On Tuesday (February 20th), Eastern Time, the first day after the market closed, the three major US stock indexes fell across the board, and the Nasdaq index fell more than 1% in intraday trading, closing at a two-week low. The dismal performance of the heavyweight technology giants and the market’s concern about the risk of the Fed’s potential return to raising interest rates are the main factors that weaken the market.
At the close, the Dow Jones index fell 0.17% to 38,563.80 points; The S&P 500 index fell 0.60% to 4,975.51 points; The Nasdaq Composite Index fell 0.92% to 15,630.78.
In terms of US debt, the benchmark 10-year US bond yield closed at 4.275%, and the 2-year US bond yield, which is most sensitive to the Fed’s policy interest rate, closed at 4.613%.
After the US stock market closes today, the market will welcome the financial report of AI leader NVIDIA, who is also the main contributor to the increase of US stocks this year. According to statistics, NVIDIA contributed a quarter of the increase of the S&P 500 index this year, and its financial report is likely to be a watershed in the trend of US stocks.
And because of its horrible rise and continuously high valuation, the market has begun to prompt risks. Some analysts believe that even if the company can hand over a slightly stronger than expected financial report, it is difficult to deserve its excessive valuation. Overnight, NVIDIA once fell more than 7% in intraday trading, and eventually it fell more than 4%, dragging down the market.
Bank of America analysts believe that it is not surprising that NVIDIA’s share price showed a "significant but short-term correction" after the financial report was released, given that investors had previously "blindly pursued artificial intelligence". The correction of the stock may exceed 10%.
Brent Kochuba, the founder of SpotGamma, thinks that once NVIDIA’s financial report is published, firstly, the implied volatility of the options market will decrease. The decline in implied volatility means that options will become cheaper, which will force market makers to sell some of their stocks to hedge their positions.
In particular, companies with large bias of call options like NVIDIA will bear greater selling pressure. In addition, due to NVIDIA’s current weight, it will detonate the "thunder" of the current "overheating" of the US stock market, and then cause a wider decline.
In addition, due to the high inflation in the United States, the market began to worry about the possibility of the Fed returning to raise interest rates. Last Friday, former US Treasury Secretary Summers said, "The possibility that the Fed will raise interest rates next still exists, and the probability may be 15%." More asset managers believe that the possibility is 20%.
In terms of industry, the first subject of Neuralink, Musk’s brain-computer interface company, is said to have realized the control of computer mouse through ideas. On Tuesday, local time, Musk said on the social media platform: "The patient seems to have fully recovered, without any adverse effects we know, and he can control the mouse. He can move the mouse on the screen just by thinking."
He also said that the company is currently trying to let patients "press the mouse button as much as possible through their minds", which includes moving the cursor up and down and dragging the box on the screen.
In terms of AI, Sora’s popularity has not yet fallen, and there is the fastest large-scale model explosion field in history. The AI chip company Groq became popular overnight, and the self-developed LPU speed crushed the NVIDIA GPU. Its text generation speed is faster than blink of an eye. The reasoning scene is 10 times faster than NVIDIA GPU, but the price and power consumption are only one tenth of the latter.
In addition, with the shortage of uranium supply and rising prices, uranium trading is becoming the hottest category on Wall Street, and both physical uranium and securities products are becoming very crowded. ETF, a uranium miner listed on NYSE, has increased by more than 55% in the past 12 months.
It is reported that investment banks including Goldman Sachs, McGree and some hedge funds are actively participating in uranium trading. Among them, Goldman Sachs not only involved in physical uranium trading, but also participated in option trading. Some hedge funds are also stepping up their participation in the trading of physical uranium and securities uranium products, which shows that after a decade of downturn after the Fukushima nuclear disaster, uranium trading has once again begun to shine and attract financial institutions to participate.
[Hot stocks]
Most large technology stocks fell, with Microsoft down 0.31% and Apple down 0.41%. Google rose by 0.31%. Amazon fell by 1.43%, NVIDIA by 4.35%, Meta by 0.33% and Tesla by 3.10%.
