Financial Associated Press, May 3 (Editor Shi Zhengcheng)On the first trading day of May, the U.S. stock market had a roller coaster ride: the three major indexes, under the pressure of the 10-year U.S. bond yield once exceeded 3%, with the strength in late trading, the group turned red. .
(Minute line chart of the three major stock indexes, source: TradingView)
JC O’Hara, chief market technical analyst at MKM Partners, explained that although the calendar has turned another page, we may see a short-term oversold rally, but the worries lingering in the stock market have not dissipated. Some long-term technical indicators are not sufficiently oversold to justify buying with high odds, and fund managers have begun to reprice in recession-era valuation multiples. If so the market is still overvalued.
On a positive note, the market is severely oversold, and any good news could spark a sharp bear market rally, said Michael Wilson, equally bearish Morgan Stanley U.S. chief equity strategist. While anything in the short term cannot be ruled out, in Wilson’s view, the bear market is far from over.
As an important indicator of expectations for U.S. interest rate hikes, the 10-year U.S. Treasury bond exceeded 3% on Monday for the first time since late 2018. Although the market has fully accepted the 50 basis point rate hike on Wednesday, the rate hike in June may be higher while giving the statement of shrinking. But in terms of what’s sparking this bout of inflation, the Fed’s monetary policy isn’t going to fix supply chain problems, and depressing demand itself could hit company performance.
According to local media reports, although it is not uncommon for 10-year U.S. Treasury yields to be higher than 3% in the past half century, it reached 15% in the 1980s. But over the past decade, the days that closed above 3% have added up to just 64 days.
Market dynamics
As of the close, the S&P 500 rose 0.57% to 4155.38 points; the Nasdaq rose 1.63% to 12536.02 points; the Dow Jones index rose 0.26% to 33061.50 points.
From the perspective of industry concept, the overall performance of technology stocks is better, and the trend of coking coal, oil and gas drilling, utilities and other sectors is weaker than that of the broader market.
Top stock performance
Most U.S. technology stocks closed up, with Apple up 0.20%, Tesla up 3.70%, Amazon up 0.18%, Google A up 2.17%, Netflix up 4.78%, and Microsoft up 2.50%; the concept of economic restart is slightly weaker, American Airlines Down 1.12%, United Airlines fell 0.61%, Royal Caribbean Cruises rose 0.84%, Norwegian Cruise Line fell 0.85%, and Boeing fell 0.15%.
In terms of Chinese concept stocks, the Nasdaq China Golden Dragon Index rose 2.37% on Monday, the leading Alibaba and Tencent ADR rose 4.24% and 0.36% respectively, and star stocks such as Baidu, Pinduoduo, and JD.com rose nearly 3%.
Company news
[Vertex’s innovative diabetes therapy was halted by the FDA]
U.S. pharmaceutical company Vertex said on Monday that the U.S. Food and Drug Administration (FDA) asked the company to suspend clinical research on its innovative diabetes drug VX-880, saying there was insufficient evidence to support the company to continue increasing the experimental dose. The cell therapy has received a lot of attention on Wall Street and is thought to be a potential hit with annual revenue of $1 billion. One patient in a previous study who received the full dose, although effective in controlling blood sugar, had an adverse event of severe neutropenia. However, the company said the adverse reaction was not related to the trial drug.
[Oolong refers to the news in the Nordic market that it is related to the Citi London team]
On Monday, Sweden’s OMX Stockholm 30 saw a wave of rapid declines around 10 a.m. local time. After falling 1% at the open, the stock index’s losses plummeted to nearly 8% in just five minutes, but all losses were recovered within minutes. Finally, the index closed down 1.87% on Monday.
Citigroup’s London-based trading team was behind the market turmoil, Bloomberg News reported before the close, citing people familiar with the matter. Considering that the UK coincides with a bank holiday on Monday, that means traders are making big mistakes as they work overtime over the holiday.
[Strantis invests $2.8 billion to transform Canadian factories to produce electric vehicles]
Auto giant Stlantis announced Monday that it will invest about $2.8 billion to revamp two Ontario auto plants and will add a “battery lab” to its research and development facility, which is expected to open in 2025. use. The investment is also reported to be included in the company’s $35 billion electrification transformation plan.
[EU accuses Apple of abusing Apple Pay market dominance]
The European Commission said on Monday it had issued a Statement of Objections to Apple, saying the company was limiting competition in the mobile wallet market on iOS by restricting apps from accessing the standard technology for contactless payments (NFC). Today’s announcement is in a larger sense the EU has officially taken a series of procedures to accuse Apple Pay of being a monopoly. Apple will have the opportunity to organize a formal response, and if it can’t persuade the EU to drop the charges, subsequent hearings and legal proceedings could go on for a long time.
[Apple sues startup Rivos for ‘stealing’ secrets such as M1 chip design]
The consumer electronics giant accused start-up Rivos of instructing some employees who left Apple to copy secrets including M1 and A15 chip designs through personal storage devices, according to a report by the media on Monday, citing Apple’s indictment. Apple said it had evidence that it had asked poached Apple employees to install encrypted messaging software, and then gave further instructions.Return to Sohu, see more
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