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On Wednesday, July 31, Eastern Time, all three major U.S. stock indexes closed higher, with Nvidia and AMD driving the Nasdaq higher. The Federal Reserve kept interest rates unchanged and pointed out the progress made in fighting inflation.

Nvidia surged 12.81%, with its market value increasing by $327 billion, setting a record for the largest single-day increase in market value for a single stock.

Intel plans to lay off thousands of employees to cut costs, with an announcement likely to come as early as this week.

Fed keeps interest rates unchanged

As of the close, the Dow Jones Industrial Average rose 0.24% to 40,842.79 points; the S&P 500 rose 1.58% to 5,522.3 points; and the Nasdaq rose 2.64% to 17,599.4 points.

At 2 a.m. Beijing time on August 1, the Federal Reserve announced that it would maintain the target range for the federal funds rate at 5.25% to 5.50%, which was unchanged and in line with market expectations.

At the same time, the Federal Reserve signaled that it might cut interest rates in September, further confirming the progress made in reducing inflation and beginning to emphasize risks in the job market.

Nick Timiraos, a reporter with the so-called "New Fed News Agency," pointed out that the Fed's move cleared the way for a rate cut in September. This is the first time in nearly two years that the Fed has treated employment and inflation targets more equally, indicating that inflation may no longer be a key factor hindering rate cuts.

As for other central banks, Japan announced a 15 basis point interest rate hike, raising the policy rate to 0.15%~0.25%. The Bank of Japan passed the interest rate decision with a voting ratio of 7:2, and market expectations remained unchanged.

At the same time, the Bank of Japan announced a plan to reduce its balance sheet, reducing the scale of government bond purchases by 400 billion yen each quarter. It will no longer provide a range of bond purchases but instead provide a specified amount.

Nvidia's market value surged by $327 billion overnight

Nvidia rose 12.81%, with its market value increasing by US$327 billion (approximately RMB 2.3707 trillion), setting a record for the largest single-day increase in market value of an individual stock.

Other chip stocks also performed strongly, with Broadcom up 11.96%, ASML up 8.89%, Qualcomm up 8.39%, TSMC up 7.28%, Micron Technology up 7.08%, AMD up 4.36% and Intel up 2.02%.

According to Wind, Intel plans to lay off thousands of employees to reduce costs and fund its efforts to rebound from declining profits and market share. People familiar with the company's layoff plans said the layoffs could be announced as early as this week.

Intel has about 110,000 employees, not including those in divested units. After announcing layoffs starting in October 2022, Intel will cut about 5% of its workforce in 2023, reducing its workforce to 124,800 by the end of the year.

Intel also slowed spending in other areas. The company expects those cost cuts to save as much as $10 billion by 2025.

US banks face tighter regulatory framework

Most bank stocks fell, with JPMorgan Chase down 1.11%, Goldman Sachs up 0.71%, Citigroup down 1.5%, Morgan Stanley up 0.36%, Bank of America down 2.37% and Wells Fargo down 1.15%.

U.S. bank regulators are considering a stricter framework that would prevent big asset managers such as Blackrock and Vanguard from influencing banks in which they own large stakes.

The Federal Deposit Insurance Corporation has decided to move forward with a proposal that would require large passive investment fund managers to meet new restrictions before buying and holding large stakes in publicly traded banks.

Tesla recalls more than 1.8 million electric vehicles in the U.S.

Most technology stocks rose, with Apple up 1.5%, Amazon up 2.9%, Netflix up 0.93%, Google up 0.73%, Facebook up 2.51%, and Microsoft down 1.08%.

According to media reports, the National Highway Traffic Safety Administration (NHTSA) said on Tuesday that Tesla will recall more than 1.8 million electric vehicles in the United States because its software cannot detect an unlocked hood.

The agency believes that this defect could cause an unlocked hood to suddenly open while driving, obstructing the driver's view and increasing the risk of a crash.

The recall involves Model 3, Model S, Model X produced from 2021 to 2024, and Model Y models produced from 2020 to 2024, affecting nearly 1.85 million vehicles.

Tesla has released a remote car upgrade software update to resolve this issue. Affected owners will receive a notification letter from Tesla before September 22, 2024.

Apple CEO Cook announced on the social media platform that Apple Intelligence will open up a world of new possibilities for users, and it is exciting to see developers start using it for development, and they will create amazing things.

Earlier media reports said that Apple plans to provide Apple Intelligence to software developers for early testing for the first time through the iOS 18.1 and iPadOS 18.1 beta versions as early as this week.

Most of the popular Chinese stocks rose

Most of the popular Chinese stocks rose, with 21Vianet up 12.5%, Bit Digital up 7.93%, BeiGene up 6.12%, GDS up 6.04%, Futu Holdings up 5.13%, Pinduoduo up 4.65%, Daquan New Energy up 4.12%, Miniso up 4.12%, and Kingsoft Cloud up 3.85%.

In terms of decline, StarJing Weiwu fell 12.11%, New Oriental fell 9.16%, and TAL Education fell 2.9%.

Chinese listed new energy vehicle stocks rose collectively, with NIO up 0.57%, Xpeng Motors up 1.57% and Li Auto up 5.11%.

(Compiled by Zhao Xinyi)

Editor: Huang Mei

Reviewer: Chen Siyang

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