Amazon(US:AMZN) Sou Hu Cai Jing·2025-08-01 23:36Market Overview - The U.S. non-farm payroll data for July showed an increase of only 73,000 jobs, significantly below expectations, leading to heightened expectations for interest rate cuts by the Federal Reserve [11][12] - The unemployment rate rose to 4.2%, matching expectations, while year-on-year wage growth increased from a revised 3.8% to 3.9% [11] - The Nasdaq fell over 2%, marking the largest decline for the S&P 500 since May, with small-cap stocks hit hardest [1] - The VIX index surpassed 20, indicating rising fear in the market, while gold prices surged by 2% amid geopolitical tensions [1] Key Economic Indicators - The ISM Manufacturing PMI for July dropped to 48, indicating the fastest contraction in nine months, with the employment index hitting a five-year low [2][12] - The manufacturing sector is experiencing a slowdown, with new orders declining for six consecutive months [12] Company News - Major tech companies are beginning to see profitability from AI investments, with significant revenue growth reported by Microsoft, Alphabet, and Meta, collectively increasing their market value by over $350 billion [14] - Amazon faced scrutiny regarding its position in the AI race, despite exceeding earnings expectations, as concerns about its cloud business growth persist [23] - The combined capital expenditure for AI infrastructure by major tech firms is projected to approach $400 billion, surpassing the total defense spending of the EU last year [15] Regulatory and Policy Developments - The People's Bank of China established a new macro-prudential and financial stability committee, emphasizing the need for a moderately loose monetary policy [10] - The U.S. government announced a new tariff structure, with rates varying based on trade relationships, impacting various sectors [19][21] Market Reactions - Following the release of disappointing employment data, hedge funds have been selling U.S. stocks for four consecutive weeks, particularly in the tech, media, and telecom sectors [20] - The stock prices of companies like Meituan, Ele.me, and JD.com surged after a joint commitment to resist harmful competition practices [17]