The US stock market ended with mixed results on July 28, as the Dow Jones rose 260 points while other indices showed weakness. Oil prices experienced a sharp decline.
Among the top 20 stocks by trading volume on Wall Street, chip stocks broadly fell, with SK hynix breaking below its IPO price. Popular Chinese concept stocks rallied, with Alibaba up 2.56% and Pinduoduo up 2.65%.
In commodities, oil prices dropped significantly, copper prices rose, and gold prices moved higher. European markets were mostly flat, with a sharp decline in ASML shares offsetting gains in retail and media stocks.
Macroeconomic Developments
Former President Trump stated that if negotiations fail, he will launch a strong military strike against Iran. Trump described the US-Iran talks as "positive," but warned that if no agreement is reached, strikes would resume. He also claimed the US has earned over $13 billion from Venezuelan oil sales.
Trump visited a General Motors plant in Michigan to rally autoworkers, strongly promoting tariff policies. The US and Iran have paused hostilities, and Trump downplayed concerns about dwindling weapons stockpiles.
The US military reported that during its maritime blockade of Iran, it has forced 17 commercial ships to change course. The Iranian armed forces have issued warnings about the US naval blockade. Iran and Oman have resumed negotiations over shipping through the Strait of Hormuz, with Oman expressing optimism about progress.
The Iraqi government has launched an investigation into a drone attack on Saudi Arabia that originated from within its territory. A group of 600 former Israeli officials signed a joint letter to Trump, warning him about the situation in the West Bank. UK Prime Minister Burnham has ruled out adjusting stamp duty in the upcoming budget.
Corporate News
SK hynix ADR fell below its IPO price amid a broad sell-off in the semiconductor sector. Apple surpassed Nvidia to reclaim the title of the world's most valuable company after more than a year.
Concerns about a revolving credit facility are reigniting as Nvidia pursues a new round of AI-related deals worth over $750 billion. The AI safety controversy continues to escalate, with OpenAI's Sam Altman and Nvidia's Jensen Huang set to visit Capitol Hill to meet with Democratic senators.
Elon Musk's wealth has experienced a roller-coaster ride, with SpaceX's valuation halving from its peak and Tesla hitting a new year-to-date low. JetBlue Airways has simplified its flight booking process to pave the way for the introduction of first-class cabins.
Nvidia has committed to investing $5 billion in a company co-founded by OpenAI's former chief scientist. Sharp has fully acquired a Vietnamese solar EPC and O&M company to expand its energy storage business. Baker Hughes reported Q2 results that exceeded expectations, driven by large LNG contracts and strong order growth.
Quantum computing firm D-Wave Quantum shares surged over 18% after expanding its partnership with AT&T. Amazon's Project Leo plans to deploy 5,105 satellites to enter the direct-to-phone communications market. AstraZeneca's Q2 core earnings per share surpassed estimates, and the company reaffirmed its target of $80 billion in revenue by 2030.
Tesla won a patent case in the UK related to 5G technology, a move that could accelerate the launch of connected cars. The Chicago Mercantile Exchange is launching single-stock futures, allowing investors to trade 23 hours a day on stocks like SpaceX and Micron. Waymo was fined nearly $10,000 in Austin for illegal parking.
Pimco is embracing the AI boom it once warned about, but only on the condition that it can dictate the terms of large financing deals. LVMH's fashion and leather goods business has barely returned to growth, with Middle East conflicts suppressing demand.
Analyst Commentary & Market Views
WTI crude oil extended its losses after Trump confirmed that the US and Iran are in negotiations. Flight delays were reported in the New York area due to a shortage of air traffic controllers and severe weather.
In the US bond market, the sharp drop in oil prices drove Treasury yields lower. Investment bank Jefferies has upgraded its ratings on Ford and General Motors, citing a positive outlook for profitability.
The US faces a rare earth supply gap of at least 47,700 metric tons, posing a challenge to the 2027 national defense ban. Goldman Sachs and JPMorgan are among the institutions bullish on Neutron Holdings, the parent company of shared scooter firm Lime.
Satellite imagery showing smoke rising from a Saudi oil facility has heightened trader anxiety. Bank of America believes that to successfully intervene in the yen, the Bank of Japan needs to send a hawkish signal.
The path of the 10-year US Treasury yield is a topic of intense debate, with State Street Global Advisors and Bessent's financial indicator under scrutiny. "Big Short" investor Michael Burry has increased his short positions against Micron and Nvidia, while maintaining his bearish bets on Tesla and Palantir.
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