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Last night, the Nasdaq plunged again in late trading.

Nasdaq suddenly plunged in late trading

First, the Nasdaq experienced a flash crash at the opening, but then it pulled up sharply in a "V" shape, rising by more than 1% at one point. However, in the closing period, the Nasdaq plunged again.

In addition, the Dow Jones Industrial Average and the S&P 500 also experienced dives to varying degrees in late trading.

As of the close, the three major U.S. stock indexes closed with mixed gains and losses, with the Dow Jones Industrial Average up 0.2%, the S&P 500 down 0.51%, and the Nasdaq down 0.93%.

Technology stocks fell across the board again, with Apple down 0.48%, Amazon down 0.54%, Netflix down 0.3%, Google down 3.1%, Facebook down 1.7%, Microsoft down 2.45%, Intel down 1.89%, Nvidia down 1.72%, and Broadcom down 1.37%.

In terms of Chinese stocks, the Nasdaq China Golden Dragon Index fell 0.68%. JD.com rose more than 2%, Xpeng Motors, Li Auto, iQiyi, and NetEase rose more than 1%, and Bilibili and Vipshop rose slightly. New Oriental fell more than 5%, Tencent Music, Pinduoduo, and Baidu fell more than 1%, and Futu Holdings, Alibaba, Weilai, Weibo, and Manbang fell slightly.

Ford plunged 18.4%

In addition, Ford Motor's stock price plummeted 18.4%, its worst single-day performance in more than 15 years (since November 2008).

The reason is that the performance is not as good as expected.

Ford Motor's second-quarter revenue was $47.8 billion, up 6.2% year-on-year.

However, the adjusted EBITDA was $2.8 billion, down 26.3% year-on-year, lower than the $3.73 billion analysts expected. In addition, the adjusted earnings per share (EPS) in the second quarter was $0.47, down 34.7% year-on-year, lower than market expectations. The electric vehicle business lost $2.5 billion in the first half of the year.

How will the US stock market perform in the future?

Huang Senwei, senior market strategist at AllianceBernstein, predicts that the U.S. stock market may see style switching and industry rotation in the second half of this year. In terms of corporate operations themselves, judging from the year-on-year growth rate of earnings of the "Big Seven" and the S&P 500 after excluding the Big Seven, in the U.S. stock market's small bear market in 2022, the technology sector fell 14%, while the S&P 500 rose 9.8% after excluding the Big Seven. This is because the earnings growth of the Big Seven performed worse than other companies in 2022.

Technology stocks are the only ones that stand out in 2023, rising 35.3%. The S&P 500, excluding the seven major US stocks, fell 2.5%, because technology stocks' earnings performed well, while other companies' earnings declined last year. The US stock market is still dominated by technology stocks in the first half of this year because of its fast profit growth, while the profit growth of the other 493 companies is relatively low.

Huang Senwei believes that in the second half of this year, the earnings growth gap between US technology stocks and other stocks may begin to narrow. If the Fed's interest rate cuts are the main tone of the market in the second half of the year, the pressure on small-cap stocks will begin to be released, which is why we have seen small-cap stocks in the United States perform better recently.

Some of the content is compiled from Xinhua Finance

Editor: Peng Bo

Proofread by: Wang Chaoquan