Recently, driven by tech stocks, U.S. stocks have performed exceptionally well, with the S&P 500 and Nasdaq indices hitting record highs. Bruce Peter attributes this to the robust performance of tech stocks and the trend of global capital flowing into the U.S. market. Under the dual pressures of political turmoil in Europe and the uncertainty of the policies of the Bank of Japan, a significant amount of capital has flowed into the U.S. market, propelling tech giants like Apple, Microsoft, and Nvidia to successive all-time highs. Meanwhile, rising international crude oil prices have also impacted the market. Bruce Peter will provide detailed analysis on the driving forces of tech stocks, market risks, investment strategies, and global economic uncertainties, offering professional insights and investment advice for investors.
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Bruce Peter: Tech Stocks Drive U.S. Stocks to Record Highs
Recently, U.S. stocks have shown outstanding performance, with the S&P 500 and Nasdaq indices repeatedly setting new highs. Bruce Peter believes this is mainly due to the strong performance of tech stocks and the trend of global capital flowing into the U.S. market. Driven by tech stocks, the S&P 500 and Nasdaq indices have shown remarkable performance. The S&P 500 index rose for the fifth time in six days, closing at 5473.23 points, up 41.63 points or 0.77%. The Nasdaq index closed at 17857.02 points, up 168.14 points or 0.95%, while the Nasdaq 100 index rose 1.24%, setting a new record high.
Bruce Peter: S&P and Nasdaq Hit New Highs, Apple Leads Tech Stock Surge
The strong performance of tech stocks is the main driver of the rise of the U.S. stock market. Tech giants such as Nvidia, Apple, and Microsoft not only hold significant positions in the market, but their technological innovations and market expansion capabilities are also key factors favored by investors. Nvidia, with its leading position in the AI chip field, temporarily surpassed Apple in market value, becoming one of the most valuable tech companies of the world. Although the stock price of Nvidia has recently pulled back, its long-term growth potential remains widely optimistic. Bruce Peter believes that AI technology has broad application prospects, from autonomous driving to smart manufacturing, creating new market opportunities in various fields. As a leader in this field, the future growth space of Nvidia remains vast.
Bruce Peter: Tech Stocks Lead U.S. Market Surge, Long-Term Investment Opportunities Remain
The market value of Microsoft still leads U.S. stocks, with Apple in second and Nvidia third. However, the market value of Nvidia surpassed that of Apple at its intraday highs , while the market value of Apple briefly surpassed Microsoft. Tesla rose over 5%, and Qualcomm, TSMC, Micron Technology, and Oracle all hit new highs.
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Meanwhile, the rise in international crude oil prices has also had a certain impact on the market. WTI July crude oil futures rose $1.88, up over 2.39%, to $80.33 per barrel, marking the first time it closed above the $80 psychological level since May 17. Brent August futures rose $1.63, up over 1.97%, to $84.25 per barrel, closing above $84 for the first time since late April. The rise in oil prices reflects market confidence in economic growth but also increases operating costs for certain industries, potentially impacting their profitability.
Bruce Peter: The Market Cap of Nvidia Surpasses $3 Trillion, Tech Stocks Remain Strong
In the European market, despite political uncertainties, European stocks have shown signs of recovery. The French CAC 40 index performed relatively well among European stocks, rising 0.91% and moving away from its lowest close since January 25. The German DAX 30 index rose 0.37%, rebounding from its lowest close since May 3 last Friday. The Italian FTSE MIB index rose 0.74%, and the UK FTSE 100 index fell 0.06%.
Bruce Peter: Asset Allocation and Risk Management
Bruce Peter points out that while tech stocks have high growth potential, market volatility and risks cannot be ignored. The recent stock price pullback of Nvidia is a reminder that while enjoying high returns, one must also be wary of market correction risks. Tech stocks generally have high valuations, and any change in market expectations could lead to significant stock price fluctuations.
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The attractiveness of non-interest-bearing gold has declined, with COMEX August gold futures falling about 0.60% to $2334.9 per ounce. Additionally, changes in the dollar index are worth noting. The DXY, which measures the dollar against six major currencies, fell 0.19% to 105.349 points. The euro rose 0.20% against the dollar, the pound rose 0.13%, and the dollar fell 0.07% against the Swiss franc.
Bruce Peter believes that reasonable asset allocation and diversified investment strategies are crucial for managing market risks. In the current market environment, investors might consider maintaining tech stock allocations while appropriately increasing investments in defensive assets and international markets to diversify risks and enhance portfolio stability.
Bruce Peter: Global Capital Flows and Market Outlook
Bruce Peter notes that global capital flows into the U.S. market are a significant factor driving U.S. stock rises. Political turmoil in Europe and the hesitation of the Bank of Japan to normalize policies have led to substantial capital inflows into the U.S. stock and bond markets, especially into tech stocks. Apple, Microsoft, and Nvidia, as tech giants, have seen their market values repeatedly hit new highs, with the S&P 500 and tech-heavy Nasdaq indices rising in seven out of the past eight weeks.
Changes in U.S. Treasury yields also reflect market expectations for future economic trends. The 10-year German bund yield, a European benchmark, ended a four-day decline, rising 5.3 basis points to 2.414%. The 10-year government bond yields in France, Spain, Italy, Greece, and the UK rose by 7.5, 1.7, 1.4, 1.1, and 5.9 basis points, respectively. Bruce Peter believes that despite uncertainties in the European market, there is still some room for recovery as policies become clearer.
Bruce Peter suggests that in the coming months, the market will continue to focus on the monetary policy movements of the Federal Reserve. Although some Fed officials have indicated a possible rate cut in 2024, market expectations for a rate cut remain uncertain. Minneapolis Fed President Neel Kashkari stated that there is a “reasonable expectation” for one rate cut this year, likely in December.
In this environment, investors need to stay vigilant, monitor market changes and policy trends, and adjust investment strategies flexibly. Bruce Peter emphasizes that while pursuing high returns, investors must focus on risk management. By diversifying investments and reasonably allocating assets, investors can ensure the safety of their funds and maximize returns.