U.S. stock indices rebounded collectively, with blue-chip stocks leading the performance. The Dow Jones Industrial Average surged over 1.6% at one point, the Russell 2000 small-cap stocks rose over 2% before trimming gains, the Nasdaq climbed more than 1%, and the S&P 500 gained nearly 1.2%. Semiconductor stocks saw a broad increase, with Nvidia nearly reaching a 3.5% gain before a sharp decline that erased more than half of its gains. Digital currency-related stocks surged across the board ahead of Trump's speech over the weekend. New Oriental's gains expanded to over 5%, while 3M's U.S. shares soared over 17%.
On Friday, July 26, U.S. stock indices collectively rebounded, with blue-chip stocks showing the best performance.
The Russell 2000 small-cap index saw its gains stretch beyond 2%. The Dow, closely tied to the economic cycle, increased over 1.6% at one point. The tech-heavy Nasdaq rose over 1%, while the S&P 500 briefly climbed nearly 1.2%.
At the market's open, major sector ETFs showed mixed results. The semiconductor ETF surged nearly 2%, and regional bank ETFs and tech sector ETFs led in gains.
The "FANG" stocks experienced varied performance. Tesla fell over 2%, Apple declined more than 0.5%, and Nvidia’s nearly 3.5% rise was wiped out by a sharp dive that erased more than half of its gains. Google A dropped over 1.9%, while Meta (formerly Facebook) climbed nearly 3.3%, Microsoft rose over 1.3%, and Amazon increased more than 1.4%.
Notably, research from International Data Corporation (IDC) indicated that iPhone shipments in China dropped 3.1% in the second quarter, leading to Apple falling out of the top five in the market.
Semiconductor stocks collectively rose. The Philadelphia Semiconductor Index and the SOXX ETF both climbed over 2.2% at one point, while Nvidia's double-leveraged ETF surged over 6.7%.
ASML saw its U.S. shares rise over 3.6%; AMD climbed over 2%, Micron Technology gained more than 2.3%, and Advanced Micro Devices rose over 2%. Taiwan Semiconductor's ADR gained over 2.4% before halving its increase, while KLA Corp and Broadcom increased by more than 2.1%. However, Arm Holdings saw its shares fall over 2%.
Most AI-related stocks moved higher. LivePerson surged over 5%, Dell Technologies rose more than 2.8%, and Nvidia increased about 2.5%. Nvidia-related company SoundHound climbed approximately 2.4%, CrowdStrike advanced more than 2.1%, and C3.ai rose by 1.9%. Conversely, Apple, Baidu ADR, Alibaba ADR, and Tesla experienced declines of up to 0.9%, with Google A decreasing by 1.6%, and Nvidia-related AI delivery robot firm Serve Robotics (SERV) dropped over 6%.
Chinese concept stocks showed mixed results, with the Nasdaq Golden Dragon China Index expanding over 0.5%. Bilibili rose over 3%, Huya increased more than 2%, and iQiyi climbed nearly 2%, while Trip.com and Pinduoduo fell by more than 1%.
Furthermore, New Oriental's gains expanded over 5%, as the company held a shareholder meeting where Yu Minhong explained the reasons for its restructuring.
Digital currency-related stocks surged broadly ahead of Trump's weekend address. Before speaking at the Bitcoin conference, digital currency and blockchain concept stocks climbed significantly, with the double-leveraged Bitcoin ETF surging over 8.2% in early trading. Hut 8 rose about 7.8%, while market-maker MicroStrategy (MSTR) gained over 7.2%, and cryptocurrency exchange Coinbase increased more than 5.3%. Cathie Wood's ARK Bitcoin ETF also rose over 4.5%, and the ARK Ether ETF climbed approximately 4.0%.
Solar energy concept stocks generally rose in the U.S. market. Canadian Solar's ADR increased by over 4.9%, First Solar rose by over 4.1%, Array Technologies surged over 3.9%, SolarEdge climbed 3.5%, JinkoSolar's ADR gained about 3.3%, the solar ETF TAN rose by over 1.9%, and Enphase Energy, a supplier of photovoltaic inverters, saw an increase of about 1.8%. Daqo New Energy's ADR also gained 1.8%.