In terms of Chinese stocks, Nasdaq China Jinlong Index fell 1.33% to 6,005.10 points. Most popular Chinese stocks fell, with Xpeng Motors down 5.46%, JD.COM down 4.09%, Weilai and Pinduoduo down 2.93%, Baidu down 1.47%, Alibaba down 1.04% and LI up 0.57%.
[global index]
In the European stock market, the FTSE 100 index in Britain fell slightly by 0.12% to 7719 points. The French CAC40 index rose slightly by 0.34% to 7795 points. Germany DAX index fell slightly by 0.14% to 17,068 points. In Asian stock markets, the Hang Seng Index rose slightly by 0.57% to 16,248 points.
[foreign exchange commodities]
The main contract of Brent crude oil closed at $82.56 per barrel, down 1.20%; The main contract of crude oil in the previous period closed at 598.00 yuan per barrel overnight, down 1.01%. Overnight, the Shanghai gold main contract closed up 0.26% to 481.70 yuan per gram.
[Highlights]
Wall Street began to face up to the risk of the Fed returning to raising interest rates.
Last Friday, Lawrence Summers, the former US Treasury Secretary, broke the window and said something that some market participants thought but didn’t want to hear: "The possibility that the Fed will raise interest rates next still exists, and the probability may be 15%." More asset managers believe that the possibility is 20%.
Musk: The first human subject with brain-computer interface can control the mouse after rehabilitation thinking.
Musk revealed the latest progress of the first human subject of his brain-computer interface company Neuralink. On February 20th, Elon Musk, CEO of Tesla, revealed in a live broadcast of Spaces on social media platform X that the first human subject of Neuralink "seems to have fully recovered without any adverse reactions as we know. Subjects can move the mouse on the computer screen just by thinking. " Musk also said that Neuralink is now trying to get subjects to click as many mouse buttons as possible.
Groq, the fastest model bombing field in history, became a hit overnight.
Its self-developed LPU speed crushes NVIDIA GPU. NVIDIA’s challenger Groq appeared. Abandon GPU and develop LPU. Text generation is faster than blinking. The reasoning scene is 10 times faster than NVIDIA GPU, but the price and power consumption are only one tenth of the latter.
Microsoft is developing a replacement for the NVIDIA network card.
Microsoft is developing a new network card to improve the performance of its artificial intelligence chip Maia, and ultimately achieve the purpose of reducing dependence on NVIDIA products. Satya Nadella, CEO of Microsoft, has appointed Pradeep Sindhu, co-founder of Junbo Network, a communications equipment giant, to lead the network card project. The new network card that the Sindhu team aims to build this time is similar to the ConnectX-7 network card in NVIDIA, which is mainly used to improve the traffic speed of the server. According to the report, the development process may take more than one year. If successful, it is expected to shorten the time required for OpenAI to train the model on the Microsoft server and reduce the cost of the training process.
Apple adjusts the leadership of the supervision team responsible for audio products.
Apple adjusts the leadership of the audio product supervision team, and Gary Geaves will resign as the team leader and be replaced by Ruchir Davé.
Uranium becomes the new hot deal on Wall Street.
With the shortage of uranium supply and rising prices, uranium trading is becoming the hottest category on Wall Street, and both physical uranium and securities products are becoming very crowded. ETF, a uranium miner listed on NYSE, has increased by more than 55% in the past 12 months.
Us house of representatives sets up AI task force
On Tuesday (February 20th) local time, Speaker of the US House of Representatives Mike Johnson and Democratic Party leader Hakim jeffries announced that the two parties had formed a special working group to discuss legislation to solve people’s concerns about artificial intelligence (AI).
Red Sea crisis reshapes global fuel trade pattern, Indian diesel turns to Asia.
Due to the continuous turmoil in the Red Sea, the increase in freight rates has made it more attractive for transportation companies and commodity traders to export their goods to Asian countries.
[financial calendar]