Last night, U.S. stocks rose after Biden withdrew from the election, with the Nasdaq and S&P up more than 1% and the Dow up 0.32%. In the history of the United States after the war, there have been two incumbent presidents who gave up re-election, Truman in 1952 and Johnson in 1968. Both Democrats announced their withdrawal earlier, leaving more time for the party to adjust. However, in those two elections, the "successors" eventually lost to Republican opponents.
Last night, the U.S. chip, semiconductor, and marijuana sectors rose the most, with Nvidia, ASML, and Qualcomm rising more than 4%.
From a long-term perspective this year, the semiconductor sector may be the most logical, which is supported by real performance and is still in an upward period. No one knows when it will reach its peak, so last Friday we said that semiconductors should pay attention to overheated emotions in the short term, superimposed on the realization of policy logic, but in the long run, it doesn't matter. My profit-taking standard is a continuous surge.
Yesterday, Buffett reduced his holdings in BYD again, and the proportion of holdings dropped to less than 5%. Last year, Buffett's reduction of holdings had a great negative impact on BYD's stock price, but with the increase in the frequency of reduction, the impact of Buffett's reduction of holdings on BYD's stock price has become smaller and smaller in recent times, so just understand it. This may also be the last time Berkshire's holdings in BYD shares are publicly disclosed, because the holding ratio is less than 5%, so there is no need to disclose it again.
There is an important news in the Japanese stock market. According to people familiar with the matter, officials of the Bank of Japan believe that weak consumer spending has made their decision on whether to raise interest rates at the policy meeting next week more complicated. Officials may have to wait until the latest data on market and economic conditions are confirmed at the meeting on July 31 before making a final decision at the last minute.
It is reported that the Bank of Japan will also announce plans to reduce bond purchases at that time, which is expected. After the news of the disagreement within the Bank of Japan came out, it means that the expectation of interest rate hikes has weakened, and the yen has also weakened. This is good news for the Nikkei, and theoretically there should be a rebound.
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