US Stock Market Outlook: Mixed Futures, ADP Jobs Data Below Expectations
Market Overview
On Wednesday morning, the three major U.S. stock index futures showed mixed results, with the Nasdaq futures down by 0.18%. The ADP employment report for June revealed a decrease of 33,000 jobs, marking the largest drop since March 2023, against expectations of a 95,000 increase and a previous value of 37,000. Following the data release, spot gold prices saw a short-term increase.
Tech Stocks Performance
Most major tech stocks were down in pre-market trading. Nvidia fell by 0.67%, while Amazon and Microsoft both dropped by 0.4%. In contrast, Apple saw a rise of 1.13%.
Chinese Stocks Movement
Among popular Chinese stocks, Alibaba experienced a nearly 2% decline, while Bawang Chaji rose over 2%.
Legislative Impact on Solar Stocks
The "Big and Beautiful Act" has eliminated consumption taxes on wind and solar energy projects, leading to a surge in U.S. solar stocks.
Tesla's Robot Production Halt
Tesla has paused the production of its humanoid robot, Optimus, to modify its design. Reports indicate that Tesla is focusing on adjusting the software and hardware details of Optimus and began halting component procurement about two weeks ago.
Elon Musk recently stated that the new version of Optimus will significantly improve performance compared to the second-generation model introduced in 2023, incorporating voice interaction features supported by Grok.
Bezos Sells Amazon Shares
Jeff Bezos, the founder of Amazon, sold over 3.3 million shares of the company, valued at approximately $736.7 million, according to a financial document submitted to the SEC. This sale is part of a 10b5-1 trading plan initiated in March, allowing company insiders to sell shares at predetermined times without violating insider trading rules. Bezos plans to sell a total of 25 million shares by May 29, 2026, but still retains about 905 million shares, remaining Amazon's largest individual shareholder.
Healthcare Sector Decline
Healthcare company Centene Corporation saw a pre-market drop of 28% after retracting its profit outlook for the year due to lower-than-expected revenue in most states where it offers health insurance. The company indicated that preliminary data from 22 of its 29 market states showed overall growth below expectations, leading to a significant adjustment in its risk-adjusted revenue forecast.
Cyngn Secures Funding
Autonomous technology company Cyngn rose over 17% in pre-market trading after securing $32 million in funding, which will support its operations until 2027. The company is accelerating product development through a new partnership with Nvidia and relocating to a larger facility.
Strategy's Bitcoin Holdings
Strategy saw a pre-market increase of over 2% as it continues to expand its Bitcoin holdings for the third consecutive quarter, indicating growing corporate interest in direct Bitcoin ownership.
UBS Stock Buyback Announcement
UBS announced a stock buyback plan of up to $2 billion, leading to a pre-market rise of 2.4%. The buyback is expected to start on July 1, with the bank reaffirming its capital return targets for 2026.
Economic Outlook and Federal Reserve Actions
Bloomberg macro strategist Simon White noted that the pressure from soft economic data has reached levels that could prompt the Federal Reserve to consider rate cuts. The market is closely watching upcoming employment data, with expectations that strong results could lead to a significant adjustment in current positions.
Trade Negotiations with Japan
Reports indicate that Japan has firmly rejected any agreement to maintain a 25% tariff on automobiles, leading to potential escalations in trade tensions.
Conclusion
As the market reacts to various economic indicators and corporate actions, analysts are cautious about the sustainability of the current stock market rally, with some predicting a potential downturn in the near future.
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