The sales of second-hand houses in the United States slowed down and the housing prices hit a new high. The initial value of the service industry PMI has been at its highest level in more than two years. The S&P and Nasdaq failed to turn around during the session. The S&P has risen for three consecutive weeks, while the Nasdaq's gain for the entire week was wiped out over the past two days. The Dow Jones rose for four consecutive days, standing firmly at its four-week high.
Microsoft and Google hit new highs while Nvidia's stock fell 5% during the trading day and dropped 3.2% at close, with a market cap reduction of more than $220 billion in two days, ranking third among US stocks again after losing to Apple. Its stock price halted its eight-week consecutive rise and fell by 4% this week. Chip stocks fell for two consecutive days, and the industry index fell 1% throughout the week. Chinese concept stocks fell nearly 1% on Friday, Bilibili rose more than 6%, and Xpeng Motors rose nearly 4%.
Please use your Futubull account to access the feature.
After hitting a two-week high, gold fell by 1.8%, more than $50 from its daily high, and turned to a 0.6% drop for the entire week, failing to rise for two consecutive weeks. Most London metals fell more than 1% on Friday, but zinc and lead rose more than 2% throughout the week.
The sales of existing homes in the United States have declined for three consecutive months, with an annual total of 4.11 million households hovering at a 30-year low, and house prices hit a historic high, with a year-on-year increase of 5.8%, the largest increase since October 2022. In June, the Markit Manufacturing PMI preliminary value in the United States hit a three-month high of 51.7, and the initial value of the service PMI reached a 26-month high of 55.1, also the highest for more than two years. The composite PMI preliminary value of 54.6 also reached a 26-month high. PMI data boosted the dollar and the yield of US bonds in the short term, but caused precious metals to plunge.
In the euro zone, the preliminary value of the manufacturing PMI in June hit a six-month low of 45.6. French and German PMIs were lower than expected. French service activity shrank, and German economic activity slowed down. The initial value of UK's manufacturing PMI in June hit a 23-month high of 51.4, but the commercial growth that month slowed to a seven-month low, which dragged down the exchange rates of the euro and the pound against the US dollar.
Friday is the 'Triple Witching Day' when stock options, stock index futures and stock index option contracts expire, which occurs on the third Friday of March, June, September and December each year, and may increase trading volume and volatility, and cause abnormal changes in underlying asset prices. This time, there will be options expiring worth about $5.5 trillion, the largest scale in history. Nvidia-related options expire with the second largest value among all underlying assets, second only to the S&P500. Today also happens to be the day when the S&P, Dow Jones and related ETFs rebalance the component stock weights. There will be options expiring worth about $5.5 trillion. The scale is the largest in history. Nvidia-related options expire with the second largest value among all underlying assets, second only to the S&P500. Today also happens to be the day when the S&P, Dow Jones and related ETFs rebalance the component stock weights.
The Nasdaq failed to turn around, the Dow Jones rose for four consecutive days, and Nvidia's market cap fell by more than $220 billion in two days, while Microsoft and Google hit new highs.
On Friday, June 21st, the US stock market only saw the Dow Jones opening high and rising by a maximum of 122 points, while the S&P fell by 0.4%, and the Nasdaq fell by more than 100 points or 0.6%. The Dow later fell and the S&P and Nasdaq tried to turn around but failed. The Russell 2000 small-cap stocks fell by 0.5% before turning around.
In early trading, semiconductor and AI stocks fell the most, the Philadelphia Semiconductor Index fell more than 2%, and Nvidia fell by about 5% at one point, bringing down the blockchain concept stocks as bitcoin fell below $64,000, but biotechnology ETFs rose by more than 1%, and gold, silver, and copper mining stocks rose and fell throughout the week.
At the close, the S&P 500 index fell for the third day in nine days and further drifted away from the new high. The Nasdaq and Nasdaq 100 also fell for two consecutive days, breaking their previous record of seven consecutive days of gains. The Dow Jones rose for four consecutive days, standing firmly at its four-week high. The S&P 500 index fell by 8.55 points, or 0.16%, to 5,464.62 points, and rose 0.6% throughout the week. The Dow Jones rose by 15.57 points, or 0.04%, to 39,150.33 points, and rose 1.5% throughout the week, the best weekly performance since May. The Nasdaq fell by 32.23 points, or 0.18%, to 17,689.36 points, and barely increased throughout the week.
