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 26th Beijing time, the US stock market fluctuated, and the market continued to focus on US stock earnings reports and economic data. As of press time, the S&P 500 index fell by 0.2%, the Nasdaq Composite Index rose by 0.02%, and the Dow Jones Industrial Average fell by 0.48%.
US stocks closed mixed on Tuesday. Boosted by the rebound in Nvidia's stock price, the S&P 500 and Nasdaq rose, ending the previous three days of decline. The Dow closed down about 300 points.
A Deutsche Bank strategist warns that US stocks may experience a short-term pullback. The strategist said that as the earnings season approaches, share buybacks entering a "quiet period" may cause the S&P 500 and Nasdaq to experience a short-term pullback after reaching new historical highs.
Morgan Stanley's chief investment officer Mike Wilson believes that US stocks may fall by 10%. He said that if the number of newly hired employees begins to decline, the prospects for a soft landing of the US economy will shatter, and the Fed may be forced to begin cutting interest rates, which would be enough to cause a 10% decline in the stock market.
Wilson said that there are currently three main abnormal risks in the US stock market, and the most likely one is the slowing down of the US economic growth. Inflation rebound or a surge in US Treasury yields are the other two threats. If investors feel uneasy about federal debt, US bond yields will rise.
Goldman Sachs believes that the S&P 500 index will hit a new high again in July. The bank said in a report that since 1928, the best day of the year usually occurs in the first two weeks of July. Scott Rubner, Managing Director of Goldman Sachs, said, 'Since 1928, July 3 has been the day when the S&P 500 achieved the highest positive return rate (72.41%), followed by July 1 (72.06%) and other statistically significant trading days in the first two weeks of July.'
Nvidia rose 6.8% on Tuesday, stopping the three-day decline. The market capitalization of this artificial intelligence chip manufacturer is 3.1 trillion US dollars, which dominates the market-cap weighted S&P 500 index, and its stock is expected to soar 154% in 2024, sparking concerns that most other stocks have failed to participate in this year's stock market gains.
Citigroup raised its target price for Nvidia and expects the stock to have a 19% potential upside next year. Citigroup said that as the adoption rate of artificial intelligence increases, the company's product demand and profit expectations are expected to increase.
Mark Haefele, the chief investment officer of UBS Global Wealth Management, said, 'Nvidia's significant volatility in stock price has affected the market sentiment. But we believe the structural investment scenario of artificial intelligence is still intact. Given the solid fundamentals, we have a constructive outlook on a wide range of stocks.'
Bespoke Investment Group co-founder Paul Hickey said, 'We still believe it is too early to sell other stocks now and invest in large technology stocks, especially Nvidia. We expect the market breadth to expand, but this is not necessarily a choice between large-cap and small-cap stocks, and we prefer other companies in the S&P 500 index.'
The market is focusing on the May Personal Consumption Expenditure Price Index (PCE) on Friday. This is the Fed's preferred inflation indicator. Investors believe that if price increases continue to slow down, the Fed will cut interest rates later this year.
In terms of US monetary policy, Fed officials urged patience on the interest rate cut issue. Fed director Lisa Cook said on Tuesday that if the economic performance meets expectations, the Fed plans to cut interest rates, but did not specify a specific time. Another Fed director, Michelle Bowman, reiterated that keeping policy rates for a period of time may be enough to control inflation.
Fed officials' comments and stable housing market data have led the market to remain cautious about the timing and magnitude of Fed interest rate cuts.
Fed officials recently predicted a 25 basis point rate cut before the end of this year and a total of 125 basis points by the end of 2025, while market participants expected a rate cut of about 75 basis points by the first quarter of 2025.
However, some are hedging against deeper and faster easing measures: positions in the interest rate options market show that if the Fed cuts its key rate by three percentage points to 2.25% within the next nine months, the number of bets that will benefit will increase.
Focus stocks
Growth tech stocks fluctuated, with Tesla up nearly 3%, Broadcom up nearly 2%, and Qualcomm down nearly 1%.
China concept stocks rose and fell, Bilibili fell more than 2%, Beigene, iQiyi, JD.com and others fell more than 1%.
$NVIDIA (NVDA.US)$The stock price rose nearly 1%. Citigroup analyst Atif Malik maintains a "buy" rating on NVIDIA, with a target price raised from $126 to $150. The analyst pointed out that although major cloud providers account for 40% of NVIDIA's data center business revenue, enterprise AI assistants are the next wave of AI, especially in reasoning. In addition, the analyst said that NVIDIA plans to produce GB200 NVL72 and GB200 NVL36 server racks by 2025.
$Tesla (TSLA.US)$The price rose nearly 3%, to $192.557.
