On July 12th local time, the three major US stock indexes collectively closed higher, with the Dow Jones Industrial Average rising 0.62% and a cumulative increase of 1.59% for the week; The Nasdaq rose 0.63%, with a cumulative increase of 0.25% this week; The S&P 500 index rose 0.55%, with a cumulative increase of 0.87% this week. The Russell 2000 Small Cap Index has risen 6% this week, marking the largest weekly increase since November 2023.
Large tech stocks have fluctuated, with Tesla rising nearly 3% and Nvidia and Apple rising over 1%. Real estate, automobile manufacturing, and solar energy have seen the highest growth rates, with Rivian up over 8%, Sunrun up over 7%, Beizhe Home up over 5%, Ford Motor up over 4%, and General Motors up over 2%. Shipping, airlines, and diversified banks led the decline, with Wells Fargo falling nearly 6%, Star Line falling over 4%, Delta Air Lines falling over 3%, and Citibank and JPMorgan Chase falling over 1%.
Meta fell more than 2%. On July 12th local time, an employee of Meta Platforms announced that Meta plans to release the largest version of its third-generation Large Language Model (LLM) Llama 3 on July 23rd. This latest version of the model will have 405 billion parameters and will also be a multimodal model, which means it will be able to understand and generate images and text. The media did not disclose whether this strongest version is open source.
Meta company declined to comment on the above news. On Friday, the decline in Meta's stock price, which opened lower, narrowed. At the beginning of the session, it fell by 3.6%, and then the decline narrowed to less than 2%. However, the decline widened in the end of the session, closing down 2.84%. After a sharp decline of over 4% on Thursday, it fell for two consecutive days, breaking the closing low since June 21.
Meta also announced on July 12th local time that the company will restore former US President Trump's Facebook and Instagram accounts in the coming weeks.
On Friday (July 12th) Eastern Time, JPMorgan Chase, the largest bank in the United States, announced its second quarter results, with both revenue and profit exceeding market expectations.
According to the financial report, JPMorgan Chase's Q2 revenue was $50.99 billion, a year-on-year increase of 20%, and the market estimate is $49.87 billion; The net profit was $18.15 billion, setting a record for the highest single quarter, an increase of 25% year-on-year, or $6.12 per share.
JPMorgan Chase official website
JPMorgan Chase achieved its highest quarterly profit in the history of the US banking industry in Q2, but after deducting earnings related to Visa transactions, the net profit was $13.1 billion, or $4.26 per share, which analysts expected to be $4.19. Visa transactions contributed approximately $8 billion to the bank's Q2 profits.
JPMorgan CEO Jamie Damon warned in the financial statement that while the United States has made some progress in reducing inflation, there are still multiple inflationary factors, such as huge fiscal deficits, infrastructure demand, and trade restructuring. Therefore, inflation and interest rates in the United States may remain at levels higher than expected.
Octavio Marenzi, CEO of consulting firm Opimas, interpreted that investment banking and stock trading businesses have performed very well compared to last year. Despite the decline in ordinary banking business, JPMorgan has responded well to the challenging interest rate environment.
However, Marenzi also pointed out that the significant increase in credit loss provisions indicates that JPMorgan expects the US economy to experience a difficult period.
Popular Chinese concept stocks have fluctuated, with the Nasdaq China Golden Dragon Index rising 0.60% and a cumulative increase of 4.15% this week. NIO rose over 4%, Pinduoduo rose over 2%, and Xiaopeng Motors, Alibaba, NetEase, and Tencent Music rose over 1%. Bilibili fell more than 5%, iQiyi, Baidu, JD.com, and Weibo fell more than 1%, while Manbang, Vipshop, Ideal Auto, and Futu Holdings fell slightly.
The settlement price of WTI crude oil futures fell 0.5% to $82.21 per barrel; The settlement price of Brent crude oil futures fell 0.43% to $85.03 per barrel.
Barclays economists have adjusted their forecasts for Federal Reserve policy based on the US June inflation data released this week and the gradual cooling of the labor market. They now believe that the Federal Reserve will make a second rate cut in December based on the September rate cut. Barclays economists Marc Giannini and Jonathan Millar stated in a research report, 'We also believe that the FOMC is increasingly convinced of the restrictive nature of monetary policy stance, which should further convince the FOMC to cut interest rates in September and December.'.
