Market analysis on July 8

Market sentiment remains cautious. Despite an overall rebound in US stocks, gains narrowed at the end of the session. The S&P 500, Nasdaq Composite Index, and the Russell 2000 Small-Cap Index all rose more than 2.3% at one point, and the Dow Jones Industrial Average rose close to 750 points. However, the market remained volatile, and the “fear index” VIX dropped 38% at one point.

The Japanese stock market experienced a period of extreme fluctuation, from “collapse and collapse” to “sharp rise and meltdown,” marking the large-scale entry of Japanese retail investors into the market, but foreign capital has mostly withdrawn from this round of bull markets, and the sharp decline in the Nikkei Index may indicate the end of a phase of global asset restructuring.

In terms of technology stocks, influenced by optimistic sales guidelines for this season, Ultramicrocomputer announced a split of 10 shares per share. Despite sharp stock price fluctuations during post-market trading, the impact is still worth paying attention to. Apple's AI writing tools are facing challenges and problems dealing with sensitive content. Furthermore, Google's loss of the law and its potential financial impact on Apple also attracted widespread attention in the market.

Both chip stocks and major stock indices showed strength, particularly Nvidia and Meta, which both ended up closing up nearly 4%. Tesla went up after falling for a while, while Apple rebounded slightly after a sharp decline. New Oriental and Yum China's stock prices have risen sharply, showing the market's positive expectations for some Chinese securities.

In terms of safe-haven assets, the prices of US Treasury bonds and gold both fell. US bond yields rose by more than 10 basis points across the board, and the price of gold fell 1%. In the money market, the yen showed a correction after rising for six consecutive days, which mitigated market fluctuations caused by the liquidation of arbitrage trades to a certain extent.

In the Asian market, China's A-shares closed higher amid turbulence. Although mass transit was hit by a flash crash and came to a standstill, treasury bond futures generally fell. Meanwhile, the Japanese stock market rose strongly, reflecting rapid changes in market sentiment around the world.

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