On Wednesday, market bets on a Federal Reserve rate cut continued to decrease, European stocks were mixed, U.S. stocks declined, and AI concept stocks that surged on Tuesday significantly retracted, while Bitcoin crossed the $60,000 threshold, and oil prices turned lower after two consecutive days of gains.
The latter half of this week will see a series of economic data releases, including the revised U.S. fourth-quarter GDP, PCE inflation data, speeches by Federal Reserve officials, and Eurozone CPI data. These data and speeches will help determine the direction of monetary policy.
Before the data release, traders are hesitant to make large bets. Investors' expectations for the magnitude of rate cuts by the Federal Reserve and the European Central Bank continue to weaken, with the market believing that the U.S. will only cut rates by 75 basis points before the end of the year, consistent with the expectations of Federal Reserve policymakers in December.
Bitcoin, which crossed the $60,000 mark in pre-market U.S. trading, further climbed, breaking through $61,000 in early trading, setting a new intraday high since November 2021. It rose over $4,000 from the intraday low in the Asian market session, an increase of about 8%.
Chip stocks and AI concept stocks underperform the broader market. In early trading, the Philadelphia Semiconductor Index fell over 1%, Nvidia also dropped over 1%, continuing its decline from the record closing high set on Monday, with Arm down more than 4%, AMD over 2%, and Intel dropping over 1%.
AI concept stocks overall retract, with some concept stocks that surged on Tuesday experiencing significant declines. SoundHound.ai (SOUN), which closed nearly 20% higher on Tuesday, initially dropped over 10% in early trading, BigBear.ai (BBAI), which closed 38% higher on Tuesday, also initially fell over 10%, Super Micro Computer (SMCI) dropped over 3% in early trading, and C3.ai (AI) also saw a decline of over 3% in early trading.
Popular Chinese concept stocks overall retract. The Nasdaq Golden Dragon China Index (HXC), which had risen for five consecutive trading days, fell over 1% in early trading, underperforming the broader market. Baidu, which announced its earnings in pre-market, dropped over 6% in early trading. Among the three new electric vehicle makers, Li Auto, which closed up nearly 12% on Wednesday, initially fell over 5% in early trading, with Xpeng Motors dropping nearly 8%, and NIO falling nearly 7%. Among other Chinese concept stocks, Kingsoft Cloud fell over 9%, Bilibili dropped over 5%, JD.com fell over 4%, Alibaba dropped over 3%, Pinduoduo fell over 2%, while bitcoin mining giant Canaan Technology surged over 10%.
The three major U.S. stock indexes collectively opened lower and maintained their decline in early trading. The Dow once fell by more than 200 points and will close down for three consecutive days.
Bitcoin exceeded $60,000 per coin, reaching its highest level since November 2021, rising by more than 6% during the day.
Novavax Pharmaceuticals' U.S. stocks fell more than 18% before the market opened. The company's fourth-quarter revenue fell short of market estimates.
Baidu's U.S. stocks turned lower before the market opened, currently down 1.72%, after rising by more than 3%.
Bitcoin rose above $59,000 to trade at $59,027, up nearly 5% on the day.
Ethereum broke through $3,300, setting a new high since April 2022.
The recent strong performance of Bitcoin is also related to the approval of the listing of Bitcoin spot ETF.
On January 10, the U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs and authorized 11 ETFs to begin trading on January 11. Approved spot Bitcoin ETF issuers include Grayscale, iShares, Ark 21Shares, Invesco Galaxy etc.
Since then, the price of Bitcoin has started to rise sharply, the trading volume of Bitcoin ETF has set a new historical record, and the market value of Bitcoin ETF has soared. According to coinglass data, the total market value of Bitcoin ETFs (including spot and futures ETFs) has exceeded US$40 billion.
European stocks mixed
The European Stoxx 50 index fell 0.04%, the German DAX index rose 0.24%, the British FTSE 100 index fell 0.39%, and the French CAC 40 index rose 0.05%.
Gains in insurance and utility stocks offset losses in technology stocks. Among individual stocks, ASM International NV fell on disappointing revenue forecasts from the chip equipment maker.
European granolas have little fluctuation. Granolas represents 11 large European companies including GlaxoSmithKline, Roche, ASML, Nestlé, Novartis, Novo Nordisk, L'Oreal, LVMH, AstraZeneca, SAP and Sanofi. company. Over the past three years, Granolas has performed in line with the Big Seven, but with much lower volatility.
U.S. stock futures fall, while most AI concept stocks rise
U.S. stock futures fell, with Nasdaq 100 futures down 0.32%, S&P 500 futures down 0.21%, and Dow futures down 0.24%.
The "Seven Sisters" of technology, which have attracted much attention recently, did not fluctuate much before the market opened. Most U.S. AI concept stocks rose before the market opened. SoundHound AI continued to rise by 5%, Bigbear.ai rose by more than 14%, and Jet.AI rose by more than 5%.
Beyond Meat, the first artificial meat stock in the United States, once rose more than 70% before the market opened. On the news, its fourth quarter results exceeded market expectations, reaching $73.7 million, thanks to its plant-based meat patties in key markets outside the United States. Demand remains strong, and the company said it will further adjust its pricing strategy in 2024 to improve market competitiveness.
Baidu once rose more than 3% before the market opened, and is currently up 1.9%. Baidu's fourth quarter performance exceeded market expectations, with total fourth quarter revenue of 34.95 billion yuan, a year-on-year increase of 6%.
Oil prices fell after rising for two days
Oil prices fell back after two days of gains, with the American Petroleum Institute, which represents oil companies, reporting that U.S. crude inventories rose by more than 8 million barrels this week. Official U.S. inventory data will be released on Wednesday. If the data confirms the inventory build, it would represent a fifth consecutive weekly increase in U.S. crude inventories.