Nvidia, the A.I. locomotive that single-handedly took US indices from record highs to record highs in Q2, seems to be slipping down a bullish slope that is becoming too steep at the start of Q3.
The 'loco' suddenly loses its traction and starts to slide backwards, faster and faster with -6.7% on Monday, doubling its losses of the previous 2 sessions (i.e. -13% in 72H, representing -$400bn of evaporated 'capi', the equivalent of LVMH).

This 1st session of the July stock market term thus ended in the red for the 2 leading indices of the 1st half: the S&P 500 gave up 0.3%, the Nasdaq -1.1% and the Nasdaq-100 -1.15%, in the wake of Nvidia -6.7%, ARM -5.8%, Marvell -5.6%, Qualcomm -5.5%, Broadcom -3.7%, Microchip -2.5%, Amazon -1.9%, Intel -1.7%...
The semiconductor sector fell by -2.8% to finish last out of the 11 Wall Street sectors.
In contrast, the oil sector dominates the rankings, thanks to the rise of the usual leaders: Occidental Petroleum +4.8%, Schlumberger and Devon +4%, Diamondback +3.8%, Conoco-Philips +3.4%, Exxon +3%, Chevron +2.6%

The Dow Jones continues to catch up on the 'S&P' with +0.67% and even a test of the 39.570 during the session (taking the Dow to within 1.1% of its record highs).
The bond market failed to provide any impetus whatsoever, finishing virtually flat (T-Bonds frozen at 4.265%) at the end of a totally unremarkable session.

More generally in the United States, there was no market mover on Monday, and a number of questions are being raised just a few days ahead of the first debate between Joe Biden and Donald Trump, scheduled for this Thursday, in the run-up to the US presidential election in November.
Will Joe Biden be able to stand up to Donald Trump and get through what could be a "no-holds-barred" debate?

The markets are also likely to remain plagued by uncertainties concerning the pace of inflation across the Atlantic.

In this context, market participants will be keeping a close eye on Friday's publication of the PCE inflation index, which is particularly closely watched by the Fed.

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