The gross profit is 228 million yuan, with a gross profit margin of 13.9%. The mobile MAU (monthly average active users) of Huya Live reached 86 million, an increase of 3.7% month on month.
Vipshop will increase by 3.5%. On November 14th, Vipshop released its financial report for the third quarter of 2023. Data shows that the company's net revenue was 22.8 billion yuan, a year-on-year increase of 5.3%; The net income attributable to Vipshop shareholders was 1.2 billion yuan, compared to 1.7 billion yuan in the same period last year; The gross profit increased to 5.4 billion yuan, a year-on-year increase of 14.9%.
Tencent Music rose 3.1%. Tencent Music released its unaudited financial results for the third quarter as of September 30, 2023 on the 14th. The company's total revenue for the quarter was 6.57 billion yuan, a year-on-year decrease of 10.8%, mainly due to a decrease in revenue from social entertainment services and other services; The net profit was 1.17 billion yuan, a year-on-year increase of 10.1%. The number of paid users for online music increased by 20.8% year-on-year to 103 million, setting a new historical high.
Alibaba rose 1.96%. On November 14th, Alibaba's Intelligent Information Business Group released a fully stack self-developed quark model with hundreds of billions of parameters. It is reported that the quark model will be applied to scenarios such as general search, healthcare, education and learning, and workplace office. The Quark App will leverage its self-developed large model to comprehensively upgrade and accelerate its journey towards becoming an AI assistant for young people's work, study, and life. Wu Jia, President of Alibaba's Intelligent Information Business Group, stated that AIGC technology based on big models will bring new changes to search products and accelerate the move towards the next generation of search.
Pinduoduo rose 1.62%. On November 13th, the Pinduoduo Double Eleven came to an end, with a record high number of brands, merchants, and products participating in the platform's promotion. More than 40 sub categories such as agricultural products, domestic products, and global good goods achieved double growth, with a year-on-year increase of 107% in the number of subsidized orders worth 10 billion yuan. The flash sale channel provides an incremental engine for over 100000 small and medium-sized businesses, and merchants sell more goods and users save money, becoming a large "true fragrance" site for Pinduoduo Double Eleven.
The price of gold futures for December delivery on the New York Mercantile Exchange closed up $16.30, or 0.8%, at $1966.50 per ounce. According to Dow Jones market data, this is the largest daily percentage increase for the most active contract since October 18th.
US Treasury Secretary Yellen: APEC economies are at the center of the global economy
According to Xinhua News Agency, US Treasury Secretary Yellen stated on the 13th that the Asia Pacific Economic Cooperation (APEC) economies are at the center of the global economy.
Yellen said at a press conference held after the 2023 APEC Finance Ministers' Meeting that the APEC economies are at the center of the global economy, and cooperation among APEC economies is also key to addressing global challenges such as climate change.
The day before, Yellen said in his opening speech at the meeting that APEC members represent the world's fastest growing and most dynamic economies, driving global growth and innovation.
The APEC Finance Ministers' Meeting was held in San Francisco, USA from the 12th to the 13th. The focus of the meeting is to assess the current global and regional economic and financial prospects, refocus on enhancing financial resilience and promoting fiscal reform to achieve long-term economic development. In addition, sustainable finance is one of the key areas discussed at the conference, including how to mobilize resources to accelerate energy transformation and achieve the net zero emission goals of APEC members.