To The Moon

Amid further signs of tightening monetary policy, the major U.S. stock indexes from falling for the third week in a row, resulting in declines of around 2% to 4%.

$DJIA(.DJI)$ dropped 1.8%, $NASDAQ(.IXIC)$ declined 3.8%, $S&P 500(.SPX)$ decreased 2.7%, $XT ASX200 US$(LF1.SI)$ slightly dropped 0.67%, $Straits Times Index(STI.SI)$ increased 0.76%.

Macro Factors：

Half-point Hike? Based on public comments last Thursday from Jerome Powell, it’s looking increasingly likely that the U.S. Federal Reserve will accelerate the pace of its interest-rate increases, The Fed chair said the central bank is likely to raise its benchmark rate by a half percentage point at its meeting on May 4.

Yield Surge: Concerns about inflation and the pace of interest-rate increases continued to weigh on prices of government bonds, sending yields to the highest levels in three and a half years.

Earnings Surprises: With the earnings season now about 20% completed, the proportion of S&P 500 companies that had beaten analysts’ net income expectations(a 77% five-year average.) stood at 79% as of Friday, according to FactSet.

Q1 GDP Ahead:A report scheduled to be released on this Thursday will show whether the U.S. economy’s strong late 2021 momentum carried over into early 2022. The government will release its initial estimate of first-quarter GDP growth. In the previous quarter, the economy expanded at an annual rate of 6.9%; for full-year 2021, the rate was 5.7% on an inflation-adjusted basis—the fastest growth since 1984.

Other Markets：

USD/CNH Surged: USD/CNH rose to its highest level since August 2021, due to the Federal Reserve’s hawkish shift through the last several months, as the yield advantage of Chinese bonds has fallen sharply against US Treasuries.

Gold Retreated: Gold futures closed at $1,932.5 last Friday, a 2.2% decline from last week However, gold has surpassed the recent high of $2,040 in early March and reached $2,078 the week ago.

Oil Confirms $100:The U.S. crude oil tames $100 support price, The overall shock pattern is maintained. The long and short factors of oil prices are relatively balanced. The main driving factors for the rise are the sharp decline in US EIA crude oil inventories, and the geopolitical situation is still tense. The decline was driven by an expected drop in global crude oil demand.

Top Sectors of S&P 500 Index

Last Week, The Real Estate, is the only positive sector with a 0.57% increase. Communication Services, Basic Materials, Energy are the top 3 losers of industries last week.

Inside the Real Estate Sector, Home Furnishing and Fixtures company $Kimberly-Clark(KMB)$ gained the most of 8.13%.

The TOP 10 performances of S&P 500 last week were $United Continental(UAL)$ , $Kimberly-Clark(KMB)$ , $IBM(IBM)$ , $Twitter(TWTR)$ , $M&T Bank(MTB)$ , $Western Digital(WDC)$ , $SVB Financial Group(SIVB)$ , $Allegion PLC(ALLE)$ , $American Airlines(AAL)$ , $China Petroleum & Chemical(SNP)$ .

The week ahead: April 18-22