The S&P 500 index fell for the third day in nine days and further drifted away from the new high, falling by 8.55 points, or 0.16%, to 5,464.62 points, with a total weekly increase of 0.6%. The Dow Jones rose for four consecutive days, standing firmly at its four-week high, with a rise of 15.57 points, or 0.04%, to 39,150.33 points and a total weekly increase of 1.5%, the best weekly performance since May. The Nasdaq fell by 32.23 points, or 0.18%, to 17,689.36 points, and barely increased throughout the week.
The Nasdaq 100 fell 0.3%, and the Nasdaq Technology Market Cap Weighted Index (NDXTMC) measuring the performance of Nasdaq 100 technology component stocks fell 0.8%, both fell off new highs for two consecutive days. The Russell 2000 small-cap stocks rose 0.2%, and the 'panic index' VIX fell 0.6% but remained above 13.
The early strength of the US stock market this week saved the later downturn, and all three major stock indexes rose for the whole week, with the Dow seeing its biggest increase since May.
The S&P Tech sector fell more than 0.8% on Friday, the Energy sector fell 0.68%, the Telecommunications Services sector rose 0.66%, and the Consumer Discretionary sector rose 1.02%. This week, the Consumer Discretionary sector rose 2.5%, the Energy sector rose more than 1.8%, the Financial sector rose 1.70%, the Industrial sector rose 1.55%, the Consumer Goods sector rose 0.89%, the Telecommunications sector rose 0.77%, the Raw Material sector rose 0.76%, the Healthcare sector rose 0.58%, the Real Estate sector fell 0.45%, the Technology sector fell 0.66%, and the Utilities sector fell 0.77%.
The energy sector performed well this week, but the tech sector did not.
Some analysts believe that recent technical indicators and the inflow of funds into tech stocks both show that tech stocks have been overbought and may have risen too much in the short term, and that a pullback in the short term is not unexpected. The impetus for the rise in Nvidia's stock price may weaken after Friday's options expire.
Friday is the last day for many indexes and ETFs to make adjustments, including CrowdStrike joining the S&P 500 Index and the largest ETF tracking tech stocks, the SPDR Fund (XLK).Nvidia's weighting was raised sharply, which may bring in tens of billions of dollars in buy orders, while Apple's weighting was heavily cut.Most of the star tech stocks rose. 'Metaverse' Meta fell 1.4% to a two-week low, Google A rose 1.8% to a historic high, Amazon rose 1.6% to a six-week high, Tesla rose 0.8%, Netflix rose 1% approaching a historic high; Apple rose 1% and then fell 1% to a near two-week low, marking three consecutive days of leaving a new high, with a market cap of $3.18 trillion, surpassing Nvidia to become the second largest stock in the US; Microsoft rose 0.9% to return to a historic high, with a market cap of $3.34 trillion, ranking first in the US stock market.
Chip stocks have fallen for two consecutive days, with intraday declines narrowing. The Philadelphia Semiconductor Index fell 1.3% for the second consecutive day and left a new high, and industry ETF SOXX fell 1% further away from its high. Nvidia fell 3.2%, leaving a new high for two consecutive days, with a market cap of $3.11 trillion, ranking third in the US stock market. Nvidia's two-fold long ETF fell 6% further off its high; Broadcom fell more than 4%, falling off its high for three consecutive days; ARM fell 0.3%, Qualcomm fell more than 1%, Taiwan Semiconductor and Lam Research fell nearly 1%, Applied Materials fell nearly 2%, and Micron Technology fell more than 3%, all leaving new highs for two consecutive days; AMD fell 0.3% off its high in nearly two weeks, while Intel rose 1.5% to a four-week high.
Concept stocks related to AI also fell more than they rose. CrowdStrike fell 0.4% and left a new high for three consecutive days, Oracle fell about 1% and left a new high for two consecutive days, SoundHound.ai fell more than 1%, BigBear.ai rose more than 7%, C3.ai fell nearly 1%, Snowflake rose 1% but still hovered near a 17-month low, Palantir fell 6.7%, Adobe rose 2%, refreshing a three-month high, Dell fell more than 2%, and Super Micro Computer fell 6% before finally closing down more than 1%.
Among the 'tech seven sisters' of US stocks, Nvidia's market value has evaporated more than $220 billion in the past two days and ended its eight-week streak of gains, with a weekly decline of 4%. Microsoft has risen 1.6% for the week and has risen for three consecutive weeks. Apple has fallen 2.4% for the week, Tesla has risen 2.8%, Amazon has risen about 3%, and Google A has risen 1.6%.
