In May, the U.S. CPI accelerated by 8.6% year-on-year. After a slight decline in April, it failed to continue to slow down. Instead, it refreshed the highest growth rate in 40 years in March, which surprised the market. The CPI data extinguished the hope of peaking inflation in the United States, the decline of European stocks expanded, and the three major US stock indexes opened lower and continued to decline throughout the week.

The sector of technology stocks continued to lead the decline in U.S. stocks on Friday, with Nvidia down nearly 6%, and Amazon and Netflix down more than 5%. Most of the Chinese concept stocks that fell on Wednesday rebounded against the market. NetEase and Pinduoduo rose nearly 4% in intraday trading, and JD.com rose by more than 1%, becoming a rare bright spot among the Nasdaq 100 constituent stocks. Station B, which fell more than 10% on Thursday, rose more than 3%. Like European stocks, U.S. stocks were led the week lower by the sector of banking stocks hit by a flatter bond yield curve.

Rate hike expectations surged to the highest level this cycle, with traders expecting the Fed to raise rates by 50 basis points each in June, July and September, while expectations for subsequent rate cuts have also surged. Wall Street began to discuss whether the Fed will raise interest rates by 75 basis points. Barclays became the first major Wall Street bank to expect a 75 basis point rate hike, and even expected a rate hike of this magnitude next week. The swap market expects a 75 basis point rate hike in July. The probability of a basis point is 50%.

U.S. Treasury yields rose across the board after the CPI announcement. The yield on the benchmark 10-year U.S. Treasury note rose above 3.10 percent intraday for the first time in a month, up more than 10 basis points on the day. The yield on the 2-year U.S. Treasury note, which is more sensitive to the outlook for interest rates, rose above 3.00 percent, the highest since 2008, and rose close to 26 basis points on the day. U.S. long-term bond yields have lagged behind short-term bond yields, the yield curve has flattened significantly, and some yield curves have inverted.

The dollar index jumped after the CPI announcement, breaking above 104.00 intraday for the first time in more than three weeks. Japanese officials rarely issued a signal to intervene in the foreign exchange market, saying that they will pay more urgent attention to foreign exchange. The yen exchange rate, which has been falling for several days, refreshed the intraday high and rose by more than 0.7%, but since then, as the dollar strengthened, the yen returned to the decline, and the dollar rose above 134.00 against the yen again, approaching the 20-year record set on Thursday. high.

Among commodities, the sell-off of U.S. stocks intensified risk aversion, and gold, one of the safe havens, rebounded strongly. New York gold futures erased the intraday decline of more than 1% and turned higher, hitting a high in more than a month. Under the blow of a stronger dollar, international crude oil continued to fall, but maintained its gains throughout the week, marking the longest consecutive weekly gain in four months.

The three major U.S. stock indexes recorded their biggest losses in three consecutive weeks. The technology sector continued to lead the decline. The financial sector led the decline for the whole week.

The three major U.S. stock indexes continued to open lower collectively. When the daily low was refreshed in late trading, the Dow Jones Industrial Average fell by more than 880 points and fell by more than 2.7%. The S&P 500 and the Nasdaq Composite fell by nearly 3% and more than 3.6%, respectively. .

In the end, the three major indexes collectively closed down for three consecutive days, the largest closing decline since May 18 for two consecutive days. The Nasdaq continued to lead the decline, closing down 3.52% at 11340.02 points, hitting a new low since May 24, approaching the closing low since November 3, 2020, which fell below 11300 on May 24. The S&P closed down 2.91% at 3,900.86 points, hitting a new low since May 19. The Dow closed down 880 points, or 2.73%, at 31,392.79 points, a new closing low since May 20.

The value-heavy small-cap Russell 2000 closed down 2.73 percent, hitting a new low since May 25. The tech-heavy Nasdaq 100 closed down 3.56%, underperforming the broader market, hitting a new low since May 24, and both the Russell 2000 and the Russell 2000 fell for three straight days. Chinese concept stocks Pinduoduo, JD.com, and NetEase became the rare bright spots of closing gains among Nasdaq 100 constituent stocks.

The major U.S. stock indexes fell for two consecutive weeks this week, the biggest weekly decline since the week of January 21. The Dow fell 4.58%, the 10th weekly decline in the last 11 weeks, and last week ended the eight-week losing streak, the longest losing streak since 1923. The S&P fell 5.05%, the Nasdaq fell 5.60%, and the Nasdaq 100 fell 5.70%, all of which were the ninth weekly decline in the past ten weeks. The Russell 2000 fell 4.4 percent, its seventh weekly loss in the last eight weeks.

