Global macroscopic
Before Friday's market, the three major US stock indices rose sharply
Goldman Sachs: Postponing the Fed's first rate cut from July to September
Goldman Sachs adjusted the forecast for when the Federal Reserve will cut interest rates for the first time and postponed the original July judgment until September. Goldman Sachs analyst Jan Hatzius pointed out in the latest report that against the backdrop of stronger than expected manufacturing PMI data in May and a drop in the number of first-time jobless claims, interest rate cuts in July are unlikely to be realized. Goldman Sachs maintains the judgment that it expects the Federal Reserve to “cut interest rates once every quarter or every two meetings,” which means that the second rate cut has been postponed from October to December as previously anticipated.
US Treasury Secretary Yellen: Many Americans are still struggling with inflation
US Treasury Secretary Yellen said on Thursday that the sharp rise in the cost of living is a problem to be solved for many people. Yellen acknowledged that despite strong wage growth in recent months, prices for housing and daily necessities are still high for many voters. She pointed out that although wages have risen sharply, and at least on average, the increase exceeds the increase in prices, the sharp rise in a relatively short period of time has put pressure on people.
Bank of America: Global stock markets are overheating, close to a sell signal
Bank of America strategist Michael Hartnett pointed out that the upward trend in global stock markets may be facing the risk of overheating. According to Bank of America's “Global Breadth Rule,” about 71% of stock indexes have now exceeded the 50-day and 200-day moving averages. When this ratio reaches 88%, a sell signal will be triggered.
Wall Street's “Most Promising Prophet”: Technology stocks are now expected to rise in a parabolic manner
Tom Lee, co-founder and head of research at the US investment agency Fundstrat Global Advisors, said a few days ago that by the end of 2030, the global labor gap will reach around 80 million, which will drive a “parabolic rise” in technology stocks. He expects the weight of technology stocks in the S&P 500 to increase from around 30% to 50%.
UBS: Gold “two steps back” and the market foundation is very strong
The price of gold has taken a “roller coaster” and has fallen by about 5% since it hit a record high of $2,450 per ounce at the beginning of this week. Despite this, UBS believes that a pullback in gold prices may be a prelude to a stronger rebound. This pullback is unlikely to scare investors, and any further pullback is expected to be viewed as an opportunity to establish positions.
Hot news
Star Technology's stock generally rose before the market
Workday fell nearly 11% in the premarket, lowering its full-year subscription revenue forecast
$Workday (WDAY.US)$Q1 revenue was US$1.99 billion, up 18.15% year over year, slightly exceeding market expectations of US$1.97 billion; adjusted earnings per share were US$1.74 billion, exceeding expectations of US$1.58; subscription revenue for the current fiscal year was estimated at US$7.7 billion to US$7.725 billion, lower than previous guidance. As of press time, Workday was down nearly 11% in the premarket.
Musk stated that he does not approve of the US imposing tariffs on Chinese electric vehicles
Although the US government is preparing to once again wave a “big tariff stick” on strategic industries such as electric vehicles in China,$Tesla (TSLA.US)$CEO Musk, however, did not approve of this act. On Thursday EST, Musk publicly stated that he did not support President Biden's recent announcement to impose tariffs on electric vehicles made in China.
Tesla production reduction storm: Model Y production plummets in response to the cold winter of demand
According to Reuters, because$Tesla (TSLA.US)$Demand for models in the Chinese market weakened, and Tesla's Shanghai plant cut Model Y production by at least 20% from March to June. According to data from the China Automobile Association, Model Y production in March was 49,498 units, and in April it was 36,610 units, down 17.7% and 33%, respectively.
Nvidia is reported to have lowered the price of AI chips in China
According to Reuters,$NVIDIA (NVDA.US)$The price of H20 artificial intelligence chips supplied to the Chinese market was lowered. Sources say that in some cases, the H20 chip sells for more than 10% less than the Huawei Ascend 910B. Chinese server dealers are selling H20 chips at a price of about RMB 100,000 per set, and each server with eight sets of chips costs between RMB 1.1 million and RMB 1.3 million.
Investment bank Wedbush raised Apple's target price
Investment bank Wedbush analyst Dan Ives will$Apple (AAPL.US)$The target price was raised from $250 to $275, mainly because considering the iPhone 16 supercycle driven by artificial intelligence technology, it would add $30 to $40 per share to the company's value. He also emphasized that the upcoming Global Developers Conference (WWDC) is a critical moment for the company.
Microsoft and Amazon lead! US tech giants continue to accelerate global AI deployment
According to industry statistics, up to now during the year,$Microsoft (MSFT.US)$und$Amazon (AMZN.US)$The total amount of investment in global artificial intelligence-related projects and data center projects has exceeded 40 billion US dollars. Wedbush analyst Daniel Ives said in an interview that overall, big tech companies are seeking to “expand their wings” into the international market. This is an “arms race” for artificial intelligence, and Microsoft, Amazon, and other tech companies are making efforts to seize the opportunity, driven by this wave of spending.
Google and Meta allegedly bid tens of millions of dollars to partner with Hollywood
According to people familiar with the matter,$Alphabet-A (GOOGL.US)$/$Alphabet-C (GOOG.US)$und$Meta Platforms (META.US)$Discussions have been held with major Hollywood film companies, hoping that the film company can license IP content for the artificial intelligence video generation software of these two tech giants. According to reports, both companies are developing technology that can create realistic scenes based on text prompts, and have provided tens of millions of dollars to cooperate with film companies.
Focus on China Securities
The pre-market trend of popular Chinese securities stocks is divergent
Alibaba issues US$4.5 billion convertible bonds
$Alibaba (BABA.US)$Today, a pricing announcement was issued for the issuance of convertible senior notes, stating that 4.5 billion US dollars of convertible senior notes due in 2031 will be issued, with an interest rate of 0.5%. The terms show that these notes will have a conversion premium of 30% to 35%. Citigroup, J.P. Morgan Chase, Morgan Stanley, Barclays, and HSBC are assisting in arranging the deal.
Top 20 pre-market turnover of US stocks
US Stock Macro Calendar Reminder
(The following are all Hong Kong time)
Preliminary monthly rate of US durable goods orders in April at 20:30
21:30 Federal Reserve Governor Waller delivered a speech
22:00 Final value of the US University of Michigan Consumer Confidence Index in May
01:00 a.m. the next day: Total number of US drills in the US for the week ending May 24 (port)
editor/tolk