US stocks closed: Nvidia rose nearly 7%, weight loss drugs both hit new highs

The Associated Press, June 26 (editor Niu Zhanlin) On Tuesday, the U.S. stock market showed a completely opposite trend to the previous day. Investors poured into technology stocks. Nvidia rebounded nearly 7% after the sharp fall. The overall performance of the chip sector was excellent, driving the Nasdaq up more than 1.2%.

The rebound of technology stocks is the biggest driving force in the market, and all the seven major US stocks closed higher. After several days of weakness, some investors waited for a better entry opportunity.

However, the Dow, which excludes Nvidia and some other major technology stocks, did not benefit. Tuesday was also the eighth time in 10 trading days that the NASDAQ and the Dow experienced a reverse trend.

The US consumer confidence index fell in June due to flat business conditions, job market and income prospects. According to the data released by the World Federation of Large Enterprises on the same day, the consumer confidence index fell to 100.4 from 101.3 after downward revision in May.

Fed Governor Cook said Tuesday that it is appropriate for the Fed to lower interest rates "at some time". She predicted that inflation would gradually improve this year and make faster progress in 2025. "Next year's inflation will further slow down significantly: housing service inflation will decline; core commodity inflation will remain slightly negative; core service inflation (excluding housing) will slow down over time."

Chris Zaccarelli, chief investment officer of the Alliance of Independent Advisers, believes that the current bull market will not derail until the economy falls into recession or the Federal Reserve's policy stance changes. Of course, some fluctuations are inevitable.

Bank of America said that its clients sold US stocks last week for the first time in a month. The capital outflow was dominated by hedge funds and institutional funds, while retail investors bought.

Jill Carey Hall, a quantitative strategist, and others said in the report sent to customers that as of the week of June 21, the net outflow of customer funds of Bank of America totaled 1.6 billion dollars. Retail investors are the only net buyers. In addition, there is corporate buyback, which is the fourth consecutive week.

Market dynamics

By the end of the day, the Dow had dropped 299.05 points, or 0.76%, to 39112.16; The Nasdaq Composite Index rose 220.84 points, or 1.26%, to 17717.65; The S&P 500 index rose 21.43 points, or 0.39%, to 5469.30.

Eleven sectors of the S&P 500 Index generally ended lower, with telecommunications services sector up 1.85%, information technology/technology sector up 1.79%, energy sector up 0.14%, offsetting the decline of other sectors, optional consumer sector down 0.28%, financial sector down 0.83%, raw materials sector down 1.28%, and real estate sector down 1.41%.

The US stock industry ETF closed mixed, with semiconductor ETF up 2.34%, technology industry ETF up 1.83%, global technology stock ETF up 1.68%, and Internet stock index ETF up 1.08%. The ETF of regional banks fell 1.37%, the ETF of banking industry fell 1.21%, the ETF of global aviation industry fell 1.11%, the ETF of public utilities fell 0.95%, and the ETF of financial industry and daily consumer goods also fell more than 0.5%.

Performance of hot stocks

Popular technology stocks rose, with Amazon up 0.41%, Microsoft up 0.73%, Apple up 0.45%, Google up 2.68%, Meta up 2.34%, and Tesla up 2.61%.

Nvidia soared 6.76% to return to the $3 trillion club. Steve Eisman, a well-known investor, said that he did not care about the recent adjustment of Nvidia's share price. He added that people would still buy an expensive stock because they believed in the narrative of the stock. "As long as the narrative remains complete, just like Nvidia now, the narrative will continue."

UBS said that Nvidia's recent sell-off did not reflect the deterioration of the outlook for technology or the market, because other demand signals were positive. "Nvidia's stock price pullback should not be mistaken as a warning signal for AI structural investment cases or the overall stock outlook."

Weight loss drugs both hit record highs, and Novo Nordisk closed up 3.25% at $146.91; Lilly Pharmaceuticals closed 1.63% higher at $904.61.

The chief financial officer of Wal Mart, a retail giant, listed the second quarter as the "most challenging quarter", causing the company's share price to fall 2.2%.

Carnival, a cruise operator, rose 8.7%. The company said that it benefited from the rise in prices and the expansion of profit margins, achieving an increase in profit margins in the second quarter. Other cruise stocks also rose, with Norwegian Cruise Holdings up 5.7%.

Most popular Chinese stocks fell, and the Nasdaq China Golden Dragon Index fell 1.29%. Vipshop fell more than 3%, Bilibili, Jingdong, Futu Holdings and Weibo fell more than 2%, and Weilai, Manbang, Alibaba and Pinduoduo fell more than 1%.

Company News

[Lilly cooperates with OpenAI to develop new antibacterial drugs]

On Tuesday local time, Eli Lilly, an American pharmaceutical giant, announced that it has reached a cooperation with OpenAI and will use its generative artificial intelligence (AI) to develop new antibacterial drugs. Diogo Rau, chief information and digital officer of Eli Lilly, said that generative AI provides a new opportunity to help researchers accelerate the discovery of new antibacterial drugs and develop special technologies in the fight against drug-resistant bacteria. The cooperation between the two companies will help solve major health challenges faced by people around the world.

[Boeing is said to be acquiring in the form of stock, which is bound to be sharp]

According to the media quoted sources, Boeing has proposed to acquire its main supplier, Spirit AeroSystems, at a price of about $35 per share, and the transaction capital will mainly come from stocks rather than cash. It is reported that Boeing's original plan to acquire in the form of full cash is bound to be sharp, but the transaction negotiation turned at the last moment. The price of $35 per share was about 6% higher than the closing price on Monday, and the total transaction value reached $4.1 billion. Since the announcement of Boeing's plan to acquire Cedar at the end of February, Cedar's share price has risen by 22%.

[Tesla announced the recall of 23000 Cybertruck models in the United States]

On Tuesday, the National Highway Traffic Safety Administration (NHTSA) announced that Tesla will recall some 2024 Cybertrucks, totaling 11688. The recall reason is that the excessive current will cause the front windshield wiper motor controller to fail, and the wiper failure will reduce the visibility, thus increasing the risk of collision. Tesla after-sales service department will replace the wiper motor free of charge. In addition, Tesla will recall 11383 2024 Cybertrucks because the sail shaped trim panel of the boot cover may be improperly pasted, which may cause the risk of falling off. Tesla after-sales service department will use adhesive accelerator and pressure sensitive tape when necessary, or replace the missing trim panel free of charge.

[FedEx's annual profit guidance is higher than expected]

The adjusted earnings per share of FedEx in the fourth fiscal quarter was $5.41, and analysts expected $5.34; The revenue of the fourth fiscal quarter was 22.1 billion US dollars, in line with analysts' expectations; It is expected to buy back US $2.5 billion of shares in 2025; It is expected that the adjusted earnings per share in 2025 will be $20-22, and analysts expect $20.85; It is expected that the growth rate of revenue in 2025 will be in the middle and lower part of the range of 0% - 10%; It is estimated that the capital expenditure in 2025 will be US $5.2 billion, and analysts expect that it will be US $5.55 billion.

[ExxonMobil launches a new Guyana oil project to increase crude oil production in the country in the next decade]

ExxonMobil has taken the first step towards its seventh oil project in Guyana, which is a clear signal that the oil giant intends to expand Guyana's crude oil production in the next decade. Alistair Routledge, the country manager of ExxonMobil, said in an interview that the Hammerhead oil project would produce 180000 barrels of crude oil per day as soon as 2029, which is still pending the approval of the Guyana government.