Global News | U.S. stocks broadly decline, S&P slightly down, Federal Reserve officials show clear divergence on monetary policy

【U.S. Stock Indices】

On February 19th, Eastern Time (Thursday), the three major U.S. stock indices all closed lower, with the S&P 500 down 0.28% to 6,861.89; the Dow Jones Industrial Average down 0.54% to 49,395.16; and the Nasdaq Composite down 0.31% to 22,682.73.

【U.S. Bonds】

On February 19th, the benchmark 10-year U.S. Treasury yield was 4.08%, and the yield on the 2-year U.S. Treasury, most sensitive to Federal Reserve policy rates, was 3.47%.

【Popular U.S. Stocks】

Among popular U.S. stocks, Nvidia fell 0.04%, Apple fell 1.43%, Google Class C fell 0.13%, Google Class A fell 0.16%, Microsoft fell 0.06%, Amazon rose 0.03%, TSMC fell 0.47%, Meta rose 0.24%, Tesla rose 0.10%, Super Micro Semiconductor rose 1.62%, and Intel fell 1.85%.

【Global Indices】

【China Indices】

On February 19th, the Nasdaq China Golden Dragon Index declined 0.35%.

【Chinese Concept Stocks】

In popular Chinese concept stocks, Tencent Holdings (HK) rose 0.19%, Alibaba fell 0.96%, Pinduoduo fell 0.94%, NetEase fell 0.44%, Baidu fell 0.55%, Ctrip fell 2.28%, Li Auto was unchanged, XPeng Motors fell 0.48%, and NIO rose 0.31%.

【Forex and Commodities】

【Global News】

Fed Kashkari: Artificial Intelligence Investment May Be Driving Up Neutral Interest Rates

Fed Kashkari: Artificial intelligence investment may be pushing up neutral interest rates.

Fed Kashkari: U.S. Labor Market Remains Resilient

Fed Kashkari stated that the U.S. labor market remains quite resilient, though it has slowed, it is still “pretty good or even quite strong.” (Cailian Press)

European Central Bank Vice President Says No Signs of Lagarde Planning to Resign Early

European Central Bank Vice President Luis de Guindos said he has seen no signs from Christine Lagarde indicating she plans to resign as ECB President. The Financial Times reported Wednesday that Lagarde will leave before her term ends in 2027 to allow the soon-to-be-outgoing French President Macron to influence the selection of her successor. The ECB stated that Lagarde is “fully focused on her mission,” but did not clarify whether she will serve the full term. “We have seen some reports,” Guindos said Thursday at an event in Valencia. “But I have not received any signs from the President regarding this.” (Cailian Press)

ECB Official De Marco Says If Inflation Remains Below 2%, Rate Cuts May Be Needed

ECB official De Marco said that if inflation remains below 2%, rate cuts may be necessary. (Cailian Press)

Elon Musk Says ‘For You’ Recommendation Feature on X Platform May Be Delayed Until This Weekend

Elon Musk said the “For You” recommendation feature on X platform may be delayed until this weekend. (Cailian Press)

Federal Reserve Officials Show Clear Divergence on Monetary Policy Direction

The Fed’s January meeting minutes released on the 18th show that although nearly all FOMC members supported holding the benchmark interest rate steady, there was significant divergence within the committee on future monetary policy. At the January 28 meeting, 10 FOMC members supported keeping rates unchanged, while 2 members advocated for a 25 basis point cut.

The minutes indicate some officials believe that if inflation declines as expected, further rate cuts would be appropriate. Others stated that, as the committee assesses the latest data, maintaining rates for a period is suitable. Additionally, some officials support using a “two-way” description in forward guidance to reflect that if inflation remains above target, rates could be raised. Most members warned that the process of bringing inflation back to 2% could be “slower and more uneven” than generally expected. The next FOMC meeting is scheduled for March 17-18. (Xinhua News Agency)

Tata Group Establishes Basic Partnership with OpenAI

Tata Group has established a foundational partnership with OpenAI. (Cailian Press)

OpenAI’s Latest Funding Round Could Surpass $100 Billion Valuation

According to two informed sources, OpenAI is finalizing initial investment commitments from investors in this funding round. If successful, after including the investment, OpenAI’s valuation could reach $830 billion, with total funding possibly hitting $100 billion. It is reported that SoftBank plans to lead this round with a $30 billion investment, to be split into three tranches of $10 billion each this year. Amazon, which provides cloud services for OpenAI, may invest up to $50 billion. (Cailian Press)

Boeing and Sun Country Airlines Announce 40 Dreamliner Orders

Boeing and Sun Country Airlines announced an order for 40 Boeing 787 Dreamliners. (Cailian Press)

Vietnam Airlines Signs Agreement to Purchase 50 Boeing 737-8 Aircraft

Vietnam Airlines signed an agreement with Boeing to purchase 50 Boeing 737-8 aircraft. (Cailian Press)