Overnight US Stocks | Nasdaq, S&P fell for the third consecutive day, "FAANG" except Tesla all fell, gold and silver plummeted

According to the Wise Finance APP, most of the three major indices closed lower as investors continued to sell off technology stocks and buy blue-chip and small-cap stocks. The U.S. economy remained strong in the second quarter, with inflation easing, and the expectation of a rate cut in September was unaffected.

[U.S. Stocks] At the close, the Dow rose 81.20 points, or 0.20%, to 39,935.07; the Nasdaq fell 160.69 points, or 0.93%, to 17,181.72; the S&P 500 fell 27.91 points, or 0.51%, to 5,399.22. The Nasdaq and S&P 500 indices fell for the third consecutive trading day. Nvidia (NVDA.US) fell 1.7%, Google (GOOG.US) fell over 3%, and Tesla (TSLA.US) rose 1.9%.

[European Stocks] The German DAX30 index fell 80.74 points, or 0.44%, to 18,299.95; the UK's FTSE 100 index rose 30.31 points, or 0.37%, to 8,184.00; the French CAC40 index fell 86.71 points, or 1.15%, to 7,427.02; the Euro Stoxx 50 index fell 50.92 points, or 1.05%, to 4,810.95; the Spanish IBEX35 index fell 68.10 points, or 0.61%, to 11,142.00; the Italian FTSE MIB index fell 704.65 points, or 2.04%, to 33,767.00.

[Asia-Pacific Stock Markets] The Nikkei 225 index fell over 3%, the Indonesia Jakarta Composite Index fell 0.66%, and the Vietnam VN30 index fell 0.65%.

[Gold] COMEX August gold futures fell 2.21% to $2,362.4 per ounce; COMEX September silver futures fell 4.51% to $27.995 per ounce.

[Cryptocurrency] Bitcoin rose 0.83% to $65,905.9 per coin; Ethereum fell 4.6% to $3,181.54 per coin.

[Crude Oil] WTI September crude oil futures rose $0.69, or nearly 0.89%, to $78.28 per barrel; Brent September crude oil futures rose $0.66, or about 0.81%, to $82.37 per barrel.

[Metals] Most London metals fell, with copper up $18 to $9,122 per tonne, ending an eight-day decline. Aluminum fell $30 to $2,270 per tonne, a drop of over 1.30%. Zinc fell $4 to $2,681 per tonne. Lead fell $16 to $2,028 per tonne. Nickel fell $58 to $15,769 per tonne. Tin fell $374 to $29,416 per tonne, a drop of over 1.25%.

[Macro News]

The U.S. economy remains strong, growing 2.8% in the second quarter. The U.S. Department of Commerce said on Thursday that after seasonal and inflation adjustments, GDP grew at an annual rate of 2.8% in the second quarter, easily surpassing the expected 2.1% from a survey of foreign media economists. Despite many aspects showing that the U.S. economy is performing well even in a high-interest rate environment, and inflation has slowed down, many Americans are dissatisfied with the much higher prices of groceries, cars, and homes compared to a few years ago Despite fading predictions of an economic recession, there are still signs of economic weakness, with the job market beginning to slow down as employers added jobs at a slower pace in the second quarter compared to the first quarter. Consumers also face increasing resistance due to persistently high borrowing costs.

U.S. Durable Goods Orders End Four-Month Growth Streak. U.S. durable goods orders unexpectedly fell in June, ending a four-month growth trend. Data released by the U.S. Department of Commerce on Thursday showed a 6.6% month-on-month decline in U.S. durable goods orders in June, marking the largest drop since January 2024. The largest declines in June were in transportation and capital goods orders, with the biggest drop seen in non-defense aircraft and parts orders.

Yellen Praises Biden for Achieving "Outstanding" Economic Performance, Says U.S. is Soft Landing. U.S. Treasury Secretary Yellen praised President Biden for achieving a "significant economic recovery," stating that second-quarter GDP and inflation data confirm that the U.S. is on a path of "stable growth and declining inflation." Yellen mentioned that Biden has restored America's position in the world. This is the first public speech Yellen has made on this topic since Biden ended his campaign and supported Vice President Harris as his successor. Yellen said, "I am very proud to serve the American people with him and Vice President Harris, and I look forward to continuing to advance America's global leadership and deliver results for American families and businesses." She noted that since Biden and Harris took office, the strong growth of the U.S. economy has created 15.7 million jobs, which is not accidental but a result of the economic plans of the Biden-Harris administration, contributing to maintaining global economic resilience.

