U.S. stocks plummeted yesterday. Affected by the financial reports released by Tesla and Alphabet, the S&P 500 Index fell more than 2%, and the Nasdaq Index also hit a heavy 3.64%. On the second day after the listing of the Ethereum spot ETF, the market "sell the news" was staged. ETH fell by more than 4% in 24 hours, which was much higher than BTC's -0.87%.
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ToggleTechnology stock financial reports are coming out one after another
As price cuts continued to squeeze profits, Tesla's profit margin fell to its lowest in more than five years in the second quarter, and Tesla's stock price fell by more than 12%. Alphabet (Google's parent company) fell more than 5%. Although its search and cloud businesses performed well, "YouTube advertising revenue did not meet the target." Coupled with the continued increase in investment in AI, investors began to question the impact of this wave of AI. When will the investment see results?
( Tesla’s profits are disappointing, Robotaxi’s debut is delayed, Musk asks: Should I invest in xAI? )
Shares of Nvidia and Facebook parent company Meta fell 6.8% and 5.6% respectively, while Microsoft and Apple fell 3.6% and 2.88%.
As technology stock earnings reports come out one after another, investors are beginning to re-examine the company's fundamentals and whether the market is overbought and overly optimistic.
The chance of an interest rate cut in September is expected to reach 100%
According to CNBC , the preliminary value of the U.S. PMI manufacturing output index fell to 49.5 in July, unexpectedly slipping into contraction territory due to declines in new orders, production and inventories. Economists had forecast a value of 51.5. A report Wednesday also showed new home sales in June were lower than economists expected.
Investors are looking forward to the U.S. second-quarter GDP report on Thursday and June personal consumption expenditures (PCE) data on Friday for clues on the path of the Federal Reserve to cut interest rates.
The Federal Reserve will hold an FOMC meeting at the end of the month. According to the CME Group FedWatch Index, the market generally expects the Federal Reserve to keep interest rates unchanged in July, but the probability of cutting interest rates in September has reached 100%.
ETH staged "sell the news" market
The Ethereum spot ETF was officially launched on July 23. The total trading volume on the first day reached US$1.112 billion, with an overall net inflow of US$106.8 million. Bloomberg ETF analyst James Seyffart believes:
Compared to the Bitcoin ETF on its first day, the Ethereum ETF had approximately 24% trading volume and 16.5% flow. I thought it was a very solid day!
Yesterday was the second day of listing. The trading volume of BlackRock ETHA was slightly higher than that on the first day. According to information quoted by Bloomberg from Tree News , the currently announced net flow is:
- VanEck (ETHV): +$19.7 million
- Grayscale (Mini) (ETH): +46 million USD
- Grayscale (ETHE): -$326.2 million
- 21Shares (CETH) : 0
- BitWise (ETHW): +$29.5 million
However, Ethereum seems to be following the situation of the original Bitcoin spot ETF listing, performing a "sell the news" trend. ETH fell by more than 4% in 24 hours, much higher than BTC's -0.87%.
( Ethereum spot ETF is officially launched on 7/23! Will ETH stage a "sell the news" market? )
