Source: Global Market Report On Monday, the turnover of US stocks ranked first, closing up 0.75% with a turnover of $38.014 billion. Since the opening on June 10, Nvidia's stock has been trading at adjusted prices after the split. The overall value of Nvidia is not expected to change after the split, and the lower stock price will make it easier for investors to reach. In terms of product structure, the operating income of 10-30 billion yuan products is respectively 401/1288/60 million yuan.
On the evening of the 25th Beijing time, the US stock market opened with mixed gains and losses. After Nvidia's sharp decline, investors are paying attention to the recent sector rotation. Federal Reserve Governor Bowman stated that inflation faces upside risks and it is not yet time to cut interest rates.
As of press time, the S&P 500 index rose 0.2%, the Nasdaq Composite index rose 0.59%, and the Dow Jones Industrial Average index fell 0.22%.
Nvidia is under scrutiny. The stock fell more than 6% on Monday, marking its largest single-day decline since April 19. As of Monday's close, the stock had fallen for three consecutive trading days, with a cumulative decline of more than 13%, falling into a correction zone.
The recent consecutive declines pushed Nvidia, the darling of artificial intelligence, into a deeper correction zone. Compared with the intra-day historical high set last week, the stock has fallen by 16%. Other semiconductor stocks, including Super Micro Computer, Qualcomm and Broadcom, were also generally under pressure on Monday.
Will last week’s US public holiday become a turning point for Nvidia? The duration of the new round of market rotation and when Nvidia will adjust to the right position have become the focus of current investor attention.
Since May, a new round of rebound in the US stock market has once again focused on technology giants. According to statistics from the Dow Jones market, about 60% of the increase in the S&P 500 index this year comes from contributions from Nvidia, Microsoft, Meta Platforms (Facebook's parent company), Alphabet (Google's parent company), and Amazon.
Kevin Dempter, a macro research analyst at Renaissance, believes that a bearish engulfing pattern has been formed from a technical perspective. "This may make investors emotional roller coasters, and they don't have to look too far back to find the most recent example: The bearish news on March 8 caused Nvidia's stock price to briefly fall by 20%. We doubt that the stock price will further profit-taking and return to about $110 in early May."
"From a 12-month perspective, Nvidia's stock price is still up 190%, so it is not surprising that some investors lock in some profits," said Derren Nathan, a stock researcher at Hargreaves Lansdown.
Dragged down by Nvidia's sharp decline, the Nasdaq Composite Index fell more than 1% on Monday. Investors withdrew from the chipmaker sector and invested in other industries, a market rotation that enabled the Dow to rise by more than 200 points on Monday, making it the only US stock benchmark index to rise the previous trading day.
However, Jeff deGraaf, another analyst at Renaissance, said that considering the historical pattern, the recent sell-off in the semiconductor industry is not worrying. He said that summer is usually a difficult period and pointed out that the third quarter is usually the worst period for this industry.
"The good news is that I think Nvidia is still in a long-term uptrend. When its stock price rebounds, it may be possible to buy. You just need to control the temporary pessimism," said Jeff deGraaf.
Thierry Wizman, global interest rate and currency strategist at Macquarie, said, "The AI story is still in its infancy and will continue."
He believes that the revenue growth of companies in the field of artificial intelligence is "resilient", because in the next three years, even if the US economy as a whole experiences a downturn, there will be investment in this field. "This is why, from a profitability perspective, they (artificial intelligence stocks) look very safe," he concluded.
At the same time, the outperformance of technology stocks over the broad market is also supported by the recent decline in US bond yields. Wizman believes that lower yields are still important for maintaining the rise of technology stocks. However, to some extent, even if the economy is sluggish, artificial intelligence stocks may not rise, but they will be sold off first.
Ivana Delevska, founder and chief investment officer of Spear Invest, is also confident in Nvidia's performance prospects. "If the stock price rises like this, but the profits have not really changed, then yes, we will be very worried. But in the current situation, Nvidia has quite solid profit support."
Several Federal Reserve officials will speak this week.
Michelle Bowman, a member of the Federal Reserve Board, said on Tuesday that she believes there are multiple upward risks to the inflation outlook and reiterated the need to keep interest rates high for a period of time.
In her speech prepared for Tuesday in London, Bowman said, "We have not yet reached a point where the policy interest rate is appropriate for a rate cut. Given the risks and uncertainties in my economic outlook, I will be cautious about considering future changes in policy positions."
Bowman mentioned several areas that could put upward pressure on prices. She said that the tightness of the labor market is driving up wages, while geopolitical trends, fiscal stimulus, and relaxed financial conditions are additional potential risks to the inflation outlook.