On the news front, the U.S. PCE price index year-on-year growth slowed from 2.6% in the previous month to 2.5% in June, marking the lowest level in five months. The core PCE price index for June held steady at 2.6%, matching the previous value and representing the lowest level since March 2021. Coupled with better-than-expected second-quarter GDP growth released on Thursday, these figures signal more "soft landing" prospects for the U.S. economy. Following the data release, market volatility was minimal, with U.S. Treasury yields dropping to intraday lows.
The University of Michigan's consumer sentiment index for July hit an eight-month low, with a final value of 66.4, matching expectations and slightly above the preliminary value of 66. After the data was released, U.S. stocks and gold prices surged; the S&P 500 index's gains widened to 1%, the Dow Jones increased by 620 points, or 1.55%, and the Nasdaq rose over 0.9%. Spot gold reached a daily high of $2,388.71 per ounce post-release.
U.S. Treasury prices maintained their upward trend. The 10-year Treasury yield held a gain of about 4.7 basis points, reaching an intraday low of 4.1880% before the consumer sentiment release at 21:45. The two-year Treasury yield saw a drop exceeding 5.1 basis points, also hitting a day low of 4.3729% at 21:41. The dollar index decreased by 0.1%, hitting an intraday low of 104.231 points before the data release.
In other notable stocks impacted by earnings reports announced after yesterday’s market close and today’s pre-market period:
3M shares surged over 17% following second-quarter net sales that exceeded expectations and an upgraded full-year adjusted diluted EPS outlook. Charter Communications shares briefly gained nearly 20%, although the company experienced a decline in users due to the expiration of ACC contracts, it still surpassed expectations.
In other assets, WTI September crude oil futures fell nearly 2.7%, reaching a daily low of $76.19 per barrel, while Brent September crude oil futures dropped nearly 2.5% to a daily low of $80.33. Notably, the ICE Brent September crude oil options contracts expire this Friday (July 26), with the Brent September crude futures approaching the psychological level of $80, where currently more than 21,000 put options remain open. The following information is from an earlier report by Wall Street Journal—
On July 26, Friday, the June core PCE price index year-on-year increase of 2.6% slightly superseded expectations, the lowest since March 2021, indicated moderate inflation and strong consumer spending, signaling more "soft landing" prospects for the U.S. economy, with the market maintaining bets on the Federal Reserve cutting rates in September.
All three major U.S. stock indices opened higher: the Dow Jones up 0.7%, the S&P 500 index up 0.7%, and the Nasdaq up 0.8%. The Russell 2000 small-cap index gained over 1%.
Chip stocks collectively rebounded, with banks and industrials showing the highest gains.
All major sector ETFs in the U.S. rose collectively. The semiconductor, robotics, banking, and industrial sectors led the way.
Semiconductor stocks surged, with ASML increasing about 3% and Arm Holdings rising around 4%.
The "Magnificent Seven" tech stocks exhibited mixed results, with Nvidia and Meta rising over 2%, Alphabet declining more than 1%, and Apple slightly up 0.02%. In terms of news, Apple fell out of the top five smartphone sales in China for the first time in four years in the second quarter.
Popular Chinese concept stocks showed mixed results, with Trip.com and Pinduoduo falling over 1%, while Bilibili rose over 3% and Huya gained over 2%.
3M shares rose about 10%, increasing gains to 13%, buoyed by better-than-expected second-quarter net sales.
Diabetes device manufacturer Dexcom's shares plunged about 39%, as its second-quarter revenue fell short of expectations, along with a lowered full-year revenue guidance. The dollar weakened following the PCE price index release, with the dollar index oscillating and approaching intraday lows, currently reported at 104.27.
U.S. Treasury yields sharply dropped, with the 10-year Treasury yield declining almost 5 basis points intraday, reaching a midday low, now reported at 4.209%.
Gold prices experienced fluctuations, with spot gold increasing over $13 and currently reported at $2,377.59 per ounce.
Oil prices saw an expanded decline, with U.S. oil dropping by 1%.
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