ADDX Go Market Morning Wrap - 22 October

Market Key Focus

US Market

- Markets

Among the three major U.S. stock indexes, only the Nasdaq rose slightly. The S&P 500 index closed down 10.69 points, or 0.18%, at 5,853.98 points.

The Dow Jones Industrial Average, which is closely related to the economic cycle, closed down 344.31 points, or 0.80%, at 42,931.60 points.

The Nasdaq, which is dominated by technology stocks, closed up 50.45 points, or 0.27%, at 18,540.01 points. The Nasdaq 100 index closed up 0.18%. The Nasdaq Technology Market Capitalization Weighted Index (NDXTMC), which measures the performance of the Nasdaq 100 technology industry components, closed up 0.65%.

The Russell 2000 small-cap index, which is more sensitive to the economic cycle, closed down 1.60%.

The VIX index of fear closed up 1.89% at 18.37.

- Stocks

Nvidia closed up 4.14% to $143.71, a record closing high, with a closing market value of $3.53 trillion.

Apple closed up 0.63%, also refreshing its closing record high to $236.48, with a closing market value of $3.60 trillion.

Google A rose 0.4%, Microsoft closed up 0.15%, and Microsoft launched an artificial intelligence agent to deepen its competition with Salesforce. Amazon closed up 0.04%, Meta closed down 0.23%, and Tesla fell 0.84%.

- Treasury

As the money market's expectations for the central bank's rate cuts cooled, the 10-year U.S. Treasury yield rose by more than 11 basis points to nearly 4.2%, the highest level since the end of July, and the 2-year yield rose back to above 4%.

- FX

The dollar index has risen for three consecutive weeks and has risen in 14 of the past 16 trading days. On Monday, it rose by more than 0.4% and hit 104 for the first time since August 1.

Asian Market

- Markets

The Nikkei 225 index closed down 0.1% at 38,954.6 points, while the Topix index closed down 0.3%.

The Nasdaq Golden Dragon China Index fell 1.5% and closed down 0.80%. Among ETFs, the China Technology Index ETF (CQQQ) closed down 0.92%, and the China Internet Index ETF (KWEB) closed down 1.11%.

- FX

Political uncertainty caused the yen to fall towards 151, and the offshore RMB fell nearly 200 points

European Market:

- Markets

The European STOXX 600 index closed down 0.66% at 521.52 points. The Eurozone STOXX 50 index closed down 0.90%, and the FTSE Euro Stoxx 300 index closed down 0.62%.

The German DAX 30 index closed down 1.00%, the French CAC 40 index closed down 1.01%, the Dutch AEX index closed down 0.56%, the Italian FTSE MIB index closed down 0.71%, and the British FTSE 100 index closed down 0.48%.

- Stocks

JDE Peet’s rose 16.35% as investment holding company JAB will acquire 86 million shares of the company.

Semiconductor stocks generally closed lower, with Soitec, Infineon Technologies and BE Semiconductor falling by at least 2.0%.

- Treasury

The 10-year German bond yield rose 9.9 basis points to 2.282%, trading in a range of 2.187%-2.283% during the session. The two-year German bond yield rose 7.4 basis points to 2.181%.

- FX

EUR/USD fell 0.47%, GBP/USD fell 0.49%, USD/CHF rose 0.16%

Cryptocurrency Market

Bitcoin, the largest leader by market value, fell 1.40% in late trading to $67,825.00, while Ethereum, the second largest, rose 1.28% to $2,680.50, and once rose to $2,775.50 during the session.

Macro

1. Fed officials took turns speaking to cool expectations of rate cuts. Dallas Fed President Logan, who will be a voting member next year, said on Monday that the Fed will take more gradual rate cuts in the future. Kansas City Fed President Schmid, who will be a voting member next year, said he hopes to slow down the pace of rate cuts in the face of uncertainty. Minneapolis Fed President Kashkari, a hawkish voting member next year, said he expects the pace of rate cuts to slow in the coming quarters, but the sharp deterioration in the labor market may prompt him to call for faster rate cuts.
2. After the European Central Bank cut interest rates for the third time this year last week, ECB board member Kazimir believes that the eurozone's inflation is increasingly likely to return to target next year, but the ECB needs more evidence before declaring victory. ECB board member Simkus pointed out that if the downward trend in inflation continues, there will be further interest rate cuts.
3. Goldman Sachs, JPMorgan Chase, Deutsche Bank and others spoke out collectively, and Wall Street placed all its bets on the "Trump deal", with U.S. Treasury yields and the U.S. dollar rising together.

Earnings For Today

Market Events

Stocks to Focus

1. German company SAP's cloud revenue grew 25% in the third quarter. The company drove customers to change their local installation model. SAP's ADR rose more than 5.3% in the US after-hours.
2. Maersk ADR closed up 3.29%, and again raised its 2024 performance guidance. The situation in the Red Sea pushed up freight rates, and its third-quarter performance exceeded expectations.
3. Boeing closed up 3.11%. The company reached a temporary agreement with the union on a new contract. If approved by workers, it is expected to end the strike.
4. Spirit Airlines closed up 53.06%. The company reached an agreement with US Bank to postpone the deadline for the 2025 notes to December 23, thereby buying more time for 2025 debt refinancing.