1. The Nasdaq China Golden Dragon Index surged by 2.76%, reaching a new high since April, led by significant jumps from Alibaba, Baidu, and Bilibili; 2. H20 returns to the Chinese market, with NVIDIA hitting a new historical high again; 3. MP Materials surged nearly 20% after reaching a rare earth magnet procurement agreement with Apple; 4. The House’s “Cryptos Week” faced setbacks, with Circle suffering a drop.
On July 16, according to the Financial Association (Editor: Shi Zhengcheng), compared to the fluctuating movements of the US stock market last night and this morning, several well-known Chinese concept stocks exhibited a strong rally.
By the close, the S&P 500 Index, which had once historically crossed 6,300 points during the day, ultimately fell by 0.4% to 6,243.76 points; the Nasdaq Composite Index rose by 0.18% to 20,677.8 points; and the Dow Jones Industrial Average fell by 0.98% to 44,023.29 points. The Nasdaq China Golden Dragon Index surged by 2.76%, reaching a new high since April 1 of this year.
(Daily chart of the Nasdaq China Golden Dragon Index, Source: TradingView)
In terms of individual stocks, Alibaba, related to the computing power concept, rose by 8.11%, Kingsoft Cloud surged by 18.73%, GDS Holdings increased by 7.77%, and 21Vianet rose by 14.14%.
(Daily chart of Kingsoft Cloud, Source: TradingView)
Baidu surged by 8.65% as the company announced a strategic partnership with Uber to deploy Baidu’s autonomous driving technology globally.
Bilibili rose by 7.35%. The company’s headquarters in Shanghai launched several support policies for high-quality Internet content creation on Tuesday. Additionally, market news indicates that Bilibili is ramping up efforts in the video podcast sector and is developing an AI-assisted creation tool called ‘Codename H’ aimed at helping creators produce videos more efficiently.
(Bilibili daily chart, source: TradingView)
In addition to the companies mentioned above, Chinese concept stocks generally surged due to positive sentiment. Gaotu Techedu rose by 11.14%, HUYA Inc by 10.23%, Tuya Inc by 7.54%, DouYu by 6.67%, Weibo by 6.03%, Full Truck Alliance by 5.13%, JD.com by 4.03%, iQIYI by 3.91%, Pony.ai by 3.88%, and Tencent ADR by 3.68%.
There were also occasional bright spots in the U.S. stock market. Driven by news of the restoration of AI chip sales to China, ‘the world’s stock king’ NVIDIA surged by 4%, reaching a new historical high. AMD also jumped by 6.41%, reaching a high not seen since October of last year.
(Nvidia daily chart, source: TradingView)
Another company reaching a historical high is American Rare Earth Metals concept stock MP Materials. The company reached a $0.5 billion rare earth magnet procurement agreement with technology giant Apple. Last week, the U.S. Department of Defense agreed to purchase about 15% of MP Materials’ preferred stock and warrants, which, when fully converted, will make it the largest shareholder of the company.
(MP Materials daily chart, source: TradingView)
In addition, the relatively mild rebound of the U.S. June CPI has not alleviated Wall Street’s concerns about tariff impacts. Affected by Wells Fargo’s downward revision of net interest income guidance, Wells Fargo and JPMorgan fell after releasing their Earnings Reports, while Citigroup reached a new high since 2008 due to its stock repurchase plan.
Ellen Zentner, Chief Economic Strategist at Morgan Stanley Wealth Management, interpreted that inflation has begun to show early signs of tariff transmission. Although inflation in the service industry continues to slow, the accelerated increase in Commodity prices due to tariffs may be a precursor to greater price pressures coming soon.
After the latest inflation data was released, the Federal Reserve Watch tool showed that traders’ expectations for a rate cut by the Federal Reserve in September have slightly decreased to just over 50%.
(Source: CME)
Company news
[House of Representatives’ “Cryptocurrency Week” begins unfavorably as Circle faces setbacks.]
In a procedural vote held on Tuesday, the Republican conservatives in the U.S. House of Representatives successfully blocked the legislative process for three Cryptos bills, including the stablecoin bill. As a result, Circle Internet, the world’s second-largest stablecoin issuer, saw its shares drop over 4% on Tuesday.
[U.S. eVTOL company officially announces expansion of California production base]
U.S. electric air taxi company Joby Aviation has recently announced plans to expand its main production base in Marina, California, doubling its aircraft production capacity. Following this news, Joby Aviation’s stock rose by 10.45% on Tuesday.
The press release states that the total area of the Marina factory is currently about 435,500 square feet (just over 0.04 million square meters). After the expansion, the factory is expected to be fully operational and produce up to 24 aircraft per year, almost one every week.
[Musk launches a two-dimensional ‘AI girlfriend’]
In this week’s update, Grok officially launched the ‘companions’ feature based on the Grok 4 model. The first two characters to go live are the gothic-style girl Ani and the cartoon-style panda ‘Bad Rudy.’ Currently, this service is only available to users of the SuperGrok subscription service who pay $30 per month.
[CoreWeave announces the construction of a new AI data center with a total investment of up to 6 billion dollars]
Cloud service startup CoreWeave recently announced plans to invest up to 6 billion dollars in Pennsylvania, USA, to build a brand new advanced data center to support cutting-edge artificial intelligence.
