Tesla has continued to rise! Musk's major decision

Source: Securities Times

Driven by the strong rise of Tesla, the three major U.S. stock indexes rose across the board again.

As of the close, the Dow Jones Industrial Average rose 0.05% to 40,113.5 points; the S&P 500 Index rose 0.74% to 5,525.21 points; the Nasdaq Composite Index rose 1.26% to 17,382.94 points. This week, the Dow Jones Industrial Average rose 2.48%, the S&P 500 Index rose 4.59%, and the Nasdaq Composite Index rose 6.73%.

Tesla Surged Nearly 10%

Specifically, the large U.S. technology stocks all rose. Tesla rose nearly 10%, NVIDIA rose more than 4%, Facebook rose more than 2%, Google, Amazon, and Microsoft rose more than 1%, and Apple rose 0.44%.

In terms of news, the U.S. government announced a new regulatory framework for autonomous vehicles on Thursday, aiming to accelerate the deployment of autonomous vehicles while retaining the requirement to report vehicle safety accidents.

The U.S. Department of Transportation said on Thursday that U.S. companies developing autonomous vehicles will be allowed to be exempt from certain federal safety rules for testing purposes. The department also said that it will simplify the collision reporting requirements involving autonomous driving software and will move towards formulating a set of national rules for autonomous driving technology to replace the patchwork regulations of various states.

In addition, Tesla's Indian office is refunding the early reservation fees of Model 3 customers, which has sparked speculation that the electric vehicle manufacturer is about to launch new cars in India. The email stated: "We would like to refund your reservation fee temporarily. When we finalize our sales plan in India, we will contact the market again. We hope to see you again when we are ready to launch and deliver in your country."

In the past four trading days, Tesla has risen continuously, with a cumulative increase of more than 25%. On April 22nd local time, Tesla CEO Elon Musk said that he would reduce the time he spends working at the Department of Government Efficiency and devote more time to Tesla. Regarding Musk's focus on running the company, U.S. President Trump made a statement on the 23rd local time. He praised Musk, saying, "He has really helped the country and saved us a lot of money." Trump also said that Musk's announcement of his readiness to withdraw from his work in the government and focus on running the company is "something we expected to happen around this time," and "but I will talk to Elon." Regarding Musk's focus on running the company, Trump said, "We have to let him do these things at some point."

Most U.S. chip stocks rose. The Philadelphia Semiconductor Index rose 1.03%, NVIDIA rose more than 4%, Micron Technology rose more than 3%, Marvell Technology, Advanced Micro Devices, and Broadcom rose more than 2%, and Intel fell more than 6%.

Most U.S. bank stocks rose. Citigroup rose 0.43%, Morgan Stanley rose 0.34%, Bank of America rose 0.2%, Wells Fargo rose 0.23%; JPMorgan Chase fell 0.47%, and Goldman Sachs fell 0.09%.

U.S. airline stocks were mixed. Boeing rose nearly 1%, American Airlines rose more than 1%, Delta Air Lines fell more than 1%, Southwest Airlines rose 0.13%, and United Airlines fell more than 1%.

Canadian Solar Inc. Rose More Than 20%

Chinese concept stocks were mixed. The Nasdaq Golden Dragon China Index fell 0.4%. Among the popular Chinese concept stocks, Canadian Solar Inc. rose more than 20%, LK Technology Co., Ltd. rose more than 5%, JA Solar Technology Co., Ltd. rose nearly 5%, Gaotu Techedu Inc. rose more than 4%, and TAL Education Group rose more than 2%. Among the declining stocks, Pony.ai Inc. fell more than 7%, Futu Holdings Limited fell more than 6%, Zai Lab Limited fell more than 5%, Kingsoft Cloud Holdings Limited and BeiGene Ltd. fell more than 4%.

Recently, the U.S. Department of Commerce announced the final anti-dumping and countervailing duty rates on photovoltaic cells from four Southeast Asian countries (Vietnam, Thailand, Malaysia, and Cambodia), which have increased significantly compared to the preliminary duty rates.

Huatai Securities believes that the implementation of the final anti-dumping and countervailing duty rulings may reduce the economic efficiency of the production capacity in the four Southeast Asian countries. It is speculated that some of the U.S. photovoltaic demand in the future may be met by purchasing batteries from countries other than the four Southeast Asian countries and using the production capacity of components in Southeast Asia or the United States. Considering the large gap in the battery production capacity in the United States and the limited supply from countries other than the four Southeast Asian countries, it is expected that the price of U.S. components may increase significantly, which is beneficial to companies with production capacity in the United States and battery production capacity in countries other than the four Southeast Asian countries.

The Federal Reserve Released a Financial Stability Report

The latest financial stability report released by the Federal Reserve on Friday shows that the rising global trade risks, overall policy uncertainty, and the sustainability of U.S. debt top the list of potential risks in the U.S. financial system. This is the first semi-annual survey of financial risks by the Federal Reserve since Trump returned to the White House. 73% of the respondents said that global trade risks are their biggest concern, more than twice the proportion in the November report. Half of the respondents believe that overall policy uncertainty is the most concerning issue, and this proportion has increased compared to the same period last year. The survey also found that issues related to recent market turbulence have received more attention. 27% of the respondents are worried about the operation of the U.S. Treasury bond market, up from 17% in the fall of last year. Concerns about foreign investors' divestment from U.S. assets and the value of the U.S. dollar are also rising.

The report mentioned the risks related to asset valuation pressure. The report pointed out that asset prices have fallen during significant market turbulence, but the valuations of various assets remain high, including the stock market and residential real estate. And the situation deteriorated in April, but currently the market is still operating and functioning orderly.

In terms of the stock market, the report said that before the market volatility in early April, the price-to-earnings ratio of stocks had remained near a historical high, and the valuation of market risk compensation was still far below the average level. Even after the recent decline in stock prices, compared with analysts' earnings forecasts, stock prices are still at a high level, and the adjustment speed of analysts' earnings forecasts is not as fast as the change in market stock prices.

International Oil Prices Strengthened

On April 25th, international oil prices strengthened. The main contract of U.S. crude oil closed up 0.61% at $63.17 per barrel; the main contract of Brent crude oil rose 0.37% to $65.83 per barrel.

After hitting a historical high of $3,500 per ounce, the international gold price turned downward. On April 25th, the gold price plunged again. The spot price of London gold fell more than 2% during the session. As of the close, the decline of the spot price of London gold narrowed to 0.87%; the price of COMEX gold also fell more than 2% during the session. As of the close, COMEX gold fell 0.55%.

The U.S. dollar index rose 0.3% to 99.5836.

In terms of U.S. Treasury bonds, on April 25th, the yields of U.S. Treasury bonds fell across the board. The yield on the 2-year U.S. Treasury bond fell 5.94 basis points to 3.7377%; the yield on the 5-year U.S. Treasury bond fell 7.29 basis points to 3.8629%; the yield on the 10-year U.S. Treasury bond fell 7.19 basis points to 4.2372%; the yield on the 30-year U.S. Treasury bond fell 7.27 basis points to 4.6991%.

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