Market analysis for April 2

Today is April 2nd. The strong performance of the US ISM manufacturing data last night temporarily hit the market's expectations that the Federal Reserve will cut interest rates soon, causing some fluctuations in the US stock market. Against this backdrop, the S&P 500 and Dow Jones Industrial Average retreated, falling from their previous closing record highs, while the Nasdaq Composite almost recorded a second day of decline.

Google's stock price, on the other hand, rose against the market and hit a record high, while Tesla and Nvidia respectively smoothed out most of the declines and closed flat after experiencing intraday declines. Meanwhile, the chip stock index continued to rise, with Micron Technology's intraday increase of more than 5%. However, Trump Media's stock price plummeted by more than 21% after the earnings report was announced, taking back all gains since listing.

From an industry perspective, the rotation pattern of the US stock market has begun to emerge. The leading position of technology stocks has been challenged. Cyclical industries such as energy and finance performed well in the first quarter, showing a marked improvement in market breadth. Bank of America's analysis indicates that if the Federal Reserve does not cut interest rates, the US government's debt interest expenses may soar to 1.6 trillion US dollars, making it the government's biggest expenditure.

After the US ISM manufacturing index was released, US bond yields jumped, and the US dollar index also rose sharply, reaching a new high of more than four months. The release of this data not only affected the stock market, but also had an impact on the bond market and foreign exchange market. Both yen and Bitcoin declined, while crude oil and gold fluctuated.

On the Chinese market side, due to the strong domestic manufacturing PMI, A-shares rose sharply, and the three major indices opened high. Chinese securities listed in the US also showed strong performance. They had a good start in the second quarter and outperformed the market. Meanwhile, the offshore renminbi declined in the intraday period and fell below the 7.26 level.

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