US stocks welcome the progress of China-US talks! Nasdaq rose by more than 4% and returned to the bull market, China is stronger, Alibaba rose by nearly 6%, U.S. bond gold plunged

Source: Wall Street News

The high-level China-US economic and trade talks reached a consensus and significantly reduced the bilateral tariff level. The three major US stock indexes recorded their largest daily gains in a month. Global trade tensions eased, expectations of an economic recession moderated, investors reduced their bets on the Federal Reserve's interest rate cuts, and US bonds and gold prices plunged. Multiple commodities led by crude oil rose.

Xinhua News Agency stated that the China-US economic and trade talks relieved pressure and increased confidence for the global economy. US stocks soared, chip stocks led the technology sector, and Chinese-listed stocks outperformed the broader market.

Before the opening of US stocks, the Chinese Ministry of Commerce released the Joint Statement of the China-US Economic and Trade Talks in Geneva. The United States will modify the ad valorem tariffs imposed on Chinese goods (including goods from the Hong Kong Special Administrative Region and the Macau Special Administrative Region) as stipulated in Executive Order 14257 of April 2, 2025. Among them, the 24% tariff will be suspended for the initial 90 days, while the remaining 10% tariff on these goods will be retained as specified in the executive order.

After the opening of US stocks, the Nasdaq, which has a high proportion of technology stocks, led the gains among the three major stock indexes, rising more than 4% at one point. Chinese-listed stocks soared, with the China stock index rising more than 5.6%. Xiaopeng Motors rose more than 8% at one point, and Alibaba rose about 7% at the beginning of trading. The expectations of a US economic recession have significantly slowed down, and Goldman Sachs has significantly postponed the expected time of the Federal Reserve's interest rate cuts. The yield on the 2-year US Treasury bond rose more than 10 basis points and rebounded above 4.00%. The US dollar index rose more than 1% during the session, gold futures plunged more than 4%, and US oil once rose more than 4%.

In the early trading of US stocks, Trump signed an executive order, vowing to reduce US pharmaceutical prices by 50% to 80% or even 90%. Analysts said that the wording of the executive order is vague and there are almost no specific implementation details, and it is not as bad as what pharmaceutical companies expected. The gain of the affordable weight-loss drug company Hims narrowed to nearly 6%, and Eli Lilly turned positive after falling nearly 1.7% at the beginning of trading.

On Monday, the three major US stock indexes recorded their largest single-day percentage gains since April 9. The stock prices of major global technology companies rose sharply across the board, and chip stocks led the technology sector. Tesla's stock price rose nearly 7%, and its market value broke through the $1 trillion mark again. Most AI concept stocks rose, and Advanced Micro Devices rose more than 9% at one point. All sectors except utility stocks rose, and the semiconductor ETF closed up nearly 6.3%.

The three major US stock indexes:

The S&P 500 index closed up 184.28 points, or 3.26%, at 5844.19. The year-to-date decline of the S&P has narrowed to only 0.6%.

The Dow Jones Industrial Average closed up 1160.72 points, or 2.81%, at 42410.10.

The Nasdaq closed up 779.43 points, or 4.35%, at 18708.34. The Nasdaq 100 index closed up 806.70 points, or 4.02%, at 20868.15.

The Russell 2000 index closed up 3.42%, at 2092.20.

The CBOE Volatility Index (VIX) closed down 15.98%, at 18.40.

US stock industry ETFs:

The semiconductor ETF closed up 6.27%, and the consumer discretionary ETF rose 4.97%.

The biotech index ETF, technology sector ETF, regional bank ETF, global technology stock index ETF, banking ETF, and internet stock index ETF all rose at least 4%.

The "Magnificent 7" of US technology stocks:

The index of the seven major US technology stocks (Magnificent 7) rose 5.35%, or 156.94 points.

Amazon closed up 8.12%, Meta Platforms rose 7.92%, Apple rose 6.31%, NVIDIA rose 5.44%, Alphabet (Google A) rose 3.73%, and Microsoft rose 2.38%.

Chip stocks:

The Philadelphia Semiconductor Index closed up 7.04%, at 4780.93.

Taiwan Semiconductor Manufacturing Company's ADR closed up 5.93%, and Advanced Micro Devices rose 5.13%.

On Semiconductor and Microchip Technology soared 9% and 10% respectively.

AI concept stocks:

Applovin closed up 5.89%, Tempus AI closed up 2.15%, and Palantir rose 0.99%.

Chinese-listed stocks:

The Nasdaq Golden Dragon China Index closed up 5.40%, at 7449.06, approaching the closing level of 7550.00 on April 3.

Popular Chinese-listed stocks Xiaoma Zhixing (XPeng Motors) initially closed up 11.8%, Fangdd Network and Xiaopeng rose more than 8%, Bilibili rose more than 7%, JD.com, Li Auto, and Pinduoduo rose more than 6%, Alibaba, NIO, and Baidu rose more than 5%, Tencent, New Oriental Education & Technology Group, and Yum China Holdings rose more than 4%.

Other individual stocks:

Berkshire Hathaway's Class B shares under Buffett rose 0.11%.

Coinbase will be included in the S&P 500 index, and its stock price rose more than 8% after trading.

The share price of Newmont Corporation, the world's largest gold producer, plunged nearly 6% due to the decline in gold prices.

The European STOXX 600 index closed up 1.2%, the raw materials sector rose about 5%, and the technology and tourism sectors rose more than 3%. The German stock index rose about 0.3% and continued to hit a new closing high. The Italian bank index rose more than 2.2%, and the Swedish stock index rose more than 3.1%.

