The U.S. stock market rebounded strongly, with small-cap stocks leading the way again. The Nasdaq rose by 1%, Tesla surged by over 4%, and Chinese concept stocks generally rose
The major US stock indices rebounded across the board, with the Nasdaq rising over 1%, the Dow rising 300 points in early trading, and the Russell 2000 small-cap stocks rising over 1.8%; the "Seven Sisters" of the US stock market had mixed performances, with Tesla rising over 4% and Nvidia rising nearly 2.9%; AI stocks and bank stocks showed divergent trends, with Citigroup falling over 7.4%, Chinese concept stocks outperforming the overall US market, and XPeng Motors rising over 6.3%
On Friday, July 12th, the major U.S. stock indexes rebounded across the board, with the Nasdaq rising over 1%.
The tech-heavy Nasdaq continued to rise by over 1.1% during the day, returning to 18,400 points; the S&P 500 index also rose steadily, surpassing the 5,600 point mark and increasing by over 0.8%; the Dow Jones Industrial Average, which gathers blue-chip stocks, rose by 0.8% and broke through the 40,000 point mark; the Russell 2000 small-cap stocks once again outperformed the major indexes, rising by over 1.8%; the Nasdaq 100 rose by over 1.1%.
The "Big Seven Sisters of Tech" saw mixed movements, with Tesla and Nvidia, which led the decline yesterday, rebounding strongly. Tesla initially fell by nearly 3.3%, but then reversed the decline to rise by over 4.2%; Apple surged to over 1.7% at the beginning, maintaining its position as the most valuable company; Nvidia rose by nearly 2.9%, ranking third in market value; Microsoft initially fell by nearly 0.9% but then erased most of the losses; Google Class A shares rose by over 0.5% but then fell by nearly 0.4%; Amazon rose by over 0.24% but then fell by over 0.6%; Meta fell by over 3.6% at the beginning.
Most chip stocks continued to rise. The Philadelphia Semiconductor Index rose by over 1.8%, while the industry ETF SOXX rose by nearly 1.8%. Nvidia's double long ETF surged by over 4.4%; TSMC ADR rose by nearly 2.4%; Intel rose by about 4%; Arm Holdings rose by nearly 5%.
AI concept stocks had mixed movements. AMD fell by nearly 1.5% but then rose by over 4.1%; SoundHound.ai surged by over 11.7%; while Snowflake had previously fallen by over 4.3%.
Bank stocks kicked off the second-quarter earnings season for U.S. stocks, but their stock prices performed poorly. JPMorgan Chase reported record profits in the second quarter but fell by over 2.5%; Wells Fargo's Q2 net interest income fell short of expectations, dropping by over 7.4% at one point; Citigroup's total revenue for the second quarter slightly exceeded market expectations, opening 1% higher but then falling by nearly 3%.
On the news front, major banks kicked off the second-quarter earnings season on Friday, but better-than-expected results failed to boost stock prices. Market hopes for a soft landing of the overall economy boosted small-cap stocks. Chris Zaccarelli, Chief Investment Officer at Independent Advisor Alliance, stated that they remain optimistic about the economy and stock market due to slowing inflation and a strong labor market. However, he warned that if these trends change, the market will be significantly negatively impacted as current valuations have become very high.
Chinese concept stocks outperformed the U.S. stock market indexes, but later retraced half of their gains. The Invesco Golden Dragon China ETF (KWEB) had previously risen by over 2.4%, the Invesco China Technology ETF (CQQQ) had previously risen by over 1.6%, and the Nasdaq Golden Dragon China Index (HXC) had previously risen by nearly 2.4%, but later saw their gains cut in half Among the popular stocks, the performance of new energy vehicle companies is strong, with XPeng Motors rising over 6.3%, Li Auto rising nearly 1.6%, Nio rising over 4%, ZEEKR rising nearly 2.9%, but then most of the gains were given back. Pinduoduo once rose over 4.1%, Alibaba once rose over 3%, while Bilibili once fell over 5.7%.
The following is the update before 21:50
The US June PPI increased by 2.6% year-on-year, the highest since March last year, and the market showed mild fluctuations after the data was released.
At the beginning of the US stock market trading session, the Nasdaq rose by 0.12%, the S&P 500 rose by 0.13%, the Dow Jones rose by 0.20%, and the Russell 2000 index continued its upward trend, rising by over 1% at the beginning of the session.
US stock earnings season kicks off, with bank stocks showing mixed performance. Wells Fargo's Q2 net interest income fell short of expectations, plunging by over 6% at the opening; Citigroup fell by over 1%, after briefly rising by over 1%, with second-quarter total revenue slightly exceeding market expectations; JPMorgan Chase reported record profits in the second quarter.
Tech stocks showed mixed movements, with NVIDIA rising by nearly 1%, Meta falling by over 2%, Tesla falling by over 2% at the beginning of the session, and UBS downgrading Tesla's rating to "Sell".
AI stocks had mixed movements, with SoundHound.ai rising by over 4% and AMD falling by over 1%.
Popular Chinese concept stocks rose across the board, with Trip.com, Pinduoduo, XPeng Motors, Baidu all rising by over 3%, and KE Holdings rising by over 4%.
Decline in US Treasury Bonds
The 10-year US Treasury bond yield rose by over 4 basis points, reaching 4.232%
US Dollar Declines
The US Dollar Index fell by 0.1% intraday.
The US dollar weakened against the Japanese yen in the short term, dropping by 0.7% intraday to a low of 157.60.
Gold Price Reaches Above $2400
After the release of the PPI data, spot gold prices declined briefly, falling to $2395 per ounce at one point, and currently trading at $2405.5 per ounce.
