Fixed Income Market Overview
The 10-year Treasury yield surged following the release of March inflation data, indicating a likelihood of sustained high interest rates by the Federal Reserve. The 10-year Treasury yield rose and so did the 2-year Treasury yield. March’s consumer price index (CPI) revealed higher inflation than expected, with a 0.4% increase from February and a 3.5% rise year-on-year, surpassing economists’ predictions of a 0.3% gain and a 3.4% increase, respectively. Core CPI, excluding volatile food and energy prices, also rose more than anticipated, increasing by 0.4% monthly and 3.8% annually. The persistent inflation strengthens the expectation that the Fed may delay interest rate cuts, with markets now estimating only a 21% chance of a cut in June, down from 56% previously. Fed Chair Powell’s recent statements emphasized the importance of ensuring inflation trends towards the long-term goal of 2%. The release of minutes from the Fed’s latest meeting is anticipated to provide further insight into policymakers’ views on the economy and monetary policy.
Consumer prices rose 3.5% from a year ago in March, more than expected.
Europe stocks swing to loss following hotter-than-expected U.S. inflation data.
Apple doubles India iPhone production to $14 billion as it shifts from China: Report.
Oil prices break twoday losing streak after Israel threatens to strike Iran if attacked.
Tesla’s Musk to meet Modi in India and announce investment plans.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,461.51 | -422.16 | -1.09%↓ |
| NASDAQ | 18,011.65 | -158.25 | -0.87%↓ |
| SNP 500 | 5,160.64 | -49.27 | -0.95%↓ |
| NIKKEI | 39,581.81 | -191.32 | -0.48%↓ |
| VIX | 15.80 | 0.82 | 5.47%↑ |
| HIS | 17,139.17 | 311.10 | 1.85%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 5-YR | 4.61% | 0.23 |
| US 10-YR | 4.55% | 0.18 |
| US 30-YR | 4.63% | 0.13 |
| JPN 10-YR | 0.80% | 0.01 |
| UK 10-YR | 4.15% | 0.12 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 86.21 | 0.98 | 1.15%↑ |
| NAT GAS | 1.885 | 0.013 | 0.69%↑ |
| GOLD | 2,348.40 | -14.00 | -0.59%↓ |
| SILVER | 28.05 | 0.07 | 0.24%↑ |
| COPPER | 4.282 | -0.003 | -0.08%↓ |
Equity Market Overview
Taiwan Semiconductor Manufacturing Company
Taiwan Semiconductor Manufacturing Co. (TSMC) reported a robust 34.3% year-on-year revenue increase in March, reaching 195.2 billion new Taiwan dollars ($6.1 billion), the fastest growth since November 2022. TSMC’s first-quarter revenue rose by 16.5% year-on-year, amounting to 592.6 billion new Taiwan dollars, bolstering its status as the world’s largest contract semiconductor manufacturer. Amidst escalating competition, including launches from AMD and Intel, TSMC remains pivotal in supporting the AI industry by manufacturing chips for tech giants like Apple and Nvidia. With TSMC shares up nearly 40% year-to-date, driven by optimism regarding continued demand for AI chips, the company anticipates a 50% annual growth in AI revenue and analysts forecast a 23.7% rise in total revenue for the year.
Nvidia
Nvidia, a leader in chip manufacturing, faces a 10% decline in its stock, termed a “correction,” despite its significant role in powering AI advancements. The company’s exceptional financial performance, driven by surging chip demand, is juxtaposed with recent market pressure. Intel’s unveiling of Gaudi 3, a rival AI chip boasting superior efficiency, adds further strain on Nvidia’s stock. Analysts anticipate a cyclical downturn by 2026, citing shifting trends in AI model sizes and increased competition.
Alibaba
Alibaba founder Jack Ma lauded the company’s recent reorganization and transformation amid a challenging year, emphasizing a resilient and bold team spirit. With Daniel Zhang’s unexpected departure and subsequent leadership changes, including Eddie Yongming Wu’s appointment as CEO, Alibaba seeks to navigate evolving market landscapes while prioritizing future-oriented transformations, particularly in harnessing artificial intelligence for e-commerce evolution.
