NEWS

Record-Setting Market Rally

Stocks surged to new heights as the S&P 500 and Nasdaq Composite closed at record levels for the seventh straight day. Investors shrugged off concerns about crucial inflation data due tomorrow.

Historically, the first two weeks of July are among the best of the year, and this year has added to those gains with a seven-day win streak. The Nasdaq 100 reached a new high, driven by semiconductor gains, including NVDA, AMD, MU, and TSM.

Technology and Communications sectors have soared, with Technology up 23% year-to-date and Communications up 20% year-to-date. The Financials sector follows at 11% year-to-date. Interestingly, software stocks lagged despite the semiconductor rally.

Market optimism is fueled by expectations of interest rate cuts and strong tech performance, particularly in AI. Semiconductors have shown massive monthly returns, indicating market direction.

Fed Chair Powell's comments on monetary policy boosted hopes for a rate cut as early as September, contingent on tomorrow’s CPI data. The CPI is expected to show a slight increase, with core CPI rising 0.2% month-over-month.

Anyhow, look below, these were the market close for the main indices and most fancy assets:

STOCKS

Tech Stocks Lead the Charge

In retail, consumer staples, and restaurants, KLG was downgraded due to stagnant volume trends, while the restaurant sector remains weak, with CMG CFO announcing retirement.

In autos, leisure, gaming, and lodging, TSLA extended its gains, and CVNA was upgraded on growth expectations.

In energy, industrials, and materials, HON acquired the LNG technology business from APD for $1.81 billion, and uranium stocks surged following a tax hike in Kazakhstan.

In financials, MA and V were downgraded due to regulatory concerns, while BHF was upgraded, showing strength in life insurance.

In biotech and pharma, ARQT received FDA approval for expanded use of Zoryve, and TEVA was upgraded, indicating a positive turnaround.

In healthcare services and medtech, HCA remains a top pick due to strong hospital volume data.

In internet, media, and telecom, META, AMZN, and GOOG received target price increases.

In semiconductors, the SOX index hit a new high, with notable gains from AMD and TSM.

OTHER ASSETS

Oil and Gold Shine Bright

Regarding commodities, currencies, and treasuries, WTI crude rebounded, closing at $82.10 per barrel. Gold prices rose to $2,379.70 an ounce. The 10-year Treasury yield remained steady at 4.28%.

Bernstein initiated coverage on IREN and CORZ with Outperform ratings, noting undervaluation due to Bitcoin volatility despite a structural uptrend in Bitcoin. They expect a new Bitcoin upcycle driven by institutional adoption and ETF growth. The firm's optimism extends to Bitcoin miners' strategic power portfolios and potential AI data center monetization.

FOLLOWING DAYS

All Eyes on Inflation and Fed Moves

Looking ahead, all eyes are on tomorrow’s CPI data, which is expected to show a slight increase. This data will be crucial in shaping expectations for future interest rate cuts. Investors will also continue to monitor earnings reports across various sectors, particularly tech and financials, to gauge market sentiment and potential growth trajectories.

The cryptocurrency market's response to institutional adoption trends and regulatory developments will also be a key area of focus.