To The Moon

* Global markets fall as tech stocks sell off; Hang Seng falls to three-month low on corporate earnings worries

🇺🇸 S&P 500: -2.31% 📉

🇺🇸 Nasdaq: -3.64% 📉

🇪🇺 Stoxx 600 Index: -0.61% 📉

🇯🇵 Nikkei 225 Index: -2.30% 📉

🇭🇰 Hang Seng Index: -0.91% 📉

🇨🇳 CSI 300 Index: -0.63% 📉

* U.S. stocks tumbled, with the S&P 500 and Nasdaq Composite down -2.3% and -3.6% respectively, with the latter posting its biggest one-day percentage drop since October 2022 as Tesla's weak earnings report dampened market sentiment.

* Asia-Pacific markets continued to slump, with the Hang Seng Index and the CSI 300 Index falling -0.9% and -2.1% respectively, as concerns about weak earnings may have an impact on already depressed market sentiment, following recent salary cuts in the financial services industry , headwinds in the real estate industry intensified.

* Preliminary U.S. manufacturing PMI slipped to 49.5, below expectations for 51.7, while business activity growth edged up in July to the fastest level in 27 months, driven in part by slowing job growth and continued confidence in the business outlook The impact of the second month's decline was partly due to rising political uncertainty.

* The preliminary Eurozone manufacturing PMI contracted to 45.6, lower than the expected 46.0 and slightly lower than last month's 45.8, indicating that the private sector is almost stagnant and the recovery continues to weaken. New orders fell for a second consecutive month and business confidence fell to a six-month low, leading companies to halt hiring that had begun in early 2024.

* Japan's preliminary manufacturing PMI fell slightly to 49.2, below expectations of 50.5 and below last month's 50 level.

💡 Future events: 💡

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

* We end the week with U.S. core PCE price index m/m, revised University of Michigan consumer sentiment and inflation expectations

💡 Things you need to know today: 💡

1. At its second consecutive meeting, the Bank of Canada cut its benchmark overnight interest rate to 4.5% as widely expected, and hinted that it will further ease monetary policy in the future as inflation concerns subside. June CPI showed that the inflation rate slowed to 2.7%. annual rate. Policymakers cited lower-than-expected household spending as the main downside risk and pointed to upcoming mortgage renewals as a threat to consumption growth.

Bank of Canada

2. India said it may revise its rules for issuing new bonds that would be eligible to trade on global indices if large inflows trigger volatility, according to a senior finance ministry official. Restrictions on foreign inflows into so-called FAR bonds could be imposed if an excessive surge in inflows is seen, while a designated category can be held entirely by foreign bonds.

3. China's disappointing economic recovery has made U.S. and European oil less competitive in Asia, preferring supplies that are close at hand. Brent-Dubai EFS premiums surged to their highest levels since early March, making Middle Eastern crude more attractive to Asian refiners and less attractive for long-haul shipments.

4. Alphabet $Alphabet(GOOGL)$ shares fell more than 3% on Wednesday as capital spending rose to $13.2 billion on concerns about increased investment in artificial intelligence infrastructure and competition from YouTube ads, with profit margins hurt despite cost-cutting cuts and layoffs. There are concerns that seasonal hiring and early Pixel launches will put further pressure on margins in the third quarter, while YouTube faces stiff competition from Amazon for online advertising videos.

Google Alphabet

5. Tesla $Tesla Motors(TSLA)$ shares fell 12% after Elon Musk's comments about robots and self-driving taxis failed to ease concerns that profit margins have shrunk to 14.6% due to sharp declines and incentives. worry. Tesla's electric vehicle deliveries have fallen for two consecutive quarters, and it has yet to launch the low-cost model that many expected, although it is expected to launch in the first half of 2025, with lower cost reductions than previously expected.

Teala

✅ KEY TAKEAWAYS:

Wall Street got a reality check after a disappointing start to Big Tech earnings season, another reminder of the "risks of the market becoming concentrated on a few tech bellwethers." This is a market where gains are overly reliant on a small group of giant companies. The tech sector seem to oversold and might have technical rebound in short term $Nasdaq100 Bear 3X ETF(SQQQ)$  $Semiconductor Bull 3X Shares(SOXL)$  $SPDR S&P 500 ETF Trust(SPY)$  $NASDAQ(.IXIC)$  

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