On Friday, April 19th Eastern Time, the three major US stock indexes experienced mixed gains and losses, with the S&P 500 and Nasdaq recording their sixth consecutive day of decline. The market lowered expectations for the Federal Reserve to cut interest rates.
Nvidia plummeted by 10%, marking its largest daily decline since March 2020, with its market value evaporating overnight by over $200 billion, less than $2 trillion.
Continue recall! Tesla has applied for a recall of 3878 vehicles in the United States, including some 2024 electric pickup truck Cybertruck, which had unexpectedly accelerated due to a stuck pedal.
Market lowers expectations for Fed rate cuts
As of the close, the Dow Jones Industrial Average rose 0.56% to 37986.4 points, the S&P 500 Index fell 0.88% to 4967.23 points, and the Nasdaq fell 2.05% to 15282.01 points. Both the S&P 500 Index and the Nasdaq have recorded their sixth consecutive day of decline.
This week, the Dow Jones rose 0.01%, the S&P 500 fell 3.05%, and the Nasdaq fell 5.52%. Both the S&P 500 and Nasdaq recorded three consecutive weekly declines.
Chicago Fed President Goodsby said on Friday that progress in reducing inflation has come to a halt and it is necessary to maintain interest rates unchanged in order to observe economic development from the data.
Gulsby said, "The progress in inflation has come to a halt so far in 2024. We should never overly value any month's data, especially inflation data, which is indeed affected by multiple factors. However, if it is consistently high for three consecutive months, it cannot be ignored."
The Federal Reserve's Kashkari stated that before lowering interest rates, the Fed needs to gain more confidence that inflation is decreasing and may postpone the rate cut until after 2024. When asked if it is appropriate to maintain interest rates unchanged this year given the unexpected rise in recent inflation data, Kashkari said it is "possible".
According to the Atlanta Federal Reserve's market probability tracking tool, as of this week, the guaranteed overnight financing rate (SOFR) option shows a probability of approximately 3.6% of a 25 basis point rate hike in June.
Being dragged down by ultramicrocomputers
Nvidia plummets 10%
Nvidia plummeted by 10%, marking its largest daily decline since March 2020. Its market value evaporated overnight by over $200 billion, with a total market value below $2 trillion.
Microelectronics, which has been cooperating with Nvidia for a long time, plummeted by 23.14% and closed at its lowest level in over two months.
Microelectronics announced that it will release its quarterly report on April 30th, but did not provide preliminary results as usual, causing a sharp drop in stock prices and dragging down Nvidia.
In addition, the downward adjustment of growth expectations in the chip market has to some extent affected Nvidia's stock price performance.
On Thursday, TSMC lowered its growth forecast for the chip market, lowering the global logic semiconductor industry's growth forecast for this year from over 10% to around 10%, causing global semiconductor stocks to retreat.
On Friday's close, Chaowei Semiconductor fell 5.44%, Micron Technology fell 4.61%, Broadcom fell 4.31%, TSMC fell 3.44%, ASMC fell 3.32%, Intel fell 2.4%, Qualcomm fell 2.36%, and Applied Materials fell 2.34%.
Tesla recalls another 3878 vehicles
Technology stocks fell across the board, with the TAMAMA Technology Index of Wanda United States down 3.13%, Apple down 1.22%, Amazon down 2.56%, Netflix down 9.09%, Google down 1.23%, Facebook down 4.13%, Microsoft down 1.27%, and Tesla down 1.92%.
The National Highway Traffic Safety Administration of the United States has announced that Tesla is applying for a recall of 3878 US vehicles. The company will recall some 2024 electric pickup trucks, Cybertruck, which had previously experienced unexpected acceleration due to a stuck pedal.
WTI crude oil closed higher on Friday
US WTI crude oil futures closed slightly higher, with WTI crude oil futures for May delivery closing 0.5% higher at $83.14 per barrel.
The market's impact on the situation in the Middle East has reduced the tension in the crude oil market. According to John Kilduff, founding partner of Sina and Again Capital, "The energy market has also experienced this situation before. In fact, these investors find it difficult to figure out how high the threshold for a full-scale war in the Middle East and its impact on oil supply is."
According to General James Stavridis, former Allied Commander in Chief of NATO, Israel's attack on Iran was "very mild and carefully calibrated", using small explosives and drones rather than manned planes.
He said, "Both Jerusalem and Tehran are downplaying these events, which means the conflict is being downgraded."
Most popular Chinese concept stocks have fallen
Most popular Chinese concept stocks fell, with the Nasdaq China Golden Dragon Index down 1.04%, Jianan Technology down 18.25%, Shengmei Semiconductor down 8.78%, Zhihu down 8.24%, Dajian Cloud Warehouse down 5.76%, Yihang Intelligence down 4.37%, Daquan New Energy down 2.66%, iQiyi down 2.62%, and New Oriental down 2.19%.
In terms of growth, Manbang Group rose 1.5%, Lujin Holdings rose 1.41%, and Century Internet rose 1.36%.
Zhonggai New Energy Vehicle stocks fell across the board, with NIO Automobile falling 5.13%, Xiaopeng Automobile falling 3.35%, and Ideal Automobile falling 9.6%.