As the market weighed the unexpectedly lower consumer confidence index, the US stock market closed with mixed gains and losses, and the Dow Jones achieved eight consecutive positive days. Chinese tram brand Jike made its debut on the New York Stock Exchange, rising 34% on its first day of listing.
The US stock market closed with mixed gains and losses, and the Dow Jones Index recorded its best weekly performance of the year
Federal Reserve: Increased default rates on commercial real estate and consumer loans
Extreme Krypton’s first day of listing surged by 34%
Ultraman’s nuclear fission startup plummeted 54% on its first day of listing
As the market weighed economic data, the US stock market closed on Friday with mixed gains and losses. Among them, the Dow achieved eight consecutive positive results and recorded its best weekly performance in 2024.
As of the close of the day, the Dow Jones Industrial Average rose 125.08 points, or 0.32%, to close at 39512.84 points; The Nasdaq fell 5.40 points, a decrease of 0.03%, to close at 16340.87 points; The S&P 500 index rose 8.60 points, or 0.16%, to close at 5222.68 points.
Popular Chinese concept stocks generally fell, with the Nasdaq China Golden Dragon Index closing 0.69% lower. Xiaopeng Automobile fell more than 5%, NIO fell nearly 5%, Ideal Automobile fell more than 2%, Baidu fell 2%, and iQiyi fell nearly 1%. Extreme Krypton rose over 34%, while Alibaba slightly rose 0.73%.
This week, the Dow Jones Industrial Average rose 2.16%, marking its best weekly performance since December last year and the fourth consecutive week of gains. The Nasdaq and S&P 500 have both risen for the third consecutive week, with cumulative gains of 1.14% and 1.85%, respectively.
In terms of the bond market, influenced by economic data, the 10-year US Treasury yield increased by over 5 basis points to 4.5%, and the two-year US Treasury yield increased by over 6 basis points to 4.87%.
CFRA Chief Market Strategist Sam Stovall has raised the year-end target price for the S&P 500 index from 4940 points to 5415 points, which means the index will rise 4% from its current level with an annual return of 13.5%. This is also one of the highest predicted levels on Wall Street currently, second only to the 5500 point set by John Stoltzfus, Chief Investment Strategist at Oppenheimer.
The US Consumer Confidence Index unexpectedly fell in May
In terms of economic data, the initial value of the University of Michigan Consumer Confidence Index in May was 67.4, the previous value was 77.2, and the expected level was 76. The data decreased by 12.7% month on month and 14.2% year-on-year. At the same time, consumer expectations for one-year and five-year inflation have increased. The one-year inflation expectation has jumped to 3.5%, the highest level since November 2023. The five-year inflation expectation has risen to 3.1%, the highest level since November 2023. Consumer survey director Joanne Hsu stated that consumers are concerned that inflation, unemployment, and interest rates will all move towards the next year
Minneapolis Fed Chairman Kashkari and Chicago Fed Chairman Goolsby have shown patience in their monetary policy in the face of unexpectedly strong inflation data this year. Kashkari said he is now in a wait-and-see mode, using more data to determine whether inflation will continue or be stagnant.
Gullsby stated that inflation is expected to continue to decline in 2024 and will not be accompanied by an economic recession or have a particularly negative impact on the labor market. He also stated that the US monetary policy is relatively tight. Based on the substantial progress made in inflation in 2023, he is unwilling to overly focus on the unexpectedly strong economic data in the first quarter of this year.
Federal Reserve: Increased default rates on commercial real estate and consumer loans
The Federal Reserve has warned that although the US banking system remains resilient, default rates on commercial real estate and consumer loans are increasing. The Federal Reserve stated in its report that the default rates on some commercial real estate loans and consumer loans have risen above pre pandemic levels. Despite a rebound in office occupancy, it is still below pre pandemic levels. At the same time, the default rate of consumer credit card loans in 2023
Extreme Krypton’s first day of listing surged by 34%
On the company side, Geely Holding Group’s luxury electric vehicle brand, Geely Krypton, landed on the New York Stock Exchange on Friday with the trading code “ZK” and an IPO price of $21 per share, which is at the highest end of the expected range. The opening price was $26, up 34.57% on the first day and closing at $28.26. This is the largest Chinese company to go public in the United States since 2021. Since its establishment in 2021, the company has completed its IPO in just three years. After going public, Geely will have over 50% of the voting rights of the company.
Oklo, a US nuclear fission startup, is listed on the New York Stock Exchange and is chaired by Sam Altman, co-founder and CEO of OpenAI. Oklo went public through a special purpose acquisition company (SPAC) called AltC Acquisition Corp., founded and led by Ultraman. Oklo currently has no revenue, and the company plummeted 53.65% on its first day of listing, closing at $8.45 with a market value of approximately $364 million.
Gold prices have risen by 1.5%, with a cumulative increase of 2.9% this week
In the commodity market, as traders weigh supply and demand, the WTI crude oil futures for June delivery fell 1.3% to close at $78.26 per barrel, with a cumulative increase of 0.2% this week. The Brent crude oil futures for July delivery fell 1.3% to close at $82.79 per barrel, the lowest since March 12th. The cumulative decline of oil distribution this week is 0.2%.
The price of gold futures for June delivery on the New York Mercantile Exchange rose 1.5% to close at $2375 per ounce. The cumulative increase in gold prices this week is 2.9%, the best weekly increase since April 19th.