Most AI concept stocks fell rather than rose. CrowdStrike fell 0.4% and left a new high for three consecutive days, Oracle fell about 1% and left a new high for two consecutive days, SoundHound.ai fell more than 1%, BigBear.ai rose more than 7%, C3.ai fell nearly 1%, Snowflake rose 1% but still hovered near a 17-month low, Palantir fell 6.7%, Adobe rose 2%, refreshing a three-month high, Dell fell more than 2%, and Super Micro Computer fell 6% before finally closing down more than 1%.
On the news front, Google updated its software system in June for Pixel phones and other devices. Apple announced that it will not introduce AI features to the European market this year, citing regulatory uncertainty related to the Digital Markets Act. Musk teased new FSD computing hardware, which will be named "AI5" and utilize 4nm technology for a performance boost of ten times. Tesla's total workforce has dropped by at least 14% this year, and Musk previously stated that he would cut over 10% of it. There are still investment institutions raising their target price for Nvidia; Bernstein has raised its target price for Apple, and they are bullish on the monetization opportunities of AI. OpenAI has acquired Rockset, a search and analytics start-up, in the company's most significant acquisition deal in history.
Chinese concept stocks once again lagged behind the US stock market. ETF KWEB fell by more than 1%, CQQQ fell by 0.3%, the Nasdaq Golden Dragon China Index (HXC) dropped nearly 1%, and at one point during the trading day, it even crossed below the 5,900 mark, declining for five consecutive days to its lowest level in two months.
In popular stocks, JD fell 2%, Baidu fell 0.3%, Pinduoduo fell 2.6% and then closed down 0.2%. Alibaba and Tencent ADR fell by about 1%, while Bilibili rose by more than 6%, Nio fell by 0.7%, Xpeng rose by 3.8%, and Li Auto fell nearly 1%.
Retail investors held on to shares of the gaming company Gamestop, which fell 6% on Friday, nearly wiping out its gains from June. This past week, the stock price fell by nearly 17%, and intense fluctuations of double-digit percentages on almost every day the previous week. It fell over 12% on Monday this week.
Among other stocks with significant changes, Sarepta, a biopharmaceutical company, rose more than 30% to its three-and-a-half-year high in early 2021. The US FDA approved the expansion of its gene therapy for Duchenne muscular dystrophy, increasing revenue growth potential.
European stocks collectively fell again, with Italy's stock index leading major national indexes with a 1% drop. The pan-European Stoxx 600 fell by 0.73% and fell for the second day out of five trading days, with bank shares leading the decline. However, the index rose 0.8% during the week. The French stock index rose 1.7% for the week. European semiconductor-related stocks generally fell, with Infineon Technologies falling more than 7% this week, Integrated Silicon Solution fell more than 9%, and ASM International rose more than 5% and reached new highs.
US bond yields rebounded on Friday and rose more than 2 basis points for the week. The spread between French and German government bond yields was the widest in twelve years.
Before the release of bullish US PMI data, US bond yields fell to daily lows and then rebounded. The two-year US Treasury yield, which is more sensitive to monetary policy, rose by 2 basis points during the day, approaching 4.75%, while rising more than 2 basis points for the week. The 10-year Treasury yield rose to its highest level of 4.28%, up nearly 4 basis points for the week. Last Friday, US bond yields fell to their lowest level in ten weeks since early April.
The 10-year benchmark German bond yield fell by 2 basis points at the end of the day and rose by 5 basis points for the week. The 10-year French government bond yield rose by 1 basis point at the end of the day and rose by more than 8 basis points for the week. The yield spread on French and German government bonds rose to 80 basis points, the widest range since the peak of the European debt crisis in 2012, indicating that investors require a higher premium to hold French bonds. The early French parliamentary elections may lead to the far-right party's victory. Some analysts believe that the difference between bond yields may rise to the 100 basis points threshold.
Oil prices fell away from their seven-week highs on Friday but rose for two consecutive weeks, with a gain of over 3% this week. The demand for fuel for summer travel and cooling pushed oil prices up for two consecutive weeks. WTI rose by more than 3.43% this Thursday and rose by 3.9% last week after falling for three consecutive weeks.
However, oil prices rose on Friday and fell back. American oil fell nearly 1% or 0.56 dollars to 80.73 dollars per barrel. Brent crude futures fell by about 0.55%, or 0.47 dollars, to 85.24 dollars per barrel.
But oil prices soared then pulled back on Friday, with US oil hitting seven consecutive weeks of high. WTI August futures fell by 0.56 US dollars, down by nearly 0.69%, to 80.73 US dollars per barrel. Brent oil futures for August fell by 0.47 US dollars, down by about 0.55%, to 85.24 US dollars per barrel.
