GuShiio.com 1. The news of “Microsoft’s resigning of the data center” triggered a general decline in AI concept stocks, with Nvidia falling more than 3%;2. The AI application star stock Palantir hit its biggest one-day decline since May last year;3. The Nasdaq China Golden Dragon Index closed down 5.24% on Monday, with Alibaba and Beili falling more than 10%;4. Summit Medical and Pfizer reached a research cooperation.
Cailian News, February 25 (Editor Shi Zhengcheng)Last night and this morning, the U.S. stock market continued its struggling performance last Friday. Under the impact of the “skepticism on computing power demand” triggered by Microsoft, technology stocks collectively weakened, dragging down the S & P and Nasdaq Index for the third consecutive trading day.
As of Monday’s close, the Standard & Poor’s 500 Index fell 0.5% to 5,983.25 points; the Nasdaq Composite Index fell 1.21% to 19,286.92 points; and the Dow Jones Industrial Average rose 0.08% to 43,461.21 points.
(Daily chart of the S & P 500 Index, source: TradingView)
Overall, the U.S. stock market is still in a period of shock before the “critical decisive battle.” Counting Monday, the S & P 500 has not seen a consecutive decline of more than 1% for 35 trading days, and the index only hit a record high last Wednesday.
After hours Wednesday,Nvidia will release “the most important earnings report in the universe” and key PCE inflation data will be available before Friday’s session。Judging from the experience of the past two years, both events have been triggers for sharp market volatility-just it’s not clear which direction they will go.
Christian Floro, strategist at Principal Global Investments, explained thatAs the U.S. stock market has recorded double-digit percentage returns over the past two years and currently extremely expensive valuations, investors are increasingly worried about whether U.S. stocks have peaked.
Floro said: “Bull markets do not die simply because they last for a long time, and history shows that the Fed’s monetary policy stance plays an important role in determining market conditions. Most market declines of more than 10% since 1995 have been related to the Fed’s active shift to a hawkish stance or continued restrictive policies for too long.”
Considering that there is no sign of a “hard landing” for the U.S. economy, Floro believes that there is still a “narrow but feasible” path for continued growth in the market, especially if the profit growth rate of listed companies can continue to meet market expectations. However, uncertainty about future policies brings significant risks, and prudent investors should remain vigilant.
The intraday auction of two-year U.S. Treasury bonds received record demand, and the yield on 10-year U.S. Treasury bonds fell nearly 3 basis points to a low since mid-December last year.
In the state of suffering from market turmoil, operating profits were reported to surge last weekend, and cash was still in hand.Berkshire, which holds record cash reserves, rose 4% on Monday, continues to hit a record high.
(Berkshire A daily chart, source: TradingView)
Performance of hot stocks
Almost all U.S. technology giants fell, with only Apple, which announced a $500 billion investment plan before the market, rising 0.63%. Microsoft fell 1.03%, Amazon fell 1.79%, Nvidia fell 3.09%, Google-A fell 0.23%, Tesla fell 2.15%, Meta fell 2.26%, Ultramicro Semiconductor fell 2.46%, and Intel fell 2.41%.
China stocks, which have recently gained fierce momentum, have also been affected by market sentiment and Trump’s relevant policies. The Nasdaq China Golden Dragon Index closed down 5.24% on Monday.
At the close, Alibaba fell 10.23%, Jingdong fell 7.33%, Baidu fell 3.74%, Panduo fell 8.81%, Beilai fell 10.04%, Nilai fell 1.80%, Netease fell 4.19%, Futu Holdings fell 9.16%, Ideal Car fell 4.01%, Wanguo Data fell 11.57%, Jinshan Cloud fell 10.74%, and Century Internet fell 8.94%.
other messages
[Apple announced that it will invest US$500 billion in the United States, including AI server factories]
On Monday (February 24) local time, Apple announced that it plans to invest US$500 billion and create 20,000 new jobs in the United States over the next four years. Apple said that the 20,000 new jobs will be mainly concentrated in the fields of research and development, silicon engineering and artificial intelligence. The company will work with partners to build a 250,000-square-foot manufacturing facility in Houston to produce servers for “Apple Intelligence”, which is expected to begin operations in 2026.
[Microsoft responds to “decommissioning data center”]
In response to investment bank research reports that Microsoft is decommissioning its data center in the United States, the company responded on Monday that there has been no change in capital expenditures of $80 billion this fiscal year, although “the pace of strategy may be adjusted in some areas or our infrastructure.” But the company will continue to grow strongly in all regions.
[AI application star Palantir hit its biggest one-day drop since May last year]
Palantir, a star stock of US AI applications, closed down 10.53% on Monday, not only falling for the fourth consecutive trading day, but also the largest one-day decline since May last year. Last week’s decline was mainly due to company CEO Alex Karp’s disclosure of new sales plans, while reports that U.S. Defense Secretary Hagesese had plans to cut the budget also upset the company, which relies on government contracts.
[Telemedicine concept stock Hims Hers plunged after releasing its earnings report]
Telemedicine concept stock Hims Hers Health reported earnings after hours on Monday. Although profits and revenue exceeded expectations, its share price plunged 20% in after-hours trading. Revenue in the fourth quarter reached US$481 million, a year-on-year increase of 95%, exceeding market expectations. However, the gross profit margin was 77%, lower than the expected 78.4%. It was the company’s second plunge in just a few days, with shares falling 26% on Friday after the FDA announced there was no longer a shortage of semigroutide.
The core selling point of Hims Hers Health is the semigroutide compound drug, and the company’s share price has increased by 100%+ for two consecutive years. When branded therapies are in short supply, compound drug manufacturers are allowed to produce these drugs. The FDA said it will begin taking action against violations by combination drug manufacturers within the next 60 to 90 days.
[Summit Medical and Pfizer enter into research cooperation]
Summit Therapeutics announced on its official website that it has reached a research cooperation with Pfizer on the Kangfang ADC variety ivonescimab (Ivosi). The collaboration will evaluate the joint use of Ifossa and Pfizer’s ADC products in single, different solid tumor settings. As of Monday’s close, Summit Therapeutics closed down 14.83%.
[Tesla is reported to be preparing to update software to deploy FSD functions in China]
According to media reports quoted people familiar with the matter, Tesla is preparing software updates for China customers to provide driving assistance functions similar to “fully autonomous driving”(FSD) in the U.S. market. People familiar with the matter said updates planned for some time in the future will allow Tesla owners to use driver assistance features on urban roads. Tesla plans to tell customers that the system will guide vehicles onto exit ramps and intersections and be able to identify traffic signals, turns, handle lanes and speed changes. The features will be deployed to customers who have already paid 64,000 yuan ($8800) for what Tesla calls FSD. People familiar with the matter said the feature will be rolled out on some models and gradually expanded.
