The US stock index closed higher: popular Chinese securities collectively soared, Nasdaq, and China's Golden Dragon Index rose 6%

Data from earlier in the day showed that the revised US GDP for the second quarter recorded an annualized decline of 0.6% month-on-month, and the decline was 0.3 percentage points narrower than the initial value of 0.9%. This dispelled some concerns that the economy was in recession.

Furthermore, many Fed officials have frequently sent hawkish signals, yet investors have not been deterred by this. St. Louis Federal Reserve Chairman Bullard said that officials should act quickly to raise the policy benchmark interest rate to a range of 3.75% to 4% by the end of the year. “The current interest rate level is not high enough; policy interest rates need to be adjusted to a level that can put downward pressure on inflation.”

Kansas City Federal Reserve Chairman George said that the Federal Reserve has not yet raised interest rates to a level that puts pressure on the economy, and may raise interest rates to more than 4% over a period of time.

Federal Reserve Chairman Powell will deliver a speech on Friday. Outsiders generally expect that he may reaffirm his determination to continue tightening monetary policy to fight inflation.

Robert Schein, chief investment officer at Blanke Schein wealth management, stated: “We are confident Powell's comments will not cause significant market fluctuations. We expect Powell to continue to emphasize that the Fed's decision depends on economic data, and if Friday's PCE inflation data is higher than expected, it will firmly dispel expectations about a shift in monetary policy.”

Liz Young, head of investment strategy at SoFI, said: “The market is trying to determine whether the Fed is in the middle or late stages of raising interest rates. The direction is still unclear. Powell's speech tomorrow is the key.”

Market News

At the close, the Dow rose 322.55 points, or 0.98%, to 33291.78 points; the Nasdaq rose 207.74 points, or 1.67%, to 12639.27 points; and the S&P 500 index rose 58.35 points, or 1.41%, to 4199.12 points.

The 11 sectors of the S&P 500 index all closed higher, with the raw materials sector leading the way by 2.26%, the telecommunications sector by more than 2.0%, the information technology/technology sector by about 1.7%, the real estate, industrial, and financial sectors all up more than 1.5%, the optional consumer sector up about 1.3%, and the consumer goods sector, which rose more than 0.4%, which was the smallest increase.

All US stock industry ETFs closed higher. Internet stock index ETFs showed the best performance, global aviation ETFs rose more than 2.2%, global technology index ETFs, technology industry ETFs, and banking ETFs rose more than 1.5%, optional consumer ETFs and medical ETFs rose more than 1.1%, energy industry ETFs and utility ETFs rose more than 0.6%, and biotech index ETFs rose 0.3%.

Performance of popular stocks

Big tech stocks generally rose, Meta rose more than 3%, Amazon and Google rose more than 2%, Apple rose 1.49%, Microsoft rose 1.1%, Netflix rose 1.9%, and Tesla fell 0.35%.

Peloton, an internet fitness platform and sports equipment manufacturer in the US, closed down nearly 20% because its fourth quarter results in FY2022 fell short of expectations and increased losses. Notably, the stock price soared more than 20% a day ago due to news of its partnership with Amazon.

Nvidia closed up more than 4%. Financial reports showed that Q2 results for FY2023 fell short of expectations, with game revenue falling 33% year over year. Nvidia expects Q3 revenue to be around US$5.90 billion, far short of analysts' expectations of US$6.92 billion. But some investors think the worst is over and are starting to buy Nvidia shares.

Cloud software company Snowflake's stock price soared 23% after its most recent quarter's revenue exceeded expectations. Morgan Stanley analyst Keith Weiss gave Snowflake an “increase in holdings” rating, with a target price of $274.

Most popular Chinese securities rose sharply, and the Nasdaq China Golden Dragon Index surged 6.26% to close at 7567 points. Zhihu, Pinduoduo, and Bilibili rose by more than 12%, JD by more than 9%, Baidu and iQiyi by more than 8%, Alibaba by more than 7%, Betta by nearly 6%, and Tencent by 5.4%.

Among new energy vehicles, NIO rose 6.4%, Xiaopeng Motor rose 1.89%, and Ideal Auto rose 4.6%.

Company news

[Biden wool? [The price of the Ford Mustang Mach-E increased by 3000-8,000 US dollars]

On Thursday local time, Ford announced plans to restart the Mustang Mach-e in the US market. Similar to other industry companies, Ford also raised the price of this popular electric car. According to statistics from the automotive industry media Automotive_News, from the entry-level standard battery life version to the most expensive GT full-drive battery life, the officially recommended price increase ranged from 3000-8,100 US dollars. The new price will take effect on August 30, and users who have already placed their orders will not be affected. It is worth mentioning that since Ford's Mach-E and F series all meet the requirements of the Biden administration's tax credit policy in the “2022 Inflation Reduction Act”, there is no shortage of questions on social media relating price increases to government subsidies.

[Tesla robot “brain” revealed: 7nm process, 50 billion transistors can be “self-taught”]

For the first time, Tesla revealed more details about its self-developed AI chip and Dojo system. Recently, at the Silicon Valley chip technology seminar HOT CHIPS, Tesla hardware engineer Emil Talpes revealed the details of the Tesla Dojo supercomputing instruction set structure, and showed Dojo's data format, system network, and software system's ability to bypass dead nodes. On AI Day last year, Tesla released the Dojo supercomputer, but at the time, it had “no wings” and only the first chip and training block, and the company is still pushing to build a complete Dojo Exapod. The core of the Dojo Exapod is the D1 chip developed by Tesla itself. The chip is manufactured by TSMC, uses a 7nm process, has 50 billion transistors, and a chip area of 645 mm², which is smaller than Nvidia's A100 (826 mm²) and AMD Arcturus (750 mm²).

[Delaware judge orders Twitter to submit some data requested by Musk]

According to the US court ruling, a Delaware judge ordered Twitter to submit some of the data requested by Tesla CEO Elon Musk, and rejected many of Musk's data requests on Twitter, saying it was “too broad.” A Delaware judge ordered Twitter to submit data on 9,000 accounts reviewed by the company during its fourth quarter audit.

[Samsung Display plans to increase QD-OLED panel production capacity by 30% by the end of this year]

Samsung Display, a panel maker under Samsung Electronics, plans to increase the production capacity of QD-OLED panels by 30% by the end of this year. The company plans to achieve this goal by reducing equipment cycle times, that is, the time required to produce one product without additional equipment expenses.