Stocks Mixed: Dow Hits Month High, Nvidia Plunges 7%

**Three major stock indices show divergence, with the Nasdaq down over 1%;

**U.S. Treasury yields fluctuate narrowly, with the benchmark 10-year U.S. Treasury at 4.25%;

**Meta has discussed deep cooperation intentions with Apple in the field of Artificial Intelligence (AI).

On Monday, U.S. stocks showed mixed performance, with the Dow Jones Industrial Average reaching a nearly one-month high, and the energy and banking sectors shining brightly. Nvidia's poor performance led investors to exit stocks related to artificial intelligence. As of the closing bell, the Dow Jones Industrial Average rose by 260.88 points, or 0.67%, to 39,411.21, the Nasdaq Composite fell by 1.09% to 17,496.82, and the S&P 500 index fell by 0.31% to 5,447.87.

Market Overview

The Dallas Fed Manufacturing Index rose from -19.4 in May to -15.1 in June, indicating a slowdown in the rate of contraction, similar to the New York Fed data released earlier.

Chicago Fed President Austan Goolsbee stated on Monday that as part of the process of opening the door to rate cuts, he is still looking for further cooling of inflation. "The current Federal Reserve policy is restrictive. We will see an improvement in inflation data. We hope to gain more confidence in inflation."

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San Francisco Fed President Mary Daly said that the Federal Open Market Committee (FOMC) must be open to adjusting policy as needed, and the recent low inflation and future uncertainties have not provided officials with enough confidence to lower interest rates.

This week, the market will closely monitor the May Personal Consumption Expenditures (PCE) price index report, which is the Federal Reserve's preferred inflation indicator. Institutions expect the data to show a moderation in price pressures.

Long-term U.S. Treasury yields saw little change, with the two-year U.S. Treasury, closely linked to interest rate expectations, at 4.74%, and the benchmark 10-year U.S. Treasury at 4.25%. Investors are weighing the mildness of recent inflation data against the potential easing points of the Federal Reserve. According to federal funds rate futures, the market still expects two rate cuts this year, with a 61% chance of a 25 basis point cut in September.Ladenburg Thalmann's Chief Executive Officer of Asset Management, Phil Blancato, stated: "The artificial intelligence craze is starting to cool down, and surprisingly, the expectation of lower interest rates has not lifted spirits. From a valuation perspective, they have become extremely expensive." He anticipates that if inflation remains weak, the market breadth will expand further.

On individual stocks, Nvidia plummeted by 6.7%, marking three consecutive daily declines. Following its achievement of becoming the world's most valuable company last week, the chip giant is facing significant profit-taking. Nvidia's downturn also dragged down the semiconductor sector, with companies such as TSMC, Broadcom, Marvell Technology, and Qualcomm seeing declines between 2% and 5%.

Tesla dipped by 0.2%, with reports indicating that the company has laid off over 14% of its workforce this year. Amid increasing global economic uncertainty, Tesla is actively adjusting its employee structure to cope with potential market fluctuations.

Meta Platforms rose by 0.8%, and Apple increased by 0.3%. Previous reports suggested that Facebook's parent company has discussed integrating its generative artificial intelligence models into Apple's recently announced iPhone AI system.

Cyclical sectors performed well, with the energy industry climbing by 2.7%, and finance and utilities rising by approximately 1%. Goldman Sachs, Citigroup, and Chevron each rose by over 2%, while JPMorgan Chase and Bank of America increased by 1.3%.

International oil prices continued their rebound. The nearby WTI crude oil contract increased by 1.11%,报价 at $81.63 per barrel, while the nearby Brent crude oil contract rose by 0.90%,报价 at $86.01 per barrel.

International gold prices edged higher, with the COMEX gold futures for delivery in June at the New York Commodity Exchange rising by 0.59%,报价 at $2,330 per ounce.