Overnight stock market
On Wednesday, Eastern Time, the Nasdaq fell 3.64%, marking its largest daily decline since October 2022 and a new low since mid June; The S&P 500 index fell 2.31%, marking the largest daily decline since December 2022; The Dow Jones Industrial Average fell 1.25%.
Large tech stocks experienced a general decline, with Tesla falling more than 12%, marking its largest daily drop since September 2020, and its total market value falling below $700 billion; Nvidia fell over 6%, while Meta and Google fell over 5%.
The sharp fluctuations in technology stocks indicate that investors seem to be listening to more and more rumors on Wall Street that the foam triggered by AI in the past year is bound to burst. Although Wednesday may not be the beginning of this trend, the magnitude of the decline sounded the alarm.
Popular Chinese concept stocks generally fell, with the Nasdaq China Golden Dragon Index falling 1.93%. Ideal Auto, Xiaopeng Motors, and NIO fell more than 4%, Tencent Music, Futu Holdings, and iQiyi fell more than 3%, and Bilibili and Manbang fell more than 2%.
Major European stock indices collectively closed down, with the German DAX30 index falling 0.92%, the UK FTSE 100 index falling 0.17%, the French CAC40 index falling 1.12%, and the European Stoxx 50 index falling 1.1%.
Commodity Market
The settlement price of WTI crude oil futures in September closed up 0.63 US dollars, an increase of 0.82%, at 77.59 US dollars per barrel. The settlement price of Brent crude oil futures in September closed up $0.70, or 0.86%, at $81.71 per barrel.
COMEX gold futures closed down 0.41% at $2397 per ounce; COMEX silver futures closed down 0.86% at $29.1 per ounce.
Market News
Israeli Prime Minister Speaks in US Congress to Continue Military Operations
Israeli Prime Minister Netanyahu delivered a speech at the US Congress on Wednesday afternoon local time. Netanyahu stated that Israel will continue its military operations in the Gaza Strip until the destruction of Hamas' military power and its administrative governance capabilities in Gaza, as well as the release of Israeli detainees. He stated that Israel does not seek to resettle refugees in Gaza, but must maintain Israel's control over the overall security of Gaza to ensure that the Gaza Strip no longer poses a threat to Israel in the future. When talking about the conflict with Hezbollah in Lebanon and Houthi militants in Yemen, Netanyahu said that Israel will make every effort to restore security in the northern border areas of the country, and anyone who attacks Israel will pay a heavy price.
The Democratic Party of the United States will nominate Harris and his running mate before August 7th
Representatives of the Democratic National Convention in the United States will hold an online meeting in the next two weeks to confirm Vice President Kamala Harris' party nomination and her yet to be announced running mate. The rules committee of the conference overwhelmingly approved the online roll call procedure on Wednesday, clearing the final hurdle for determining candidates before the conference in Chicago on August 19th. The exact date of the vote - some time between August 1st and August 7th - will be determined by the co chairs of the conference, Jaime Harrison and Minyon Moore.
IBM reports better than expected increase in revenue from AI business orders
International Business Machines (IBM) reports a surge in orders for its artificial intelligence business, thanks to customers' efforts to adopt the latest technology. The company stated in a statement on Wednesday that orders for artificial intelligence consulting and software have exceeded $2 billion since mid-2023. This is twice the amount disclosed by IBM in its last financial report in April. IBM CEO Arvind Krishna said in an interview that about three-quarters of AI orders come from consulting, while the rest come from software. He also stated that the revenue share from software may increase over time. IBM's Q2 revenue increased by 2% to $15.8 billion, slightly higher than the average analyst expectation of $15.6 billion. According to data compiled by the media, IBM's software division revenue increased by 7% to $6.7 billion, higher than analysts' expectations.
Goldman Sachs trading department: Systemic funds should sell US stocks regardless of market trends
The recent sharp decline in the US stock market has issued a warning to trend tracking funds: sell US stocks regardless of market trends. According to the model of Goldman Sachs' trading department, both the S&P 500 and Nasdaq 100 benchmark stock indices have exceeded the threshold for triggering commodity trading advisors to sell signals. Scott Rubner, Managing Director and Tactical Expert of Goldman Sachs' Global Markets Division, wrote in a report to clients, "We simulate all scenarios facing systemic sellers in the United States over the next week, including flat, rising, and falling." According to Rubner's estimate, if short positions dominate and the stock market continues to decline next month, trend traders may withdraw up to $219 billion from global stock markets, of which $67.1 billion will flow out of the US market.
Guo Mingchi: Apple will remove iPhone 17 Plus
Renowned Apple analyst Guo Mingchi stated that currently, the Plus only accounts for about 5-10% of the overall shipments of new iPhones, which means that the other three iPhone models (Standard, Pro, and Pro Max) have already covered the product differentiation of high-end phones well, and the Plus has become an optional model. The positioning of this new ultra-thin model is not to replace the Plus, but rather Apple's attempt to find new design trends outside of the existing iPhone product line. The product positioning of the ultra-thin iPhone 17 is not to compete in hardware specifications (processor, camera, etc.), but to focus on innovative exterior design.
Airbus and Avolon reach cooperation on hydrogen powered aircraft research
At the 2024 Farnborough International Airshow, Airbus announced a new partnership with aircraft leasing company Avolon to jointly explore the potential of hydrogen powered aircraft, marking the first collaboration between the ZEROE project and leasing company. Both parties will study how to finance and commercialize future hydrogen powered aircraft, as well as how leasing business models can support the development of hydrogen powered aircraft.
United Nations report: Approximately 733 million hungry people worldwide in 2023
The United Nations agency released a report on Wednesday stating that the pace of global efforts to eradicate hunger is declining instead of advancing, and the level of food insecurity is comparable to 15 years ago. In 2023, approximately 733 million people worldwide will face hunger, with 1 in every 11 people going hungry. The report warns that by 2030, approximately 582 million people will suffer from chronic food insecurity, with half of them in Africa. The goal of eradicating hunger in the United Nations' 2030 Agenda for Sustainable Development is difficult to achieve as scheduled. The report suggests that adverse factors such as regional conflicts, climate change, and economic recession, along with high costs of healthy diets, unhealthy food environments, and inequality, have led to a continued deterioration of global food insecurity and malnutrition.
FBI Director Reveals Details of Trump Assassination
On Wednesday local time, FBI Director Christopher Wray revealed that in the previous Trump assassination, the gunman had flown drones for reconnaissance before the official start of the campaign rally, and he had also searched for details of the Kennedy assassination. Investigators found that Crookes searched for details of the assassination of former President Kennedy on July 6th, asking how far the gunman Oswald was from Kennedy. This indicates that Crookes did not act suddenly, but had a premeditated plan.
Bank of Canada cuts interest rates as scheduled
On Wednesday local time, the Bank of Canada announced a 25 basis point reduction in its policy rate from 4.75% to 4.5%, in line with market expectations. It should be pointed out that this is the second consecutive meeting of the Bank of Canada to lower interest rates, and the bank has also hinted at further policy easing in the future. Officials believe that below potential economic growth will continue to cool inflation and say they will spend more time discussing economic headwinds.