To The Moon

*Tech stocks tumble on fears of tougher trade restrictions

🇺🇸 S&P 500: -1.39% 📉

🇺🇸 Nasdaq: -2.77% 📉

🇪🇺 Stoxx 600 Index: -0.47% 📉

🇯🇵 Nikkei 225 Index: -0.43% 📉

🇭🇰 Hang Seng Index: 0.06% 📈

🇨🇳 CSI 300 Index: 0.13% 📈

* U.S. stocks tumbled on Wednesday, with the S&P 500 and Nasdaq Composite down -1.4% and -2.8%, respectively, as rising geopolitical tensions could lead to tighter trade restrictions on chip sales, the chip industry and artificial intelligence The company pulled back sharply.

* European stocks, led by the Stoxx 600, fell -0.5%, dragged down by the technology sector for a third straight day of losses, while index heavyweights posted weak earnings guidance.

* Asia-Pacific stocks were broadly lower, with the Nikkei 225 down -0.4%, led by the technology sector, while Hong Kong's Hang Seng eked out a gain of 0.1%, led by a recovery in most sectors.

💡 Future events: 💡

* On Thursday, Japanese trade data, U.S. unemployment claims, and EU interest rate decisions will be the focus of investors' attention.

* At the end of the week, we will see the release of Japan's national core consumer price index (CPI) year-on-year data.

💡 Things you need to know today: 💡

1. Former U.S. President Donald Trump: “Taiwan should pay for our defense. You know, we are no different than insurance companies. Taiwan gives us nothing. [Taiwan] does take about 100% chip business.”

2. ASML reported second-quarter 2024 profit and sales that beat expectations as interest in artificial intelligence chips boosted demand for key semiconductor manufacturing equipment despite U.S. trade restrictions. But the Chinese market still accounts for nearly half of its revenue.

ASML

3. The Biden administration has told allies that it will consider using the most severe trade restrictions if companies such as Tokyo Electron and ASML continue to provide advanced semiconductor technology to China. This caused US semiconductor stocks and index to tumble last night , but I believe it was oversold and we should see a near term rebound in $Semiconductor Bull 3X Shares(SOXL)$ $Nasdaq100 Bull 3X ETF(TQQQ)$  $Advanced Micro Devices(AMD)$  $NVIDIA Corp(NVDA)$ $Taiwan Semiconductor Manufacturing(TSM)$ . 

4. The International Monetary Fund (IMF) raised China's 2024 economic growth to 5% from the 4.6% forecast in April, citing a rebound in private consumption and strong exports in the first quarter.

5. Roche announced encouraging early-stage trial data for its latest weight-loss drug candidate, further intensifying competition in the weight-loss drug market and driving down competition from companies including Novo Nordisk, Eli Lilly and Co. ) and other pharmaceutical giants including Zealand Pharma.

✅ KEY TAKEAWAYS:

It is encouraging that excluding technology and semiconductor sectors, the traditional equity markets continue to recover, consistent with our view that multiple catalysts will continue to support economic growth.

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