Breakfast | NVIDIA's high retracement pushed its market value below 3 trillion, Faraday Future proposed a maximum of 40:1 stock merger

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Overnight Morning Market

Nasdaq and S&P fell for three consecutive days, while Dow rose for five consecutive days. Bank of America pointed out that trend-tracking CTAs (commodity trading advisors) are large participants in the futures contract market, which may intensify the selling of tech stocks. CTAs holding excessive long positions in Nasdaq 100 futures may trigger a collective sell-off.

NVIDIA fell by 6.6%, marking a cumulative 12% decline over three trading days, dropping as much as 16% from its historical high. With a market capitalization below $3 trillion, NVIDIA ranks third in the U.S. stock market, losing over $400 billion in market value in three days. NVIDIA's stock price is 100% above the 200-day moving average, indicating a bearish outlook in the near term. NVIDIA's double long ETF fell by 14%.

Cryptocurrency concepts experienced a significant drop, with Coinbase falling by over 6%. Chinese concept stocks outperformed the U.S. market, with Alibaba up by 1.4%, JD.com up by nearly 1%, Baidu up by 0.2%, and Pinduoduo reversing to a 1.6% decline. Tencent ADR rose by 0.5%, Bilibili fell by 1.9%, Nio rose by over 3%, XPeng rose by over 1%, and Li Auto rose by 3.6%.

Blue Chips and Hot Stocks

NVIDIA's CFO Colette Kress sold stocks worth $12.7 million.

NASA and Boeing once again delayed the return of crew members from the space station via the Starship.

Faraday Future proposed a reverse stock split of up to 40:1 to regain compliance with Nasdaq listing standards.

Market news: Novo Nordisk (NVO.N) is investing $4.1 billion in North Carolina to expand its manufacturing in the U.S.

According to U.S. financial media Semafor, Pfizer (PFE.N) is testing three new weight-loss drugs.

Carlsberg (CABGY.O) has reached an agreement with PepsiCo, which waived the change of control clause in the contract with Britvic, potentially paving the way for Carlsberg to acquire Britvic for £3.1 billion.

The EU is taking measures to ensure Apple complies with digital market laws.

Chips and Artificial Intelligence

According to The Information, Google is developing customizable chatbot products.

According to Business Insider, Amazon is developing an AI chatbot assistant.

Meta has launched the Llama 3 model on WhatsApp, Facebook, and Instagram in India.

Market news: Apple rejected the idea of collaborating with Meta on artificial intelligence a few months ago.

According to CNBC, OpenAI has changed its policy on secondary market stock sales, allowing current and former employees to participate equally in its annual tender offer.

Cryptocurrency

Bankrupt exchange platform Mt. Gox, holding over 140,000 bitcoins, will begin repaying users for stolen bitcoins.

Bitcoin plunges by $5,000, potential selling pressure of nearly $9 billion looms

Bitcoin dropped to a low of $58,300. This incident is related to the early cryptocurrency exchange Mt. Gox. Since 2011, the platform has been hacked, with over 600,000 bitcoins stolen, leading to bankruptcy in 2014The team responsible for managing the remaining funds of Mt. Gox will begin repaying creditors who lost their assets over a decade ago in cryptocurrencies starting in July, with payments in Bitcoin and Bitcoin Cash. Investors are concerned that Mt. Gox creditors may choose to sell the Bitcoin they receive, putting pressure on the cryptocurrency as the current trading price is much higher than it was over a decade ago.

Largest Two-Week Outflow for Bitcoin Funds Since Bitcoin ETF Approval

Data from CoinShares International Ltd. shows that virtual currency asset products saw an outflow of $584 million in the week ending June 21. Bitcoin products accounted for the majority of the outflow, with $630 million exiting last week and $600 million the week before. Fidelity's Bitcoin fund saw the largest outflow of $270 million, while Grayscale lost over $150 million in funds.

Macro: A Look at the World

Federal Reserve's Gulsby: Slightly more confident in the Fed's inflation outlook, wary of long-term tight policy restraining the economy; Fed's Daly: Risks of rising unemployment. Rate cuts or longer maintenance of rates will depend on inflation data.

JPMorgan: U.S. Stocks Rise but Breadth Narrows, a Ominous Sign

The share of stocks driving the rise in U.S. stock indices continues to decline, historically, "this is an ominous sign." The S&P 500 equal-weighted index remains flat, despite the market-cap weighted S&P 500 index continuing to rise. The proportion of stocks above the 50-day moving average has dropped from around 90% earlier in 2024 to about 50%.

Strategist: Bank Stocks May Profit Under a Trump Victory, Tech Stocks Will Decline Regardless

Stifel strategist Brian Gardner suggests that if former President Trump returns to the White House and sweeps Congress, banks, consumer finance companies, cryptocurrency firms, and mortgage financing giants may perform well; however, regardless of the election outcome, tech companies are expected to face a decline.

Mainland China's five departments: Encourage cities with purchase restrictions to relax vehicle purchase limits; Explore the development of humanoid robots based on large-scale artificial intelligence models; Actively research increasing the number of countries with visa-free transit policies.

The "Income Tax APP" has added a new feature "Income Tax Details" displaying five categories of personal income, 12366: mainly for inquiry and display without changing the final settlement method