Market Overview - The US labor market remains strong, and Powell reiterated a wait-and-see approach, leading to reduced expectations for interest rate cuts by the Federal Reserve [2][10] - US Treasury prices fell, with the 10-year yield rising over 4 basis points and the 2-year yield increasing by about 6 basis points [2][6] - The Dow Jones Industrial Average rose over 400 points, while the Nasdaq 100 experienced a decline [2] - Tech stocks faced investor withdrawals, while small-cap stocks performed well [2] Key News - The US Senate narrowly passed the "Big Beautiful" bill, which does not include new taxes on imported components for clean energy, resulting in a rise in solar stocks [3][9] - Elon Musk criticized the "Big Beautiful" bill, threatening to mobilize supporters against Republican lawmakers who voted for it [3][9][16] - Powell did not rule out the possibility of a rate cut in July, citing tariffs' potential impact on inflation [10] - The European Central Bank's Lagarde indicated that the rate-cutting cycle is nearing its end, praising Powell's handling of criticism [10] - The US is reportedly narrowing its negotiation goals to avoid reintroducing tariffs, with a temporary trade agreement with India expected soon [11][12] Market Closing - The S&P 500 index fell by 0.11%, closing at 6198.01 points, while the Dow Jones rose by 0.91% to 44494.94 points [4] - The Nasdaq closed down 0.82% at 20202.89 points, and the European STOXX 600 index decreased by 0.21% to 540.25 points [4] Economic Indicators - The US ISM manufacturing PMI for June showed contraction for the fourth consecutive month, with a reading of 49 [12] - The JOLTS job openings report for May exceeded expectations, indicating a rise in job vacancies [13] - The Eurozone manufacturing PMI reached a 34-month high, with Germany showing continued recovery while France faced pressure [13] Domestic Macro - China's June Caixin manufacturing PMI returned to expansion at 50.4, indicating improved supply and demand [14] - The Chinese government emphasized the importance of building a unified national market and promoting high-quality development in the marine economy [14] Domestic Companies - Morgan Stanley noted that Xiaomi's Yu7 electric vehicle is driving demand similar to the Labubu trend, appealing to young female consumers [15] - In June, BYD sold 382,600 new energy vehicles, while Xiaomi delivered 25,000 units, and XPeng saw a 224% year-on-year increase in deliveries [15] Industry Insights - The demand for HBM (High Bandwidth Memory) is expected to grow significantly due to the rapid development of AI, with its share in DRAM projected to rise from 8% in 2023 to 34% by 2025 [20] - The beverage sector showed resilience in the first quarter, with soft drinks outperforming other categories, indicating strong demand [20]