Written by Michael A. Johnson, Lead Editor & Market Strategist
U.S. Stock Market Update
On Wednesday morning, all three major U.S. stock index futures rose ahead of the release of the Producer Price Index (PPI) data for June at 20:30.
PPI Data Overview
- June PPI year-on-year growth: 2.3% (previous: 2.6%, forecast: 2.5%)
- June core PPI year-on-year growth: 2.6% (previous: 3.0%, forecast: 2.7%)
Pre-Market Movements
- Tech Stocks: Most major tech stocks fell, with ASML down nearly 7%, NVIDIA slightly down, and Tesla and Apple showing minor gains.
- Chinese Stocks: Popular Chinese stocks also declined, with Kingsoft Cloud down nearly 6%, Baidu down nearly 4%, and NIO down nearly 2%.
- Rare Earth Stocks: Stocks in the rare earth sector rose, with USA Rare Earth up nearly 4% and MP Materials up over 3%.
Ethereum-Related Stocks Surge
Ethereum reserve concept stocks saw significant gains, with GameSquare soaring over 50% and BTCS Inc up over 22%.
Goldman Sachs and Bank of America Updates
- Goldman Sachs: Pre-market gains of over 1% with Q2 net revenue at $14.58 billion, a 5% year-on-year increase.
- Bank of America: Expanded pre-market gains over 1% after better-than-expected trading and investment banking revenues.
Trade Agreements and Tariffs
Trump on Trade Agreements
Former President Trump announced efforts to finalize several trade agreements, including one with Vietnam, with tariffs expected to be implemented starting August 1.
Tariff Details
- Tariffs on smaller countries expected to be "slightly above 10%".
- New tariffs on copper imports to the U.S. set at 50% starting August 1.
NVIDIA's H20 Chip Export Plans
CEO Huang's Statements
NVIDIA CEO Jensen Huang indicated that the company expects to receive export licenses for H20 AI chips to China soon, which could generate billions in revenue.
U.S. Commerce Secretary's Remarks
The U.S. Commerce Secretary linked NVIDIA's H20 chip sales to ongoing negotiations regarding rare earth materials.
Federal Reserve Leadership Speculation
Kevin Hassett, a close aide to Trump, is emerging as a leading candidate to succeed Jerome Powell as the next Federal Reserve Chair.
Chinese Government Initiatives
Meeting on New Energy Vehicles
Chinese Premier Li Qiang chaired a State Council meeting focusing on regulating competition in the new energy vehicle sector and enhancing domestic consumption.
Supply Chain Cooperation
Vice Premier He Lifeng emphasized China's role in promoting global supply chain cooperation and stability during the opening of the China International Supply Chain Promotion Expo.
Upcoming Economic Data
- 20:30: U.S. June PPI month-on-month
- 20:30: U.S. June PPI year-on-year
- 21:15: U.S. June industrial production month-on-month
- 22:30: U.S. EIA crude oil inventory for the week ending July 11
