Nasdaq flat, Microsoft’s AI chip development, etc. | 19th Financial Tankan

4/19 (Wednesday) morning market trends (compared to the previous day)

traditional finance

• NY Dow: $33,976 -0.03%
• Nasdaq: $12,153 -0.03%
• Nikkei Stock Average: ¥28,658 -0.5%
• USD/JPY: 134 -0.27%
• USD Index: 101.7 -0.3%
• 10 year US Treasury yield: 3.57 -0.3% annual yield
• Gold Futures: $2,017.8 +0.5%

crypto assets

• Bitcoin: $30,330 +2.9%
• Ethereum: $2,089 +0.7%

Today’s NY Dow fell slightly and closed at -10.5 dollars. The Nasdaq was also flat at -$4.3. The development continued without a sense of direction due to remarks by dignitaries and bank settlements.

remarks by dignitaries

St. Louis Fed President James Bullard said on Thursday that inflation remains persistent and the Fed should continue to raise interest rates. “Markets are increasingly speculating that the economy will enter a recession in the next six months or so, but such speculation is not a very accurate reading of such an expansion,” he said in an interview with Reuters. However, against the backdrop of a robust labor market and other factors, he revealed that he would support an interest rate hike of between 5.5% and 5.75%.

At this point, expectations for a 0.25% rate hike at the May FOMC have eased slightly to 81.6% from yesterday’s 86.6%, and expectations for a 5-5.25% rate hike at the June FOMC are still high (63.3%). . Many market participants appear to see the FOMC rate hike in May as the last rate hike of the cycle.

On the other hand, Atlanta Federal Reserve Bank President Bostic said in an interview with CNBC on the 18th that he supports raising the policy rate one more time (by 0.25 points) to above 5% and leaving it at that level for a while to curb persistent inflation. showed He also said he expects to “avoid” a recession that the market is fearing.

Bullard and Bostic will not vote at this year’s FOMC meeting, but they do participate in interest rate discussions like other Federal Reserve officials.

Economic data from this week onwards

• April 20, 21:30 (Thursday): Number of new unemployment claims for the previous week in the US
• April 21, 22:45 (Friday): US April Composite Purchasing Managers Index (PMI, preliminary figures)
• April 27, 21:30 (Thursday): U.S. January-March Quarterly Real Gross Domestic Product (GDP, preliminary figures), Core PCE
• April 28, 21:30 (Friday): U.S. March Personal Consumption Expenditure/PCE deflator
• May 1, 23:00 (Monday): US April ISM Manufacturing Index
• May 4, 3:00 (Thursday): US Federal Open Market Committee (FOMC) policy interest rate announcement

US stocks

Last night’s Goldman Sachs financial results were disappointing that the overall recurring profit and other items were below expectations. Goldman -1.7%, JP Morgan +1.1%, Citi +0.7%, Wells Fargo +1.3%, Bank of America +0.6% (compared to the previous day).

Earnings reports for tech companies such as Tesla and IBM begin on Tuesday.

In addition, compared to the previous day for individual stocks of US IT and tech stocks: NVIDIA +2.4%, c3.ai -0.08%, Tesla -1.4%, Microsoft -0.1%, Alphabet -1.3%, Amazon -0.4%, Apple -0.7% , Meta -0.4%, Intel -0.9%, Coinbase -0.6%, Micro Strategy +5.3%.

Microsoft enters AI chip manufacturing

On the 18th, it was reported that Microsoft is developing its own AI chip “Athena” for automatic response systems using artificial intelligence (AI) such as ChatGPT. It has been in development since 2019 and has been tested by a small number of staff at Microsoft and OpenAI, and it is possible that Athena will be widely available internally and at OpenAI as early as next year.

According to John Peddie Research, NVIDIA is currently the overwhelming market leader when it comes to supplying AI chips, with a market share of around 88%. The entry of Microsoft will intensify the market competition for high-end GPUs.

Also, the day before, there was a report that South Korea’s Samsung Electronics is considering adopting Microsoft’s “Bing” as the default search engine on its handsets in place of Google.

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Intel to stop BTC mining chip production

Intel announced yesterday that it will stop manufacturing its own cryptocurrency mining chip, Blockscale ASIC. This appears to be part of cost reduction efforts.

The chip was released in April last year, with Block and Argo Blockchain being its first customers.

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Cryptocurrency/Blockchain-related Stocks (Year-on-Year Change/Year-to-Week Change)

• Coinbase | $67.2 (-0.6%/-3.8%)
• MicroStrategy | $329.8 (+5.3%/-1.2%)
• Marathon Digital Holdings | $11.6 (+2%/-2.4%)

As for Coinbase, CEO Brian Armstrong said in an interview with CNBC on the 18th that he was prepared to fight the US Securities and Exchange Commission (SEC) in court for several years if necessary. “If there is no change in US regulations, we are considering moving our headquarters from the US,” he said.

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