As of press release, the NASDAQ rose 0.11% and hit a record high at the beginning of the session; the S&P 500 fell 0.02%, and the Dow fell 0.19%.

Traders who returned from a long weekend ushered in a major change in US stock history: the “T+1” rule shift. Under the “T+1” rule, the US stock market will settle in one business day instead of two business days, which indicates that US stocks will usher in the fastest transaction settlement in about 100 years.

T+1 also means that stocks will keep pace with bonds, options, and ETFs, and the application of T+1 in the US financial market is constantly expanding.

Shorter settlement cycles help improve market efficiency, increase liquidity, and enable stocks to be traded faster. Funds from the sale of securities will arrive faster and can be reinvested more quickly. Buying securities requires preparation of capital in advance, which may affect capital turnover in some situations, such as when foreign currency exchange is involved.

Similarly, the T+1 settlement mechanism may also present some operational risks. The most obvious point is that this will make the US different from many other countries in the world. The typical settlement cycle for most countries around the world is still T+2. This change will require market participants to adjust their operating strategies and funding allocations in a timely manner to meet the challenges posed by halving settlement times.

The market is concerned about potential initial issues, including that international investors may find it difficult to obtain dollars in a timely manner, global funds will move to their assets at different rates, and everyone will have less time to fix bugs.

The US Securities and Exchange Commission (SEC) said that in the short term, the market may see an increase in the number of failed transactions, and brokerage firms and other market participants will need an adaptation period to adapt to the faster and more efficient transaction processing process required for T+1 settlement.

This week, the market is focusing on the inflation index and the Federal Reserve's policy position

The trading schedule for US stocks is in the last week of May. The inflation data and financial reports released this month have boosted market sentiment. Among them, the inflation data suggests that the Fed may cut interest rates sooner than investors expected.

Recently, however, stronger economic data and concerns about falling potential consumer spending have resurfaced, reducing the market's bet on the Fed's interest rate cut.

Minneapolis Federal Reserve President Kashkari, who is a hawkish member of the Federal Reserve Policy Development Committee, said on Tuesday that he would like to see more months of data showing an easing in the inflation situation before the Federal Reserve takes action to cut interest rates. He also said that if price pressure rises again, he will not rule out the possibility of further rate hikes.

Another hawkish person, Federal Reserve Governor Bowman, even said that she supports either waiting until the downsizing of the Fed's balance sheet begins, or adopting a more dovish reduction process than announced earlier this month.

The market has now fully absorbed the expectation that the Federal Reserve will cut interest rates by 25 basis points this year, and is most likely to cut interest rates in September or November. They think the probability of cutting interest rates by another 25 basis points before the end of the year is one-third.

Although the Federal Reserve's interest rate expectations have dropped to at most one rate cut during the rest of the year, the overall financial situation reflected by the Chicago Federal Reserve Index is at the most relaxed level since November 2021 (that is, four months before the Federal Reserve began tightening its policy).

This leaves the Federal Reserve with a continuing problem, that is, whether its restrictive monetary policy will be sufficient to drag inflation back to the target level of 2% for a long time while the economy continues to grow. The annual inflation rate for core personal consumption expenditure is expected to remain at 2.8% in April, although the monthly price increase is expected to be slightly less than 0.3%.

Individual stocks in focus

Star technology stocks had mixed ups and downs. Nvidia rose nearly 5%, Qualcomm rose more than 1%, Apple and Google rose slightly, Tesla fell nearly 3%, and Microsoft and Amazon fell slightly.

Popular Chinese securities had mixed ups and downs. Ideal Auto, NIO, and Shell rose more than 1%, Pinduoduo fell nearly 4%, Alibaba fell nearly 1%, and NetEase and JD fell slightly.

In terms of individual stocks,$NVIDIA (NVDA.US)$It rose more than 5%, and the stock price broke through the $1,100 mark, reaching another record high.

$Apple (AAPL.US)$With an increase of nearly 1%, iPhone shipments in China increased by 52% in April.

$Dell Technologies (DELL.US)$At the beginning of the session, the stock price rose more than 5% to a record high. The US stock price will announce the results after the market on May 30.

$GameStop (GME.US)$It has now risen by more than 14%, and the company has completed the operation to increase distribution at market price (commonly known as ATM issuance), raising a total of about 933.4 million US dollars.

Editor/jayden