Fixed Income Market Overview
U.S. Treasury yields declined on Wednesday following May’s consumer price index (CPI) report, which showed lower-than-expected inflation. The 10-year Treasury yield fell 14 basis points to 4.267%, while the 2-year Treasury yield decreased by 15 basis points to 4.682%. Treasury yields and prices move inversely, with one basis point equating to 0.01%. The CPI remained flat month-overmonth and rose 3.3% year-over-year, both below Dow Jones’ forecasts. Core CPI, excluding food and energy, also rose but was lower than expected. As the Federal Reserve concludes its latest policy meeting, it is anticipated to maintain interest rates, with futures indicating a 70% probability of a rate cut by September and a 74% chance of a second cut by year-end. The Fed will also release its quarterly economic projections, offering insights into future rate decisions and economic expectations.
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Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,747.42 | -120.62 | -0.31%↓ |
| NASDAQ | 19,210.18 | 135.51 | 0.71%↑ |
| S&P 500 | 5,375.32 | 14.53 | 0.27%↑ |
| NIKKEI | 39,134.79 | 96.63 | 0.25%↑ |
| HSI | 18,176.34 | -190.61 | -1.04%↓ |
| VIX | 12.85 | 0.11 | 0.86%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.41% | -0.06 |
| US 30-YR | 4.54% | -0.06 |
| US 5-YR | 4.42% | -0.06 |
| JPN 10-YR | 1.02% | -0.02 |
| UK 10-YR | 4.28% | -0.06 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 77.90 | 0.16 | 0.21%↑ |
| NAT GAS | 3.129 | 0.223 | 7.67%↑ |
| GOLD | 2,326.60 | -0.40 | -0.02%↓ |
| SILVER | 29.23 | -0.64 | -2.15%↓ |
| COPPER | 4.510 | -0.034 | -0.74%↓ |
Equity Market Overview
Amazon
Amazon Web Services (AWS) announced it will launch an infrastructure region in Taiwan by early 2025 to meet high cloud service demand in the Asia-Pacific region. The new AWS region will include three availability zones and will allow firms to leverage AWS technologies like compute, storage, and machine learning. This expansion will enable a variety of organizations to run applications and serve users from data centers in Taiwan. AWS will invest billions in Taiwan over the next 15 years, following similar investments in Singapore, Malaysia, and Thailand. AWS leads the cloud infrastructure market with a 31% share, followed by Microsoft Azure.
Apple
Apple surpassed Microsoft to become the world’s most valuable company on Wednesday, following its announcement of a significant push into artificial intelligence during its developers conference on Monday. Apple reached a market cap of $3.3 trillion, surpassing Microsoft’s $3.2 trillion. The news drove Apple’s shares up more than 7% to a record high on Tuesday, with a further 4% rise on Wednesday. Apple’s AI plans, called Apple Intelligence, include generative AI features across its devices, prompting analysts to predict a surge in iPhone sales. Microsoft, a major investor in OpenAI, is also expected to benefit from Apple’s AI advancements.
Oracle
Oracle’s shares surged 11% after announcing cloud deals with Google and OpenAI, despite missing Wall Street expectations for Q4 results. Earnings per share were $1.63, below the $1.65 expected, and revenue was $14.29 billion, falling short of the $14.55 billion forecast. Revenue increased 3% year over year, with cloud services and license support contributing $10.23 billion. Oracle’s cloud infrastructure revenue grew 42%. Oracle expects Q1 earnings of $1.31 to $1.35 per share and 5% to 7% revenue growth. Oracle’s database will be available on Google Cloud in November, and a partnership with Microsoft and OpenAI will extend Azure AI capacity using Oracle’s infrastructure.
