Source: Sina US Stocks On the evening of the 20th Beijing time, the US stocks opened mixed on Thursday, and then the three major indexes rose slightly. Nvidia hit another new high and consolidated its position as the largest market cap company in the US stock market. Initial jobless claims in the United States last week were higher than expected, and real estate and manufacturing indexes were below expectations. Until the manuscript was submitted, the S&P 500 index rose 0.29% to break through 5500 points, the Nasdaq Composite Index rose 0.37%, and the Dow Jones Index rose 0.13%. The US stock market was closed on Wednesday due to the June holiday (Juneteenth). On Tuesday, the S&P 500 index and the Nasdaq both set new historical highs. The US stock market is expected to record gains this week. The S&P 500 index set its 31st new high this year on Tuesday. Due to the continued AI craze and the resilience of economic growth, it is expected to continue to support corporate profits, especially in the technology sector. Nvidia's stock price hit another new high. The AI darling and chip maker surpassed Microsoft last Tuesday and became the world's most valuable company. Against the background of the continued AI craze boosting the stock market, Nvidia's stock price has risen 174% from 2024 to date. As Nvidia consolidates its position as a thriving market leader in the AI theme market, its market value has surpassed that of Apple in early June. "Nvidia is still the most important stock in the world," said Chris Weston, head of Pepperstone research, in a report. However, Weston warned that the overall performance of the index market was poor, and the market participation was mediocre, suggesting that the rise was built on an unstable foundation. "The fact remains that the market is still very bullish on AI-related stocks and large tech stocks, and given the lack of clear immediate risks, the path of least resistance is for stock indices to rise." While consumer spending has shown signs of slowing and hints at potential economic weakness, investors continue to flock to the AI giant. The rise of Nvidia has also boosted its peers. Chip maker Broadcom has surged more than 60% from 2024 to date. Scott Chronert, Citigroup's US stock strategy director, wrote in a report on Tuesday: "We still believe that Wall Street (the S&P 500) is diverging from the corporate sector (the foundation of the US economy), is this strange? There is no doubt that generative AI is currently infiltrating the US stock market environment as a sustained driver of growth." Nevertheless, some commentators have noted that while this doldrums has not yet fully affected the US stock market, which repeatedly sets new highs, the rise lacks breadth beyond the largest tech companies, and this situation may continue to deteriorate. Thomas Fitzpatrick, managing director of R.J. O'Brien and Associates, said, "There's a feeling of AI theme that's very similar to the 2000-2001 US stock style, but as we know, markets stay irrational longer than you stay solvent. But for now, it's hard to stop the speeding train." Sam Stovall, chief investment strategist at CFRA Research, said that due to three major unfavorable factors that will suppress stock prices, the US stock market will see a correction. This Wall Street veteran pointed out that so far this year, the stock market has performed strongly, with the S&P 500 index up 15% from 2024. However, he predicted that the benchmark index would fall 5% due to unfavorable interest rates, inflation, and stock valuations. The inflation rate is declining but still above the Federal Reserve's target of 2%, leading Fed officials to expect only one interest rate cut by year-end. As for Thursday's economic data, the initial claims for unemployment benefits in the United States were almost unchanged last week, and the data for the previous week rose sharply. These data tend to fluctuate before and after holidays and school vacations. Data released by the US Department of Labor on Thursday showed that as of June 15, the number of initial claims for unemployment benefits decreased by 5,000 to 238,000. The number of continued claims for unemployment benefits as of June 8 rose to 1.82 million. In the past year, the number of people applying for unemployment benefits has remained low as the labor market has shown resilience in the face of high prices and high interest rates. The four-week moving average of initial jobless claims rose to 232,750, the highest level since September last year.

US stocks opened high and continued to rise on Monday evening Beijing time. As of press time, the Dow Jones Industrial Average rose by 0.15%, the Nasdaq rose by 1.56%, and the S&P 500 index rose by 1%. Traders are evaluating the US political situation after Biden's withdrawal from the election, as well as the financial reports of companies such as Tesla and Google, and the prospects of the Federal Reserve's policies. The rotation of funds from large technology stocks to small cap stocks is still continuing.

Last week, the three major US stock indexes had mixed performances. Influenced by sector rotation, the Nasdaq fell by 3.65% for the week, and the S&P 500 index fell by 1.96%, both recording their largest weekly decline in three months. On the other hand, the Dow Jones Industrial Average rose by 0.7%, while the small-cap Russell 2000 index rose by 1.7%.

