Breakfast | Nasdaq, S&P, Amazon, Apple, Microsoft hit new highs again, Tesla's delivery volume beats market expectations

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Overnight Morning Market

Fed Chair Powell's "dovish" remarks boosted the market, with the S&P 500, Nasdaq, and Nasdaq 100 hitting new record highs again. The S&P 500 closed above 5500 points for the first time, the Nasdaq closed above 18,000 points for the first time, the Nasdaq 100 closed above 20,000 points for the first time, and the Dow approached its historical high again.

Tesla led the gains in the US stock market among the "Big Seven," closing up 10.2% at $231.26, up more than 26.66% since the June 24th close, marking the longest consecutive days of gains since July 18, 2023. Tesla's second-quarter deliveries exceeded expectations, pushing its market value back above $730 billion.

Nikola rose 13.2%, marking its best performance since March, with an 80% increase in hydrogen-powered truck deliveries in the second quarter.

Apple and Amazon hit new highs, with Apple up 1.62%, marking a new closing high for the second consecutive trading day. Amazon rose 1.42%, also hitting a new closing high after two days. Google Class A rose 1.23%, Meta rose 0.96%, and Microsoft rose 0.56%.

Nvidia fell 1.31%, while the Nvidia 2x Long ETF fell 2.53%. Previously faced with antitrust suspicions from French regulators.

Chinese stocks showed mixed movements. JD.com rose 1.16%, Pinduoduo rose 0.68%. Alibaba rose 2.08%, NetEase fell 2.59%, Nio rose 2.03%, Li Auto rose 1.94%, XPeng fell 1.04%, and ZEEKR fell 1.32%.

At 02:00 Singapore time on the 4th, the Fed will release the minutes of its monetary policy meeting. US stocks and bond markets closed early on Wednesday and will be closed on Thursday.

Blue Chips and Hot Stocks

Tesla produced approximately 411,000 vehicles in the second quarter and delivered about 444,000 vehicles, exceeding the market's expected 439,300 vehicles. In addition, Tesla deployed 9.4GWh of energy products in the second quarter, the highest quarterly deployment to date.

Production of 4680 batteries halted? Tesla responds, "Production is progressing smoothly"

There were recent reports that due to poor energy density, charging performance, and high costs, if cost reduction cannot achieve the expected results by the end of the year, Tesla may consider halting the production of 4680 batteries at the GigaTexas factory in Texas and instead procure them from external suppliers.

General Motors (GM.N): Total vehicle deliveries in the second quarter were 696,086 units, up 0.6% year-on-year; of which electric vehicle deliveries were 21,930 units, a 34% increase from the first quarter and a 40% increase year-on-year.

Rivian (RIVN.O): The Illinois factory produced 9,612 vehicles this quarter and delivered 13,790 vehicles. Management reiterated its guidance of producing 57,000 vehicles annually by 2024.

BYD partners with French car rental company Ayvens in Europe

Market news: Volkswagen and US electric vehicle company Rivian are in talks to expand their partnership into the hardware fieldMarket News: Kisunlam (Donanemab-Azbt) of Eli Lilly (LLY.N) approved by the Food and Drug Administration (FDA) for the treatment of Alzheimer's disease.

Chips and Artificial Intelligence

Apple is expected to serve as an observer on the OpenAI board, further strengthening cooperation between the two parties.

According to sources in the supply chain, Apple expects the shipment volume of its iPhone 16 series to be between 90 million and 100 million units, and has increased the scale of orders for the A18 series chips due to the attractiveness brought by upgrades in generative AI and other aspects.

Superfast network flow algorithm emerges, achieving maximum flow while minimizing transmission costs

Researchers at the Swiss Federal Institute of Technology in Zurich have developed a superfast algorithm, the network flow algorithm, which successfully solves the problem of achieving maximum flow in a network while minimizing transmission costs to the greatest extent. The new algorithm can calculate the best and lowest-cost traffic flow solution for any type of network. Its execution speed is extremely fast, providing a solution almost instantly as the computer reads the network data description.

Cryptocurrency

Market News: South Africa has approved 63 cryptocurrency licenses since April 22.

Startups and IPO Opportunities

Market News: Bitcoin miner Genesis Digital Assets is considering an IPO and is expected to seek pre-listing financing in the coming weeks.

Sources: AI coding startup Magic plans to raise over $200 million, with a valuation increasing to $15 billion.

According to The Information: AI startup Runway is in talks to raise $450 million at a valuation of $4 billion, with General Atlantic in talks to lead the investment.

Macro: Insights into the World

Powell: "More Confidence Needed Before Rate Cuts"

Federal Reserve Chairman Powell stated that the labor market remains strong, but significant progress has been made on inflation, and the path to lower inflation is back on track. Unexpected weakness in the labor market would also prompt action. However, he refused to comment on whether this means a rate cut in September. He stated that the Fed has the ability to take the time to make the right decision (rate cut), although he is well aware of the risks of "moving too slowly and too late."

Market Interpretation: Powell remains dovish as usual

Over the past few months, Federal Reserve Chairman Powell has been noticeably more dovish in his views than most members of the FOMC, which was confirmed once again in his speech at the European Central Bank forum. Powell declared, "We have made significant progress in fighting inflation," and stated that the data represents significant progress on the inflation front.

Goldman Sachs data shows that in June, hedge funds saw the largest decline in net leverage in the U.S. stock market, as they exited technology stocks. Globally, hedge funds have been net sellers of stocks for the third consecutive month, at the fastest pace in two years, with net sales in North America being the largest since September last yearAccording to data from Bank of America, customers have been flocking out of US stocks for the second consecutive week, with hedge funds leading the outflow of funds while institutions and retail investors are net buyers. In the five days ending on June 28, customers sold $3.1 billion worth of US stocks. Hedge funds have been net sellers for the third consecutive week, while institutions and retail clients are net buyers.

Analyst: Hedge fund net selling intensifies, but S&P 500 index still has rebound potential

Carl Kawasina, a capital markets analyst at Royal Bank of Canada, expects the S&P 500 index to rebound to 5,700 points by the end of the year. She acknowledges concerns about valuation and sentiment indicators, but sees potential for an uptrend, emphasizing the volatility before the election and the potential recovery after the US election.

In May, US job openings in the JOLTs report rose to 8.14 million, but decreased by 1.2 million compared to last year. The job opening rate in May was 4.9%.

As of June 28, the net inflow of southbound funds in the first half of the year reached HKD 371.437 billion, a year-on-year increase of 200.63%, exceeding the net inflow amount for the entire year of 2023. Market participants believe that the rush of southbound funds entering the market is expected to inject more liquidity into the Hong Kong stock market. Looking ahead, Hong Kong stocks are likely to gradually rise along the bottom-repairing path, with structural opportunities worth seizing