The Fed does not take action Trump will take action! US stocks rebounded, Nvidia rose nearly 5% at a low level, Google still fell more than 7%, and gold fell more than 2% at one point

Source: Wall Street Insights

Although the Federal Reserve has remained on hold, Trump has taken action. He plans to revoke the new AI chip restrictions of the Biden administration, helping the U.S. stock market reverse its consecutive daily declines. The U.S. dollar index has accelerated its rebound, and the price of gold has further declined.

The news from the Federal Reserve and Trump has dominated market sentiment. The major U.S. stock indexes fluctuated and closed higher. Tariff news has stimulated a sharp rally in chip stocks in the late trading session, while Google tumbled against the market trend:

In the early trading of U.S. stocks, driven by the news of the upcoming economic and trade talks between China and the U.S., the three major U.S. stock indexes opened higher.

In the early trading, an Apple executive said that they are planning a major overhaul of Safari and aiming at AI search, posing a severe challenge to the position of Google Search. Subsequently, Google once dropped by more than 9%, and Apple once dropped by more than 2%, causing the Nasdaq to turn negative.

In the midday trading of U.S. stocks, the Federal Reserve announced that it would not cut interest rates. An additional sentence was added to the interest rate resolution statement: "The risks of rising unemployment and inflation have increased." Facing the risks of stagflation, the three major U.S. stock indexes hit new daily lows.

In the late trading of U.S. stocks, Powell soothed the market by saying that the economy remains robust and refused to take preemptive action due to Trump's tariffs. The S&P 500 turned from a decline to an increase and fluctuated upwards. It was reported that Trump would revoke the new global AI chip export restrictions introduced during Biden's administration. After the news spread, chip stocks rallied in the late trading session. Nvidia once rose nearly 5% from its daily low, and the Nasdaq also turned higher in the late trading session.

On Wednesday, the three major U.S. stock indexes closed higher, ending a two-day losing streak. Apple closed down 1.14%, and Google closed down more than 7%. After the earnings report, Disney rose nearly 11%, and AppLovin rose more than 10% after the market. Arm, with disappointing guidance, fell more than 10% after the market. The China concept index closed down more than 2%.

The three major U.S. stock indexes:

The S&P 500 index closed up 24.37 points, or 0.43%, at 5,631.28 points.

The Dow Jones Industrial Average closed up 284.97 points, or 0.70%, at 41,113.97 points.

The Nasdaq closed up 48.50 points, or 0.27%, at 17,738.16 points. The Nasdaq 100 index closed up 76.63 points, or 0.39%, at 19,867.97 points.

The Russell 2000 index closed up 0.33%, at 1,989.66 points.

The VIX恐慌指数 closed down 4.81%, at 23.57.

U.S. stock industry ETFs:

The semiconductor industry ETF closed up 2.05%, the global aviation industry ETF rose 1.49%, and the technology industry ETF rose 1%. The consumer discretionary ETF and the global technology stock index ETF rose at least 0.71%.

The healthcare industry ETF fell more than 1.5% after the U.S. stock market. According to media reports, OpenAI is in talks with the U.S. Food and Drug Administration (FDA) about the use of artificial intelligence in medical evaluations.

The "Magnificent 7" of U.S. technology stocks:

The index of the seven major U.S. technology stocks (Magnificent 7) fell 0.11%, to 147.23 points, showing a U-shaped trend throughout the day.

Nvidia closed up 3.1%, Amazon rose 2%, Meta Platforms rose 1.62%, Tesla and Microsoft rose at most 0.32%, while Apple closed down 1.14% and Google Class A fell 7.26%.

Chip stocks:

The Philadelphia Semiconductor Index closed up 1.74%, at 4,386.36 points.

AMD rose 1.76%, and Taiwan Semiconductor Manufacturing Company ADR rose 1.31%.

AI concept stocks:

Tempus AI soared 12.59%. Super Micro Computer closed down 1.40%.

AppLovin closed down 0.38%, and after releasing its earnings report after the U.S. stock market, it reversed in a V-shape, turning to a 19% increase after a 7.9% decline.

China concept stocks:

The Nasdaq Golden Dragon China Index closed down 2.34%, at 7,031.52 points.

Among the popular China concept stocks, Xiaomi initially closed down 4.9%, Baidu fell 4.9%, Tencent, Bilibili, and Alibaba fell more than 3%, XPeng, NetEase, and NIO fell more than 2%, while Pony.ai and Li Auto rose more than 2%.

Other individual stocks:

Berkshire Hathaway Class B shares under Buffett rose 1.15%.

Disney closed up 10.76%. The company's performance in the second fiscal quarter exceeded expectations and it significantly raised its annual profit guidance.

Novo Nordisk closed up 1.30%. The previously released earnings report showed that Novo Nordisk's Q1 sales increased by 19% year-on-year, falling short of expectations, and it lowered its annual sales guidance.

Stock indexes of many European countries closed down. The German stock index fell about 0.6%, the French stock index fell more than 0.9%, and the Italian bank index fell more than 1.5%.

Pan-European stocks:

The European STOXX 600 index closed down 0.54%, at 533.47 points.