Pan-European stocks:

The European STOXX 600 index closed up 1.21%, at 544.49.

The Euro Stoxx 50 index closed up 1.56%, at 5392.36.

Stock indexes of various countries:

The German DAX 30 index closed up 0.29%, at 23566.54, hitting a new closing high for the second consecutive trading day.

The French CAC 40 index closed up 1.37%, at 7850.10.

The UK's FTSE 100 index closed up 0.59%, at 8604.98.

Sectors and individual stocks:

In terms of sectors, the STOXX 600 Basic Resources Index rose 4.98%, the technology index rose 3.44%, and the travel and leisure index rose 3.15%.

Among all the constituent stocks of the European STOXX 600 index, Maersk's Class B shares rose 11.22%, Standard Chartered Group rose 9.6%, and Carnival rose 9.38%.

Among the blue-chip stocks in the eurozone, Infineon closed up 8.19%, LVMH Group rose 7.01%, and Stellantis, ASML Holding, Kering, and Prosus, which rose between 6.85% and 5.18%, entered the top six performers.

Traders expect the Federal Reserve to cut interest rates only twice this year. US bonds were sold off, led by short-term Treasury bonds. The 2-year bond yield rose more than 10 basis points, and the yield rebounded to 4.00%. Traders also lowered their expectations for the extent of the European Central Bank's interest rate cuts this year. Swap transactions show that the European Central Bank will cut interest rates by 46 basis points by the end of the year, 14 basis points lower than last Friday. The yield on the 2-year German bond rose about 13 basis points.

US bonds:

At the end of trading in New York, the yield on the 10-year US Treasury bond rose 8.45 basis points, to 4.4630%. It was in an upward trend throughout the day, trading in the range of 4.3981% to 3.4669%.

The yield on the 2-year US Treasury bond rose 10.47 basis points, to 3.9956%. It traded in the range of 3.9077% to 4.0166% during the day.

European bonds:

At the end of trading in the European market, the yield on the 10-year German bond rose 8.6 basis points, to 2.648%. The yield on the 2-year German bond rose 12.8 basis points, to 1.913%. It traded in the range of 1.821% to 1.923% during the day.

At the end of trading in the European market, the yield on the 10-year UK bond rose 7.4 basis points, to 4.642%. The yield on the 2-year UK bond rose 8.9 basis points, to 3.998%.

At the end of trading in the European market, the yields on the 10-year sovereign bonds of France, Italy, Spain, and Greece in the eurozone rose about 6 basis points.

The expectations of the Federal Reserve's interest rate cuts have significantly decreased, and the US dollar index rose about 1.5% on Monday. Bitcoin was hit hard, falling below $102,000 after surging to nearly $106,000 overnight.

The US dollar:

At the end of trading in New York, the ICE US Dollar Index rose 1.47%, to 101.816. It was in an upward trend throughout the day.

The Bloomberg Dollar Index rose 0.99%, to 1239.44. It traded in the range of 1227.85 to 1241.71 during the day.

Non-US currencies:

At the end of trading in New York, the euro fell 1.44% against the US dollar, the British pound fell 0.96% against the US dollar, and the US dollar rose 1.68% against the Swiss franc.

Among the commodity currencies, the Australian dollar fell 0.65% against the US dollar, the New Zealand dollar fell 0.94% against the US dollar, and the US dollar rose 0.29% against the Canadian dollar.

The Japanese yen:

At the end of trading in New York, the US dollar rose 2.14% against the Japanese yen, to 148.47 yen. It traded in the range of 145.70 to 148.65 yen during the day.

The euro rose 0.67% against the Japanese yen, and the British pound rose 1.15% against the Japanese yen.

Offshore RMB:

At the end of trading in New York, the offshore RMB against the US dollar was reported at 7.2006 yuan, falling 397 points compared with the end of trading in New York last Friday. It traded in the range of 7.2406 to 7.1922 yuan during the day.

Cryptocurrencies:

At the end of trading in New York, the main contract of CME Bitcoin futures BTC fell 1.66% compared with the end of trading in New York last Friday, to $102,000.

The main contract of CME Ether futures DCR rose 5.04%, to $2460.50.

Analysts said that the easing of global trade tensions will boost crude oil demand. US crude oil futures closed up more than 1.5%, and New York natural gas fell more than 3.9%.

Crude oil:

WTI June crude oil futures closed up $0.93, or more than 1.52%, at $61.95 per barrel.

Brent July crude oil futures closed up $1.05, or more than 1.64%, at $64.96 per barrel.

Natural gas:

NYMEX June natural gas futures closed down more than 3.92%, at $3.6460 per million British thermal units.

The risk aversion sentiment slowed down. At the same time, the US dollar index soared, and the gold price fell about 2.7%, approaching $3200 at one point. The Philadelphia Gold and Silver Index closed down more than 6.9%.

Gold:

At the end of trading in New York, spot gold fell 2.69%, to $3235.37 per ounce. It was in a downward trend throughout the day.

COMEX gold futures fell 2.76%, to $3240.10 per ounce.

Silver:

At the end of trading in New York, spot silver fell 0.43%, to $32.5880 per ounce.

COMEX silver futures fell 0.42%, to $32.775 per ounce.

Other metals:

At the end of trading in New York, COMEX copper futures fell 0.47%, to $4.6320 per pound.

LME copper futures closed up $75, at $9520 per ton.

LME aluminum futures closed up $62, at $2480 per ton. LME tin futures closed up $689, at $32574 per ton. LME nickel futures closed down $169, at $15635 per ton.

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