Global News： US stocks closed slightly lower than NVIDIA’s contrarian high. Trump ＂earned hemp＂ in the capital market.
On Monday (March 25th) EST, the trading in the US stock market was relatively flat, and the three major indexes fluctuated within a narrow range throughout the day, and finally closed down slightly. This Friday, European and American countries will welcome the Good Friday holiday, and on the same day, the core PCE favored by the Federal Reserve and Powell’s speech, the market tends to be cautious.
At the close, the S&P 500 index fell 0.31% to 5218.19 points; The Dow Jones index fell 0.41% to 39,313.64 points; The Nasdaq index fell 0.27% to 16,384.47 points.
The yield of US bonds rose slightly, which also brought some pressure to the market. The benchmark 10-year US bond yield returned above the 4.2% mark and closed at 4.246%. The yield of 2-year US bonds, which is most sensitive to the Fed’s policy interest rate, closed at 4.63%.
The market is dull, but some stocks still attract market attention. AI giant NVIDIA set a new closing high against the trend, even though Qualcomm, Google and Intel want to break their software monopoly together.
In addition, former US President Trump was also very active in the capital market on Monday. Trump’s Media Technology Group (TMTG) and the backdoor company DWAC announced on Monday that the business M&A transaction between the two parties has been completed. Starting from Tuesday, Trump Media Technology Group, which completed the reverse acquisition, will be listed on the Nasdaq Stock Exchange with the trading code "DJT". DWAC soared 35% overnight. If Trump holds nearly 60% of the company’s shares after listing, his stock value is more than 3 billion US dollars, which can be described as "winning hemp".
Of course, in addition to good performance, there are also "sap". The Digital Market Act, which has been brewing for a long time in the European Union, made its debut. The sword refers to Apple, Google and Meta, and the technology giants may face high fines. If any violations are found, the Committee will have the right to impose a fine of up to 10% of the global income on these companies. For repeated violations, the fine ratio may even increase to 20%. The three giants collectively closed down overnight.
A few days ago, Apple also encountered an anti-monopoly lawsuit from the US government. Under the "big stick" of anti-monopoly, technology giants will be under certain pressure in the near future. However, combined with past experience, the actual impact of anti-monopoly will not be immediately fed back to the stock price, especially under the AI ? ? boom, the market is more concerned about the fundamentals of enterprises.
Looking at the macro-level news again, following last week’s meeting of the Federal Reserve, internal differences have also become increasingly apparent. Bostic, president of Atlanta Fed, reiterated that he expected to cut interest rates only once this year, while goolsbee, the "big dove", continued to stick to his expectation of cutting interest rates three times in 2024. Federal Reserve Governor Cook believes that housing inflation will continue to decline, but it needs to be cautious in cutting interest rates.
At present, it seems that the first drop and the number of drops this year are still unclear, and the market may have to wait for the main line of interest rate cuts.
[Hot American stocks]
Tech giants were mixed, with Microsoft down 1.37%, Google A down 0.46%, NVIDIA up 0.76%, Amazon up 0.47%, Tesla up 1.05%, Apple down 0.83%, Meta down 1.29%, AMD down 0.57%, Arm Holdings up 3.10% and Netflix down 0.09%. The EU Digital Law made its debut overnight, with the sword referring to Apple, Google and Meta.
[global index]
In the European stock market, the major stock indexes were mixed, and the STOXX 600 index in Europe closed up 0.04%. Britain’s FTSE 100 index fell slightly by 0.17% to 7918. The French CAC40 index fell slightly by 0.00% to 8152 points. Germany DAX index rose slightly by 0.30% to 18,261 points.
[China Stock Market]
NASDAQ China Golden Dragon Index closed down 0.07%. In terms of popular Chinese stocks, Pinduoduo fell 2.54%, TSMC fell 0.21%, Weilai rose 0.21%, Xpeng Motors rose 0.53%, Alibaba fell 0.93%, Baidu rose 3.41% and Netease fell 1.90%.
[foreign exchange commodities]
The US dollar index retreated some gains, once approaching the 104 mark in intraday trading, and finally closed down 0.19% at 103.43. Spot gold closed up 0.3% at $2,171.90 per ounce; Spot silver finally closed up 0.04% to $24.67 per ounce.