The Euro Stoxx 50 index closed down 0.63%, at 5,230.19 points.

Stock indexes of various countries closed up:

The German DAX 30 index closed down 0.58%, at 23,115.96 points.

The French CAC 40 index closed down 0.91%, at 7,626.84 points.

The UK's FTSE 100 index closed down 0.44%, at 8,559.33 points.

Sectors and individual stocks:

The MSCI Nordic Countries index of MSCI Inc. rose 0.2%, to 347.35 points, with the Nordic financial sector leading the way.

DNB Bank ASA rose 3.9%, leading the constituent stocks.

U.S. Treasury bond prices rose across the board on the day of the Federal Reserve's resolution. The yields on medium and long-term U.S. Treasury bonds fell by at most about 3.1 basis points. The prices of German and British government bonds rose, outperforming U.S. Treasury bonds. After the European Union formulated a plan for reciprocal tariffs against the United States, there was a flight to safety buying.

U.S. Treasury bonds:

At the New York close, the yield on the 10-year U.S. benchmark Treasury bond fell 2.52 basis points, to 4.2694%.

The yield on the two-year U.S. Treasury bond fell 0.62 basis points, to 3.7765%. It traded in the range of 3.8241% - 3.7538% during the day, and quickly formed a V-shaped reversal before and after the release of the FOMC interest rate resolution statement.

European bonds:

At the European market close, the yield on the 10-year German government bond fell 6.5 basis points, to 2.475%.

The yield on the two-year German government bond fell 3.2 basis points, hitting a new daily low of 1.711%.

At the European market close, the yield on the 10-year British government bond fell 5.3 basis points, to 4.461%.

With the Federal Reserve on hold, the U.S. dollar index rose. The Japanese yen fell more than 0.9%, and the Australian dollar and the New Zealand dollar fell more than 1%. Swap transactions indicate that the Bank of England is expected to cut interest rates by 38 basis points in June and by 96 basis points by the end of the year. The British pound weakened against the U.S. dollar.

The U.S. dollar:

The ICE U.S. dollar index rose more than 0.6% compared to the New York close yesterday, to 99.710.

Non-U.S. currencies:

At the New York close, the euro fell 0.48% against the U.S. dollar, the British pound fell 0.56% against the U.S. dollar, and the U.S. dollar rose 0.17% against the Swiss franc.

Among the commodity currencies, the Australian dollar fell 1.04% against the U.S. dollar, the New Zealand dollar fell 1.12% against the U.S. dollar, and the U.S. dollar rose 0.45% against the Canadian dollar.

The Japanese yen:

At the New York close, the U.S. dollar rose 0.92% against the Japanese yen, to 143.75 yen. The intraday trading range was 142.42 - 144.00 yen.

The euro rose 0.41% against the Japanese yen, to 162.66 yen; the British pound rose 0.33% against the Japanese yen, to 191.127 yen.

Offshore Chinese yuan:

At the New York close, the offshore Chinese yuan traded at 7.2283 yuan against the U.S. dollar, falling 185 pips compared to the New York close on Tuesday. The overall intraday trading range was 7.1892 - 7.2296 yuan.

Cryptocurrencies:

At the New York close, the main contract of CME Bitcoin futures BTC rose 0.38% compared to the New York close on Monday, to $95,090.

The main contract of CME Ether futures DCR fell 2.52%, to $1,778.

During the Asia-Pacific trading session, when risk sentiment prevailed, the price of WTI crude oil once rose above $60. Subsequently, the international oil price closed down by at least more than 1.6% on the day, and the price of New York natural gas rose by more than 4.5%.

Crude oil:

The June WTI crude oil futures closed down by $1.02, with a decline of more than 1.72%, at $58.07 per barrel.

The July Brent crude oil futures closed down by $1.03, with a decline of nearly 1.66%, at $61.12 per barrel.

Natural gas:

The June NYMEX natural gas futures closed up by more than 4.56%, at $3.6210 per million British thermal units.

With the Sino-US economic and trade talks in sight, the risk aversion sentiment significantly subsided. Spot gold fell by more than 1.9%, approaching $3,360 in the Asia-Pacific early trading session, and the Philadelphia Gold and Silver Index closed down by nearly 1.3%.

Gold:

At the New York close, spot gold fell by 1.91%, at $3,366.16 per ounce.

COMEX gold futures fell by 1.35%, at $3,376.50 per ounce.

Silver:

At the New York close, spot silver fell by 2.31%, at $32.4550 per ounce. Shortly after the press conference of Federal Reserve Chairman Powell, it refreshed the daily low to $32.2490 at 03:32.

COMEX silver futures fell by 2.32%, at $32.605 per ounce.

Other metals:

At the New York close, COMEX copper futures fell by 3.33%, refreshing the daily low to $4.6125 per pound.

LME copper futures closed down by $118, at $9,420 per ton. LME aluminum futures closed down by $44, at $2,382 per ton. LME zinc futures closed down by $16, at $2,616 per ton.

LME tin futures closed down by $356, at $31,636 per ton. LME nickel futures closed down by $150, at $15,548 per ton.

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