To The Moon

*Global markets continue to struggle as tech stocks sell off

🇺🇸 S&P 500: -0.51% 📉

🇺🇸 Nasdaq: -0.93% 📉

🇪🇺 Stoxx 600 Index: -0.71% 📉

🇯🇵 Nikkei 225 Index: -3.28% 📉

🇭🇰 Hang Seng Index: -1.77% 📉

🇨🇳 CSI 300 Index: -0.55% 📉

* U.S. stocks extended losses, with the S&P 500 and Nasdaq Composite down -0.5% and -0.9% $Nasdaq100 Bull 3X ETF(TQQQ)$  $Semiconductor Bull 3X Shares(SOXL)$  respectively, giving up earlier gains, while economically sensitive sectors such as energy, industrials and financials rose as investment Investors are paying attention to the upcoming price data to respond to the possible direction of large-cap stocks.

* U.S. GDP rose 2.8% year-on-year in the second quarter of 2024, beating estimates as consumer spending and business investment rose steadily, boosted by a build in inventories and higher government spending. However, a recovery in the real estate market and a widening trade deficit have simultaneously exerted a slight drag on the economy.

* U.S. jobless claims fell to 235,000 in the week ended July 20, down slightly from the forecast of 237,000, a sign that the labor market remains in good shape while finding a delicate balance.

* Asia-Pacific markets extended their slump, with the Hang Seng Index and CSI 300 Index falling -1.8% and -0.6% respectively, as a slump in overseas technology stocks weakened risk appetite, although China's central bank cut key policy rates and mortgage lending references earlier this week interest rates, but many banks have lowered deposit rates, and bank stocks are still struggling.

💡 Future events: 💡

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

💡 Things you need to know today: 💡

1. OpenAI is launching a beta version of SearchGPT, an artificial intelligence search engine that provides real-time access to information and aggregated search results with source links, putting it on par with its biggest backer Microsoft's Bing search and emerging services such as Perplexity, a search-focused AI chatbot company backed by Jeff Bezos and semiconductor giant Nvidia.

OpenAI SearchGPT

2. IBM $IBM(IBM)$  shares rose 3% after the company beat profit expectations and raised its annual growth forecast for its software business, benefiting from increased spending related to artificial intelligence and a focus on expanding its Watsonx platform, which allows users to deploy chat code for robots or augmented artificial intelligence programs, while also open-sourcing its Granite series of artificial intelligence models to help popularize its artificial intelligence services.

IBM

3. New York Community Bank (NYCB) $New York Community(NYCB)$  fell -11% after reporting a worse-than-expected loss due to higher provisions on its office and multifamily loan books. The company has disappointed after failing to return to profitability in the past few months, despite investments and promises from former Treasury Secretary Steven Mnuchin to return to profitability next year.

NYCB

4. AbbVie $AbbVie(ABBV)$  shares rose 5.6% and hit a record high after it revised its profit forecast for the year, boosted by strong sales of its immunology drug. However, its flagship arthritis drug Humira, once the world's best-selling drug, has seen sales drop 30% as multiple biosimilars enter the U.S. market, with 10 similar generics now available, forcing the company Lower prices to maintain market share.

AbbVie

5. The People's Bank of China unexpectedly cut its medium-term lending facility by 20 basis points to 2.3%, the largest reduction since April 2020 and seen as a coordinated move by all key interest rates to ease monetary policy. A few days ago, the central bank cut the seven-day reverse repo rate by 10 basis points on Monday, effectively making the seven-day reverse repo rate the main policy lever to guide lending and long-term interest rates. This may allow the People's Bank of China to send a clearer signal and Better influence the market.

✅ KEY TAKEAWAYS:

The underlying reason for the sell-off remains concerns about super tech stocks, which are overpriced. Attention will be paid to monthly personal consumption expenditures (PCE) data released in the United States, which is the last important data point before the Federal Reserve meeting next week to provide clues on the direction of interest rates.

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