Global Headlines | U.S. stocks broadly decline, with the S&P slightly down, as Fed officials show clear divergence on monetary policy

【U.S. Stock Indexes】

On Thursday, February 19 (U.S. Eastern Time), the three major U.S. stock indexes all closed lower. The S&P 500 fell 0.28% to 6,861.89 points; the Dow Jones dropped 0.54% to 49,395.16 points; and the Nasdaq declined 0.31% to 22,682.73 points.

【U.S. Treasuries】

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

【Popular U.S. Stocks】

Among popular U.S. stocks, Nvidia decreased by 0.04%, Apple by 1.43%, Google C by 0.13%, Google A by 0.16%, Microsoft by 0.06%, Amazon increased by 0.03%, TSMC decreased by 0.47%, Meta increased by 0.24%, Tesla increased by 0.10%, AMD increased by 1.62%, and Intel decreased by 1.85%.

【Global Indexes】

【China Indexes】

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

【Chinese Concept Stocks】

Among 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%, Trip.com fell 2.28%, Li Auto rose 0.00%, XPeng fell 0.48%, and Nio increased by 0.31%.

【FX and Commodities】

【Global Headlines】

Fed Kashkari: AI investment may be pushing the neutral rate higher

Fed Kashkari stated that investments in artificial intelligence might be driving the neutral interest rate higher.

Fed Kashkari: The U.S. labor market remains quite resilient

Fed Kashkari said that the U.S. labor market remains quite resilient; although it has slowed somewhat, it is still “pretty good, even quite good.” (Caixin)

European Central Bank Vice President says no signs of Lagarde planning to step down early

European Central Bank Vice President Luis de Guindos said he has not received any indication from Christine Lagarde that she plans to resign early as ECB President. The Financial Times reported on Wednesday that Lagarde will leave before her term ends in 2027 so that the departing French President Macron can influence her successor selection. The ECB stated that Lagarde is “fully focused on her mission,” but did not specify 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 of this from the President.” (Caixin)

ECB Official De Mеrсk: If inflation remains below 2%, rate cuts may be necessary

ECB official De Mеrсk indicated that if inflation stays below 2%, rate cuts might be needed. (Caixin)

Elon Musk: X platform’s “For You” feature may be delayed until this weekend

Elon Musk said that the “For You” feature on X may be postponed until this weekend. (Caixin)

Divergence among Fed officials on monetary policy direction

The minutes from the Federal Reserve’s January monetary policy meeting, released on the 18th, show that although nearly all FOMC members supported holding the benchmark interest rate steady, there is a clear split within the committee regarding future policy. At the meeting ending January 28, 10 members supported keeping rates unchanged, while 2 advocated for a 25 basis point cut.

The minutes reveal that some officials believe that if inflation declines as expected, further rate cuts would be appropriate. Others indicated that, as the FOMC assesses the latest data, maintaining rates for a period is suitable. Several officials also supported using a “two-way” description in forward guidance, indicating that if inflation remains above target, rates could be raised.

Most officials warned that the process of inflation returning to 2% could be “slower and less balanced” than broadly expected. The next FOMC meeting is scheduled for March 17-18. (Xinhua)

Tata Group and OpenAI establish a foundational partnership

Tata Group and OpenAI have formed a foundational partnership. (Caixin)

OpenAI’s latest funding round could surpass $100 billion

According to two sources familiar with the matter, OpenAI is finalizing initial investment commitments for this round. If successful, after accounting for investments, OpenAI’s valuation could reach $83 billion, with total funding possibly hitting $100 billion. It is reported that SoftBank plans to lead with a $30 billion investment, to be made in three tranches of $10 billion each this year. Amazon, which provides cloud services for OpenAI, may invest up to $50 billion. (Caixin)

Boeing and Sun Country Airlines announce order for 40 Boeing 787 Dreamliners

Boeing and Sun Country Airlines announced an order for 40 Boeing 787 Dreamliner aircraft. (Caixin)

Vietnam Airlines signs agreement to purchase 50 Boeing 737-8 aircraft

Vietnam Airlines signed an agreement with Boeing to order 50 Boeing 737-8 aircraft. (Caixin)