Global News | US stocks rise across the board, Bank of America survey shows AI bubble as the primary tail risk

【U.S. Stock Indices】

On February 17th (Tuesday) Eastern Time, the three major U.S. stock indices all closed higher, with the S&P 500 up 0.10% at 6,843.22; the Dow Jones up 0.07% at 49,533.19; and the Nasdaq up 0.14% at 22,578.38.

【U.S. Bonds】

On February 17th, the benchmark 10-year U.S. Treasury yield was 4.05%, and the yield on the 2-year Treasury, most sensitive to Federal Reserve policy rates, was 3.43%.

【Popular U.S. Stocks】

Among popular stocks, Nvidia rose 1.18%, Apple increased 3.17%, Google Class C fell 1.05%, Google Class A declined 1.21%, Microsoft dropped 1.11%, Amazon rose 1.19%, TSMC fell 0.58%, Meta declined 0.08%, Tesla decreased 1.63%, Seagate Technology fell 2.05%, and Intel dropped 1.30%.

【Global Indices】

【China Indices】

On February 17th, the Nasdaq China Golden Dragon Index declined 0.10%.

【Chinese Concept Stocks】

In popular Chinese concept stocks, Tencent Holdings (HK) rose 0.19%, Alibaba fell 0.16%, Pinduoduo increased 1.55%, NetEase declined 0.92%, Baidu rose 0.23%, Ctrip gained 3.11%, Li Auto fell 0.33%, Xpeng Motors dropped 0.59%, and NIO declined 0.51%.

【Forex and Commodities】

【Global News】

Novo Nordisk announced that the European Commission approved a higher effective dose of the injectable drug Wegovy for adult obesity patients.

Novo Nordisk stated that the European Commission has approved a higher effective dose of the injectable drug Wegovy for adult obesity patients; clinical studies show that patients using this dose lost an average of about 21% of their body weight. (Cailian Press)

Bank of America survey shows AI bubble as the primary tail risk, with record-high capital expenditure overheating concerns.

The latest Bank of America fund manager survey indicates a record number of investors believe corporate spending is excessive. Strategist Michael Hartnett noted in the report that although bullish sentiment among survey participants reached its highest since June 2021, about 35% warned of over-investment, the highest in two decades. They are also reducing exposure to tech stocks. This year, capital expenditure is expected to reach record levels, with the four largest U.S. tech companies’ combined spending projected to hit about $650 billion by 2026. Market reactions to these forecasts are mixed: Microsoft’s stock experienced its largest decline in nearly six years amid concerns over long investment return cycles, while Meta Platforms’ ambitious AI spending plans caused its stock to surge over 11%. (Cailian Press)

Bank of America survey shows buying gold as the most crowded trade.

The February global fund manager survey by Bank of America shows that buying gold has been the most crowded trade for the second consecutive month. Fifty percent of fund managers said “long gold” was the most crowded trade, down slightly from 51% in January. Meanwhile, 20% of fund managers said that buying the largest U.S. tech stocks—Nvidia, Alphabet, Apple, Amazon, Microsoft, Meta, and Tesla—is the most crowded trade. (Cailian Press)

India reports that Nvidia is collaborating with some AI infrastructure/software companies.

India stated that Nvidia is working with some AI infrastructure/software companies. (Sina Finance)

Elon Musk: Cybertruck production to start in April, no pedals or steering wheel.

Elon Musk reaffirmed on February 16th that the Cybertruck, which lacks pedals and a steering wheel, will begin production in April. (Cailian Press)

Ireland’s regulator investigates Elon Musk’s social media platform X over AI chatbot “Grok” generating and posting pornographic images.

On February 16th, Ireland’s Data Protection Commission launched an investigation into Elon Musk’s social media platform X, focusing on its built-in AI chatbot “Grok” generating and posting pornographic images. The regulator said the investigation will assess whether X complies with EU data handling laws. The probe was initiated under the Data Protection Act. (CCTV News)

Survey: 92.2% probability that the Federal Reserve will keep rates unchanged in March.

According to CME’s “FedWatch”: there is a 7.8% chance the Fed will cut rates by 25 basis points in March, and a 92.2% chance it will hold rates steady. The probability of a 25 basis point cut by April is 25.3%, with a 73.1% chance of no change, and a 1.6% chance of a 50 basis point cut. By June, the probability of a 25 basis point cut increases to 52.6%.