Hot news

• Federal Reserve Governor Speaks Out! Interest rate cuts will require “a few more months” of good inflation data

Federal Reserve Governor Waller said that he will need to see “a few more months” of good inflation data before he can start supporting interest rate cuts, although recent data shows that anti-inflation progress may have resumed. Waller believes that the US economy has shown amazing resilience. Maintaining current interest rates for 3-4 months will not cause the US economy to collapse, and Federal Reserve officials are trying to put downward pressure on spending.

• Federal Reserve Annual Survey: Two-thirds of Americans Can Pay $400 Unexpected Bills

The results of the Federal Reserve's annual survey show that under the shadow of high inflation, Americans' concerns about the economic outlook have intensified. However, American households have shown some resilience in the face of high inflation. For example, over 70% of Americans think their financial situation is “at least OK,” and more than two-thirds of Americans can handle sudden expenses of $400. Meanwhile, around 16% said they were delinquent on student loans in 2023, a ratio similar to 2019.

• The world's first! The Council of the European Union officially approves the Artificial Intelligence Act

On Tuesday local time, the European Council officially approved the Artificial Intelligence Act, which is the world's first comprehensive regulation on artificial intelligence (AI). Clyde & Co believes the bill will have a global impact. Companies outside the EU must comply with this law if they use EU customer data in their AI platforms. Other countries and regions are likely to use the Artificial Intelligence Act as they did with the General Data Protection Regulation (GDPR).

• Commodities have skyrocketed one after another: important coffee futures recorded their biggest intraday gain since 2010

On Tuesday, important coffee futures soared. London's Robusta (Robusta) coffee futures surged 7% intraday, the biggest intraday gain since 2010, and Arabica (Arabica) coffee also rose 6%. Investors are increasingly concerned about the impact of the drought on coffee bean production in Vietnam, a major producer.

Resumption of US stock trading

• NASDAQ and S&P hit new highs, and Nvidia led tech giants to the peak

Overnight, the three major indices collectively closed higher during a light trading day, and the S&P 500 index and NASDAQ joined hands to break record closing records. By the close, the S&P 500 was up 0.25%, the NASDAQ was up 0.22%, and the Dow Jones Industrial Average was up 0.17%.

Most of the tech giants strengthened; Tesla rose nearly 7%, Apple, Microsoft, Google-A, and Nvidia rose slightly, and Amazon and META weakened slightly. Among them, tech giants such as Microsoft, Nvidia, Google, and Qualcomm also joined hands to reach new highs.

The Nasdaq China Golden Dragon Index fell 2.27% on Tuesday, JD fell more than 4%, Ideal Auto and Baidu fell more than 3%, Alibaba fell more than 2%, and Xiaopeng Motors rose nearly 6%.

• Tesla's stock price soared by nearly 7%. What big move did Musk make?

$Tesla (TSLA.US)$The stock price surged 6.66% overnight on Tuesday. On the one hand, this increase was partly due to Tesla Semi Trucks' new breakthrough. Tesla executives claim the Semi truck can travel 1,000 miles in 24 hours. Meanwhile, Tesla plans to begin delivering Semi trucks to customers in 2026, and to this end, the company announced that it will build a new plant in Nevada. On the other hand, favorable news from Chinese electric car peers, such as Xiaopeng's announcement of first-quarter earnings that exceeded expectations, also boosted Tesla's stock price.

• The world's largest cloud computing company suspends procurement of Nvidia's “superchips”

According to the latest news on Tuesday, the world's largest cloud computing platform$Amazon (AMZN.US)$Cloud Services (AWS) procurement has been suspended$NVIDIA (NVDA.US)$The most powerful computing power chip (Grace Hopper superchip) on sale, awaiting the launch of Blackwell-architected GPUs later this year. Although this news caused Nvidia to drop more than 1% at the beginning of the session, it did not prevent AI leaders from closing up slightly and breaking a record closing high.

• Microsoft holds Build developer conference

Tuesday local time,$Microsoft (MSFT.US)$The annual Build Developer Conference was held, during which nearly 50 AI features were released, including GitHub Copilot Workspace to “help Xiaobai program”, Team Copilot as a “new employee” of the team, and real-time web video translation.

• Xiaopeng Motor's Q1 losses narrowed, and gross margin increased significantly

$XPeng (XPEV.US)$The Q1 financial report was disclosed on May 21. Among them, total quarterly revenue was 6.55 billion yuan, and net loss was 1.37 billion yuan, which is a sharp decrease from 2.34 billion yuan in the same period in 2023. The overall gross margin for the first quarter was 12.9%, up 11.2 percentage points year on year and 6.7 percentage points month on month. Influenced by financial reports, Xiaopeng Motor rose more than 20% after opening, but the subsequent increase narrowed, and finally closed up 5.92% on Tuesday.

• JD fell more than 4% to issue US$1.5 billion convertible senior notes

$JD.com (JD.US)$According to the announcement, it is planned to issue convertible senior notes due in 2029 with a total principal amount of 1.5 billion US dollars. The net capital raised will be used for simultaneous repurchases, overseas business expansion, supply chain network improvement, and additional working capital. The company intends to grant the initial buyer of the note sale the option to purchase up to $225 million in additional notes. By the close, JD was down more than 4%.

Top 20 US stock turnover

Hong Kong Market Outlook

• Beishui Clean up goods is close to HK$700 million, and Tencent sells over HK$800 million

On May 21 (Tuesday), Southbound made a net purchase of HK$473 million in Hong Kong stocks.

$BANK OF CHINA (03988.HK)$,$LI AUTO-W (02015.HK)$,$CCB (00939.HK)$Received net purchases of HK$1.14 billion, HK$679 million and HK$287 million respectively;

$TRACKER FUND OF HONG KONG (02800.HK)$,$MEITUAN-W (03690.HK)$,$TENCENT (00700.HK)$Net sales were HK$1,846 million, HK$1,049 million and HK$832 million respectively.

Today's attention

Keywords: Nvidia/Pinduoduo/Kuaishou financial report, total annualization of existing home sales in the US

On Wednesday, in terms of economic data, data such as the total number of existing home sales in the US in April and US EIA crude oil inventories for the week will be released today.

In terms of financial reports, Hong Kong stocks$KUAISHOU-W (01024.HK)$,$KINGSOFT (03888.HK)$Financial reports will be issued;$PDD Holdings (PDD.US)$Financial reports will be released before the market;$NVIDIA (NVDA.US)$,$Snowflake (SNOW.US)$Earnings will be released after the market.

Futubull Chen read:

There is no single formula that can calculate the intrinsic value of a business. You have to really understand this company.
—Charlie Munger

Editor/Somer