Weekly Market Report (03 July 23)

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News Last Week

Investors demonstrated increasing optimism last week, with bullish options bets surging on stocks across various sectors, including AI stocks, small-scale economically-sensitive companies, and regional banks.
Despite a brief pause in the rally after Federal Reserve officials reiterated their intention to continue raising interest rates, traders remained bullish.
Baidu Inc., China's leading search engine, claimed that its AI service, Ernie 3.5, outperformed OpenAI’s GPT-3.5 chatbot in general abilities and exceeded GPT-4's performance in several Chinese-language tasks.
Baidu plans to integrate Ernie Bot across various business areas and has earmarked a $140 million venture fund for investing in AI startups.
The Biden administration is considering imposing further limitations on the export of AI chips to China, potentially preventing companies like Nvidia from shipping chips to China without prior licensing.
Oracle Corp is investing heavily in Nvidia chips and CPUs from Ampere Computing and AMD as it seeks to expand its cloud computing services and compete in the fast-growing cloud sector.

The upcoming week will be a holiday-shortened trading week due to U.S. Independence Day on Tuesday.
Key labor market updates are scheduled for release, including the Job Openings and Labor Turnover Survey (JOLTS) and ADP’s National Employment Report on Thursday.
These reports will set the stage for the nonfarm payrolls report (NFP) on Friday, which will track job growth in June.
Investors should also monitor the Purchasing Managers' Index (PMI) readings from S&P Global and the Institute for Supply Management (ISM) to gauge the health of the manufacturing sector.
The Federal Reserve will release the minutes from its latest policy meeting, providing insights into the central bank's views on the economy and potential future policy shifts.