Hot news

• The minutes of the Federal Reserve meeting are hawking: it may take longer to cut interest rates. Many people prefer to raise interest rates once the risk of inflation is rekindled

Federal Reserve policymakers believe that it will take more time than previously anticipated to be more confident in meeting the inflation target; the decline in inflation took longer than previously anticipated; although monetary policy is restrictive, many participants are still uncertain about the extent of restrictions; several participants mentioned that once the risk of inflation becomes a reality, they are willing to further tighten the policy. According to the “New Federal Reserve News Agency,” Federal Reserve officials expect it to take longer to cut interest rates due to poor inflation data for the first quarter. Some people are still open to raising interest rates when inflation accelerates, but the April inflation data makes people feel more at ease that there is no need to raise interest rates.

• Goldman Sachs CEO shocked the market: the number of interest rate cuts is expected to be 0 this year

On Wednesday local time, Goldman Sachs Group CEO David Solomon made an astonishing statement. He said that he currently does not expect the Federal Reserve to cut interest rates this year because US government spending proves that the country's economy is more flexible. “I still haven't seen convincing data indicating we're going to cut interest rates here. My current forecast is zero interest rate cuts.” Solomon's judgment on the interest rate path was similar to Daimon, CEO of J.P. Morgan Chase, who was another super heavyweight on Wall Street earlier this week.

• The minutes of the Federal Reserve meeting discussed “interest rate hikes,” and gold lost five major hurdles in a row

The minutes of the “hawkish” FOMC meeting show that many officials are willing to further tighten policies, fearing that the financial situation is “too loose.” After the release of the minutes, the yield on US 10-year treasury bonds rose in the short term, the US dollar index rose to the 105 mark, the three major US stock indexes fell further, and traders reduced their bets that the Federal Reserve would cut interest rates more than once this year. Gold and silver are falling at an accelerated pace. Spot gold fell below the five major levels one after another and fell back to around 2,380 US dollars/ounce.

Resumption of US stock trading

• The Federal Reserve notes hawk, the Dow fell more than 0.5%, and Tesla fell nearly 3.5%

The three major US stock indices all closed down slightly, and the Federal Reserve minutes showed that the wait for interest rate cuts was “longer than previously anticipated.” By the close, the S&P 500 was down 0.27%, the Nasdaq was down 0.18%, and the Dow Jones Industrial Average was down 0.51%.

The overall performance of tech giants was poor during Wednesday's trading session. Among them, Apple fell 0.75%, Microsoft rose 0.34%, Amazon fell 0.01%, META rose 0.68%, Google-A fell 0.83%, Tesla fell 3.48%, and Nvidia fell 0.46%.

China Securities continued to adjust. The Nasdaq China Golden Dragon Index fell 1.16%, Alibaba fell 4.01%, Baidu fell 2.6%, Pinduoduo rose 1.13%, JD fell 1.83%, NetEase fell 0.55%, NIO fell 0.19, Ideal Auto fell 0.91%, and Xiaopeng Motor fell 0.23%.

• Nvidia's Q1 earnings report surpassed expectations! Officially announced a stock split plan and dividend doubling

$NVIDIA (NVDA.US)$The report for the first fiscal quarter of the 2025 fiscal year ended April 28 was released, and all data fully exceeded expectations. The first fiscal quarter achieved revenue of US$26 billion, an increase of 262% over the same period last year, with analysts' expectations of US$24.65 billion; of these, data center revenue was US$22.6 billion, up 427% year on year; Q1 net profit was US$14.81 billion, up 628% year on year. Additionally, Nvidia also announced a stock split plan — 1 split 10. Shareholders holding Nvidia's common shares will receive an additional 9 shares after the market closes on June 7 (Friday). Nvidia also announced an increase in its cash dividend per common share from $0.04 to $0.10.

As of press release, Nvidia's stock price rose nearly 6% after the market, breaking through the $1,000 mark, and the market capitalization increased by more than $160 billion.

