Hot news

• This week, the “Federal Reserve's Favorite Inflation Index” will dominate the market!

The “Federal Reserve's Favorite Inflation Index” to be announced this Friday — the core PCE may send a positive signal and stir up speculation about the Fed's interest rate cut expectations, which in turn affects the US stock market. On May 26, according to economists' forecasts quoted by the media, the US Personal Consumption Expenditure Price Index (core PCE), which excludes food and energy prices, will rise 0.2% in April. This will be the index's smallest increase since this year, and the index is more reflective of potential inflation.

• One of the most influential senior officials of the Federal Reserve: still believes that the US neutral interest rate is low, and warns that fiscal spending is unsustainable

A popular candidate for the next Federal Reserve Chairman and current Federal Reserve Governor Waller said that he still believes that America's neutral interest rate is relatively low, but warned that unsustainable fiscal spending may change this trend. Waller said that the US is on an unsustainable fiscal path. If the supply of US Treasury bonds starts growing faster than demand, this will mean falling prices and rising yields, which will put upward pressure on neutral interest rates.

• Wall Street is stocked with “ammo” to prevent accidents! The T+1 settlement era for US stocks begins on Tuesday

The “T+1 settlement era” for US stocks will officially begin this Tuesday. Earlier, the US Securities and Exchange Commission (SEC) announced in March this year that starting May 28, 2024, the standard settlement period for US stocks will be shortened from T+2 to T+1, that is, “investors can receive cash for settlement one working day after trading on the same day.” According to people familiar with the matter, Jefferies Financial Group sold a debt of about 3 billion US dollars last month, partly to prepare in advance for possible problems with the new settlement cycle rules that will come into effect next week.

• 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. On Friday, Goldman Sachs analyst Jan Hatzius pointed out in his latest report: Earlier this week, we indicated that to push the Federal Reserve to cut interest rates in July, we need not only to see better inflation data, but also to show significant signs of weakness in economic activity or job market data. However, against the backdrop of better-than-expected manufacturing PMI data for May and a drop in the number of first-time jobless claims, interest rate cuts in July are unlikely to be realized.

• US stocks closed today

Affected by Memorial Day/Spring Bank Holiday, the US and UK stock markets were closed for one day on May 27 (Monday); trading of CME (CME) precious metals and U.S. crude oil futures contracts was suspended at 02:30 Beijing time on the 28th; trading of Brent crude oil futures contracts under the Intercontinental Exchange (ICE) ended early at 01:30 Beijing time on the 28th.

Resumption of US stock trading

• The three major US stock indices had mixed weekly gains and losses. The China General Index fell 8.84% last week

On Friday, the three major US stock indices collectively closed higher. The Dow rose 0.01% and fell 2.33% last week; the NASDAQ rose 1.1%, rising 1.41% last week; and the S&P 500 index rose 0.7%, rising 0.03% last week. Most popular technology stocks rose, Tesla and AMD rose more than 3%, and Nvidia, Intel, and Meta rose more than 2%.

Most popular Chinese securities rose. The Nasdaq China Golden Dragon Index fell 0.35% and fell 8.84% this week. Ideal Auto rose more than 3%; Pinduoduo once rose more than 7%, and eventually closed up 2.56%; Tencent Music rose more than 2%; NetEase fell more than 4%, JD fell nearly 3%, Baidu fell more than 1%, and Weibo fell slightly.

• GameStop announced the completion of the additional distribution, and the stock price soared after the market

After the market on Friday, the US “retail group stocks”$GameStop (GME.US)$It was announced that the IPO plan disclosed by the company last week has been completed, with gross revenue of nearly US$933.4 million before deducting commissions and issuance fees. Earlier, after the recovery of the “Roaring Kitten” account triggered an explosion in stock prices, Game Station announced that it would distribute up to 45 million additional shares by “issuing at market price.” According to the latest announcement, the average price of the additional sale price of GameStop is $20.7, which is nearly double the average stock price last month. GameStop closed up more than 13% after the market on Friday.

• Bank of America: Nvidia's “1 split of 10” may start a technology stock split trend

The Bank of America reports that$NVIDIA (NVDA.US)$The announcement of a “1 split for 10” stock splits may be the beginning of a trend, as the stock prices of several well-known technology companies are already high enough to carry out similar stock splits. The bank focused on analyzing 36 S&P 500 companies with shares above $500, a level that suggests they may be candidates for a stock split. Of the Big Seven$Microsoft (MSFT.US)$und$Meta Platforms (META.US)$Approaching this threshold,$Broadcom (AVGO.US)$,$Super Micro Computer (SMCI.US)$,$Netflix (NFLX.US)$Also a candidate.

• Google AI search review sparks internet spouting due to “low-level errors”

$Alphabet-A (GOOGL.US)$The “AI Overviews” (AI Overviews) feature, which was highlighted at last week's developer conference, recently launched in the US market. However, since this feature frequently provides users with ridiculous answers, such as “add glue to pizza” and “eat at least 1 stone every day,” it has triggered mass ridicule from American netizens. Google responded that errors often come from “very rare queries” and that improvements will be made based on these “exceptions.”

• Eli Lilly adds US$5.3 billion to expand GLP-1 drug production capacity

American pharmaceutical giants$Eli Lilly and Co (LLY.US)$The company announced on Friday that it will invest an additional 5.3 billion US dollars to expand production capacity at its Lebanese manufacturing site in Boone County, Indiana to meet market demand for the diet drug Zepbound and the diabetes drug Mounjaro. The active ingredients in both drugs are terpopeptides.

• Goldman Sachs raised Pinduoduo's rating to “buy”

Goldman Sachs analysts Ronald Keung and David Ma stated in a Friday report that because$PDD Holdings (PDD.US)$Due to continued growth in advertising revenue and a rapid shift in Temu's business model, they raised the Group's profit forecast for 2024-2026 by 25-43%. At the same time, Goldman Sachs also raised Pinduoduo's rating from “neutral” to “buy,” and the target price was raised from 145 US dollars to 184 US dollars. Driven by this news, Pinduoduo once rose more than 7% after opening on Friday, and finally closed up 2.56%. The cumulative increase this month has reached 25%.

Top 20 US stock turnover

Hong Kong Market Outlook

• Beishui continues to increase the Bank of China's holdings by nearly HK$600 million and sells Meituan over HK$300 million

On May 24 (last Friday), Southbound made a net purchase of HK$2,516 billion in Hong Kong stocks.

$BANK OF CHINA (03988.HK)$,$AKESO (09926.HK)$,$XIAOMI-W (01810.HK)$Received net purchases of HK$586 million, HK$311 million and HK$294 million respectively;$MEITUAN-W (03690.HK)$,$TENCENT (00700.HK)$,$KUAISHOU-W (01024.HK)$Net sales were HK$357 million, HK$228 million and HK$175 million respectively.

Today's attention

Keywords：US stock market closure; annual profit margin of industrial enterprises above the size of China

On Monday, in terms of economic data, the annual profit margins of industrial enterprises above the scale of April in China will be announced; the annual import rate for April in Hong Kong, China, the annual export rate for April, and trade accounts for April will be released.

In terms of financial events, Bank of Japan Governor Kazuo Ueda delivered the opening address at a conference hosted by the Bank of Japan Finance Research Institute.

In terms of new shares,$QUNABOX GROUP (00917.HK)$It will be listed on the Hong Kong Stock Exchange.

Also, the US stock market was closed for one day due to Memorial Day of the Fallen Soldiers.

Futubull Chen read:

Money is to the stock market, just like oxygen for breathing and gasoline for engines.

—Andrea Costolani

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