US Open: Wall Street opens higher driven by AI and Tech sector 📌

• Indexes record moderate increases at the opening
• The dollar slightly weakens
• Yields are also falling

At the opening of today's cash session, Wall Street indexes are opening slightly higher, deepening yesterday's record gains following Jerome Powell's speech in Congress. The US500 gains 0.20% to 5640 points, and US100 0.25% to 20730 points. The gains are driven by a weakening dollar and falling yields of U.S. bonds. Among the companies recording the biggest gains in the US500 index are once again leaders from the semiconductor sector and the so-called Mag7.

Highlights

• Taiwan Semiconductor Manufacturing (TSMC) gains after a report of a significant sales increase, with June revenues up 33% year-over-year to about $6.38 billion. This growth confirms high demand for chips indicating a positive impact on other chip manufacturers, such as Advanced Micro Devices, Intel, and Arm.

• PwC has started laying off at least 100 employees from various teams in China after a significant decline in clients.

• Intuit is laying off about 1800 employees to focus on artificial intelligence. The company plans to hire roughly the same number in engineering, product, and customer service positions, reported by Fortune.

• 3M Co.’s CFO Monish Patolawala resigns from the CFO position to take the same role at another company.

• This Friday will kick off the quarterly earnings season in the USA with bank results. Investors are expecting a potential revival in Net Interest Income (NII) in the second half of the year. Current results are anticipated to show a second consecutive drop in NII.

US500

The index quotes set new historical highs at the close of yesterday's cash session. Today, contracts also slightly gain to 5650 points. However, investors' attention is focused on tomorrow's CPI report from the USA and Friday's bank results. The end of the week could potentially be nervous, leading to greater volatility in the stock market.

Source: xStation 5

Company News

Baidu (BIDU.US) gains over 5.70% after Beijing announced support for integrating robotaxis into car rental and ride-hailing fleets. The company operates the Apollo Go robotaxi, currently deployed in Wuhan, with plans to expand. Despite requiring autonomous vehicles to have on-board drivers or remote interception, Baidu anticipates rolling out 1,000 robotaxis in Wuhan and expects profitability by 2025.

Aehr Test Systems (AEHR.US) gains 26% following their announcement of better-than-expected preliminary fiscal fourth-quarter results. The company reported substantial earnings and revenue surpassing both consensus and their forecasts. The CEO expressed optimism for increased bookings and contributions from silicon carbide to future revenues.