Last week witnessed a strong performance in the U.S. stock market, primarily driven by a resurgence in U.S. inflation.
Data released on Wednesday showed that the year-on-year Consumer Price Index (CPI) rose by 3% in June, slightly below the estimated 3.1% and down from the previous value of 4.0%.
The core CPI, which excludes volatile food and energy prices, increased by 4.8% year-on-year in June, compared to the estimated 5.0% and the previous value of 5.3%.
Although a 25-basis-point interest rate hike by the Federal Reserve at the end of the month is widely expected, this inflation report still holds significant influence on future monetary policy decisions.
Some industry experts believe that the likelihood of this being the final rate hike in the current cycle has increased following the release of June’s inflation data.
All three major U.S. indices experienced weekly gains of over 2%, marking the best performance since March.
The “Magnificent Seven” companies, including Apple, Microsoft, Alphabet (Google’s parent company), Amazon, Nvidia, Tesla, and Meta (formerly Facebook), have seen their stock prices surge between 40% and 200% since the beginning of the year, serving as the primary drivers of the 17% year-to-date increase in the S&P 500 index.
Notably, Tesla will be the first among them to announce its quarterly earnings after market hours next Wednesday.
In early July, Tesla reported record global deliveries of 466,140 vehicles for the second quarter, surpassing market expectations of 448,350 vehicles. However, during Q1, Tesla fell short of revenue and profit expectations, with the overall gross margin also not meeting projections, which the company attributed to rising costs of raw materials, commodities, logistics, and warranty expenses.
(S&P 500 Index, 1-day chart)
- NASDAQ cumulative gain: 3.32%
- S&P 500 index increase: 2.42%
- Dow Jones Industrial Average rise: 2.29%
Hong Kong Stocks
On July 17th, according to the latest update from the Hong Kong Observatory, due to the impact of Typhoon Talim, the No. 8 gale or storm signal will be maintained until at least 16:00.
As per the Hong Kong Exchanges and Clearing Limited’s arrangements for inclement weather, trading on the Hong Kong Stock Exchange will be suspended for the entire day.
FTSE China A50 Index
Today, the three major indices of A-shares opened lower, with the Shanghai Composite Index dropping over 1% initially. Subsequently, the indices entered a sideways consolidation phase, with the Shanghai Composite Index falling below the 3,200-point mark during trading.
In terms of industry performance, the leading sectors included power grid equipment, environmental protection, utilities, shipbuilding, and agriculture, while the gaming, non-ferrous metals, insurance, medical services, and automotive services sectors experienced declines. Active themes in the market included virtual power plants, 3D printing, ultra-high voltage, smart grid, and healthcare informationization.
(SSE Composite Index, 1-day chart)
- Shanghai Composite Index decline: 1.19%, closing at 3,199.17 points
- Shenzhen Component Index decrease: 0.88%, closing at 10,982.28 points
- ChiNext Index decline: 0.9%, closing at 2,204.05 points
- STAR 50 Index decrease: 0.75%, closing at 984.17 points
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