Fixed Income Market Overview
U.S. Treasury yields declined as investors awaited key inflation data, which may influence future monetary policy decisions. The 10-year Treasury yield fell to 4.37%, while the 2-year yield stood at 4.745%. Concerns about prolonged high rates were fueled by expectations of a 0.3% rise in the consumer price index. Despite speculation on rate cuts, recent data and Fed comments suggest uncertainty. Meanwhile, in the Asia- Pacific region, despite U.S. Treasury yields reaching new highs, equity markets remained resilient. In Taiwan, inflation is expected to ease, yet remain above the central bank’s target. Taiwanese chipmaker TSMC and Samsung may benefit from U.S. government subsidies for semiconductor production. However, Chinese stocks faced declines amid concerns over the property sector, highlighted by a state-owned bank’s legal action against developer Shimao Group. Key data releases on Tuesday include Taiwan inflation, Japan consumer confidence, and Australia consumer confidence.
HSBC to Sell Argentina Business in Latest Market Exit.
Oil falls for second day as rally pauses while traders take stock of Middle East tensions.
European markets close lower as investors look ahead to U.S. inflation data; Atos falls 14%.
Dow falls 150 points Tuesday as traders brace for key U.S. inflation report.
Boeing’s quarterly airplane deliveries drop to 83 amid safety crisis.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,883.67 | -9.13 | -0.02%↓ |
| NASDAQ | 18,169.90 | 69.71 | 0.39%↑ |
| SNP 500 | 5,209.91 | 7.52 | 0.14%↑ |
| NIKKEI | 39,773.13 | 426.09 | 1.08%↑ |
| VIX | 14.98 | -0.21 | -1.38%↓ |
| HIS | 16,828.07 | 95.22 | 0.57%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.37% | -0.06 |
| US 30-YR | 4.50% | -0.05 |
| US 5-YR | 4.38% | -0.06 |
| JPN 10-YR | 0.79% | -0.01 |
| UK 10-YR | 4.03% | -0.05 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 85.23 | -1.20 | -1.39%↓ |
| NAT GAS | 1.872 | 0.028 | 1.52%↑ |
| GOLD | 2,362.40 | 11.40 | 0.48%↑ |
| SILVER | 27.98 | 0.18 | 0.64%↑ |
| COPPER | 4.286 | 0.010 | 0.22%↑ |
Equity Market Overview
Alphabet
Google (parent company Alphabet) unveiled a custom Arm-based server chip at its Cloud Next conference, aiming to compete with Amazon and Microsoft in the cloud infrastructure market, representing nearly 11% of Alphabet’s revenue. Market leaders like Amazon and Microsoft have already introduced Arm-based chips, with Alibaba and Microsoft doing the same. Google’s chip, named Axion, promises improved price performance and energy efficiency compared to x86 models. Transitioning internal services like YouTube advertising and databases to Axion, Google plans broader adoption, anticipating benefits like lower carbon emissions and faster application speeds.
Intel
Intel unveiled Gaudi 3, its latest AI chip, promising superior efficiency and speed compared to Nvidia’s H100 GPU. Gaudi 3 supports models like Meta’s Llama and Falcon, enhancing AI training and deployment, including applications like Stable Diffusion and OpenAI’s Whisper. Scheduled for release in Q3, Intel aims to rival Nvidia in the AI chip market, targeting cloud providers and businesses, emphasizing collaboration with industry leaders and a commitment to innovation with a fivenanometer manufacturing process.
Costco
Costco’s introduction of gold sales last year has rapidly become a lucrative venture, potentially generating monthly revenues of $100 million to $200 million according to Wells Fargo analysts. With aggressive pricing and high customer trust, Costco’s gold sales have gained momentum, evidenced by Reddit posts and quick online sell-outs. Although gold prices have surged amid inflation and geopolitical uncertainties, the profit margin for Costco remains low due to minimal premiums and cash-back incentives for customers. Nevertheless, gold sales serve as a strategic investment amid global economic uncertainties, appealing to both individual investors and central banks seeking to hedge eopolitical risks.
