Breakfast | Almost all Federal Reserve officials expect more rate hikes in 2023, ChatGPT urgently goes offline in networked mode.
The three major U.S. stock indexes closed lower. Meta Platforms officially launched the social app Threads, directly targeting Twitter. Apple is developing two new display products, one of which will be equipped with A-series chips similar to Apple's. Tesla may adopt wireless charging technology. NIO refutes rumors that the L9 model "uses cheap and low-quality leather". NetEase stated that its top priority is to explore AI large-scale model innovation applications at the fastest speed, with plans to achieve breakthroughs in the "bottleneck" field worth billions of dollars annually.
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Market Overview
US stock index futures opened mostly flat.
The minutes of the June FOMC meeting showed that almost all officials believe that there will be multiple rate hikes this year. The three major indices opened lower and continued to decline. The S&P and Dow Jones ended their three-day winning streak, while the Nasdaq ended its two-day winning streak. The Russell 2000 small-cap stocks ended their six-day winning streak. The S&P 500 index fell 0.20%, the Dow Jones fell 0.38%, the Nasdaq fell 0.18%, and the Russell 2000 fell 1.3%.
Leading technology stocks rose across the board, with only Apple falling 0.6%. Meta rose nearly 3%, Netflix rose 1%, both reaching their highest level in 17 months. Amazon and Microsoft both rose slightly, while Google Class A shares rose 1.5%. Tesla rose about 1%, reaching its highest level in over nine months after a six-day winning streak.
The declines of popular Chinese stocks narrowed significantly in the last trading session. JD.com rose slightly, Pinduoduo rose 0.8%, Baidu fell 1%. Alibaba rose 0.2%, Tencent ADR fell 1.3%, and Bilibili fell 3%. XPeng Motors rose nearly 6%, NIO rose nearly 2%, and Li Auto fell 1.5%.
Top Stocks
Meta Officially Launches Social App Threads, Directly Targeting Twitter
Threads will use some of Instagram's infrastructure and allow people to log in with their Instagram accounts. Currently, there is no limit to the number of posts users can see on Threads. This is one of the key differences from Twitter.
OpenAI Faces Lawsuit Again Within a Week! Two Authors Sue ChatGPT for Copyright Infringement
Two authors filed a lawsuit against OpenAI last week, claiming that their copyrighted books were used to train ChatGPT without their permission. ChatGPT generated "very accurate summaries" of their works. They believe that these summaries could only be produced by ChatGPT after being trained on their books, which violates copyright law.
ChatGPT Urgently Disables Online Mode
Apple Develops New Display
Renowned Apple leaker Mark Gurman revealed that Apple is developing two new display products, one of which will be equipped with an A-series chip similar to the iPhone. Wireless Charging for iPhones, Tesla to Use it in Cars
Media reports that Tesla International BV is interested in acquiring a German company called Wiferion, which specializes in wireless charging for electric vehicles.
General Motors' Q2 Sales Surge Nearly 19% in the US
General Motors sold 691,978 new vehicles in the United States in the second quarter, an increase of 18.8% compared to the same period last year and a 14.7% increase compared to the previous quarter. Compared to the nearly 18% year-on-year growth rate in the first quarter of this year, General Motors' sales growth in the US accelerated in the second quarter.
Ideal Motors: Rumors of L9 Model Using Cheap and Low-Quality Leather are False
NetEase: Will Significantly Increase Investment Budget in AI and Large Models
Ding Lei, Chairman of NetEase, stated that NetEase's top priority is to explore innovative applications of AI and large models at the fastest speed. In the past three years, NetEase has invested nearly 40 billion yuan in research and development, and in the future, it will invest billions of yuan each year to break through bottlenecks in technology engines, AI large model chips, and other areas.
BYD to Build Factory in Brazil
BYD and the government of Bahia, Brazil jointly announced that they will establish a large-scale production base consisting of three factories in the city of Camaçari, with a total investment of 3 billion Brazilian reais (approximately 450 million yuan).
NIO Charging App Shows Some Charging Stations Will Start Charging for Overstay
Macro and Strategy
Federal Reserve Releases Meeting Minutes
Some officials support a rate hike in June, and almost all believe that further rate hikes are appropriate this year, with many advocating for a slower pace. The dot plot shows that two-thirds of Fed officials expect rates to be above 5.5% this year, implying at least two 25 basis point rate hikes within the year. Fed officials raised the median expectation for the peak level of interest rates by 50 basis points to 5.6% in their economic projections, higher than economists' and investors' expectations.
Fed Vice Chair: Data Supports Further Rate Hikes, Decisions Based on Data
The median interest rate projection of Fed officials shows that they expect to cut rates in 2024 and 2025. However, New York Fed President Williams said that real interest rates will remain at restrictive levels for a considerable period of time, and nominal interest rates will depend on inflation and economic development. Foreign Investors Bearish on Chinese Banks? Mainland Securities Analysts: Still Worth Allocating
Several mainland securities analysts believe that the fundamentals of Chinese banks are recovering, with interest spreads and the generation rate of non-performing loans stabilizing. It is expected that the revenue and profit growth of listed banks will show signs of improvement compared to the previous year. Considering that the actual asset quality of many Chinese banks is better than market expectations, institutional positions and bank valuations are also at historical lows. Therefore, the banking sector has absolute potential for returns.
Wei Jianguo, Former Vice Minister of Commerce: The control of important raw materials for chip exports by China is just the beginning, and China has many tools for countermeasures.
Zhejiang: Provincial Government Signs Comprehensive Strategic Cooperation Agreement with Alibaba; Supports and Guides Qualified Platform Enterprises to List at Home and Abroad
Zhejiang Province has issued the "Implementation Opinions on Promoting the High-Quality Development of the Platform Economy," supporting platform enterprises in technological innovation, conducting scientific research and breakthroughs in underlying technologies and bottleneck technologies of the platform economy, and achieving significant milestones in areas such as big data, cloud computing, operating systems, and processors.
