Source: Sina US stocks

On the evening of the 31st Beijing time, US stocks opened slightly higher on Friday. After a month of strong gains, the three major stock indexes will all record declines this week. The US core PCE price index rose 0.2% month-on-month in April, indicating that the basic US inflation index slowed in April. The three major US stock indexes are all likely to record declines this week.

As of press release, the three major indices had mixed ups and downs.$Dow Jones Industrial Average (.DJI.US)$up 0.09%,$Nasdaq Composite Index (.IXIC.US)$fell 0.09%,$S&P 500 Index (.SPX.US)$Up 0.08%.

Prior to that, US stocks experienced a strong one-month rise. Investors are worried that this fluctuation could mean that the recent stock market rally is starting to slow. They are worried$NVIDIA (NVDA.US)$The rise in a few large technology stocks has overshadowed the weakness of the general market — the S&P 500 has risen by about 10% so far this year, but the weighted index has only risen by about 3%.

Jeff DeGraff, head of technology research at Renaissance Macro Research, used the recent surge in semiconductor stocks such as Qualcomm and Nvidia. He said, “We see that option pricing is betting that this trend will continue, or actually reach a new record high, which is a problem for us.”

He said, “They may see a pullback in the summer, so this isn't a good place to invest in new capital. I think expectations for these stocks are already high; we just want to be careful.”

Investors on Friday welcomed the much-watched US inflation data. According to data from the US Department of Commerce, the inflation rate may have moved a little towards the Federal Reserve's 2% target.

The report shows that the so-called core personal consumption expenditure price index, which excludes highly volatile food and energy, rose 0.2% month-on-month and 2.8% year-on-year.

Traders now expect a 51% chance of interest rate cuts in September, and the probability before the data is released is about 49%. Economists originally expected the core PCE price index to rise 0.3% in April.

Economists believe that core indicators measure inflation better than overall indices. The overall PCE price index rose 0.3% month-on-month and 2.7% year-on-year. Inflation-adjusted consumer spending fell unexpectedly by 0.1%.

The core PCE inflation data is the inflation data that the Federal Reserve places the most importance on. The index shows that indicators of basic US inflation slowed in April, and is a step in the right direction for policymakers who want to be sure they can start cutting interest rates.

According to Cleveland Federal Reserve research, inflation may not return to the Fed's 2% target until mid-2027.

Cleveland economist Randal Verbrugge wrote in the report that the impact of supply chain shocks on inflation during the COVID-19 pandemic has basically been resolved, and the remaining forces that keep inflation high are “very long-lasting.”

He pointed out that the New York Federal Reserve's two supply-chain-related inflation indicators, the Global Supply Chain Pressure Index and the PPI for core intermediate products, have stabilized. This shows that the downward impact of the supply chain on inflation has almost disappeared. This means that achieving the Fed's 2% target will depend on internal forces, such as wage growth rate and changes in corporate prices, which will take longer to affect the inflation rate.

Traders digested the latest company earnings report on Friday.$Dell Technologies (DELL.US)$The Group's results in the first quarter exceeded expectations, but its stock price fell sharply.

Cloud security stocks$Zscaler (ZS.US)$Stock prices soared while developer data platforms$MongoDB (MDB.US)$Plummeting. Apparel retailer Gap has soared. Department store retailer$Nordstrom (JWN.US)$The losses for the first fiscal quarter far exceeded expectations.

Individual stocks in focus

Most of the popular Chinese securities fell, with Xiaopeng Motors falling more than 3%, New Oriental falling nearly 3%, and JD falling more than 2%.

Nvidia is getting attention. Prior to Thursday's pullback, the stock had repeatedly reached new highs in recent trading days. The market capitalization had reached an astonishing $2.72 trillion, and was only one step away from Apple ($2.93 trillion) at the top of the list. As Nvidia reached its peak step by step, Wong In-hoon's net personal worth surpassed $100 billion for the first time, ranking 15th in the world's richest people list. As of press release,$NVIDIA (NVDA.US)$Up about 1.5%.

Furthermore, according to people familiar with the matter, US officials have slowed down the issuance of licenses to chip makers such as Nvidia and AMD to export AI accelerators on a large scale to the Middle East, while officials are conducting a national security review of artificial intelligence development in the region. People familiar with the matter said that it is currently unclear how long the review will take, and there is no specific definition of mass shipment. Officials are particularly concerned about mass sales, as countries including the UAE and Saudi Arabia want to import large numbers of chips for artificial intelligence data centers, people familiar with the matter said.

The National Highway Traffic Safety Administration (NHTSA) said on Thursday that the electric vehicle giant$Tesla (TSLA.US)$125,227 vehicles will be recalled due to seat belt warning system failure. The recalled cars include some 2012-2024 Model S, 2015-2024 Model X, 2017-2023 Model 3, and 2020-2023 Model Y cars. As of press time, Tesla was slightly higher in the intraday period.

According to some sources,$Apple (AAPL.US)$The plan is to fully upgrade its virtual voice assistant Siri using the most advanced artificial intelligence (AI) model. Bank of America said this type of update could increase productivity and drive the iPhone's upgrade cycle. Bank of America maintains a “buy” rating for Apple, with a target price of $230. As of press time, Apple is up about 0.5%.

$Dell Technologies (DELL.US)$After the results, it fell by more than 19%, and AI server revenue reached a record high in the first quarter, but profit pressure failed to impress investors.

$Marvell Technology (MRVL.US)$It fell more than 9%, and Q1 revenue fell 12% year over year, and losses increased.

$Zscaler (ZS.US)$It rose more than 11%, and strong demand drove Q3 results to exceed guidelines and market expectations+upward annual guidance.

$Faraday Future Intelligent Electric Inc. (FFIE.US)$With an increase of nearly 6%, Jia Yueting clarified that “FF will never be profitable.”

edit/lambor