Market Analysis: U.S. Large-Cap Growth Stocks to Test More Support Before Returning to Normal. After a brutal sell-off on Wednesday, U.S. stocks are struggling to stabilize and recover. The S&P 500 index fell slightly, while the Nasdaq dropped by over 1%. However, compared to the sharp decline on Wednesday, these movements are relatively calm. Sameer Samana, Senior Global Market Strategist at Wells Fargo Investment Research Institute, wrote, "The extreme enthusiasm for mega-cap growth stocks seems unsustainable for some time, but the timing of a reversal and potential catalysts have been unclear." "Before large-cap growth stocks return to normal, there may be a need for additional support level testing and sideways trading, and with fast money leaving the sector, we may see more weakness," Samana stated.

Former "Hawk King" of the Fed: Fed May Signal Readiness to Cut Rates in September. Former Fed hawkish member Bullard commented that the U.S. growth rate in the first half of the year was close to 2%, and the Fed may begin to hint at preparing to cut rates in September. The latest economic data does not point to an economic recession, and productivity has not truly improved. The economy is slowing down but approaching trend growth, indicating a soft landing.

[Stock News]

Ford Motor Company (F.US) Sees Largest Single-Day Decline in 15 Years as Warranty Costs Erode Profits. Ford Motor Company's stock price closed with the largest single-day decline in over 15 years, as the company attributed significantly lower-than-expected performance to a sharp increase in warranty costs for older vehicles. Persistent quality issues over the years have raised Ford's warranty costs, but the $800 million cost surge in the second quarter caught investors by surprise Chief Financial Officer John Lawler said that this was due to a one-time cost surge caused by quality issues with models produced in 2021 and earlier. Ford's adjusted earnings per share for the second quarter were 47 cents, far below the analysts' average expectation of 67 cents. The company's stock price plummeted by 18% at Thursday's close, marking the largest single-day drop since November 2008, wiping out all gains for the year.

OpenAI to launch online search tool "SearchGPT" to challenge Google (GOOG.US, GOOGL.US). OpenAI is allowing a small group of users to test a new set of search features that will provide more timely information and prominent source links to answer questions, posing the most direct challenge to Google to date. This new search tool called SearchGPT will be released as a prototype for a web browser, offering users an independent search experience that can later be integrated into ChatGPT. OpenAI has refused to provide a timetable for the launch of SearchGPT but stated that it will initially be open to users on a waiting list. The company is collaborating with creators and publishing partners to gather feedback on the new tool and plans to integrate the most successful search features into ChatGPT.

EU antitrust takes first action against Meta (META.US) with fines potentially reaching $13.4 billion. Sources revealed that Meta Platforms will face its first antitrust fine from the EU in the coming weeks for bundling its classified ad service Marketplace with its Facebook social network. Over a year and a half ago, the European Commission accused the U.S. tech giant of bundling the classified ad service Facebook Marketplace, giving it an unfair advantage. The EU competition watchdog also stated that Meta abused its dominant position by imposing unfair trading conditions unilaterally on online classified ad services advertising on Facebook or Instagram. Meta could face fines of up to $13.4 billion, equivalent to 10% of its global revenue in 2023, although EU sanctions are usually much lower than this upper limit.

Musk: Tesla (TSLA.US) board to discuss investing $5 billion in xAI. Musk announced that the Tesla board will discuss whether to invest $5 billion in his artificial intelligence startup xAI. Earlier this week, Musk initiated a poll asking X users whether they support the investment. After more than two-thirds of respondents voted in favor, Musk stated that it seems "the public is in favor." In a preliminary poll released on Tuesday, Musk mentioned that the investment would require approval from the Tesla board and shareholder vote. Shortly before the poll was released, Tesla's disappointing performance for the fourth consecutive quarter was announced. Musk was asked during the earnings call whether the company would invest in xAI or integrate its chatbot named Grok into Tesla's software. "Tesla has learned a lot from xAI," Musk said, adding that it has helped advance fully autonomous driving Elon Musk said that if shareholders agree, he supports Tesla's investment in xAI.

Buffett has been selling Bank of America (BAC.US) for 6 consecutive days, reducing the total value by $2.3 billion. Berkshire Hathaway, owned by Buffett, sold more shares of Bank of America this week, reducing its stake in BAC for six consecutive trading days. A new regulatory filing shows that Berkshire sold an additional 18.9 million shares at an average price of $42.46 on Monday, Tuesday, and Wednesday, cashing out $802.5 million. Over the past six trading days, Berkshire has sold 52.8 million shares of Bank of America, totaling $2.3 billion, reducing its stake to 12.5%. Berkshire still holds 980.1 million shares of Bank of America, valued at $41.3 billion, far behind its $172.5 billion stake in Apple. Bank of America has outperformed the market this year, and Buffett may be reducing his bet due to valuation concerns. BAC has risen by over 25% in 2024, while the S&P 500 index has gained nearly 14%