Goldman Sachs stated that the trend of rotation from large-cap technology stocks to small-cap stocks will continue until large companies increase their revenue guidance. The bank's stock strategist David Kostin pointed out that the Russell 2000 index has recorded its strongest performance in at least 40 years over the past five days. Kostin believes that there are four reasons for the rotation: 1. As the Fed is about to cut interest rates and US inflation data slows down, this means that the interest expense of small-cap stocks will decrease; 2. Economic growth data is stable; 3. The market expects that Trump will win the US election, and during his presidency, small-cap stocks performed better than other companies and were less likely to be affected by trade; 4. The growth premium of large-cap stocks is narrowing.

Kostin believes that there are four reasons for the rotation: 1. As the Fed is about to cut interest rates and US inflation data slows down, this means that the interest expense of small-cap stocks will decrease; 2. Economic growth data is stable; 3. The market expects that Trump will win the US election, and during his presidency, small-cap stocks performed better than other companies and were less likely to be affected by trade; 4. The growth premium of large-cap stocks is narrowing.

Traders are closely watching the US political situation.

US President Joe Biden announced his withdrawal from the presidential election on Sunday and endorsed his vice president Kamala Harris as the Democratic presidential candidate. Many analysts believe that former President Donald Trump is becoming increasingly likely to win the November election.

On July 21, Biden announced his withdrawal from the presidential election on social media platform X. Harris later said in a statement: 'I am honored to have received the endorsement of the president, my goal is to win the nomination. I will do everything in my power to unite the Democratic Party, unite our country, defeat Trump, and his extreme '2025 plan' agenda.'

Biden's decision to withdraw from the election and endorse Harris has had a relatively calm market reaction so far.$USD (USDindex.FX)$The Democrats face the task of uniting the new nominee in the weeks leading up to the convention and must quickly make up ground against Republican leader Trump. The investors have been betting on Trump's return to the White House for several weeks, reducing their holdings of long-term US bonds and buying small-cap stocks, among other assets. Now, they are considering whether the 'Trump trade' is still effective. Although this uncertainty may cause market volatility, the main focus at present is still on financial reports and monetary policy prospects.

Investors have been betting on Trump's return to the White House for several weeks, reducing their holdings of long-term US bonds and buying assets such as stocks.$Bitcoin (BTC.CC)$Capital Advisors CEO Jay Hatfield said: 'Biden's endorsement of Kamala Harris reduces political uncertainty. The Trump trade may see a small liquidation on Monday because it is widely believed that Vice President Harris has a slightly higher chance of winning than Biden.' Hatfield said he expects Biden's withdrawal from the presidential race to lead to a 'mild market reaction', as calls for him to withdraw from the race have been increasing, so his withdrawal was largely expected.

Financial reports of companies and the Federal Reserve's monetary policy prospects will also be the focus of the market.

Tesla and Alphabet will be the first among the 'Big Seven' companies to report. Analysts may ask about the progress of Musk's plan to develop a fleet of robot taxis. Investors will also learn more about Google's parent company's growth in the field of artificial intelligence.

Andrew Tyler, head of US market information at JPMorgan, stated in a report that he expects positive earnings catalysts to pull the S&P 500 index out of the doldrums, especially as analysts' predictions for the so-called 'Big Seven' companies hint at 'another strong quarter,' with their second-quarter earnings expected to increase by around 30% year-on-year.

Investors have been betting on Trump's return to the White House for several weeks, reducing their holdings of long-term US bonds and buying assets such as stocks.

Capital Advisors CEO Jay Hatfield said: 'Biden's endorsement of Kamala Harris reduces political uncertainty. The Trump trade may see a small liquidation on Monday because it is widely believed that Vice President Harris has a slightly higher chance of winning than Biden.' Hatfield said he expects Biden's withdrawal from the presidential race to lead to a 'mild market reaction', as calls for him to withdraw from the race have been increasing, so his withdrawal was largely expected.

Traders currently widely expect a 93% chance of a rate cut at the Federal Reserve monetary policy meeting in September. In view of this, investors have been selling large-cap tech stock winners that have led the market since the end of last year, turning to interest rate-sensitive stocks such as small-cap and industrial stocks, as a rate cut will benefit these stocks. Product structure, 10-30 billion yuan products operating income of 401/1288/60 million yuan respectively.

Focus stocks

The growth tech stocks are strong,$Tesla (TSLA.US)$rose nearly 5%,$NVIDIA (NVDA.US)$rose more than 4%,$Qualcomm (QCOM.US)$rose more than 3%.

NVIDIA is reportedly developing a new flagship artificial intelligence (AI) chip that meets current US export controls for specific markets. NVIDIA is said to be partnering with Langchao, one of its key distributors in that market, to distribute the chip, tentatively named "B20".

In March of this year, the AI chip giant launched the "Blackwell" chip series, which will be mass-produced later this year. The B200 chip is 30 times faster than the previous generation in certain tasks, such as answering chatbot questions.

