05701-A-0361 Nvidia continues to hit new highs despite some setbacks, with AMD dropping nearly 6% at one point

This week’s financial reporting season is gradually reaching its climax. From Tuesday to Friday, several industry leaders will release quarterly reports, including Procter&Gamble and Johnson&Johnson’s financial reports before Tuesday’s trading, Netflix’s financial reports after that day’s trading, AT&T’s financial reports before Wednesday’s trading, Tesla and IBM’s financial reports after that day’s trading, Blackstone’s financial reports before Thursday’s trading, Intel and T-Mobile’s financial reports after trading, and American Express’s financial reports before Friday’s trading.
Prior to the release of financial reports by various giants, the US stock market continued to open higher on Monday. The two major stock indices, the S&P 500, Dow Jones, and Nasdaq 100, continued their historic high momentum from last Friday, while some technology stocks failed to maintain their upward momentum. Microsoft and Meta fell after hitting historic highs during the trading session, with chip giants and AMD benefiting from demand for artificial intelligence (AI) experiencing a significant decline. Another AI chip giant, Nvidia, and the chip stock index, both experienced a decline in the trading session.
The market expects that six out of the seven tech giants, except for Tesla, will continue to drive S&P’s profit growth, and the major tech companies will face vastly different fates after betting on AI. Commentary suggests that the expectation of resilient economic growth and robust corporate performance supports Wall Street’s risk appetite bets, and the rise of the US stock market reflects the market’s pricing in reflecting the prospect of a soft landing. Meanwhile, after Meta CEO Zuckerberg announced last week his new goal of aggressively entering the AI field with 350000 NVIDIA H100 graphics cards by the end of this year, investors are still betting on a major driving force behind last year’s rise in the US stock market – the AI boom will continue into this year.
In addition to financial reports, this week’s monetary policy meetings of multiple central banks are also a focus of market attention. The market expects that the Bank of Japan, the European Central Bank, and the Bank of Canada may all remain stagnant. The US GDP and the Federal Reserve’s preferred inflation indicator, the PCE Price Index, which will be released this week, may affect the prospect of the Fed lowering interest rates this year.

The price of US treasury bond bonds rebounded in the session, and the yield of benchmark 10-year US bonds turned down in the session, falling below 4.10%, more than 10 basis points lower than the one month high set on Friday. The US dollar index fluctuated slightly before several central bank meetings, falling to a low in the past week and ending with a slight rebound. The Japanese yen broke away from the low it hit last Friday in over a month before the Bank of Japan announced its monetary policy decision on Tuesday, but took back gains during the day and roughly closed flat. Bitcoin continued its decline last week, falling below the $40000 mark to its lowest level since early December, falling more than $9000 from the two-year high set on the first day of spot ETF listings more than a week ago.
Amidst the rise of the US stock market in commodities, safe haven asset gold has been suppressed, with two consecutive days of rebounding gold falling. Commentaries suggest that technical selling and stock market gains may be the two main factors limiting the interest of buyers of precious metals such as gold and silver. Last Friday’s strong rebound in crude oil led to a surge of over 3% in US oil, and crude oil closed above the $80 mark for the first time in nearly a month. The geopolitical situation continues to drive up oil prices, and Israel’s attacks in the Gaza Strip show no signs of stopping. Despite being hit by the Anglo American coalition, Yemeni Hussai militants continue to attack merchant ships in the Red Sea. Russian energy company Novatek was forced to suspend some fuel export operations at its Baltic port due to a fire, and Ukrainian media reported that the fire was caused by drone attacks. However, fundamentals may continue to drag down oil prices, and this week’s release of US GDP may indicate a significant slowdown in economic growth.