Market analysis on July 30

Against the backdrop of US economic data continuing to show signs of cooling and the geopolitical conflict in the Middle East last night, risk aversion heated up on the opening day of the Federal Reserve's FOMC interest rate meeting. The Nasdaq and S&P 500 indices declined after opening highs. Among them, the Nasdaq fell by more than 2% at one point, with the technology sector leading the decline. Despite this, the Dow Jones Index and small-cap stocks performed well, indicating mixed market sentiment. Although the US JOLTS job vacancy report for June was better than expected, voluntary separations and recruitment have declined sharply, while layoffs have declined. Goldman Sachs analysts believe that although the unemployment rate has risen, there is no need to worry too much.

The chip industry experienced a major blow. The chip stock index fell nearly 4%, Nvidia fell 7%, and Tesla fell about 4%. Cybersecurity company CrowdStrike plummeted nearly 10% due to claims from American Airlines, and Apple's main suppliers, such as Corning and Qualcomm, also fell by about 7%, respectively. China Securities fell 1.5% overall.

Microsoft's second-quarter earnings report showed that its revenue, EPS profit, and operating profit all increased 10% year over year, but the growth rate was slower than in the first quarter, and cloud revenue unexpectedly slowed, causing its stock price to plummet 8% after the market. In contrast, AMD's AI revenue doubled in the second quarter, raised its sales forecast for the whole year, and its stock price rose 9% after the market.

Arista's second-quarter results and future prospects both exceeded market expectations, and the stock price rebounded in a V-shape after the market. The conversation between Nvidia CEO Hwang In-hoon and Meta CEO Zuckerberg at the SIGGRAPH 2024 conference discussed the future possibilities of AI, which further sparked interest in AI technology.

Geopolitical tension in the Middle East intensified risk aversion in the market and boosted the prices of US debt, gold, and yen, but oil prices were not boosted; instead, oil prices fell by more than 1.4%, the lowest price since the beginning of June. The Bitcoin price was also under pressure, approaching the low of $0.065 million.

In the Asian market, A-shares fluctuated and declined. Energy and high-end liquor stocks such as Kweichow Moutai performed poorly, while the price of 30-year treasury bonds reached record highs, reflecting the market's pursuit of long-term financial security.