More active trading of US oil WTI August futures fell below the 81-dollar integer level, with the deepest intraday drop of 0.93 US dollars or 1.1%, wiping out the gains since Tuesday. International Brent fell by 0.87 dollars or 1%, almost falling below the 85-dollar mark, and approaching the eradication of gains since Wednesday.
According to JP Morgan, US gasoline demand soared to its highest level since the end of the COVID-19 pandemic last week, and it is expected that demand will continue to strengthen before the July 4th holiday. Some analysts pointed out that US EIA crude oil, gasoline, and refined oil inventories simultaneously fell for the first time in weeks, indicating that demand growth may benefit oil prices in the short term. Goldman Sachs and other mainstream investment banks are bullish on oil prices in the third quarter.
European benchmark TTF Dutch natural gas futures fell over 1.5%, and trading hit a two-week low. ICE UK futures also fell 1.5%. The US natural gas July contract fell over 2%, and once fell below $2.70, hitting a two-week low and narrowing its year-to-date increase to 8%. According to CCTV News, the first LNG transport ship since January this year has crossed the Red Sea.
The US dollar index has risen for three consecutive weeks, and the Japanese yen has fallen below 159 to an eight-week low. The euro, British pound, and bitcoin have all fallen to at least a five-week low.
The basket of currencies measuring against the US dollar index DXY rose by a maximum of 0.3% and once rose above 105.90, hitting a seven-week new high since May 1, and rose 0.2% throughout the week for three weeks. Some analysts believe that other European central banks' more dovish monetary policy stance may continue to boost the US dollar in the short to medium term.
Non-US currencies generally fell. The Japanese yen against the US dollar fell the most by 0.5% and broke below the 159 mark, hitting an eight-week low since April 29. At that time, the Japanese government launched a new round of intervention in the foreign exchange market, and the yen always lingered at the lowest level in 34 years. The offshore yuan against the US dollar rose slightly during regular trading hours on the US stock market, but still below 7.29 yuan, hovering at a seven-month low.
The euro against the US dollar fell the most by 0.3% and broke below 1.07, hitting a seven-week low since the end of April. Last Friday, it fell to 1.0667 at its lowest point since May 1, and basically remained unchanged for the whole week, as investors prepared for the possibility that the far-right party in France, the second-largest economy in the eurozone, could win a majority in parliamentary elections. The pound against the US dollar fell to 1.2622, hitting a five-week low since mid-May, and fell 0.3% throughout the week.
Mainstream cryptocurrencies generally fell for three consecutive days. The largest market cap leader Bitcoin fell nearly 2% and fell below $64,000, hitting a five-week low. The second-largest Ethereum fell 1% and fell below $3,500, approaching a four-week low, and basically wiped out this week's gains.
Gold fell 1.8% after hitting a two-week high, and fell about 0.6% throughout the week. Most London metals fell more than 1% on Friday.
The market believes that the cooling of economic data supports the US to quickly cut interest rates. Cutting interest rates will be bullish for metal, which does not provide fixed income. Uncertainties in elections in many parts of the world and escalating conflicts in the Middle East all provide support for safe-haven assets. The price of gold should have continued to rise for the second consecutive week.
On Friday, spot gold rose 0.4% to approach 2370 US dollars, hitting a two-week high, but rapidly fell during regular trading hours on the US stock market, falling as much as 1.8% and once fell below 2320 US dollars. The price fell by $52 from the daily high, causing a cumulative decline of about 0.6% throughout the week.
COMEX August gold futures fell 1.6% to $2331.70/ounce at the end of the day, and COMEX July silver futures fell 4.2% to $29.54/ounce. Spot silver fell the most by 4%, falling below the psychological integer mark of 30 US dollars, erasing the gains throughout the week and turning negative 0.2%.
Spot palladium rose by 11% and briefly rose above the integer mark of 1,000 US dollars, hitting a one-month high, and its year-to-date decline narrowed to about 12%. Some analysts believe that due to auto manufacturers actively replenishing catalysts that suppress tail gas emissions from internal combustion vehicles, investors are shorting palladium. As of the week ended June 11th, the net short position of COMEX palladium futures has hit the historical high since 2009.
The rise of the US dollar has put pressure on the prices of London industrial metals. Dr. Copper fell 1.8% and fell below $9,700 again, accumulating a decline of 0.6% throughout the week and approaching a two-month low. London aluminium also approached a two-month low and fell slightly throughout the week. London zinc fell by 1% but rose by 2.7% throughout the week. London lead fell by more than 1% but rose by 2.4% throughout the week. London nickel fell by more than 1% and approached a ten-week low, with a cumulative decline of 2% throughout the week. London tin fell by more than 1% and rose by 1% throughout the week.
Editor/new