On July 2nd local time, the three major indexes of the US stock market collectively closed higher, with the Nasdaq and S&P reaching new historical closing highs.
The Nasdaq closed above 18000 points for the first time, and the S&P 500 index closed above 5500 points for the first time. Powell stated that progress has been made in fighting inflation, but declined to comment on whether interest rates will be lowered in September. The number of job vacancies in the United States in May far exceeded expectations, indicating that the labor market is still tight. Market attention is on Friday's June non farm payroll report.
Powell claims that inflation is returning to a downward trajectory
On July 2nd local time, the three major US stock indexes collectively closed higher. The Dow Jones Industrial Average rose 162.33 points, or 0.41%, to 39331.85 points; The Nasdaq rose 149.46 points, or 0.84%, to 18028.76 points; The S&P 500 index rose 33.92 points, or 0.62%, to 5509.01 points.
The US stock market continued its strong upward trend in the first half of 2024, with large technology stocks continuing to outperform the overall market.
Federal Reserve Chairman Jerome Powell attended the policy group meeting of the European Central Bank Forum on Tuesday.
Powell stated in his speech on Tuesday that the US labor market remains strong, but significant progress has been made in curbing inflation, and the path of inflation's decline is back on track.
Powell said, "If the labor market unexpectedly weakens, it will also prompt us to take action." However, he declined to comment on whether this means a rate cut in September.
He stated that the Federal Reserve has the ability to take the time to make the right decision (lowering interest rates), although he is well aware of the risks of "moving too slowly and too late".
He stated that the data indicates that the Federal Reserve has made significant progress in combating inflation.
Powell stated that the latest economic data indicates that inflation rates are returning to a downward trajectory, but he added that officials hope to see more data before interest rate cuts.
Powell said, "Due to the strong US economy and labor market, we have the ability to do this calmly. That's what we plan to do."
Powell refused to provide any specific guidance on the timing of the first interest rate cut.
On Tuesday's economic data, there were 8.14 million job vacancies in JOLTs in the United States in May, with an expected 7.91 million, compared to the previous value of 8.059 million.
The market is still paying attention to the prospects of the US presidential election.
This week, the market will focus on Friday's US June non farm payroll data.
Tesla surged 10%, with vehicle deliveries exceeding expectations in the second quarter
In terms of sectors, the eleven major sectors of the S&P 500 index rose nine times and fell two times. The non essential consumer goods sector and the financial sector led the gains with gains of 1.81% and 1.10% respectively, while the medical sector and energy sector fell by 0.40% and 0.20%, respectively.
Large tech stocks have almost risen across the board. Tesla rose more than 10%, Chaowei Semiconductor rose more than 4%, Microelectronics rose more than 3%, TSMC, Apple, Amazon, ASMC, Google A, and Broadcom rose more than 1%, Meta, Netflix, Intel, Microsoft, Oracle, and Qualcomm rose slightly, Boeing fell slightly, and Nvidia fell more than 1%.
Tesla rose 10.2% to $46 billion in transactions. Tesla released its latest sales data on Tuesday: a total of 443956 vehicles were delivered in the second quarter, a year-on-year decrease of 4.8%, marking two consecutive quarters of year-on-year decline, but higher than the average analyst expectation of 439302 vehicles. Among them, 422405 Model 3 and Model Y vehicles were delivered in the second quarter, as well as 21551 other models, including Model S sedans, Cyber trucks, and Model X high-end SUVs. In the Chinese market, according to data from the China Association of Automobile Manufacturers, Tesla's Shanghai super factory delivered 71007 vehicles in June, and domestic sales continued to increase to 59261 vehicles month on month, a 7% increase from the previous month. In the second quarter of this year, Tesla's domestic sales increased by 10.2% month on month.
Nvidia closed down 1.31% with a transaction of $26.367 billion. Nvidia will face anti-monopoly charges from France. There are reports that French regulatory authorities will file an antitrust lawsuit against Nvidia, making it the world's first law enforcement agency to take antitrust action against the company. It is reported that Nvidia faces fines of up to $6.09 billion. French antitrust enforcement agencies are preparing to file charges against Nvidia for suspected anticompetitive behavior. Reuters quoted sources familiar with the matter as saying that French antitrust enforcement agencies will be the first in the world to take such measures. This accusation was made after a surprise inspection of Nvidia's office last year.
Apple rose 1.62%, with a transaction of 12.611 billion US dollars. According to reports, the upcoming Apple iPhone 16 series is expected to adopt TSMC's second-generation 3nm technology, also known as the N3E process, across the entire range of products. Supply chain insiders have revealed that due to the attractiveness brought by upgrades in generative AI and other areas, Apple expects its iPhone 16 series shipments to be between 90 million and 100 million units, and has increased its order size for A18 series chips.
Chaowei Semiconductor rose 4.2%, with a transaction of 9.057 billion US dollars. According to industry insiders, the release date of the AMD Ryzen AI300 series mobile processor codenamed Strix Point has been postponed from the original plan of July 15th to July 28th.
Micro computers rose 3.06%, with a transaction of 4.555 billion US dollars. Ultramicro computers are expected to be included in the NASDAQ 100 index, replacing the underperforming second largest chain drugstore in the United States, Walgreens and Bosch.
TSMC rose 1.96% to $1.841 billion in transactions. According to reports, the upcoming Apple iPhone 16 series is expected to adopt TSMC's second-generation 3nm technology across all products.
Financial stocks rose almost entirely. Bank of America rose more than 2%, while Citigroup, Visa, Bank of America, JPMorgan Chase, Mizuho Financial, Mastercard, and American International Group rose more than 1%. Credit Suisse, Regional Finance, American Express, BlackRock, Bank of New York Mellon, Wells Fargo, First Capital Financial, Morgan Stanley, Goldman Sachs, Traveler Insurance, UBS Group, MetLife, Barclays, and Hartford Financial saw a slight increase, while Costco Insurance saw a slight decline, while Deutsche Bank fell more than 1%.
Energy stocks mostly rose. US energy rose by over 14%, Imperial Oil rose by over 2%, BP (US), Duke Energy, Petrobras, Schlumberger, Shell, and Chevron saw a slight increase, while ConocoPhillips, Marathon, ExxonMobil, Western Oil, and Apache Oil saw a slight decline.
Most popular Chinese concept stocks rose, with the Nasdaq China Golden Dragon Index (HXC) closing 0.78% higher. Futu Holdings, Huya, Alibaba, and NIO rose more than 2%, while Ideal Automobile, Vipshop, New Oriental, iQiyi, and JD.com rose more than 1%. Baidu, Bilibili, Pinduoduo, Tencent Music, and Ctrip rose slightly, Tiger Securities fell slightly, Xiaopeng Automobile and Kingsoft Cloud fell more than 1%, and NetEase fell more than 2%.
In other market scenarios, West Texas Intermediate Crude Oil (WTI) futures for August delivery on the New York Mercantile Exchange fell 57 cents, a decrease of 0.68%, to close at $82.81 per barrel.
