On Monday, July 1, Eastern time, Apple, Microsoft, Tesla and other technology stocks pushed U.S. stocks higher, and U.S. stocks closed higher on the first trading day of the second half of the year. This week, the market will welcome the minutes of the Federal Reserve meeting and the June non-farm payrolls report.
Tesla China announced the launch of a new financial policy for car purchases, and Tesla's stock price rose by more than 6%, with a market value increase of 280 billion yuan.
Crude oil futures soared. WTI crude for August delivery closed 2.3% higher, breaking above $83 a barrel; Brent crude for September delivery rose 1.9% to settle at $86.6 a barrel.
Most of the popular Chinese concept stocks rose, and the new energy vehicle stock "Wei Xiaoli" rose by more than 5%.
U.S. equities performed strongly in the first half of the year
U.S. stocks performed strongly in the first half of 2024, driven by higher share prices of tech giants. The S&P 500 rose 14.5% in the first half of the year, and the Nasdaq rose 18.1%. The Dow rose about 3.8%.
The S&P 500 and Nasdaq both rose in the second quarter, rising 3.9% and 8.3%, respectively, while the Dow fell 1.7%. This is the first time that the Nasdaq has recorded gains for the third consecutive quarter since 2021 ended its five-quarter winning streak.
Torsten Slok, chief economist at Apollo Global Management, warned that the "epic rise" in the US tech giant's share price has far outpaced the growth of its profits, which could mean that the S&P 500 looks more vulnerable.
JPMorgan said retail investors are now more heavily represented in the U.S. options market than ever before, with a particular preference for short-term bets and a preference for technology stocks.
At Monday's close, the Dow rose 0.13% to 39,169.52, the S&P 500 rose 0.27% to 5,475.09 and the Nasdaq rose 0.83% to 17,879.3.
This Thursday (July 4) is the Independence Day holiday in the United States, and the US stock market is closed. This Friday, the US Department of Labor will release the June non-farm payrolls report.
According to the CME FedWatch tool, the market still expects the Fed to cut rates at least twice this year, with a 63% probability of a rate cut in September.
Tesla China announced the launch of a new financial policy for car purchases
Most of the technology stocks rose, with the Wind US TAMAMA Technology Index up 1.72% and Tesla up 6.05%, with a market value increase of 280 billion yuan in one day. Apple rose 2.91%, Amazon rose 2.04%, and Microsoft rose 2.19%.
Tesla China announced the launch of a new car purchase financial policy, for the Model 3/Y standard range version of the launch of 1~5 years 0 interest and low interest preferential car purchase policy, the daily payment as low as 85 yuan; For the Model 3/Y long-range all-wheel drive version, the 1~5 years 0 interest and low interest car purchase preferential policies are launched, and the daily supply is as low as 107 yuan.
Compared with the standard annual rate of 2.5%, it can save more than 20,000 yuan in interest, which can be regarded as a disguised price reduction.
According to Tesla's official website, the current price of the Model 3 rear-wheel drive version (standard range version) is 231,900 yuan, and the long-range all-wheel drive version is 271,900 yuan.
The Model Y rear-wheel drive version (standard range) is priced at CNY 249,900, the long-range all-wheel drive version is CNY 290,900, and the high-performance all-wheel drive version is CNY 354,900.
Boeing announced a $4.7 billion acquisition of its key supplier
Airline stocks mostly fell, with Boeing up 2.7%, American Airlines down 2.56%, Delta Air Lines down 1.12% and Southwest Airlines down 1.75%.
CCTV News reported that according to Reuters and AFP news on July 1, Boeing agreed to acquire its supplier Ace Aviation Systems at a price of $37.25 per share, and the all-stock deal valued Ace at $4.7 billion. Boeing's rival Airbus will also acquire part of the company's business, which produces key components for its operations.
The FAA announced on January 13 that it would conduct a six-week audit of the manufacture of the Boeing 737 MAX. The trigger for this action was the fall off a door plug on a US Alaska Airlines Boeing 737 MAX 9 during a flight on January 5.
The FAA said March 4 that Boeing and Spire had some "non-compliance" in quality control of the 737 MAX airliner build, but did not disclose specific audit results at the time because the investigation was still ongoing. According to the New York Times on March 11, of the 89 audits, Boeing passed 56 and failed 33; Of the 13 audits that were accepted, 7 were problematic.
WTI crude oil broke above $83 per barrel
West Texas Intermediate (WTI) crude futures for August delivery on the New York Mercantile Exchange rose $1.84, or about 2.3%, to settle at $83.38 a barrel on Monday. The futures have risen 16.3% year-to-date.
Brent crude futures for September delivery on Eurocontinental Exchange rose $1.60, or 1.9%, to settle at $86.60 a barrel. The futures have risen 12.4% year-to-date.
Chinese concept stocks rose sharply
Most of the popular Chinese concept stocks rose, Hollysys Automation rose 17.61%, Dada Group rose 9.52%, Dajian Yuncang rose 5.19%, Douyu rose 4.91%, Huya Live rose 4.43%, Beike rose 4.35%, EHang Intelligence rose 3.98%, Legend Biotech rose 3.91%, and Canaan Technology rose 3.02%.
In terms of declines, Melco Resorts & Entertainment fell 5.9%, Canadian Solar fell 5.02%, and Zeekr fell 3.24%.
China's new energy vehicle stocks generally rose, with NIO up 6.61%, Xpeng up 5.18%, and Li Auto up 6.71%.
"Wei Xiaoli" recorded a year-on-year increase in deliveries in June.
NIO delivered 21,209 vehicles in June, a year-on-year increase of 98.1%; In the second quarter, 57,373 vehicles were delivered, up 143.9% year-on-year.
Xpeng delivered 10,668 electric vehicles in June, up 24% year-on-year and 5% month-on-month. In January ~ June 2024, Xpeng Motors delivered a total of 52,028 new vehicles, a year-on-year increase of 26%.
Li Auto delivered 47,774 new vehicles in June, a year-on-year increase of 46.7%. Deliveries of 108581 vehicles in the second quarter of 2024 increased by 25.5% year-on-year.
(Compiled by Zhao Xinyi)
Editor: Joey
Review: Xu Wen