On August 12th local time, JPMorgan Chase disclosed its holdings in the US stock market for the second quarter. It continued to heavily increase its holdings in the seven tech giants and bought Chinese concept stocks such as Pinduoduo and Alibaba, further increasing the total market value of its holdings. What does this operation mean on the eve of the leading adjustment by US tech giants?
Significant increase in holdings of the seven tech giants
Among the seven tech giants, JPMorgan Chase significantly increased its holdings of 24.7284 million shares in Apple in the second quarter, reaching 15.85% compared to the end of the first quarter, making it the third largest holding stock with a market value of $38.077 billion.
Microsoft and Nvidia are the first and second largest holdings of JPMorgan Chase, respectively. In the second quarter, they also increased their holdings by 4.8649 million shares and 11.1649 million shares, with an increase ratio of 3.81% and 2.94%, respectively. After increasing their holdings, they still rank among the top two holdings.
In addition, JPMorgan Chase has added positions in companies such as Google, Amazon, Facebook parent company Meta, and Tesla among the seven tech giants. Among them, the increase in holdings of Tesla reached 14.97%, with an increase of 4.1934 million shares and a market value of 6.373 billion US dollars.
In terms of operations on Google, JPMorgan Chase increased its holdings of non voting Google-C (GOOG) by 11.9368 million shares, an increase of 14.18%, with a market value of $17.628 billion; Additionally, Google A (GOOGL), which holds voting rights, has slightly reduced its holdings by 1.4159 million shares, with a market value of $10.891 billion and a combined market value of $28.519 billion.
At the same time, JPMorgan Chase reduced its holdings of the SPDR S&P 500 ETF in the second quarter by 6.68%; Reduce holdings of 364300 shares in Eli Lilly; Add positions in technology stocks such as TSMC and AMD.
As of the end of the second quarter, JPMorgan's total market value of holdings was approximately $1.22 trillion, an increase from the previous report of $1.18 trillion. Among them, the top ten heavily held stocks include: Microsoft, Nvidia, Apple, Amazon, SPDR S&P 500 ETF, Google, Meta, Eli Lilly, United Health, and Mastercard.
(Note: Google represents the total A/C shares held, bold indicates the company with the highest increase in holdings, data source: Whalewisdom website)
Significantly increase warehouse holdings in Pinduoduo and Alibaba
In terms of Chinese concept stocks, JPMorgan Chase has also significantly increased its holdings in stocks such as Pinduoduo, Alibaba, and iQiyi.
Among them, JPMorgan Chase significantly increased its holdings of Pinduoduo by 3.1914 million shares in the second quarter, with an increase ratio of 62.72% and a market value of $1.101 billion; Bought 2.841 million shares of Alibaba, with an increase of 32.42% in holdings and a market value of $836 million; Bought 11.1841 million shares of iQiyi, with an increase of 71.59%.
(Note: The table is only for adding positions to some Chinese concept stocks, data source: Whalewisdom website)
It is worth mentioning that while operating on the underlying stocks, JPMorgan also has actions in option trading.
According to the Whalewisdom website, JPMorgan Chase reduced its holdings of put options (QQQ PUT) on the Nasdaq 100 index by 29.12% in the second quarter, with a market value of $4.077 billion; At the same time as reducing holdings of the S&P 500 ETF, the company increased its holdings of put options (SPY PUT) on the S&P 500 ETF by 60.43%, with the latter holding a market value of $5.67 billion.
Has the adjustment of the US stock market ended?
In the recent volatility of the US stock market, JPMorgan Chase has made multiple statements.
Prior to last Monday's panic sell-off in the US stock market, Andrew Tyler, the head of US market information at JPMorgan's trading division, issued a report warning against bottom fishing. Tyler pointed out that the recent market trend may be somewhat excessive, and the actual economic situation is stronger than the trend of risk assets. However, attempting to counter this market inertia is not a wise move, and investors can consider turning to tactical market neutrality or leaning towards net short positions.
Afterwards, the market's focus shifted to whether the "yen arbitrage trading liquidation" that triggered a wave of selling in the US stock market had ended? JPMorgan Chase continues to issue a warning: as the Japanese yen remains one of the most undervalued currencies, there is still room for further liquidation in recent carry trades, with speculative investors completing only 50% -60% of their arbitrage trades.
On August 10th, according to media reports, the trading department of JPMorgan Chase remains somewhat cautious on the issue of whether the adjustment of the US stock market is over. JPMorgan's trading department listed arguments in a report supporting and opposing the market hitting bottom.
Among them, the reasons for support include: recent fluctuations may only be technical sell offs, and fundamental data does not support such significant fluctuations; Macro and micro fundamentals remain stable, with optimistic GDP growth expectations and better than expected corporate profitability; The callback is a normal phenomenon and conforms to historical patterns.
The main reasons for opposition are as follows: the Federal Reserve may delay interest rate cuts, triggering negative reactions in the bond market; CTA still has more selling space; Negative seasonal factors and increasing geopolitical risks.
Regarding the question of whether it has bottomed out, JPMorgan's trading department stated in a report that the market trend may slightly increase from now on, "but the market still needs to see evidence that the economy is still in a growth mode
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