• Amazon allegedly plans to completely transform its voice assistant Alexa using AI

A person familiar with the matter revealed,$Amazon (AMZN.US)$It is upgrading its intelligent voice assistant Alexa with generative artificial intelligence and plans to charge users a monthly subscription fee to cover the cost of the technology. According to some sources, Amazon will use its own large-scale language model “Titan” in the Alexa upgrade. One person estimated that each AI query in Alexa costs 2 cents. Based on this figure, an internal floating price of $20 was set for the monthly fee.

• Meta establishes “AI Product Advisory Committee”

According to the latest report on Wednesday,$Meta Platforms (META.US)$Platform CEO Zuckerberg has created a new AI product advisory board. They will meet regularly with Meta management team to provide guidance at the level of artificial intelligence and advanced technology. According to reports, the committee consists of Stripe CEO and co-founder Patrick Collison, former GitHub CEO Nat Friedman, Shopify CEO Tobi Lütke, and former Microsoft executive Charlie Songhurst. None of these four will be paid.

• Pinduoduo has impressive earnings, surpassing Alibaba in market capitalization

Before the Wednesday market,$PDD Holdings (PDD.US)$A financial report that comprehensively crushed expectations was released, including revenue of 86.81 billion yuan, with a market estimate of 76.86 billion yuan, an increase of 131% over the previous year; adjusted net profit of 30.6 billion yuan, and the market estimated 15.53 billion yuan, an increase of 202% over the previous year. Although Pinduoduo failed to maintain a maximum increase of more than 5% after opening on Wednesday and eventually closed up 1.13%, due to$Alibaba (BABA.US)$It fell 4% on Wednesday, allowing Pinduoduo to overtake its market capitalization.

• News Corp and OpenAI sign copyright cooperation agreement

After the market on Wednesday, News Corp and OpenAI announced a global partnership that will last for several years, and OpenAI has obtained permission to display News Corp content in its products. News Group owns a series of media such as The Wall Street Journal, Barron's, and The Times. According to the Wall Street Journal, “people familiar with the matter” claim that the agreement lasts for 5 years and has a potential value of more than 250 million US dollars, including cash and discounted compensation for the right to use OpenAI technology. As of press release,$News Corp-A (NWSA.US)$It rose nearly 8% after the market.

Top 20 US stock turnover

Hong Kong Market Outlook

• Beishui added more than HK$700 million to sell Xiaopeng for HK$450 million

On May 22 (Wednesday), Southbound made a net purchase of HK$1,653 billion in Hong Kong stocks.

$BANK OF CHINA (03988.HK)$,$CCB (00939.HK)$,$TENCENT (00700.HK)$Received net purchases of HK$720 million, HK$320 million and HK$114 million respectively;$XPENG-W (09868.HK)$,$MEITUAN-W (03690.HK)$,$XIAOMI-W (01810.HK)$Net sales were HK$450 million, HK$296 million and HK$216 million respectively.

• Kuaishou Q1's adjusted net profit increased more than 100 times year over year and announced a HK$16 billion repurchase plan

$KUAISHOU-W (01024.HK)$Revenue for the first quarter was 29.408 billion yuan, up 16.6% year on year; net profit was 4.12 billion yuan, turning a year-on-year loss into a profit; adjusted net profit was 4.388 billion yuan, up 10,347.6% year on year. Additionally, Kuaishou plans to buy back the company's Class B common shares worth no more than HK$16 billion within the next 36 months.

Today's attention

Keywords: Xiaomi/NetEase/Station B earnings report, minutes of the Federal Reserve's monetary policy meeting

On Thursday, in terms of economic data, data such as the Eurozone's preliminary manufacturing/service PMI for May, the number of US jobless claims for the week up to May 18, the US preliminary S&P global manufacturing/services PMI for May, and the total annualized value of new home sales in the US for April will be released.

In terms of economic events, the Federal Reserve will publish the minutes of the monetary policy meeting.

In terms of financial reports,$XIAOMI-W (01810.HK)$,$LENOVO GROUP (00992.HK)$,$NetEase (NTES.US)$,$KE Holdings (BEKE.US)$,$Bilibili (BILI.US)$Results will be announced.

In terms of IPOs, US stocks$Key Mining (KMCM.US)$,$Bowhead Specialty Holdings (BOW.US)$Launched today.

Futubull Chen read:

Only individual stocks with good performance will have strong resistance to falling.
—William Gann

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