Global macroscopic
Before Monday's market, the three major US stock indices rose in unison
Stock market risks surged this week: big tech companies face off against the Fed and inflation challenges
This week, the stock market entered a new round of volatility with the release of financial reports from major technology companies and the Federal Reserve's fight against inflation. Macquarie said that recent market fluctuations reflect growing concerns that the corporate profit growth of the best-performing technology companies may slow down.
Furthermore, according to the schedule, the Federal Reserve will announce the May interest rate decision at 2 a.m. Beijing time on Thursday. Investors will be concerned about whether the Federal Reserve will put more emphasis on keeping the inflation rate above the 2% annual target.
Wall Street's “big pigeon” lowered expectations for the Fed to cut interest rates, but it is still expected to drop for the first time in July
Citigroup lowered expectations for the Fed to cut interest rates, but the bank is still one of Wall Street's mildest forecasters. After the US announced a series of inflation indicators that exceeded expectations, Citigroup economists now expect the Fed to cut interest rates by 100 basis points starting in July this year. Previously, their predictions were that the Fed would cut interest rates by 125 basis points during the year starting in June.
The risk of US stagflation scared off the crypto market, and both Bitcoin and Ethereum retreated to the edge of a cliff
Due to the large gap between the macro data released last week and market expectations, the advent of “stagflation” is once again spreading on Wall Street. This possibility is a huge blow to risky assets such as cryptocurrencies. As of press time, the prices of Bitcoin and Ethereum have both declined. At press time, Bitcoin was trading close to $62233, and Ethereum fell below $3,200.
The market and the giants are aware: there is not enough copper production capacity!
Since this year, the price of copper has continued to rise. Currently, it has accumulated a cumulative increase of about 16%. Currently, trading is fluctuating around 10,000 US dollars. Some analysts pointed out that one of the main factors driving the continued rise in copper prices is insufficient production capacity; second, it is becoming more and more difficult for exploration companies to finance; third, the cost of labor, equipment, and raw materials has surged. According to CRU Group's forecast, copper miners will need to invest more than 150 billion US dollars between 2025 and 2032 to expand copper capital expenditure to meet the industry's supply needs.
Hot news
Most of the star tech stocks rose
Tesla's US stocks surged more than 12% before the market, and the total market value increased by about 60 billion US dollars
$Tesla (TSLA.US)$US stocks surged more than 12% in the premarket, increasing the total market value by about 60 billion US dollars. Recently, Tesla CEO Elon Musk arrived in Beijing. The industry speculates that during this trip, Musk will discuss the launch of the Chinese version of the FSD (fully automatic driving) system and seek approval.
ChatGPT on iPhone? Apple is stepping up negotiations with OpenAI
According to media reports,$Apple (AAPL.US)$Negotiations with OpenAI have been restarted, with plans to use its GPT technology on new iPhone features to be launched later this year. The media quoted people familiar with the matter as saying that the two companies have begun discussing the terms of a possible cooperation agreement and how to integrate OpenAI's features into Apple's next-generation iPhone operating system iOS 18.
Philips rose more than 40% ahead of market and reached a $1.1 billion settlement over allegations of ventilator cancer
$Royal Philips (PHG.US)$US stocks rose more than 40% before the market. The company announced that it had reached a settlement regarding the risk of ventilators causing cancer. It would pay 1.1 billion US dollars as a result, but the company did not acknowledge any negligence or liability. Additionally, the company said it has reached a 540 million euro product liability insurance compensation agreement with the insurance company, which is expected to be recorded in the second quarter of this year.
Paramount Global rose more than 5% before the market, and merger negotiations with Skydance progressed
$Paramount Global-B (PARA.US)$US stocks rose more than 4% in the premarket. According to news, Skydance proposed the “best and ultimate” offer in the merger bid with Paramount Global. Additionally, the Redstone family and David Ellison have made concessions to make Paramount's change of control more acceptable to smaller investors. Sources say Ellison will buy a large number of Paramount shares at a premium above current prices. The Redstone family owns most of the company's voting shares, and they agreed to let non-voting shareholders comment on whether to allow the deal.
Then play and then dance! Wall Street Analyst: Microsoft and Google's earnings are turning the tide, and the AI hype will continue...
Last week, at$Meta Platforms (META.US)$After the release of earnings reports triggered a sharp drop in stock prices, Wall Street once raised doubts about the sustainability of this artificial intelligence boom; however, then$Microsoft (MSFT.US)$und$Alphabet-C (GOOG.US)$After handing over the excellent quarterly report questionnaire, the market apparently let go of its suspense once again. A Royal Bank of Canada capital markets analyst said this is not just hype, nor is it just people talking about it. There is actual capital put into operation. HSBC said: This is a long-term growth story, and we think the industry will continue to be strong in the second half of this year.
Focus on China Securities
Most popular Chinese securities rose before the market
Baidu rose nearly 6% before the market. The news says it will cooperate with Tesla on maps and navigation functions
$Baidu (BIDU.US)$The US stock market is close to 6%. Some media quoted people familiar with the matter as saying that Tesla will remove the key barriers to introducing advanced driver-assisted driving functions in China through cooperation with Baidu on maps and navigation functions.
Ideal Auto continued to rise by nearly 4% before the market, and Daimo's stock price is expected to rise within 15 days
$Li Auto (LI.US)$US stocks continued to rise by nearly 4% before the market. Morgan Stanley issued a report stating that it believes there is a 70% to 80% chance that Ideal Auto's stock price will rise within 15 days, giving it a rating of “increase in holdings.” The target price is 65 US dollars. The report points out that after the recent adjustment of Ideal Auto's stock price, short-term valuation appeal has increased.
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Editor/Somer