In addition, NVIDIA holds$Serve Robotics (SERV.US)$of the equity has risen to exactly 10%.

Tesla CEO Musk said on his social media X on Monday that "a really usable Tesla humanoid robot will be in small-scale production next year and will be used internally by Tesla, hopefully in 2026 for mass production and offered to other companies."

Samsung Motor announced on Monday that it will supply AMD with high-performance FCBGA substrates for ultra-large-scale data centers. Samsung Motor said it has invested KRW 1.9 trillion (approximately RMB 9.95 billion) in the development of FCBGA substrates. The two companies have jointly developed a packaging technology that integrates multiple semiconductor chips onto a single substrate, which is essential for CPU/GPU applications and meets the high-density interconnect requirements of today's ultra-large-scale data centers.

The Apple Intelligence research team has released two new small but high-performance language models for training artificial intelligence generators. Apple's machine learning team is participating in an open source language model data pack project with other industry teams. The two recently produced models are considered to be comparable to other leading training models, such as Llama 3 and Gemma.

$Microsoft (MSFT.US)$Attention has been drawn. On July 19th, Microsoft's Windows operating system suffered the largest IT failure in history, causing many industries globally to stagnate. Key sectors such as aviation, railways, banks, enterprises, and media have all been affected.

This event was described by Tesla CEO Musk as "the biggest tragedy in IT history."

$Amazon (AMZN.US)$Cloud technology promised to invest hundreds of millions of dollars by December 2020 to provide free cloud computing skills training for 29 million people worldwide by 2025. Recently, Amazon Web Services announced that it has achieved this goal ahead of schedule and with more success than expected.

Amazon Web Services has announced that it has helped more than 31 million learners from 200 countries and regions improve their cloud computing skills. Since 2014, Amazon Web Services has trained more than 1.4 million people in China. This milestone marks Amazon Web Services' relentless pursuit of promoting cloud computing education and supporting community development worldwide.

Alphabet, Google's parent company, will release its second-quarter earnings report on Tuesday after the US stock market closes. Investors will focus on the continued growth of its cloud business and the latest developments in its artificial intelligence (AI) plan. According to Visible's data, analysts expect the company's Q2 revenue to reach $84.3 billion, up 13% year-on-year. Net income is expected to reach $23 billion, or $1.85 per share, up 25% year-on-year. $ALPHA (0303.MY)$It was reported that Google and

show strong interest in acquiring the holdings of Essilor Luxottica, the parent company of Ray-Ban glasses. Essilor Luxottica not only owns well-known eyewear brands such as Ray-Ban and Oakley, but also produces sunglasses and frames for many first-line luxury brands. In addition, the company operates multiple eyewear retail chains such as Sunglass Hut and LensCrafters, with business operations worldwide.$Meta Platforms (META.US)$According to The Information, META, owned by Zuckerberg, is significantly cutting back investment in its metaverse project, citing a former manager of Reality Labs, the department responsible for VR, AR, and the metaverse. The hardware team in the department has been asked to cut spending by nearly 20% from this year to 2026.

Popular China concept stocks rose, up nearly 4%, company is close to

"yes", "Reason": "", "Translation": "holding a metaverse project called Horizon Workrooms Supports Systems for Business in virtual reality. News release says Workroom is intended as an Oculus product "over time," implying it'll be a consumer project eventually. The beta app lets employees create avatars and join VR video calls to collaborate in a virtual workspace. The Quest 2 is needed to use Horizon Workrooms at present."

China concept stocks are generally rising.$TAL Education (TAL.US)$KKR & Co stocks rose more than 8%.$XPeng (XPEV.US)$rose more than 6%,$MINISO (MNSO.US)$rose more than 5%.$Trip.com (TCOM.US)$,$New Oriental (EDU.US)$,$NIO Inc (NIO.US)$rose more than 4%.

$ASML Holding (ASML.US)$"yes", "Reason": "", "Translation": "focusing on popular China concept stocks, up nearly 4%."$Taiwan Semiconductor (TSM.US)$Reached an agreement on the next generation of EUV lithography machines.

$CrowdStrike (CRWD.US)$Dropped more than 8%, influenced by Microsoft's "blue screen" incident, multiple investment banks have lowered CrowdStrike's target price.

Received a 10% stake from NVIDIA,$Serve Robotics (SERV.US)$Rose more than 50%.

$XPeng (XPEV.US)$Rose nearly 6%, the company has signed a strategic cooperation agreement for joint development of electronic and electrical architecture technology with Volkswagen Group.

$NaaS Technology (NAAS.US)$Rose more than 24%, in terms of news, it participated in the construction of the "Zhejiang Province Charging Infrastructure Governance and Supervision Service Platform", which has officially launched.

Editor/Lambor