To The Moon

*Tech stocks lead continued sell-off in U.S. stocks; Chinese stocks falter on disappointing third plenary session outcome

🇺🇸 S&P 500: -0.71% 📉

🇺🇸 Nasdaq: -0.81% 📉

🇪🇺 Stoxx 600 Index: -0.77% 📉

🇯🇵 Nikkei 225 Index: -0.16% 📉

🇭🇰 Hang Seng Index: -2.03% 📉

🇨🇳 CSI 300 Index: 0.59% 📈

* U.S. stocks continued their decline, with the S&P 500 and Nasdaq Composite falling further -0.7% and -0.8% respectively, as chaos caused by global technology outages caused by software glitches increased market uncertainty, Nvidia led the chip sell-off, with the Philadelphia Semiconductor Index falling again -3.1%.

* Asia-Pacific markets were mixed, with the Hang Seng and CSI 300 plunging -2.0% and 0.6% respectively, as investors now await more details on fiscal reforms and measures to boost growth following disappointing results from the Third Plenum.

💡 Future events: 💡

* On Monday we will announce China's 1-year and 5-year loan prime rates.

* The preliminary values ​​of the U.S. manufacturing PMI, the preliminary services PMI, and the preliminary Japanese manufacturing PMI will be released on Wednesday.

* U.S. advanced GDP and jobless claims will be released on Thursday.

💡 Things you need to know today: 💡

1. President Biden announced on Sunday that he would end his re-election campaign and endorse Vice President Kamala Harris as the Democratic nominee, ending his half-century in politics. Market focus will turn to the continuation of student debt relief programs, renewable energy policies, military spending, trade tensions with China and tax policy.

Kamala Harris

2. Long-term U.S. Treasury yields, which move inversely to prices, briefly rose due to inflation and fiscal concerns triggered by recent political events. Investors are concerned about Trump's trade and economic policies, which they fear could ultimately lead to higher inflation and higher U.S. debt levels.

3. India's largest private bank HDFC Bank's standalone net profit reached INR 16,175 crore in the second quarter of 2024, beating its quarterly profit forecast despite slowing loan growth and pressure to increase deposit growth after its merger with HDFC. The bank still beat expectations, with most of the inflows or transfers being in mortgages and minimum deposits.

India HDFC Bank

4. China announced plans to transfer more revenue from the central to local governments, including a larger share of the consumption tax, to support heavily indebted local governments as they grapple with a 66 trillion yuan debt crisis. The move is aimed at boosting consumer spending and providing new financing channels for local governments. This might be beneficial to Chinese stocks like $Pinduoduo Inc.(PDD)$  $NIO Inc.(NIO)$  $Li Auto(LI)$  $XPeng Inc.(XPEV)$  $Bilibili Inc.(BILI)$  .

5. China's total fuel oil imports fell 11% in the first half of 2024 to 11.95 million metric tons, after independent refiners increased blending of discounted oil from Russian barrels in 2023 due to low refining margins and weak fuel demand. After the purchases, imports surged to their highest level in a decade.

✅ KEY TAKEAWAYS:

The S&P 500's technology sector has fallen nearly -6% in just one week, while the broader market has lost -1.6%, with some of the losses supported by gains in financials, industrials and small-cap stocks. Second-quarter earnings could help put tech back in the spotlight, with Tesla and Google parent Alphabet reporting on Tuesday and Microsoft and Apple reporting next week.

@Daily_Discussion  @CaptainTiger  @MillionaireTiger  @Tiger_comments  @TigerGPT  @TigerStars