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Gold Plummets by $50

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In the landscape of the U.S. stock market, February 14, 2024, was a day marked by a subtle tug-of-war among traders as the three major indexes exhibited a mixed performance, reflecting an intricate balance crafted through negotiations between bullish and bearish sentimentsThe Dow Jones Industrial Average opened to a decline, descending steadily under the weight of data from traditional sectors and evolving market narratives; it ultimately closed at a loss of 0.37%, settling at 44,546.08 pointsThis downturn suggested a recalibration of investor expectations concerning future growthMeanwhile, the S&P 500 Index showed a negligible dip of 0.01%, ending at 6,114.63 points, indicating ongoing confidence in the inherited performance of its constituent stocksIn stark contrast, the Nasdaq Composite Index soared with a robust gain of 0.41%, closing at 20,026.77 points, buoyed by the strong performance of the technology sectorA glance back at the week showcased an overall positive trend for the indices.

The Dow experienced a cumulative rise of 0.55%, the S&P 500 saw an increase of 1.47%, and the Nasdaq excelled with a remarkable surge of 2.58%, underscoring the technology industry's significant momentum in the current market climate.

The fascinating crossover between the technology and automotive sectors captured significant attention over the course of the day

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An announcement from NVIDIA about its shareholding in WeRide set off shockwaves through the financial communityUpon the news breaking, WeRide’s stock price skyrocketed, achieving a stunning spike of 146.01% at one point, leading to a trading halt triggered by its unprecedented riseAlthough some levels of profit-taking followed the restoration of trading, the stock closed at $31.50 per share, up by a staggering 83.46%.

NVIDIA’s filing with the U.SSecurities and Exchange Commission revealed that it holds approximately 1.738 million American Depository Shares in WeRide, a bold affirmation valuing its stake at roughly $24.65 million as of December 31, 2024. Since its debut on the Nasdaq in October 2024, WeRide has garnered significant investor interest, marking itself as the first publicly traded autonomous driving company globally, and this new investment from NVIDIA further amplified confidence in its technological prowess and market potentialThis recommendation surely acts as a stimulant for the autonomous driving sector, drawing additional interest from venture capital and talented professionals alike.

Turning to economic data, January figures painted a complex picture with varied performances across different sectorsOn the macroeconomic front, industrial output figures reported a 0.5% month-on-month increase for January, exceeding expectations of a mere 0.3% rise and an upward revision from a prior increase of 0.9% to a revised 1.0%. This indicates a resilient upward trajectory for U.S. industrial production, likely buoyed by the recovery of manufacturing, an uptick in new orders, and enhancements in production technologyIn stark contrast, consumer retail sales fell short of expectations, declining by 0.9% month-on-month, considerably worse than the anticipated decrease of 0.1%.

The previous month’s figures were also revised downward; retail sales that were originally reported as an increase of 0.4% were amended to just 0.7%. Even core retail sales followed a downward trend with a drop of 0.4%, in contrast to expectations for an increase of 0.3%, revising down from prior reports

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This disheartening data suggests a significant decline in consumer spending, potentially driven by high inflation rates, rising interest rates, and general consumer sentiment being at a low ebbSubsequently, the U.S. import price index experienced a 0.3% increase, slightly lower than the expected increase of 0.4%, with previous values being revised from an increase of 0.1% to 0.2%. This indicates that while import prices had risen, the increase did not meet market anticipationsAdditionally, commercial inventories in the U.S. posted a 0.2% decline in December, which marked the largest drop since November 2023. This underscores the expectations for flat figures and indicates that businesses seem to harbor a pessimistic outlook regarding market demand, prompting them to actively reduce stock levels.

On the monetary policy front, remarks from Federal Reserve Bank of Dallas President Lorie Logan generated considerable market anticipationShe advised that the Federal Reserve should adopt a cautious approach in the upcoming months—even if inflation approaches the 2% target, that does not guarantee further interest rate cuts. “Even if the inflation data improves and nears the 2% target, I still believe we should proceed with caution,” she statedLogan noted that a resilient labor market and overall strong economic conditions might not necessarily create room for easingThis hawkish tone instantly shifted market expectations for the Fed's monetary policy directionIn the wake of her statements, global precious metals futures typically trended lower: COMEX gold futures fell by 1.76% to settle at $2,893.70 per ounce, despite an overall week-on-week increase of 0.21%; silver futures also dipped by 0.22% at $32.655 per ounce, marking a weekly rise of 0.65%. London’s spot gold prices plummeted by 1.54%, reflecting heightened market sensitivity to changes in Fed policy outlooks.

The confluence of events unfolding on this unforgettable morning—spanning financial markets, real economy shifts, technological advancements, and monetary policy recalibrations—paints a dynamic portrait of today's intricate economic tapestry

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