Investors’ expectations for interest rate cuts have once again increased, with major indexes rising

In early trading on U.S. stocks on Friday (10th), investors\’ expectations for interest rate cuts once again increased. The Dow Jones Index rose 0.28%, the S&P 500 Index rose 0.26%, the Nasdaq Index rose 0.24%, and the Fed rose 1.47%.

In early trading on Friday (10th) U.S. stocks, investors\’ expectations for an interest rate cut increased again. The Dow Jones index rose 0.28%, the S&P 500 index rose 0.26%, the Nasdaq index rose 0.24%, and the Fed rose 1.47%.
Before today, the Dow was on a seven-day winning streak, its longest stretch since a nine-day streak in December.
The S&P 500 also rose on Thursday, closing above 5,200 for the first time since early April.
Investors have become more optimistic recently after the Federal Reserve said it was unlikely to raise interest rates next and noted that a rate cap could be a boon for stocks.
So-called value and cyclical stocks are helping extend a rally previously driven by tech giants.
A strong earnings season and some weak labor force data also boosted confidence in the stock outlook.
A higher-than-expected number of U.S. initial jobless claims provided support for a rate cut.
Traders will be watching for hints from Fed officials including Michelle Bowman and Neel Kashkari on the timing of easing policy ahead of next week\’s consumer price index data.
The yuan weakened after news earlier on Friday that the Biden administration was preparing to announce a comprehensive decision on new tariffs on China as soon as next week.
The measures are expected to focus on existing taxes on industries such as electric vehicles, batteries and solar cells, which will remain largely unchanged.
As of 21:00 Taipei time on Friday: The Dow Jones Index rose 110.49 points or 0.28% to temporarily trade at 39498.25 points. The Nasdaq rose 38.94 points or 0.24% to temporarily trade at 16385.21 points. The S&P 500 rose 13.37 points or 0.26% to temporarily trade at 5227.45 points. Half rose 70.05 points or 1.47% to temporarily trade at 4829.82 points. TSMC ADR rose 4.08% to $148.62 per share. The ten-year U.S. Treasury bond yield rose 2 basis points to 4.47%. New York light crude oil rose 0.61% to $79.74 per barrel. Brent crude oil Gold rose 0.48% to $84.28 per barrel. Gold rose 0.67% to $2,361.85 per ounce. The U.S. dollar index rose 0.08% to 105.31. Focus stocks: Novavax (NVAX-US) rose 120.58% to $9.86. Novavax announced an agreement with French pharmaceutical giant Sanofi. A multi-billion dollar partnership agreement.
Under the agreement, the two parties will jointly commercialize Novavax Pharmaceuticals\’ new coronavirus vaccine starting next year and jointly develop a combination vaccine against coronavirus and influenza.
Novavax CEO John Jacobs said the licensing agreement will help the company lift its previously issued \”going concern\” warning.
Novavax\’s first-quarter loss of $1.05 per share was higher than analysts\’ expectations of $0.92.
The company\’s revenue of $93.85 million was well below the consensus estimate of $141.16 million.
Apple (AAPL-US) rose 0.24% to US$184.76. Apple has changed its AI route and will use self-developed data center chips to support AI functions through hardware devices and the cloud this year.
Reports indicate that Apple was planning to use self-developed chips to handle AI tasks in the cloud three years ago. However, with the huge AI wave caused by ChatGPT, Apple was forced to advance this plan.
Sources say Apple is putting high-end chips similar to those it designs for Macs into cloud computing servers designed to handle AI tasks.
Simpler AI-related functions will be handled directly on iPhone, iPad and Mac computers.
Tesla (TSLA-US) fell 0.4% to $171.28, according to people familiar with the matter. Tesla\’s layoffs in China are expanding.
Musk is under increasing pressure to regain share of China, the world\’s largest auto market.
People familiar with the matter said further layoffs began earlier this week, extending the layoffs in mid-April.
Tesla is cutting 10% of its global workforce.
They said the latest disruption affected a range of departments at Tesla\’s Shanghai factory, including customer service staff, engineers, production line workers and logistics teams.
Wall Street analysis: Chris Hyzy, chief investment officer at Merrill Lynch and Bank of America Private Bank, sees reason to believe we may be in the early stages of a long-term bull market amid the impending interest rate cuts.
Morgan Stanley analysts reported this week that running generative artificial intelligence applications in the background will be a key challenge for future laptop battery life and thermal design.
Morgan Stanley noted that Arm-based CPUs are known for their energy efficiency and thermal control, which results in longer battery life and more compact designs, adding that they \”demonstrate clear advantages in energy efficiency.\”
Therefore, the bank expects Arm-based AI PCs to \”start changes affecting the global semiconductor industry.\”

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