U.S. stocks plummeted yesterday. Affected by the financial reports released by Tesla and Alphabet, the S&P 500 index fell by more than 2%, and the Nasdaq index also suffered a heavy loss of 3.64%. On the second day after the Ethereum spot ETF was listed, the "sell the news" trend was staged. ETH fell by more than 4% in 24 hours, much higher than BTC's -0.87%.
Technology stock financial reports are coming out one after another
Tesla's second-quarter profit margin dropped to its lowest in more than five years as price cuts continued to squeeze profits, sending Tesla's stock price down more than 12%. Alphabet (Google's parent company) fell more than 5%. Although its search and cloud businesses performed well, "YouTube advertising revenue did not meet the target." Coupled with the continued increase in investment in AI, investors began to question the impact of this wave of AI. When will the investment see results?
(Tesla’s profits are disappointing, Robotaxi’s debut is delayed, Musk asks: Should I invest in xAI?)
Shares of Nvidia and Facebook parent Meta fell 6.8% and 5.6%, respectively, while Microsoft and Apple fell 3.6% and 2.88%.
As earnings reports from technology stocks come out one after another, investors are beginning to re-examine the company's fundamentals and whether the market is overbought and overly optimistic.
The chance of a rate cut in September is already 100%
According to CNBC, the preliminary value of the U.S. PMI manufacturing output index fell to 49.5 in July, unexpectedly slipping into contraction territory due to declines in new orders, production and inventories. Economists had forecast a value of 51.5. A report Wednesday also showed new home sales in June were lower than economists expected.
Investors are looking to the U.S. second-quarter GDP report on Thursday and June personal consumption expenditures (PCE) data on Friday for clues on the path of the Federal Reserve to cut interest rates.
The Federal Reserve will hold an FOMC meeting at the end of the month. According to the CME Group FedWatch Index, the market is generally expected to keep interest rates unchanged in July, but the probability of cutting interest rates in September has reached 100%.
ETH is “sell the news”
The Ethereum spot ETF was officially launched on 7/23, with total trading volume reaching $1.112 billion on the first day, and overall net inflows of $106.8 million. Bloomberg ETF analyst James Seyffart believes:
Compared to the Bitcoin ETF on day one, the Ethereum ETF saw roughly 24% higher trading volume and 16.5% higher flow. I thought it was a very solid day!
Yesterday was the second day of listing. The trading volume of BlackRock ETHA was slightly more than the first day. According to information quoted by Bloomberg from Tree News, the current published net flow is:
VanEck (ETHV): +$19.7 million
Grayscale (Mini) (ETH): +46 million USD
Grayscale (ETHE): -$326.2 million
21Shares (CETH) : 0
BitWise (ETHW): +$29.5 million
However, Ethereum seems to be following the situation of the original Bitcoin spot ETF listing, performing a "sell the news" trend. ETH fell by more than 4% in 24 hours, much higher than BTC's -0.87%.
(Ethereum spot ETF is officially launched on 7/23! Will ETH stage a "sell the news" market?)
This article US stocks plummeted, and ETH staged a "sell the news" market with the listing of the Ethereum spot ETF. It first appeared on Chain News ABMedia.
