Breakfast | NVIDIA may face prosecution by French regulatory authorities, "Retail investors lead the way" in the lawsuit storm, shocking divine reversal

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Overnight Morning Market

Traders have been betting on a 64% probability of a September rate cut by the Federal Reserve for several days, higher than the 55% likelihood a month ago, with the expectation of two rate cuts within the year still being the mainstream. Keep an eye on Fed Chairman Powell's speech on Tuesday and the June non-farm payroll data on Friday.

The S&P 500 index retested a one-week high, while the Nasdaq hit a new closing high. The Dow reached its highest level in a week.

Amazon rose 2% approaching its historical high, Google Class A rose 0.5% approaching its high again; Apple rose nearly 3% to a record closing high, with a market value of $3.38 trillion ranking second in the U.S. stock market; Microsoft rose over 2% to a new high, with a market value of $3.44 trillion as the largest in the U.S. stock market. Tesla surged over 6% to hit a high of over five months, breaking above the 200-day moving average key technical level for the first time since January. Nvidia rose 0.6%, with a market value of $3.07 trillion ranking third in the U.S. stock market.

Chewy (CHWY.N) surged 19% in pre-market trading, opening 10% higher before falling 6.6%. "Retail investors' leader Roaring Kitty" disclosed holding 9 million shares, accounting for 6.6% of the shares and becoming the third largest shareholder, with a stake value exceeding $245 million. GME fell 5.5%, erasing all gains since June.

Chinese concept stocks followed the rise of the U.S. stock market. Alibaba rose 0.3%, Bilibili fell by about 1%, Nio and Li Auto rose 6.7%, XPeng rose 5.2%, ZEEKR fell over 3%.

Blue Chips and Hot Stocks

GameStop shareholders voluntarily withdraw fraud allegations against "Retail investors' leader"

GameStop (GME.N) shareholder Martin Radev voluntarily withdrew the fraud lawsuit filed against "Retail investors' leader" Keith Gill/"Roaring Kitty" on June 28.

Former U.S. President Trump Media and Technology Group (DJT) joins the Russell 1000 and Russell 3000 indices.

Wells Fargo includes Tesla in its strategic investment list.

Nvidia may face lawsuit from French regulatory authorities for alleged anti-competitive behavior

The French antitrust regulatory authority is preparing to accuse Nvidia of anti-competitive practices, making it the first enforcement agency to do so. Last September, the French authorities conducted a raid on the graphics card industry, targeting Nvidia. After the release of the generative AI application ChatGPT at the end of last year, there was a significant increase in demand for Nvidia's chips, triggering regulatory scrutiny on both sides of the Atlantic.

Meta is warned for offering ad-free subscription services on Instagram and Facebook, and may face heavy fines in the latest crackdown on major tech companies in the EU.

During Monday's U.S. stock market trading, some user services of the stock broker Robinhood were interrupted.

Li Auto delivered over 40,000 vehicles in June, regaining the crown of new energy vehicle sales.

ZEEKR achieved a record high of over 20,000 deliveries in a single month.

Nio delivered 21,209 vehicles in June, hitting a record high with a year-on-year growth of 98.1%. In the second quarter, deliveries reached 57,373 vehicles, up 143.9% year-on-yearXPeng Motors delivered 10,668 smart electric vehicles in June, a year-on-year increase of 24%; delivering 52,028 smart electric vehicles in the first half of the year, a year-on-year increase of 26%.

Leapmotor: In June, Leapmotor delivered 20,116 vehicles, reaching a historical high.

Microsoft will close all offline authorized stores in mainland China, only retaining the official online store and JD flagship store.

Shell (SHEL.N) responded to the "illegal collusion" with OPEC: Shell strives to comply with all applicable laws, including antitrust and competition laws, trade sanctions, and sanction regulations.

Chips and Artificial Intelligence

According to The Information: Google is in negotiations with chatbot manufacturer Character.AI.

TSMC's capital expenditure is expected to reach $32 billion to $36 billion by 2025, a year-on-year increase of 12.5% to 14.3%.

ASML (ASML.O) expects EUV lithography machine deliveries to grow by over 30% next year.

Cryptocurrency

Coinbase (COIN.O): Will provide cryptocurrency custody services to U.S. law enforcement agencies.

Startups and IPO Opportunities

According to The Insider: The valuation of AI startup Abnormal Security is expected to reach $5 billion.

Market news: Avianca will secretly submit an F-1 draft to the U.S. SEC for an IPO in the United States.

Macro: Insights into the World

At 21:30 on Tuesday Hong Kong time, Federal Reserve Chairman Powell and ECB President Lagarde will deliver speeches.

U.S. Democratic Party Plans to Nominate Biden Early

Market news: Democrats in the United States are considering nominating Biden early to eliminate internal discussions about replacing the presidential candidate, possibly nominating him early at the meeting on July 21.

The U.S. June ISM Manufacturing PMI recorded 48.5, declining for the third consecutive month, and hitting a new low since February 2024.

Morgan Stanley's strategy team stated that investors should be more selective, focusing on high-quality stocks that typically have more stable income, stronger balance sheets, and higher profit margins, while avoiding small-cap and cyclical stocks.

Goldman Sachs: Hedge Funds' Selling of TMT Stocks in June Hits Record Monthly High

According to Goldman Sachs' prime brokerage report, hedge funds significantly liquidated their technology stocks and instead invested in underperforming stocks. In June, hedge funds' selling of TMT concept stocks (technology, media, telecommunications) reached the largest monthly amount since data has been recorded in 2016. The main stocks sold were information technology (technology) stocks, accounting for over 85% of the TMT holdings. During the same period, hedge funds bought the most cyclical stocks, energy stocks, and financial stocks.

People's Bank of China Pre-announces Borrowing of National Debt, New Monetary Policy Tools Enter Implementation

The People's Bank of China issued a public market business announcement, once again sending a strong signal of rational "cooling" of the bond market, also seen as a "prelude" to the central bank buying and selling national debt. Different from the market's previous judgment that the central bank would first start "buying" national debt, this "borrowing" of national debt means that the central bank may first conduct "selling" operationsStarting from July 10th, non-Chinese nationals among permanent residents of Hong Kong and Macau can apply for travel documents to the mainland.

In June, the second-hand housing transaction volume in Beijing, Shanghai, and Shenzhen all reached new highs

The number of second-hand residential properties signed in Beijing was 14,987 units, an increase of 12% month-on-month and 29.1% year-on-year, exceeding the "early spring" in March this year, reaching a new high in nearly 15 months. The number of second-hand housing signed in Shanghai was 26,374 units, an increase of 41.1% month-on-month, setting a new high for the year and also a new high in 36 months. Shenzhen signed 4,172 second-hand houses, also setting a new high for the year and a new high in 38 months