To The Moon

• S&P 500 $SPDR S&P 500 ETF Trust(SPY)$ and Nasdaq 100 $Invesco QQQ(QQQ)$ gained 1.98% and 3.62% last week, respectively.

• Both indices reached new all-time highs (ATH). Among the Magnificent Seven stocks, all except Tesla and Nvidia hit ATHs. Other semiconductor stocks like Arm $ARM Holdings Ltd(ARM)$ , TSM, Oracle, and ASML also reached record levels.

• Major market movers for the week: Apple (+7.46%) Microsoft (+4.61%) Tesla (+27.11%) Meta (+7.08%) Amazon (+3.49%) Nvidia (+1.85%) Alphabet (+4.64%) Broadcom (+6.09%) Walgreens (-6.9%) UnitedHealth (-4.17%)

Important Events for the Week:

• Tuesday: Federal Reserve Chair Powell will testify on monetary policy.

• Thursday: Key data releases include the Consumer Price Index (CPI) and Unemployment Claims.

• Friday: Producer Price Index (PPI), University of Michigan Consumer Sentiment, and earnings reports from JP Morgan, Wells Fargo, and Citi.

Market Outlook:

I remain optimistic about the US equity market this week due to:

1) Upbeat Earnings Expectations: The upcoming earnings season may exceed expectations, potentially delaying an overdue correction in US stocks.

2) Weaker Labor Market Data:

• The unemployment rate rose to 4.1% in June, the highest in 2.5 years.

• May’s job gains were revised sharply down to 218,000 from 272,000, a 19.8% downward revision, increasing hopes for a rate cut.

3) Potential for Catch-Up Among Other Magnificent Seven Stocks:

• Nvidia has surged 154% year-to-date, while the other Magnificent Seven stocks have lagged significantly. Last week, all these stocks outperformed Nvidia, suggesting that these 6 Magnificent Seven stocks might finally start catching up in performance.