US stocks turned lower, with Tesla up more than 5% and NVIDIA narrowing its decline to 3.8%, while chip stocks were almost wiped out

On Monday, July 1st, the three major U.S. stock indexes softened, with the Dow, S&P 500 opening high and then falling, and the Nasdaq experiencing multiple short-term declines.

The Dow, which gathered blue-chip stocks, opened 67 points higher, with the morning gains expanding to 0.82% at one point before diving and falling; the S&P 500 rose 0.35% before falling back, dropping over 0.25% at one point; the Nasdaq, dominated by technology stocks, opened 41 points higher before softening, experiencing multiple short-term declines, and now hovering around 0%.

Tech stocks showed mixed performance. Tesla led the "Big Seven" of U.S. stocks, with its morning gains expanding by over 5.6%, breaking through the $200 mark again; Microsoft fell nearly 0.29% before rising over 0.5%; Apple maintained its upward trend, rising over 1.6% at one point; Google A rose nearly 0.95% before falling over 0.46%; Amazon rose over 1.26% at the opening before giving back some gains; Meta and Netflix both opened high and then plummeted, falling over 2% and 1.6% respectively.

Chip stocks suffered heavy losses. The Philadelphia Semiconductor Index and the Semiconductor Industry ETF SOXX both fell over 1.8% at one point in the morning, moving away from their two-week highs. NVIDIA's decline once expanded to 3.8%, before narrowing to over 1%; NVIDIA's double long ETF fell over 7.6% at one point before erasing some of the losses;

AI concept stocks showed mixed performance. Snowflake rose over 3.5%, but BigBear.ai fell over 5.3%.

Most Chinese concept stocks rose. The Nasdaq Golden Dragon China Index (HXC) rose over 1.5% at the opening, then gave back most of the gains; Among the new forces in the electric vehicle sector, NIO rose over 5%; XPeng rose by about 4%; Li Auto rose by about 5.5%, but ZEEKR fell over 6%. NetEase, JD.com, Alibaba, Baidu, Tencent Holdings (ADR) rose slightly, with gains within 1%, while Pinduoduo fell over 1%.

Among stocks with significant fluctuations, JPMorgan Chase's U.S. stocks rose by about 2.4%, hitting a new intraday high, while Teva Pharmaceutical's U.S. stocks fell during trading, dropping over 3.5%. Reports indicate that the U.S. Federal Trade Commission (FTC) has begun an investigation into Teva Pharmaceuticals (TEVA). GameStop accelerated its decline, plunging over 10%, with reports stating that "retail investor leader" Keith Gill is being sued, and GameStop (GME) shareholder Martin Radev has accused him of attempting to manipulate the company's stock price for personal gain in a class-action lawsuit.

The content was updated before 21:50 Beijing time. On Monday, July 1st, the far-right primary election in France did not perform as well as expected, leading to a rise in European stocks and currencies. The three major U.S. stock indexes opened higher, with the Nasdaq rising by 0.21%, the S&P 500 by 0.24%, and the Dow by 0.22%.

Tesla Soars 3%, NVIDIA Leads the Seven Sisters in Decline

Among the star tech stocks, NVIDIA fell by over 1%, being the only component stock among the Seven Sisters to decline; Tesla surged by over 3%, leading the Seven Sisters in gains. On the news front, investment bank Stifel initiated coverage on Tesla last week with a buy rating and a target price of $265, implying a potential upside of about 35% for the stock.

Gengaro believes that despite the recent slowdown in electric vehicle sales, Tesla's momentum will gradually improve with the expansion of the supercharging network, the launch of affordable models, and overall technological advancements:

From a financial and profitability perspective, Tesla's long-term profit expectations have bottomed out. Gengaro points out that over the past 12 months, consensus expectations for Tesla's 2024 EBITDA have declined by 41% and for EBIT by 46%. As negative expectations are gradually revised, this may boost the stock price to some extent.

Gengaro is particularly bullish on Tesla's core technological advantage, stating that the company has no competitors in the electric vehicle field:

"Traditional car manufacturers lack the technical knowledge required for electric vehicles, and they are far behind in this electrification game."

ASML, the giant in lithography machines, rose by 1.3%. According to consultancy firm Trendforce, driven by demand from leading companies like TSMC, ASML's lithography machine shipments are expected to grow by 30% in 2025.

Active Performance of Chinese Concept Stocks

Most Chinese concept stocks rose, with the Nasdaq Golden Dragon Index up by over 1%. Among the components, KE Holdings rose by over 4%, Tencent Music by around 3%, and Full Truck Alliance fell by over 2%.

Most Chinese new energy vehicle stocks saw gains, with ZEEKR up by over 1%, NIO up by over 3.5%, Li Auto up by over 5%, and XPeng up by around 3%.

On the news front, both ZEEKR and NIO had impressive delivery data in June, surpassing 20,000 units each and hitting historical highs. Li Auto delivered over 40,000 units in June, securing the top spot among new energy vehicle manufacturers.

Japanese Yen Falls to 161.4 Against the US Dollar, Setting a New Low

The USD/JPY continued to rise, reaching a high of 161.44, setting a new high since December 1986.

U.S. Treasury Yields Continue to Climb

The 30-year U.S. Treasury yield hit its highest level since June 3rd, rising by about 10 basis points; the 10-year U.S. Treasury yield also increased by 10 basis points to 4.44%.

Crude Oil Rises 1% Intraday

Crude oil rose by 1% to $86 per barrel.

Bitcoin Rebounds Slightly

According to Coin Metrics data, over the weekend, Bitcoin rose by 5% and rebounded to $62,000 on Monday.

Bitcoin recently fell to the lower end of the range between $60,000 and $70,000 that it has been in since March. Investors expect the recent weakness in Bitcoin to continue in July, but remain optimistic about the second half of the year