Investment bank Stifel gave Tesla a "buy" rating and a target price of $265 in its first assessment of the electric car manufacturer. The bank noted that the company benefits from a vast global supply chain, as well as cost advantages and strong profit margins from internal manufacturing support.
Stephen Gengaro of Stifel and his team believe that Tesla will achieve strong multi-year growth over the next three years due to the upcoming improvements to the Model 3 and Model Y models and the launch of the next generation Model 2. Gengaro also believes that Tesla's full self-driving plan can add value through sales, licensing, and potential RoboTaxi opportunities. The recent wave of earnings downgrades is believed to have alleviated pressure on Tesla's stock.
Morgan Stanley believes that, due to the demand for electricity brought about by the AI boom, Tesla will become a more important player in the US energy market. Morgan Stanley values Tesla's energy business at $130 billion, equivalent to $36 per share. Morgan Stanley maintains a bullish rating on Tesla, with a target price of $310.
For two consecutive days, the European regulatory agency has targeted the giants of the American technology industry.$Microsoft (MSFT.US)$ and $Apple (AAPL.US)$In the span of two consecutive days, EU regulators have brought antitrust charges against U.S. tech giants.
The European Commission has formally charged Microsoft with antitrust violations, alleging that it illegally bundled the Teams software with other proprietary commercial software products for sale. The day before, the agency had brought similar charges against Apple, claiming that its application store rules violated EU antitrust law.
At the same time, Apple is also facing charges from the European Commission, alleging that its application store rules violate the Digital Markets Act by illegally blocking software developers from informing customers how to access content outside the store. Apple insists that its actions are legal, but the European Commission clearly disagrees.
$Alphabet-A (GOOGL.US)$Google announced on Wednesday that it will hold a press conference at its Mountain View headquarters on August 13th, and is expected to release a series of new Pixel products. Google's annual "Made by Google" event is usually held in October or November, and is typically held in San Francisco. But this year's event is much earlier and the location has changed to Google's headquarters.
$Amazon (AMZN.US)$Amazon announced that it will invest an additional 10 billion euros in Germany to further expand its logistics network and cloud infrastructure coverage. This move not only demonstrates Amazon's emphasis on the German market, but also indicates the company's further deepening of its layout in the European market. In terms of logistics network, Amazon plans to build multiple new distribution centers in Germany to speed up order processing and delivery. It is reported that the new distribution centers will adopt advanced automation and intelligence technology to improve logistics efficiency and reduce operating costs. In terms of cloud infrastructure, Amazon will increase its investment in AWS (Amazon Web Services) in Germany to promote the popularization and application of cloud computing technology in Germany.
In terms of logistics network, Amazon plans to build multiple new distribution centers in Germany to speed up order processing and delivery. It is reported that the new distribution centers will adopt advanced automation and intelligence technology to improve logistics efficiency and reduce operating costs. In terms of cloud infrastructure, Amazon will increase its investment in AWS (Amazon Web Services) in Germany to promote the popularization and application of cloud computing technology in Germany.
The stock price of the electric car manufacturer rose sharply, up more than 31%. Prior to this, the company and Volkswagen had jointly announced the establishment of a joint venture to share electric vehicle architecture and software. Volkswagen will invest up to $5 billion in Rivian to jointly create electrification architecture and software technology. In response, Wall Street analysts have generally expressed optimism.$Rivian Automotive (RIVN.US)$The stock price rose more than 12%, and the company's fourth quarter results exceeded expectations. The momentum of growth resulting from cost cuts is expected to continue into the next year, and both revenue and profit growth are expected to exceed market forecasts. Permanent cost reductions of $2.2 billion are expected by the 2025 fiscal year, capital expenditures are expected to be flat with the previous year at $5.2 billion and lower than expected, and the company is evaluating the modernization and automation of its fleet and facilities as well as the structure of its investment portfolio in freight operations.
In the past year, Rivian's share price has risen by 31.41%, and some analysts have predicted that its value could easily exceed $100 billion in the future. The company is expected to go public through an IPO later this year.
Wedbush analyst Dan Ives raised Rivian's target price to $20 and maintained a "outperform" rating.
$FedEx (FDX.US)$The stock price rose more than 12%, and the company's fourth quarter results exceeded expectations. The momentum of growth resulting from cost cuts is expected to continue into the next year, and both revenue and profit growth are expected to exceed market forecasts. Permanent cost reductions of $2.2 billion are expected by the 2025 fiscal year, capital expenditures are expected to be flat with the previous year at $5.2 billion and lower than expected, and the company is evaluating the modernization and automation of its fleet and facilities as well as the structure of its investment portfolio in freight operations.
Editor/Jeffy