Source: Wall Street See
Investors continue to sell tech stocks and instead buy blue chips and small-cap stocks. The S&P and Nasdaq have fallen for three consecutive days, with chip stocks opening low and falling by half. The Dow and Russell small-cap stock index rose throughout the day, while Tesla rose 4.6% at one point. After rising 0.7%, the Hang Seng Index fell 0.7% following Dong Yuhui's resignation, and Xiaopeng and Ideal Auto rose nearly 2%. The European stock market of French luxury goods giant Kering Group fell more than 7% to a seven-year low. US bond prices surged and then fell back, leading the global bond market before the release of positive US Q2 GDP data. Offshore renminbi soared more than 600 points on Thursday and rose more than 0.7% for three consecutive days. The yen rose 1% to a two-and-a-half-month high. Ethereum futures fell more than 6.7% on the third day of ETF listing in the spot market, while London copper fell below $9,000 a tonne for the first time in more than three months.
US stocks are trending separately, with small caps and blue chips rising while technology stocks continue to fall.
On Thursday, July 25th, US stock indexes showed a mixed performance as investors continued to sell technology stocks and instead bought blue chips and small-cap stocks.
At the beginning of the trading day, the Nasdaq and S&P 500 quickly hit new lows. The Nasdaq fell nearly 1.8% and the S&P fell nearly 0.7%, but then followed other stock indexes to hit new highs at noon. All major indexes in the United States rose across the board at one point. However, at the end of the day, all stock indexes began to fall again and accelerated to near the day’s low at the close.
As of the close, only the Dow and small cap stock indexes rose, while the Nasdaq, Nasdaq 100, and S&P Large Cap fell:
The S&P 500 index fell 27.91 points, or 0.51%, to 5,399.22. The Dow rose 81.20 points, or 0.20%, to 39,935.07. The NASDAQ fell 160.69 points, or 0.93%, to 17,181.72.
The Nasdaq fell by 1.06%, and the Nasdaq Technology Market Cap-Weighted Index (NDXTMC), which measures the performance of the Nasdaq 100's technology stocks, fell by 1.63%. The Russell 2000 index rose 1.26%, while the VIX panic index rose 2.33% to 18.46.
The Nasdaq has underperformed the Russell 2000 index on 11 of the past 12 days, erasing the strong performance of large technology indexes so far this year.
Most of the 11 sectors in the S&P 500 were down: the telecommunications sector fell 1.86%, the information technology/technology sector fell 1.14%, the consumer discretionary sector fell 0.42%, the financial sector rose about 0.3%, the industrial sector rose 0.76%, and the energy sector rose 1.47%.
Except for Tesla, the "Tech Seven Sisters" all fell. Tesla rose 1.97%, down 12.33% from the previous day.
Technology stocks dragged down the European stock market, falling for two consecutive days:
Chip stocks, led by STMicroelectronics, dragged down the STOXX 600 index, the pan-European Stoxx 600 index fell 0.72% to 508.63 points, and the eurozone STOXX 50 index fell 1.04% to 4,811.28 points.
The Germany DAX 30 index fell 0.48%, the French CAC 40 index fell 1.15%, the Italian FTSE MIB index fell 2.03%, the UK FTSE 100 index rose 0.40%, the Netherlands AEX index fell 0.54%, and the Spanish IBEX 35 index fell 0.58%.
Other stocks that have changed significantly due to yesterday's after-hours and today's pre-market financial reports:
STMicroelectronics fell 13.75%. Although STMicroelectronics' Q2 results were slightly better than expected, the company lowered its revenue and profit expectations for the year for the second time due to the continued low demand for chips in the automotive industry, dragging its stock price down sharply.
Stellantis fell 8.69%, with net profit for the first half of the year lower than expected and down 48% year-on-year to 5.65 billion euros, and net sales down 14% year-on-year.
Hermes fell 1.57% before the financial report was released. The financial report showed that Hermes' Q2 revenue increased by 13% beyond expectations, making it the “red dot in a sea of green” among luxury brands this season. Hermes stock rose more than 4.4% during regular trading hours, and finally rose 1.08%.
The US economy remains resilient, with weakening inflation boosting expectations of interest rate cuts, as well as falling crude oil inventories supporting crude oil's consecutive two-day rebound.
WTI September crude oil futures rose nearly 0.89%, up 0.69 USD, to 78.28 USD/barrel. Brent September crude oil futures rose about 0.81%, up 0.66 USD, to 82.37 USD/barrel.
After falling, oil prices rebounded. When US stocks hit a new low before market trading, US crude oil and Brent crude oil fell by nearly 2%, approaching the key levels of 76 USD and 80 USD. Later, both rebounded significantly, hitting new highs at the close of US stocks. US crude oil rose by more than 1.1% to break through the integer level of 78 USD, and Brent crude oil rose more than 1% to exceed the integer level of 82 USD.
Analysis shows that the US GDP growth in the second quarter exceeded expectations, indicating that the economy remains strong and there is a possibility of a soft landing; the core PCE price index for the second quarter showed that inflation will gradually weaken, boosting expectations of the first interest rate cut in September; and last week's US crude oil and gasoline inventories also fell, indicating rising demand, all of which have helped to push up oil prices.
US natural gas futures for August fell nearly 3.59%, to 2.0410 USD/million British thermal units. The European benchmark TTF Dutch natural gas futures fell 2.58% to 31.779 euros/megawatt hour; ICE UK natural gas futures rose 2.21%, to 80.76 pence/calorie.
The US Energy Information Administration (EIA) reported a 22 billion cubic foot increase in US EIA natural gas inventories last week, a weekly increase of 0.69% (up from 0.31% last week).
Investors took profits, and spot gold and silver fell sharply, with gold falling to a more than two-week low and spot silver falling sharply by 5% during trading.
COMEX August gold futures closed down 2.21% to 2362.4 USD/oz, while COMEX September silver futures closed down 4.51% to 27.995 USD/oz.
Spot gold continued to decline during the day, falling more than 1.8% when US stocks hit a new low at noon, falling below the key level of 2360 USD/ounce, ending its historical high of 2483.60 USD/ounce set last week; spot silver weakened all the way, hitting a new daily low when US second-quarter actual GDP was released, falling more than 5% and dropping below the integer level of 27 USD/ounce.
Analysis shows that gold and silver have been in a sharp upward trend recently. Therefore, the clearing of long positions and the profit-taking of recent gains have exacerbated selling pressure.
London metals have fallen for most days in a row. Dr Copper, an economic bellwether, rose 18 USD, closing at 9122 USD/ton, ending an eight-day losing streak and the lowest in over three months. It fell below 9000 USD/ton during the day, the first time since early April.
LME aluminum fell by 30 USD, dropping more than 1.30%, to 2270 USD/ton. LME zinc fell by 4 USD to 2681 USD/ton. LME lead fell by 16 USD to 2028 USD/ton. LME nickel fell by 58 USD to 15769 USD/ton. LME tin fell by 374 USD, down more than 1.25%, to 29416 USD/ton.
Some analysts pointed out that if Trump is re-elected, it would be bearish for copper, aluminum and other non-ferrous metals. Because one of the important themes of the non-ferrous metal sector is the strong driving force of green energy and transportation on demand, but the attitudes of the Trump and Biden administrations towards green energy are completely different. If Trump is re-elected, the green consumption of non-ferrous metals will face great uncertainty, which will be bearish for copper, aluminum and other non-ferrous metals.
Editor / jayden