All major sectors of the S&P 500 closed lower for the second day in a row. The consumer discretionary sector, where Amazon and Tesla are located, led the decline by nearly 4.2%. The IT sector, where chip stocks such as Nvidia are located, fell nearly 3.9%. Financials and materials both fell by more than 3%. Industrials and Netflix, which led the decline on Thursday, are located The sector communication services fell nearly 3%. Except for consumer staples, which fell nearly 0.4%, and utilities, which fell nearly 0.8%, other sectors fell at least more than 1%. This week, the financial sector fell nearly 6.8%, leading the decline. IT, real estate and consumer discretionary also fell by more than 6%, industrial fell by nearly 5%, communication services and utilities fell by more than 4%, and the smallest decline was energy, which fell 0.9%. .

Leading technology stocks continued to fall together, at least more than 3%. Tesla closed down 3.1% to its lowest level since May 25, but after the market announced that it planned to discuss and approve the first stock split in two years at the shareholders meeting in early August, it quickly turned around after the market. rose, once more than 2%. Among the six major technology stocks of the original FAANMG and the current GANMMA, Amazon closed down 5.6% to a new low since May 25, Netflix fell 5.1% to a low since May 24, and Facebook parent company Meta closed down nearly 4.6%, a record high in April. New lows since the 27th. Apple and Microsoft, both in the IT sector, fell nearly 3.9% and 4.5%, respectively, both hitting new lows since May 20. Google’s parent company Alphabet fell 3.2% to its lows since May 26. These tech stocks have all fallen this week. Amazon fell by more than 10%, Netflix fell by more than 8%, Meta fell by nearly 8%, Microsoft fell by more than 6%, Apple fell by more than 5%, Alphabet fell by nearly 3%, and Tesla fell The smallest, cumulative decline of nearly 1%.

Chip stocks generally fell for three consecutive days, with the Philadelphia Semiconductor Index and semiconductor industry ETF SOXX closing down about 3.6%. Among the S&P 500 IT sector stocks, Nvidia closed down nearly 6%, Applied Materials fell 5%, AMD fell 4%, Ram Research fell more than 3%, Intel, Qualcomm, Broadcom, and Seagate Technology fell more than 2%.

Some popular Chinese concept stocks rebounded against the market trend, and Chinese concept ETFs KWEB and CQQQ closed up about 0.2%. The Nasdaq Golden Dragon China Index (HXC) closed down 0.9%. Among the four constituent stocks of the Nasdaq 100, Pinduoduo closed up 2.1%, NetEase rose more than 1.8%, JD.com rose nearly 0.2%, and Baidu, which turned down intraday, closed down 1.8%. Among other stocks, Station B, which closed down nearly 15% on Thursday, closed up more than 3%, TAL closed up nearly 13%, New Oriental rose more than 10%, the first e-cigarette stock fog core technology rose more than 6%, and Li Auto rose by more than 6%. Over 1%, Tencent Fanlist rose more than 0.5%, NetEase Youdao fell more than 14%, iQiyi and Weibo fell more than 6%, NIO fell more than 3%, Ctrip fell more than 2%, Tencent Music, Huya fell Over 1%, Xiaopeng Motors fell nearly 0.8%, and Alibaba fell less than 0.1%.

In terms of European stocks, the pan-European stock index fell for four consecutive days. Europe’s Stoxx 600 fell the most since May 9 and hit a new low since May 10. The stock indexes of major European countries continued to fall collectively on Friday, falling by at least more than 2%. The Italian stock index, which led the decline, fell by more than 5%, and the German, French and British stocks fell for four consecutive days, and the Spanish stock index fell for two consecutive days. All sectors closed down collectively for two consecutive days, falling at least more than 1% on Friday, led by banks that fell more than 4.8%, and basic resources, where tourism and mining stocks are located, fell more than 4%.

This week, the Stoxx 600 index fell nearly 4%, the largest weekly decline since March 4. It has fallen for two consecutive weeks and has fallen for the sixth week in the past nine weeks. Stock indexes in various countries have fallen for two consecutive weeks, with Italian stocks leading the decline by nearly 7%. All sectors fell for the week, with banking and financial services down nearly 6%, and oil and gas, the smallest decliner, down nearly 1%.

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