On Monday Eastern Time, the three major US stock indices collectively closed higher, with the Nasdaq up 1.58%, the S&P 500 up 1.08%, and the Dow Jones up 0.32%. Most large tech stocks have risen, with Tesla up over 5%, Nvidia up over 4%, Google and Meta up over 2%, Microsoft up over 1%, and Apple and Amazon experiencing slight declines. CrowdStrike fell over 13%, marking its largest two-day decline in history and a new low since mid January. The stock price of Mattel has risen by over 15%, marking the largest daily increase in five years.
Popular Chinese concept stocks rose, with the Nasdaq China Golden Dragon Index up 2.77%. Xiaopeng Motors rose over 6%, NIO rose over 5%, Tencent Music and Ideal Auto rose over 4%, Weibo rose over 3%, NetEase, JD.com, Baidu, and Bilibili rose over 2%, Alibaba and Vipshop rose over 1%, and Pinduoduo, Futu Holdings, and Manbang rose slightly. IQiyi fell more than 3%.
Global News
Biden announces withdrawal from re-election campaign and supports nomination of Harris
Under strong pressure within the Democratic Party, current US President Biden announced his withdrawal from the 2024 presidential race on the 21st and expressed support for nominating Vice President Harris as the Democratic presidential candidate. Biden issued a statement on social media that day, stating that he had originally planned to seek re-election, but in the best interests of the Democratic Party and the country, he decided to withdraw from the race and focus on fulfilling his duties for the remainder of his presidency.
Trump's' chosen 'rival: How will Harris' economic agenda differ from' Biden economics'?
Although Vice President Harris has not yet secured the Democratic Party's presidential nomination, this does not seem to hinder people from carefully studying Harris' potential economic policy agenda. Many industry insiders have come to the conclusion that this highest ranking female elected official in American history may have a more progressive economic agenda than "Biden economics", while also being more incompatible with "Trump economics"!
Be vigilant! Renowned founder of Black Swan Fund: US stocks are about to 'depreciate' by more than half, recession is approaching before the end of the year
One of the most pessimistic hedge fund managers on Wall Street and the founder of the "Black Swan Fund", which specializes in profiting from tail risks, recently stated that the US stock market is heading towards a historic sell-off. He once again issued an extremely pessimistic warning to investors who are satisfied with the steady rise of the US stock market in the artificial intelligence boom. In a recent interview, Mark Spitznager, founder of the Black Swan Fund Universa Investments, said that the rebound of the US stock market for several years was equivalent to "the largest foam in human history".
The fear index VIX surged nearly 30% in a single week, and the testing of US technology stocks may have just begun
At the beginning of the second half of the year, the style change in the US stock market is advancing, and the addition of geopolitical factors has further increased the uncertainty of heavyweight technology stocks. The continued global network chaos caused by the Microsoft Blue Screen incident has also intensified market concerns, offsetting the recovery benefits of cyclical sectors such as banking and industry. The VIX, which measures market volatility, surged to its highest level since April last week. In the coming week, whether technology stocks can stabilize will be crucial, and the first star companies to announce their performance reports may face more stringent investor scrutiny.
Bitcoin's ups and downs: Biden's withdrawal from the election actually pushed the price to hit the $70000 mark?
Biden announced his withdrawal from the US presidential race on Sunday local time, causing a stir and raising concerns in multiple markets. Cryptocurrencies that do not open on weekends have become the first type of asset to react. On Sunday, the price of Bitcoin first fell after Biden announced his withdrawal, reaching a low of $65833 during the session, and then rose all the way, reaching a high above $68200. As of press time, the price of Bitcoin has remained stable at over $67700, with a cumulative increase of nearly 8% over the past 7 days.
Company News
Does Tesla lose favor with Democrats? Analysts warn Musk to support Trump or trigger more resistance
Musk's public endorsement of US presidential candidate Trump has sparked dissatisfaction among the Democratic camp. According to the latest data from analysis company CivicScience, as of July 16th, the support rate for the electric car Tesla brand among Democrats has dropped from 39% in January to 16%; And its approval rating among Republicans has dropped from 36% to 23%.
Nvidia reportedly preparing a flagship AI chip for the Chinese market
Sources say that Nvidia is developing a new flagship artificial intelligence chip for the Chinese market that complies with current US export controls. Nvidia released the "Blackwell" chip series in March this year and will begin mass production later this year. In this series, the B200 is 30 times faster than its predecessor in certain tasks, such as providing chatbot answers. According to sources, Nvidia will collaborate with its Chinese distributor partners to launch and distribute the chip, tentatively named "B20".
Buffett suddenly made a move! After four years, Bank of America once again reduces its holdings of $1.476 billion in stocks
According to documents released by the US Securities and Exchange Commission (SEC), between July 17th and 19th local time, Berkshire Hathaway (referred to as Berkshire Hathaway), a well-known American investor under Warren Buffett, sold a total of 33.89 million shares of Bank of America worth approximately $1.476 billion in four trades, with strike prices ranging from $43.13 to $44.07 per share. After this reduction, Berkshire Hathaway still holds approximately 999 million shares of Bank of America, worth over $42 billion, making it the second largest holding in Berkshire Hathaway's investment portfolio after Apple.
The impact of Microsoft's major outage continues, with over a thousand US flights cancelled on Sunday
Last Friday, a global IT malfunction disrupted multiple industries including airlines, banks, and healthcare. At present, the impact of this major downtime event is still ongoing. As of Sunday, over 1000 flights have been cancelled in the United States for the third consecutive day. According to flight tracking website data, as of Sunday evening, over 1500 flights within the United States, to and from the United States have been cancelled due to global downtime incidents, with Delta Air Lines and United Airlines having the most cancellations.
Large banks are welcoming a turning point after many years! Fuguo analysts are bullish on Citigroup, Bank of America, and Morgan Stanley
Recently, Wells Fargo pointed out in an analysis report that the second quarter performance reports released by large US banks this month indicate that the industry is at a turning point for many years. From the perspective of revenue growth, operational leverage, and earnings per share growth, they are all shifting from negative growth to positive growth. Rich Country analyst Mike Mayo wrote in a recent report to clients that factors such as central bank policies, capital markets, costs, credit, and capital are positively stimulating large bank stocks.