Key takeaways
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Tech Giants Plummet, Nvidia lead a sharp decline Monday morning, among other tech giants on Germany’s Tradegate exchange, falling as much as 17%, followed by Apple (-10%), Microsoft (-9%), and others, mirroring a significant decline in US stock index futures.
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Market Correction in Asia, The MSCI Asia Pacific Index has extended its losses to more than 11% since its bull-market peak on July 11, meeting the definition of a market correction. Taiwan’s Taiex index plummeting 8.4% and Japan’s Nikkei 225 stock market index dropping 7.1%.
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Oil Prices Hit 7-Month Low, Brent crude falls below $77 a barrel, reaching a 7-month low, while gold prices drop 0.44% to $2,469.80.
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Interest Rate Cuts: Top banks globally predict multiple interest
- Intel stock price plummeted 26% after a disappointing Q2 earnings report, driven by weak revenue, lower earnings expectations, and a major restructuring plan that includes a 15% workforce reduction and suspension of dividend payments
IPO’s in the week
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AA Mission Acquisition Corp. (AAMU) priced its initial public offering on the NYSE at $10.00 per share, offering 30,000,000 shares to raise $300,000,000. The IPO took place on August 1, 2024.
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M3-Brigade Acquisition V Corp. (MBAVU) priced its IPO at $10.00 per share, raising $250M, and listed on NASDAQ Global on August 1, 2024. The company is a newly formed blank check company, established in March 2024, with the purpose of acquiring or merging with one or more businesses through various means, including mergers, consolidations, and asset acquisitions.
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Fifth District Bancorp, Inc. (FDSB) has priced its IPO at $10.00 per share, raising $54.6M, and will list on NASDAQ Capital on August 1, 2024. The company offers various deposit accounts, including checking, money market, and CDs, as well as electronic banking services like mobile banking, online banking, and electronic funds transfer.
Markets this week
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US. stock futures extended their decline from Friday’s selloff.
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The global stock market downturn worsened, causing Japan’s Nikkei 225 to drop by over 12%, the largest decline since the 1987 crash.
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Japanese bank stocks had their worst day since 2008 on August 2, following a central bank rate hike.
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Taiwan’s Taiex index fell by 8.4%, marking its largest drop on record.
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The MSCI Asia Pacific Index has declined 11.3% since its bull-market peak on July 11, entering market correction territory.
- US. tech giants experienced significant declines on Germany’s Tradegate exchange:
- Nvidia dropped up to -17%
- Apple as much as -10%
- Microsoft decreased as much as -9%
- Alphabet by around as much as -9%
- Amazon fell by as much as -9.3%
- Meta decreased by as much as -10%
- Tesla fell as much as -10%
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The sharp decline in tech stocks contributed to a substantial drop in U.S. stock index futures, indicating a broadly negative sentiment in the tech sector.
Intel’s stock price plummeted 26% on Friday, its worst trading day in 40 years, after a disappointing Q2 earnings report. The company announced:
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15% workforce reduction
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Suspension of dividend payments
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Q3 earnings expectations below analyst forecasts ($12.5-13.5 billion vs $14.3 billion)
This follows a decline in Q2 earnings per share ($0.02 vs $0.10 expected) and revenue ($12.8 billion vs $12.9 billion expected).
Regulatory News
- China rejects IMF’s proposed $1 trillion housing rescue plan.
- EU and Ukraine downplay concerns about potential oil supply disruption.
- Top banks globally forecast multiple interest rate cuts in 2024.
Company News
- Japan’s Kyowa Kirin sells China unit for $100 million.
- Bill Ackman’s Pershing Square USA fund withdrew IPO plans after significantly. reducing its target, from $25 billion to $2 billion.
Other News
- Foreign investors sell a record ¥1.56 trillion in Japanese stocks and futures.
- Oil traders hedge against potential Middle East conflict risks.
- London Stock Exchange Group CEO expects FCA reforms to boost London listings.
- Canada’s main stock index reaches a new milestone, breaking through 23,000 barrier.
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Technology Advancements this week
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Delta Airlines is seeking damages against Microsoft and CrowdStrike, after a software update led to a five-day system failure, resulting in a significant financial loss of approximately $500 million due to widespread flight cancellations and disruptions.
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Reddit’s first acquisition since going public, Memorable AI uses generative AI to help marketers create better ads.
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India’s startup sector is in crisis, with top companies like Byju’s and Paytm losing $45 billion in value, casting doubt on the country’s tech future.
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Amazon has shown interest in acquiring Covariant, according to people familiar with the matter. Covariant, a robot software maker valued at $625 million, to enhance Amazon’s warehouse automation capabilities.
Politics Weekly
Politics and Elections
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Trump’s campaign raised $139 million in July, bringing his war chest to $327 million.
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Kamala Harris’s campaign raised a record $310 million in July.
International Relations and Conflict
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Israel is coordinating with the US and UK to prepare for a possible large-scale counterstrike, as Iran Vows Revenge for Hamas Leader’s Assassination.
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Hamas Political Chief Haniyeh was killed in Iran, escalating Mideast tensions.
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Ukraine has received its first F-16 fighter jets after a long wait.
Business and Finance
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Hedge fund billionaire Ken Griffin is spending tens of millions to back Republican primary candidates.
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Sarawak, Malaysia’s largest state, is asserting its autonomy by reclaiming gas assets and seeking increased royalties.
Social Issues and Human Rights
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The UN has reported that Israel abuses Palestinian detainees, with 53 deaths in custody.
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President Biden will inform student loan borrowers of potential debt relief, impacting up to 25 million borrowers.
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