① Most popular china concept stocks declined, with the Nasdaq China Golden Dragon Index closing down 1.09%; ② AMD will cut about 4% of its global workforce; ③ Budget airline Spirit Airlines is on the verge of bankruptcy; ④ The possibility of the Federal Reserve cutting interest rates by 25 basis points at the December meeting exceeds 82%.
On November 14, Caixin reported (Editor: Niu Zhanlin) that on Wednesday Eastern Time, the three major U.S. stock indices closed mixed, after the October Consumer Price Index (CPI) met expectations, further supporting bets that the Federal Reserve will cut interest rates in December.
Data released by the U.S. Bureau of Labor Statistics showed that the CPI for October rose 0.2% month-on-month and 2.6% year-on-year, both meeting market expectations, marking the end of the "CPI six consecutive declines"; the core CPI remained at 3.3%, the same as in September.
Analyst Lindsay Rosner from Goldman Sachs Asset Management stated, "After a series of exceptionally strong autumn data, today's data alleviated concerns about the Federal Reserve slowing down its pace of interest rate cuts."
CME Group's FedWatch showed that after the CPI report was released, traders expect a greater than 82% chance that the Federal Reserve will cut interest rates by 25 basis points at the December meeting, significantly higher than Monday's 58.7%.
Angelo Kourkafas, senior investment strategist at Edward Jones, stated that the inflation did not exceed expectations, bringing some relief. "We received an expected number, which helps alleviate some concerns. From today's data, there are no signs indicating that the Federal Reserve should not cut rates at its December meeting."
However, Dallas Fed President Logan stated that the Federal Reserve should proceed cautiously with further interest rate cuts to avoid inadvertently reigniting inflation. Kansas City Fed President George claimed that the Federal Reserve's rate-cutting actions so far indicate that decision-makers are increasingly confident in the decline of inflation, but the path for future cuts remains to be seen.
St. Louis Fed President Bullard believes that the Federal Reserve is in the "final mile" of combating inflation, but recent data indicates that the risk of progress slowing down or reversing has increased. This statement emphasizes the complexity and potential difficulties the Federal Reserve faces in achieving its inflation targets.
Despite concerns over an inflation rebound, investors remain optimistic about the pro-business stance of the incoming Trump administration and possible tax cuts. American media predicted that the Republican Party won a majority not only in the Senate but also in the House of Representatives that day.
Venu Krishna, head of U.S. stock strategy at Barclays, commented: "The market has responded quite positively to the election results, and much of the optimism has already been priced in. However, some uncertainties stemming from significant policy changes have not yet been fully digested."
Market Dynamics
By the close, the Dow gained 47.21 points, an increase of 0.11%, closing at 43,958.19 points; the Nasdaq fell 50.66 points, a decrease of 0.26%, closing at 19,230.74 points; the S&P 500 index rose 1.39 points, an increase of 0.02%, closing at 5,985.38 points.
Most U.S. industry etfs closed lower, with the semiconductor etf down 1.68%, the banks etf falling over 0.7%, the regional banks etf down over 0.6%, the technology sector etf down over 0.3%, while the internet stock index etf rose more than 0.3%, and the energy and consumer discretionary etfs increased by about 0.8%.
The 11 sectors of the S&P 500 index closed mixed, with the information technology/technology sector down 0.31%, the medical sector down 0.3%, the real estate sector up 0.73%, the energy sector up 0.84%, the financial sector up 0.07%, and the consumer discretionary sector up 1.15%.
Popular stocks performance
Most large technology stocks rose, with intel increasing by over 3%, amazon up over 2%, netflix rising by more than 1%, while microsoft, apple, and tesla saw slight increases; nvidia and google fell by more than 1%, while Meta experienced a slight decline.
Electric vehicle manufacturer Rivian surged over 13%, and Volkswagen will increase its investment in the company to 5.8 billion USD.
Most china concept stocks fell, with the Nasdaq Golden Dragon China Index closing down 1.09%. New Oriental fell over 4%, Xiaopeng Motors, Tencent Music, and iqiyi each dropped over 2%, while zhihu soared over 13%.
Company news
[OpenAI shares AI datacenter construction plans with the US government, calling for an expansion of energy capacity]
OpenAI has shared with US government officials information on how to build an ai datacenter, which is expected to consume 5 gigawatts of electricity (this scale will be five times larger than the datacenter currently being developed by the company). This concept seems similar to "Stargate," which is the code name for a supercomputing datacenter valued at 100 billion USD that OpenAI has discussed with its main supporter, microsoft.
[AMD plans to cut about 4% of its global workforce]
AMD stated on Wednesday that as part of aligning resources with growth opportunities, it is taking some targeted steps, which unfortunately will result in a global layoff of about 4%. We are committed to treating affected employees with respect and helping them through this transition period. According to a filing with the US Securities and Exchange Commission, AMD had 26,000 employees at the end of last year. This means more than 1,000 people will be affected, though the exact number remains unclear.
[Low-cost airline Spirit Airlines is soon to declare bankruptcy]
According to reports from informed sources, after the merger talks with Frontier Airlines collapsed, Spirit Airlines is preparing to file for bankruptcy protection. The Florida-based low-cost airline is engaged in deep negotiations with bondholders to finalize a bankruptcy plan supported by the majority of creditors, as the company struggles with increasing losses and impending debt. Informed sources stated that Spirit Airlines is preparing to file for bankruptcy in the coming weeks.