5 major events in today’s financial market: Bitcoin halving event passed uneventfully, Dow futures rebounded 150 points

Here are five important things to know about the financial markets on Monday, April 22:

1. Tesla cuts prices in China and Germany

Tesla (NASDAQ: TSLA ) is once again in the spotlight after the company announced price cuts in several major overseas markets, including China and Germany, amid declining sales and an intensifying price war.

Tesla CEO Elon Musk said on social media on the 19th: "To meet demand, Tesla's prices must change frequently."

According to data on the official website on Sunday (21st), the company has lowered the starting price of Model 3 in China by about $2,000, and has also lowered the price in Germany and many other countries in Europe, the Middle East and Africa.

Earlier last Friday (19th), the prices of Model Y, Model X and Model S in the United States were also reduced by US$2,000.

Earlier this month, Tesla reported that its global vehicle deliveries fell in the first quarter for the first time in nearly four years, prompting the company to cut more than 10% of its workforce last week, eliminating at least 14,000 jobs.

Nonetheless, media further reported earlier on Monday that Musk had pushed for 20% of layoffs, indicating that the actual number of layoffs may exceed 20,000.

Tesla will announce its first-quarter financial report on Tuesday (23rd). It is expected that its operating profit will drop significantly and revenue will also decline for the first time in four years.

Tesla’s stock price has fallen by more than 40% this year.

2. U.S. stocks rebounded modestly after sharp decline

U.S. stock index futures were slightly higher before the market opened on Monday, after Friday's sharp decline in technology stocks dragged down U.S. stocks.

The S&P 500 and Nasdaq Composite ended sharply lower last week, down just over 3% and 5.5% respectively, as volatile inflation data reduced the likelihood of multiple interest rate cuts by the Federal Reserve in 2024. The Dow Jones Industrial Average's outperformance was aided by its relatively small exposure to technology stocks.

Taking into account concerns about inflation, the PCE price index released this Friday (26th) will become the focus. Technology stocks will also continue to receive attention, with several technology giants set to announce earnings this week.

3. Big tech companies will report earnings this week

The focus of this week's financial reports will shift from bank stocks to large technology stocks. The financial reports of technology stocks are an important test for the rise of US stocks this year. The rally in U.S. stocks has slowed recently as expectations of interest rate cuts fade.

Among them, four of the seven largest companies in the U.S. stock market will announce their financial reports this week. Tesla will announce its financial report after the market closes on Tuesday (23rd), and Facebook parent company Meta (NASDAQ: META) will announce its financial report on Wednesday (24th). , followed by Microsoft (NASDAQ: MSFT) and Google parent company Alphabet (NASDAQ: GOOGL) will release their financial reports on Thursday (25th).

Among other large-cap companies, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) will report earnings next week, while Nvidia (NASDAQ: NVDA) will report earnings on May 22.

While the first-quarter earnings season is still in its early stages, expectations have dimmed. According to Reuters, citing data from the London Stock Exchange, analysts now expect total earnings of S&P 500 companies to rise 2.9% year-on-year, down from the 5.1% forecast on April 1.

At the same time, the main driver of profit growth comes from large technology companies. UBS predicted earlier this month that, except for Tesla, six of the Big Seven companies are expected to achieve overall profit growth of 42.1% in the first quarter.

4. The Bitcoin halving event passed quietly

Bitcoin, the world's largest cryptocurrency by market value, rose slightly on Monday. The much-watched halving event passed without any significant increase in the price.

At the time of writing, Bitcoin rose 1.55% to US$65,895.2.

Bitcoin mining rewards were halved for the fourth time over the weekend, which saw the rate at which new Bitcoins are mined cut in half. Previous halvings occurred in 2012, 2016 and 2020, followed by sharp price increases as investors factored in a decrease in the supply of new Bitcoins.

However, despite waning concerns about a war between Iran and Israel and improving risk appetite, Bitcoin has only gained slightly and is trading well below its all-time high of $73,750 set in March.

The prospect of a stronger dollar and higher U.S. interest rates for longer limits the potential for significant gains in cryptocurrency prices.

5. Crude oil prices slide as tensions between Iran and Israel ease

Crude oil prices fell sharply on Friday, extending last week's losses. There is growing consensus that the conflict between Iran and Israel will not escalate further.

Last week, both major benchmark stock indexes fell about 3%, their biggest weekly losses since February this year. Iran had previously downplayed the Israeli attack, suggesting it was expected to avoid an escalation of hostilities in the Middle East.

At present, market attention is returning to fundamentals, with concerns that higher U.S. interest rates for a longer period of time and high inflation will inhibit economic growth this year, thereby weakening global oil demand.

Rising U.S. crude oil inventories also weighed on the market. Meanwhile, reports emerged on Friday that the International Monetary Fund (IMF) expects OPEC+ to increase oil production starting in July.

Last month, OPEC+ members, led by Saudi Arabia and Russia, agreed to extend voluntary production cuts of 2.2 million barrels per day until the end of June.