China Fund News Taylor
Hello everyone, I will briefly pay attention to overseas news tonight.
Tonight, the three major U.S. stock indexes continued to rise. The Dow Jones index rose more than 300 points and hit an intraday record high, and the Nasdaq index rose nearly 1%.
Jan Hatzius, chief economist at Goldman Sachs , said the Federal Reserve has "good reasons" to cut interest rates at its July meeting, but did not change Goldman's forecast that the Fed will start cutting interest rates in September. The latest unemployment and inflation data suggest that the federal funds rate is appropriate at 4%, compared with the current 5.25% to 5.5%. Therefore, rate cuts are expected to begin soon. Reasons for action in July include the volatility of monthly inflation, which could make a September rate cut difficult to explain if there is a temporary reacceleration, and the Fed's undeniable desire to "avoid starting to cut rates in the final two months of a presidential campaign." motivation. While this doesn't mean the Fed can't start cutting interest rates in September, it does mean July is more appropriate.
Trump Media Technology soared by more than 70% before the market opened. After the US stock market officially opened, the company's stock price rose by about 30%. The market generally believed that the assassination attempt would increase Trump's chances of winning the election.
Trump Media Technology Group is a company established by Trump in 2021. The company aims to create a social media platform - "Truth Social" - as an alternative to traditional social media platforms, specifically to serve users who he believes are being censored or treated unfairly. The Trump Media Technology Group was formed as Trump sought to restore direct communication with his supporters after he was banned from several major social media platforms.
Trump Media Technology Group successfully listed on Nasdaq through a method called "reverse merger", with the stock code djt. On the first day of listing, the company's stock price soared 16.10%, and Trump's personal wealth increased significantly to more than 50 billion yuan.
It is worth noting that during the establishment and listing of Trump Media Technology Group, Trump encountered multiple lawsuits including financial fraud, and once faced huge fines and the risk of bankruptcy. But through backdoor listing, Trump's financial situation has been significantly improved.
Trump will attend the 2024 Republican National Convention in Milwaukee, southeastern Wisconsin, from Monday to Thursday. It is expected that the number of participants in this conference will exceed 50,000. If nothing unexpected happens, he will accept the official nomination of the Republican Party at the Republican National Convention in Milwaukee on Thursday night (July 18).
Trump said he looked forward to addressing the American people at the Republican National Convention on Thursday.
Tesla stock price soared 4%. Previously, the company's CEO Musk publicly supported Trump, posting on social media that "I fully support President Trump and hope he (Trump) recovers soon."
In addition, there are reports that "Musk donated money to Trump, hoping to use his huge wealth to influence the 2024 US election."
Apple shares rose nearly 2%. According to the news, annual sales of Apple in India increased by 33%, reaching a record of nearly 8 billion US dollars. Morgan Stanley named Apple a top stock stock and raised its target price to $273 from $216.
The Russell 2000 index rose 2% and was on track for a fourth consecutive session of gains. Goldman Sachs said a Trump election could lead to outperformance among small-cap stocks, citing their strong performance following Trump's 2016 victory.
That’s it for tonight’s analysis.
