Breakfast | Expectations of Fed Rate Hike Weigh Heavily on US Stocks, Threads Registers Over 30 Million Users in 16 Hours
"Small non-farm payroll" data not only boosted expectations of a Fed rate hike this month, but also led investors to bet on a more aggressive tightening. US stocks closed lower. Tesla: Full self-driving will be available by the end of this year, while Tesla's humanoid robot is still in development. Pinduoduo expands its cross-border e-commerce reach with the launch of its Japanese site, officially entering the Asian market. Tencent Meeting announces limitations on free meetings. ASML has not released a Chinese version of its lithography machine. Baidu's Wenxin large-scale model 3.5 has significantly improved performance, with a 30-fold increase in inference speed.
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Market Overview
The "Small Non-Farm Payrolls" data not only boosted expectations of the Federal Reserve's resumption of rate hikes this month, but also prompted investors to bet on more aggressive rate hikes. All three major US stock indices closed lower, with the Dow Jones Industrial Average down 1.07%, the S&P 500 Index down 0.79%, and the Nasdaq Composite down 0.82%.
Leading technology stocks fell across the board, and even Tesla, which had risen for six consecutive days, was not spared, falling 2.1%. Netflix fell about 1.6%, Amazon fell nearly 1.6%, Alphabet fell nearly 1.4%, and Meta fell 0.8%.
Popular Chinese tech stocks generally declined, with Zhongyang Financial down 9.38%, Kingsoft Cloud down 7.94%, TuSimple down 7.91%, Horizon Robotics down 6.46%, Reddy Medicine down 5.94%, Pinduoduo down 5.78%, Zhihu down 5.7%, Futu Holdings down 5.3%, NIO down 6.46%, XPeng down 4.43%, and Li Auto down 0.76%. JD.com fell more than 3%, Baidu and NetEase fell more than 2%, and Alibaba fell nearly 0.6%.
Top Stocks
Threads Registers Over 30 Million Users in 16 Hours Since Launch
Threads became the most downloaded free app on the Apple App Store on Thursday morning. Threads is almost a replica of Twitter, without the ability to send direct messages or tag topics, and without paid advertising. Credit Suisse believes that in the long term, Threads could contribute 3% of Meta's revenue.
Tencent Meeting Announces Limitations on Free Meetings
Starting from July 6th, Tencent Meeting will gradually adjust some of its features, mainly in two aspects: the maximum number of online meetings that can be held within an enterprise, and the ability to join meetings across different apps.
Dutch Lithography Giant ASML Has Not Released a Chinese Version of Its Lithography Machine
In response to media reports that ASML is trying to circumvent the new Dutch sales license ban and launch a special version of its DUV lithography machine for the Chinese market, ASML stated that it has always complied with applicable laws and regulations and has not launched a special version of its lithography machine for the Chinese market. Baidu Wenxin 3.5 Model Improves by 50%, Introducing Knowledge Enhancement Technology
Wang Haifeng, Chief Technology Officer of Baidu, stated that the performance of the Wenxin large model 3.5 has been comprehensively improved, with an inference speed increase of 30 times.
Volkswagen: Accelerating Development with "Chinese Speed"
Bernd Osterloh, Chairman and CEO of Volkswagen Group (China), stated that the development cycle of new products and technologies of Volkswagen Group will be shortened by about 30%, significantly enhancing competitiveness.
Musk: Fully Autonomous Driving to Arrive by the End of This Year, Tesla Humanoid Robot Still in Development
Pinduoduo Expands its Cross-border E-commerce Territory with Temu
Pinduoduo's cross-border e-commerce platform, Temu, has officially launched in Japan, marking its entry into the first Asian country.
IPO Opportunities
Huiju Technology Receives Mild Oversubscription, Priced at HKD 3.6 per Share
Huiju Technology's Hong Kong IPO has been moderately oversubscribed by approximately 1.54 times. The international offering has been slightly oversubscribed by approximately 1.35 times. H shares are expected to be listed on the Hong Kong Stock Exchange on July 10th. Each lot consists of 1,000 shares, and the stock code will be 2481.
Macro and Strategy
In June, the number of private sector employment in the United States increased by 497,000 after seasonal adjustment, far exceeding the market's expectation of 225,000 and the previous value of 278,000. This is the largest monthly increase since July 2022.
Atlanta Fed Expects U.S. Q2 GDP to be 2.1%
The Atlanta Fed's GDPNow model estimates the actual GDP growth rate for the second quarter of 2023 to be 2.1%, higher than the 1.9% on July 3rd. Chinese Premier Li Keqiang presides over expert symposium on economic situation
Li Keqiang proposed that we should implement a series of targeted, comprehensive, and synergistic policy measures around stabilizing growth, employment, and preventing risks. We should establish and improve the normalized communication and exchange mechanism between the government and various types of enterprises, including private enterprises and foreign-funded enterprises, in order to enhance the scientific nature of decision-making through enhanced work interaction.
China issues notice on matters related to the application of personal income tax preferential policies for commercial health insurance products
The China Banking and Insurance Regulatory Commission announced that the scope of commercial health insurance products eligible for personal income tax preferential policies will be expanded to include major types of commercial health insurance, including medical insurance, long-term care insurance, and disease insurance. The insured population for these products will be expanded, and the policyholder can purchase insurance for themselves, as well as for their spouse, children, and parents.