Due to the tense geopolitical situation and the fact that OPEC+will adhere to the current production reduction plan at the representative review meeting to be held next week. Oil price bullish sentiment has warmed up, WTI crude oil rose by more than 1%, and once rushed to $82 in the US market; Brent crude oil closed up 0.57% to $86.01/barrel.
[Highlights]
The differences within the Fed are becoming increasingly obvious: some support cutting interest rates three times and some only once.
Atlanta Fed President Bostic reiterated that he expects to cut interest rates only once this year; "Big Dove" goolsbee continues to adhere to the expectation of three interest rate cuts in 2024; Federal Reserve Governor Cook believes that housing inflation will continue to decline, but it needs to be cautious in cutting interest rates.
Trump’s social media completed the merger and landed on Nasdaq tonight.
With the successful voting at the DWAC shareholders’ meeting of "Shell Company" last Friday, Trump Media Technology Group, whose main business is Truth Social social social media platform, announced on Monday that the reverse takeover and listing transaction between the two parties has been completed. Starting from Tuesday, Trump Media Technology Group, which has completed its backdoor listing, will be listed on the Nasdaq Stock Exchange with the trading code "DJT". According to public information, Trump will continue to hold nearly 60% of the shares of listed companies after listing, with a limited sale period of 6 months. DWAC closed up 35.22% on Monday, which also made Trump’s stock value close to $4 billion.
The Digital Market Act of the European Union was unveiled, aiming at Google, Apple and Meta.
On Monday (March 25th) local time, the European Commission announced in official website that it would investigate Google’s parent companies Alphabet, Apple and Meta, which was the first time that the Digital Market Act (DMA) was fully implemented. According to the press release, "Today, the European Commission conducted an investigation on the jump rules of Alphabet in Google Play and the preference rules in Google search, the jump rules of Apple in App Store and Safari’s’ browser selection screen’ and Meta’s’ payment or consent mode’ according to DMA."
Baidu may provide AI function for Apple Bank equipment.
According to informed sources, Baidu will provide AI function for iPhone16, Mac system and ios18 released by Apple this year, and it is expected to adopt API interface for billing. Apple’s adoption of domestic big model AI functions for devices such as the iPhone of the Bank of China is mainly due to compliance requirements, and the AI functions of foreign devices are all from Apple’s own big model. As of Monday’s close, Baidu’s US stocks closed up 3.41%.
It is worth mentioning that Ben Reitzes, technical analysis director of Melius Research, also expected in an interview with TV on Monday that he thought that at Apple WWDC in June this year, the company would lay the foundation for a new artificial intelligence application store, including detailing how consumers can obtain artificial intelligence applications from various developers.
Boeing leads high-level "big change"
On Monday, local time, Boeing, which has been in trouble frequently, announced its leadership restructuring plan. Among them, Dave Calhoun, president and CEO of the company, announced that he intends to leave the troubled company before the end of this year and make a major reorganization of the company’s leadership. In addition, Stan Deal, president and CEO of Boeing Commercial Aircraft Group (BCA), a subsidiary of Boeing, will retire from the company, and Larry Kellner, chairman of Boeing’s board of directors, will not run for re-election at the annual general meeting.
Novo Nordisk deploys cardiovascular field through mergers and acquisitions.
On Monday, local time, Danish pharmaceutical giant Novo Nordisk announced that it would acquire Cardior Pharmaceuticals for 1.03 billion euros. The company focuses on the treatment of heart failure and the development of preventive drugs based on non-coding RNA(ncRNA). The lead compound CDR132L under research can improve heart function, prevent and partially reverse the disease process of patients with heart failure, and is currently in the phase II clinical development stage for the treatment of heart failure.
Technology giants join hands to break NVIDIA’s software monopoly. Qualcomm, Google and Intel are among them.
Qualcomm, Google, Intel and other technology giants and more than 100 start-ups collectively "encircled" NVIDIA. They tried to specialize in AI software to weaken NVIDIA’s leading position and guide developers how to migrate from NVIDIA CUDA software platform to other platforms.
Musk: The progress of FSD is no longer limited by AI training, and the improvement speed of computing power will be greatly accelerated.
Elon Musk, CEO of Tesla, recently hinted on the social platform that Tesla’s advanced driver assistance system will be improved faster because the bottleneck of AI training computing power has been broken.
[financial calendar]