Bowman said, "Lowering our policy rate too early or too quickly could lead to an inflation rebound, which would require further policy rate hikes in the future to bring inflation back to 2% over a longer period of time."
Mary C. Daly, President of the San Francisco Fed, said on Monday that rising unemployment and inflation are risks and the Fed must "be cautious."
Focus stocks
Growth tech stocks rose across the board, with Nvidia up more than 3%, Taiwan Semiconductor, Salesforce and Meta up more than 1%, and ASML Holding and Apple up nearly 1%.
China concept stocks fell across the board, with Bilibili down nearly 4%, Beigene down more than 3%, Miniso, JD.com, and Nio down more than 2%.
$NVIDIA (NVDA.US)$This stock rose on Tuesday, up more than 3%, reversing three consecutive trading days of decline. It is worth noting that since Nvidia announced its first-quarter results on May 22, more than one-third of Nvidia's internal personnel have chosen to reduce their shareholding. Nvidia founder and CEO Huang Renxun, CFO Colette Kress, and Executive Vice President Deborah Shoquist and other executives have successively reduced their holdings to cash out, involving more than tens of millions of dollars.
$Tesla (TSLA.US)$The stock is oscillating overall and is now slightly up. The National Highway Traffic Safety Administration (NHTSA) of the United States said that Tesla will recall 11,688 Cybertruck electric pickups due to windshield wiper failures that reduce visibility and increase the risk of crashes. The recall includes all 2024 Cybertruck models produced between November 13, 2023 and June 6, 2024.
In addition, Tesla also recalled 11,383 2024 Cybertrucks because the decorative items in the rear compartment may be installed improperly. The decorations may fall off the vehicle, posing a danger to the driver behind, and increasing the risk of a collision.
$Apple (AAPL.US)$The stock is currently slightly up. The European Commission announced on Monday that it has preliminarily determined that Apple's App Store violates the EU's Digital Market Act. The European Commission said that Apple's App Store rules prevent application developers from freely guiding consumers to obtain more preferential products and content through other channels.
According to public data, Apple's total revenue in the 2023 fiscal year reached US$383 billion. Calculated at a fine of 10%, the company will receive a fine of nearly US$40 billion (approximately RMB 290 billion).
$Microsoft (MSFT.US)$Microsoft may face huge fines. Prior to this, EU regulators accused the company of abusing its market dominance by bundling the Teams video conferencing application with other commercial software. The European Commission issued a so-called statement of opposition, accusing Microsoft of violating EU competition rules by bundling Teams with its Office 365 and Microsoft 365 software packages.
The EU regulatory agency said that since at least 2019, Microsoft's behavior has protected its dominant position in the market and made Teams more advantageous than its competitors. The agency also added that limited interoperability between Teams and rival software also contributed to this unfair advantage.
EU Competition Commissioner Margrethe Vestager said on Tuesday:"Maintaining competition in remote communication and collaboration tools is crucial because it also promotes innovation in these markets."
A report released by cybersecurity experts stated that between July 2020 and February 2023, a total of 346 million Chrome users installed problematic extensions, pointing out that more than 63 million extensions violated Google's policies, 3 million extensions had vulnerabilities, and 280 million extensions contained malicious software.$Alphabet-A (GOOGL.US)$Goldman Sachs maintains its buy rating and maintains the target price of $225. Bernstein Securities said that results in 2024 may exceed expectations. TSMC's stock price has been hitting new highs recently, and Wall Street analysts are bullish on it. Some analysts who are extremely bullish on TSMC's future prospects believe that TSMC's market value is only a matter of time before it reaches the same level as Nvidia's $3 trillion.
Goldman Sachs maintains a buy rating and a target price of 225 US dollars.$Amazon (AMZN.US)$Buy rating maintained, with a target price of $225.
Bernstein Securities said that the 2024 performance is expected to exceed expectations.$Taiwan Semiconductor (TSM.US)$Recently, Taiwan Semiconductor's stock price has hit new highs, and the voices of Wall Street analysts who are bullish on Taiwan Semiconductor's stock price are getting louder and louder. Even in the eyes of some analysts who are extremely bullish on Taiwan Semiconductor's future market, Taiwan Semiconductor's market value is likely to be on par with Nvidia's (NVDA.US), which currently exceeds US$3 trillion.
Distributor of swimming pool equipment.$Pool Corp (POOL.US)$Significantly lowered profit expectations.
$Novo-Nordisk A/S (NVO.US)$Meigutide has been approved for long-term weight management in China.
$Boeing (BA.US)$Proposed to acquire Spirit Airlines for $35 per share.
$Fangdd Network (DUO.US)$Plans to spend 35 million dollars to acquire technology patents.
Editor/Jeffy