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On May 21st, Goldman Sachs released a research report stating that Baidus (09888.HK) first-quarter results this year showed accelerated growth in cloud revenue, especially GPU-based cloud services. The bank expects Baidus AI-driven business to grow by over 30% year-on-year, primarily benefiting from the robust growth of its AI cloud infrastructure (over 50% year-on-year). The bank anticipates that by the end of 2026, the contribution of AI-driven business will surpass that of traditional/other businesses. Management revealed at an analyst conference that Baidu aims to outpace the market and major peers in cloud business growth in the coming quarters. The company observed that token usage is shifting from training to inference, which will help Baidu Cloud expand its customer reach. The report quoted management as saying that the Wenxin Yiyan model is currently lagging behind, and future R&D will focus on revitalizing model capabilities, prioritizing the development of Wenxin Yiyan to drive MaaS (Model as a Service) revenue. Goldman Sachs expects a mid-term gross margin target of 35% to 40% for the GPU cloud business, while the gross margin for traditional CPU and memory services will be 25% to 30%. Management aims to reduce the holding company discount by having AI-driven businesses account for more than 50% of total revenue and by rapidly growing core cloud/chip revenue.May 21 – The 2026 APEC Trade Ministers Meeting will be held in Suzhou, attracting approximately 700 representatives from 21 APEC economies and international organizations. A global investment promotion conference is also being held concurrently, attracting business representatives from over 30 countries and regions, with US-based companies making up the largest number of attendees. Suzhou hopes to leverage this event to promote international trade and economic cooperation. Data shows that foreign investment in Chinas high-tech industries increased by 30.7% year-on-year in the first quarter of this year, while R&D and design services grew by 127.8%. Foreign companies are accelerating their expansion in the Chinese market, particularly in the new energy and medical fields, increasing investment and R&D, and driving global trade and economic development.Analysts point out that Saudi Arabia has been forced to shut down some oil fields due to disruptions in oil exports caused by the war with Iran, which has led to a disruption in natural gas supply. It is expected that Saudi Arabia will burn more imported fuel oil for power generation this summer.According to Nikkei, the Arafura rare earth project in Australia will begin construction in September.According to data from Fubao Information, the average price of 99.99% gold on Fubao today is 998.9 yuan/gram (+13.4 yuan/gram), spot silver (#1) is 18678 yuan/kilogram (+688 yuan/kilogram), spot 99.95% platinum is 483.5 yuan/gram (+3 yuan/gram), spot 99.95% palladium is 332 yuan/gram (+1 yuan/gram), spot 99.95% rhodium is 2413 yuan/gram (-14 yuan/gram), spot 99.95% iridium is 1841 yuan/gram (-1 yuan/gram), and spot 99.95% ruthenium is 398 yuan/gram (unchanged).

Wall Street Ends The Day With A Gain, And The S&P Snaps A Losing Streak

Charlie Brooks

Feb 24, 2023 11:34

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Thursday ended positively on Wall Street, with the S&P 500 snapping a four-session losing trend, as investors pondered the impact of interest rate policy on the U.S. economy.


This year, stock markets have been volatile, falling in February after a robust January as investors pondered the Federal Reserve's plans for interest rates. Data indicating a robust American economy have been interspersed with hawkish policymaker comments.


The number of Americans filing new claims for unemployment benefits decreased unexpectedly last week, the Labor Department reported on Thursday, reflecting constrained labor market conditions.


A separate report verified the economy grew robustly in the fourth quarter, with rising inventories accounting for the majority of the expansion.


According to the government's second estimate, the gross domestic product increased 2.7% in the fourth quarter. Economists predicted a 2.9% increase.


Jack Janasiewicz, lead portfolio strategist at Natixis Investment Managers Solutions, stated, "If you're a bull, you can find plenty of supportive factors, and if you're a bear, there are plenty of supportive factors you can refer to."


"There are so many cross currents that are moving in opposite directions that I find it extremely difficult to rely on one or two factors. This is causing a great deal of hand-wringing uncertainty, and as a consequence, we are range-trading."


The S&P traded below its 50-day moving average of 3,980 points for a portion of the day before rallying in the afternoon to close above 4,000 points for the first time this week.


According to Nomura strategist Charlie McElligott, this intraday decline was influenced by significant trades in short-dated derivatives, which piled on selling pressure.


Nvidia (NASDAQ:NVDA) Corp posted positive earnings and surged 14% after forecasting quarterly sales above estimates and reporting an increase in the use of its chips to fuel artificial intelligence services, thereby boosting buyer confidence.


Other chipmakers also increased in value, with Broadcom (NASDAQ:AVGO) Inc, Intel Corp (NASDAQ:INTC), and Qualcomm (NASDAQ:QCOM) Inc gaining between 0.6% and 1.8%. The Philadelphia SE Semiconductors index increased by 3.3%.


The Dow Jones Industrial Average increased 108.82 points, or 0.33%, to 33,153.91, while the S&P 500 gained 21.27 points, or 0.53%, to 4,012.32 and the Nasdaq Composite rose 83.33 points, or 0.72%, to 11,590.40.


Seven of the eleven main S&P 500 sectors advanced. Energy prices rose 1.3% due to higher petroleum prices, and the index ended a seven-day losing streak. This is the longest sequence of declines since a March 2017 slide of eight sessions.


Communication services was the largest decliner, dropping 0.7%. This was its fifth consecutive loss, mirroring the streak in October. It was weighed by Netflix Inc (NASDAQ:NFLX), which slipped 3.4% on reports the streaming service was reducing subscription prices in 30 countries.


Among other equities, eBay Inc (NASDAQ:EBAY) experienced the largest daily decline since September 13, falling 5.2% after forecasting weak demand in the first half.


Moderna (NASDAQ:MRNA) fell 6.7% to its lowest closing price since November 3 after the vaccine manufacturer reaffirmed its annual sales forecast of $5 billion for its COVID-19 vaccines, despite fourth-quarter sales exceeding estimates.


In contrast, Bumble Inc. rose 7.5%. The proprietor of the eponymous dating app projected annual revenue growth in excess of market expectations due to optimism regarding the growth of paying users.


Volume on U.S. exchanges was 10.43 billion shares, compared to the average of 11.59 billion shares over the previous 20 trading days.


The S&P 500 recorded seven new 52-week highs and three new lows, while the Nasdaq Composite registered 59 new highs and 128 new lows.