On Monday, May 11, the three major U.S. stock indices closed slightly higher, with the Dow Jones Industrial Average up 0.19%, the S&P 500 up 0.19%, and the Nasdaq Composite up 0.1%. Both the S&P 500 and Nasdaq reached new record highs. Driven by the surge in AI computing power, share prices of U.S. semiconductor-related companies continued to rise significantly. The Philadelphia Semiconductor Index gained over 2%, with companies like Nvidia, Micron Technology, Qualcomm, Intel, and AMD all hitting record intraday highs.
Most major technology stocks declined, with the Wind U.S. Tech Seven Giants Index falling 0.22%. Individually, Google dropped over 3%, marking its largest single-day decline since March. Meta (formerly Facebook) and Amazon fell more than 1%, Microsoft declined 0.59%, and Apple slipped 0.13%. On the upside, Tesla rose nearly 4%, while Nvidia gained close to 2%, reaching a new all-time high. The chip and semiconductor sector continued its strong rally, with the Philadelphia Semiconductor Index breaking through 12,000 points, rising over 2% to set another record. Intel surged over 3% after reaching a preliminary chip manufacturing agreement with Apple, closing at a record high. The agreement relates to system-on-chip products for data centers. On the downside, Taiwan Semiconductor Manufacturing Company (TSMC) fell over 1%, and ASML declined more than 1%. The storage chip segment performed notably well. Qualcomm jumped over 8%, Western Digital rose more than 7%, and Micron Technology gained over 6%, all closing at record highs. Seagate Technology advanced 6.56%, while SanDisk pulled back, falling nearly 1%.
Optical communication concept stocks rallied collectively. POET Technologies soared more than 26%, Applied Optoelectronics surged over 24%, Lumentum climbed over 16%, Credo Technology increased more than 11%, and Ciena rose over 6%. U.S. energy stocks moved higher as a group. ExxonMobil gained over 3%, Chevron rose more than 1%, ConocoPhillips advanced over 2%, Schlumberger increased more than 3%, and Occidental Petroleum climbed nearly 4%. The move followed a rise in international oil prices on May 11, with both WTI crude oil futures and Brent crude oil futures settling up nearly 3% at $98.07 per barrel and $104.21 per barrel, respectively. Chinese assets also advanced, with the Nasdaq Golden Dragon China Index rising 1.03%. Among individual stocks, new energy company Jiuzi Holdings surged 48%, Zai Lab and JinkoSolar gained over 5%, Li Auto rose nearly 5%, while Nio, XPeng Motors, and Baidu Group each increased more than 3%. On the decline, New Oriental fell nearly 3%, iQiyi and Alibaba dropped over 2%, and Pony.ai slipped close to 2%. In commodities, spot gold returned to $4,730 per ounce on the evening of May 11, while spot silver briefly rallied over 7%. In early trading on May 12, international gold and silver prices moved higher, with spot gold up 0.11% at $4,741 per ounce and spot silver up 0.54% at $86.43 per ounce. The Middle East situation has persisted for ten weeks, with the Strait of Hormuz remaining under control. As crude oil inventories are nearing depletion, the global energy market appears calm on the surface but is growing increasingly tense internally. Inflation has already been reflected in U.S. inflation index reports. If the Middle East situation is not resolved through negotiations soon or remains in limbo, its adverse economic effects could soon become apparent. The Consumer Price Index (CPI) report on May 12 and the Producer Price Index (PPI) report on May 13 are expected to show that personal and business consumption costs may continue to rise. The retail sales report on May 15 will indicate the impact of surging oil prices on consumer purchasing power. On May 13, the U.S. Senate is expected to vote on the nomination of Lael Brainard, with the anticipated outcome being approval. An unexpected result could lead to market volatility. Investment research suggests that investors should extend their reading on companies within popular themes. (Disclaimer: Article content is for reference only and does not constitute investment advice. Investors should act at their own risk.)
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