Overnight US Stocks | Nasdaq hits new lows since mid-June, Tesla falls more than 12%

According to the Wisdom Financial APP, on Wednesday, the three major indices plummeted, with the Nasdaq hitting a new low since mid-June. Investors are dissatisfied with the latest financial results of Tesla and Alphabet, and the hype in the AI market has cooled down.

[US Stocks] At the close, the Dow Jones fell by 504.22 points, a decrease of 1.25%, to 39,853.87 points; the Nasdaq fell by 654.94 points, a decrease of 3.64%, to 17,342.41 points; the S&P 500 index fell by 128.61 points, a decrease of 2.31%, to 5,427.13 points. Tesla (TSLA.US) fell by over 12%, Nvidia (NVDA.US) fell by 6.8%, and Apple (AAPL.US) fell by 2.8%. The Nasdaq Golden Dragon Index fell by 1.9%, Li Auto (LI.US) and XPeng (XPEV.US) both fell by over 4%.

[European Stocks] The German DAX30 index fell by 158.97 points, a decrease of 0.86%, to 18,389.00 points; the UK FTSE 100 index fell by 7.57 points, a decrease of 0.09%, to 8,159.80 points; the French CAC40 index fell by 84.90 points, a decrease of 1.12%, to 7,513.73 points; the Euro Stoxx 50 index fell by 54.20 points, a decrease of 1.10%, to 4,862.60 points; the Spanish IBEX35 index fell by 0.83 points, a decrease of 0.01%, to 11,211.87 points; the Italian FTSE MIB index fell by 163.75 points, a decrease of 0.47%, to 34,474.00 points.

[Asia-Pacific Stock Markets] The Nikkei 225 index fell by over 1%, the Indonesia Jakarta Composite Index fell by 0.55%, and the Vietnam VN30 index rose by 0.14%.

[Gold] COMEX August gold futures closed slightly up by 0.06% at $2,408.7 per ounce, breaking a four-day decline trend.

[Cryptocurrency] Bitcoin fell by 0.64% to $67,744.8 per coin; Ethereum fell by over 2.3% to $3,452.29 per coin.

[Crude Oil] WTI September crude oil futures closed up $0.63, an increase of about 0.82%, at $77.59 per barrel. Brent September crude oil futures closed up $0.70, an increase of about 0.86%, at $81.71 per barrel.

[Metals] Most London metals fell, with copper down $62 to $9,104 per tonne. Zinc fell by $4 to $2,685 per tonne. Lead fell by $16 to $2,044 per tonne. Nickel fell by $194, a decrease of 1.21%, to $15,827 per tonne. Tin, on the other hand, rose by $372, with an increase of over 1.26%, to $29,790 per tonne. Aluminum rose by $6 to $2,300 per tonne.

[Macro News]

Former New York Fed President Dudley: I changed my mind, the Fed should cut interest rates immediately. Former New York Fed President (enjoying permanent voting rights in the FOMC, known as the "third in command of the Fed") Dudley said: I have long been in the camp of "keeping interest rates high for longer", I believe that to control inflation, short-term interest rates must be kept at the current level or higher However, times have changed, so I have changed my mind too. The Federal Reserve should cut interest rates, preferably starting at the rate meeting next week.

The Democratic Party will nominate Harris and her running mate by August 7. Delegates of the Democratic National Convention will hold an online meeting in the next two weeks to confirm the party's nomination of Vice President Harris and her yet-to-be-announced running mate. The Rules Committee of the convention overwhelmingly approved the online roll call procedure on Wednesday to clear the final obstacles for determining the candidates before the convention in Chicago on August 19. The exact date of the vote—sometime between August 1 and August 7—will be decided by the co-chairs of the convention, Jaime Harrison and Minyon Moore. Harris is believed to be considering several Democratic governors as potential running mates: Andy Beshear of Kentucky, Roy Cooper of North Carolina, Josh Shapiro of Pennsylvania, Tim Walz of Minnesota, and Arizona Senator Mark Kelly.

Goldman Sachs: Systematic funds should sell US stocks regardless of market trends. The recent sharp decline in the US stock market has sent a warning to Goldman Sachs trading funds: sell US stocks regardless of market trends. According to models from Goldman Sachs' trading department, both the S&P 500 Index and the Nasdaq 100 Index have crossed the threshold triggering sell signals for commodity trading advisors. Scott Rubner, Managing Director and Tactical Expert of Goldman Sachs Global Markets Division, wrote in a report to clients, "We simulated all scenarios that US systematic sellers may face in the coming week, including flat, rising, and falling markets." Rubner estimates that if bears dominate and the stock market continues to decline next month, trend traders may withdraw up to $219 billion from global stock markets, with $67.1 billion flowing out of the US market.

[Stock News]

AI enthusiasm cools down, Nasdaq 100 market cap evaporates by $1 trillion. In the US stock market on Wednesday, disappointment among investors about the prospects of artificial intelligence led to a $1 trillion evaporation in the market cap of Nasdaq 100 component stocks, with the index falling over 3.6%, marking its worst performance since October 2022. Leading AI companies such as Nvidia (NVDA.US), Broadcom (AVGO.US), and Arm (ARM.US) led the decline, with the "Big Seven" index falling by 5.9%, breaking below the 50-day moving average for the first time since May. Doubts about how long it will take for investments in AI technology to pay off were raised repeatedly. Alec Young, Chief Investment Strategist at Mapsignals, said, "Too much money is being spent now, and investors realize that it will take time to see returns. In the short term, the giants' uptrend will be influenced by how much the market invests in this area." The drastic fluctuations in tech stocks indicate that investors seem to be increasingly heeding Wall Street's growing rumors that the bubble caused by AI in the past year is bound to burst. While Wednesday may not be the start of this trend, the magnitude of the decline rings alarm bells Ming-Chi Kuo: Apple (AAPL.US) to remove iPhone 17 Plus. TF International Securities analyst Ming-Chi Kuo stated that currently, the Plus model accounts for only about 5-10% of the overall shipments of new iPhones, indicating that the other three iPhone models (standard, Pro, and Pro Max) have effectively covered the high-end smartphone product segmentation, rendering the Plus model unnecessary. The positioning of this new ultra-thin model iPhone 17 is not to replace the Plus model, but for Apple to explore new design trends outside the existing iPhone product line. The product positioning of the ultra-thin iPhone 17 is not about competing in hardware specifications (processor, camera, etc.), but focusing on innovative exterior design.

Pfizer (PFE.US) achieves key trial goal in treating bleeding disorders. Pfizer's gene therapy for a severe bleeding disorder has met its goal in a crucial late-stage trial, paving the way for the company to enter a challenging market. Pfizer stated in a release that the therapy showed superior results in bleeding rates compared to the standard treatment for hemophilia A patients, which is the VIII factor replacement therapy, during at least 15 months of follow-up. The company mentioned that it will discuss these data with regulatory agencies in the coming months. These results may boost Sangamo Therapeutics Inc., which is facing liquidity issues and has collaborated with Pfizer in developing this therapy.

【Major Banks' Ratings】

Citigroup: Lowers Tesla's (TSLA.US) target price from $274 to $258

Mizuho Bank: Raises Alphabet's (GOOG.US) target price from $205 to $210

Stephens: Lowers United Parcel Service's (UPS.US) target price from $168 to $140