As of the time of writing, the three major indexes collectively fell,$Dow Jones Industrial Average (.DJI.US)$fell by 0.02%, $S&P 500 Index (.SPX.US)$fell by 0.2%, $Nasdaq Composite Index (.IXIC.US)$fell by 0.24%.

In late May, US stocks reached a record high, but in late May, its upward trend came to a sudden stop. In the May increase of the S&P 500 index, only six large-cap technology stocks contributed more than 75% of the increase, which is reminiscent of the 2023 situation where the 'Seven Giants of the US Stock Market' pushed the market up.

The rise in the stock prices of Apple, Alphabet, Microsoft, Amazon, Meta, and Nvidia helped the S&P 500 index achieve the best performance since 2003 in May. This is a characteristic of the stock market trend that has reached record highs in the past six months, including the end of 2023 and the end of the first quarter.

The S&P 500 index rose about 4% in May, while the equal-weighted S&P 500 index rose less than 2%.

The weak manufacturing data released on Monday dampened market sentiment. The data showed that US manufacturing activity weakened further, leading the market to believe that the 'American exceptionalism' may fail, causing the US dollar index to fall to a multi-month low.

Investors are currently waiting to see if US economic growth can be maintained, while the Fed is waiting for inflation to decrease to a sufficient level for interest rate cuts.

Savita Subramanian, head of US stock and quantitative strategies at Bank of America, said on Tuesday: 'I think the current US stock index itself is a bit flawed. It is better to take a look at the basic stock market like peeling an onion. The profits of the S&P index constituent companies have generally increased, and not just the 'Seven Giants of the US Stock Market' doing all the work for the index.'

Gabriela Santos, chief market strategist for the Americas at JPMorgan Asset Management, said that even if some investors lose confidence, the US economy as a whole is still robust.

Gabriela Santos said: 'For us, this is really a story of overall growth slowing down. But every time the growth rate slows down to a lower level, you will see some more volatile areas-some people are worried about the economy slowing down too much.'

Betting on a Fed rate cut is on the rise. Investors are weighing their concerns about the health of the US economy and the stronger expectations for the Fed to ease its policy ahead of time.

Jameson Coombs, an economist at Westpac, said on Tuesday: 'The sharp volatility of long-term government bonds indicates that weak manufacturing data is unlikely to change the Fed's decision to cut interest rates in the near future, but it may be a signal that 'American exceptionalism' is failing.'

Mohit Kumar, chief strategist for Europe at Jefferies Financial, said: 'We are still long in risk assets. Weak economic data is good news for risk assets because it increases the likelihood of the Fed cutting interest rates.'

A series of important data will be released this week. Job vacancies and labor turnover survey (JOLTS) will be released later on Tuesday.

The most closely watched economic data in the market this week will be the May non-farm employment report on Friday, and investors will judge the state of the US job market and its impact on the Fed's monetary policy path based on the data.

Economists expect the data to show that job vacancies have fallen for a third consecutive month, and Friday's non-farm employment data is crucial for clues to the world's largest economy and interest rate prospects.

Raisah Rasid, global market strategist at JPMorgan Asset Management, said: 'We expect labor demand in the US market to slow slightly. What does this mean for the Fed? I believe that all data shows that the Fed will cut interest rates once later this year, possibly in December. If the trend of the data is different from expectations, then interest rate cuts may be brought forward to September.'

Swap contracts related to the Fed meeting continue to fully reflect the possibility of a 25 basis point rate cut in December, and the possibility of a cut in September has risen to around 50%, with a high probability of a rate cut in November.

Focus stocks

Most growth tech stocks fell, with Super Micro Computer and AMD down nearly 1%, while Microsoft, Amazon, Apple, Google, and Meta Micro were down slightly; Dell Technologies was up nearly 4%, and Nvidia, Tesla, and Salesforce were slightly up.

China concept stocks were mixed, with Alibaba and NetEase up around 1%, PDD Holdings, Baidu, and JD.com up slightly, Taiwan Semiconductor and NIO down more than 1%, and Ctrip down more than 2%.

International oil prices fell, and petroleum stocks all fell, with ExxonMobil down nearly 3%, Chevron, Occidental Petroleum, ConocoPhillips, and EOG Resources down about 2%.

Nomura Securities will$NVIDIA (NVDA.US)$RBC Securities raised their target price for this stock from $1180 to $1275 and maintained a "buy" rating. They believe the company's upcoming Blackwell GPU platform is likely to succeed, and the company is about to split its stock.

RBC analyst Vijay Rakesh said that with the Hopper platform and the Blackwell B100 to be launched from Q3 this year to Q1 next year, Nvidia still has strong AI-related opportunities. In addition, the 10:1 stock split to take place on June 7th may create more demand from retail investors and become another driving force for the stock. As of press time, the stock was up 0.13%.

$Tesla (TSLA.US)$CEO Musk claimed that he can develop Tesla into a leader in AI and robotics technology. In the Q1 earnings call in April this year, Musk said that Tesla will increase the use of Nvidia's H100 chips from 35,000 to 85,000 by the end of this year.

A few days later, he wrote in an article on X that Tesla will invest $1 billion in "combinatorial training and inference AI" this year.

German Business Daily reported on Monday that Tesla's German factory will be shut down for five days in June, a report confirmed by a Tesla spokesperson on Tuesday. The spokesperson said production would be suspended on June 7, 14, 17, 27, and 28 for improvements. As of press time, the stock was down 0.18%.

$Advanced Micro Devices (AMD.US)$Introduced the new CPU, NPU, and GPU leading architectures, providing powerful computing power for end-to-end AI infrastructure from data centers to personal computers. AMD previewed its fifth-generation AMD EPYC server processor with leading performance and efficiency to be released in the second half of 2024.

AMD announced the launch of the third-generation AI-enabled AMD mobile processor AMD Ryzen AI300 series and the AMD Ryzen 9000 series processors for notebook and desktop PCs. As of press time, the stock was down 0.46%.

$Microsoft (MSFT.US)$Hitachi announced a strategic partnership with (company name) worth billions of dollars over three years to accelerate the adoption of generative AI services. Hitachi said the partnership would promote growth in its Lumada business and plans to achieve revenue of JPY 2.65 trillion (USD 18.9 billion) in FY 2024, and promote operational efficiency and productivity improvement for its 270,000 employees. As of press time, the stock was down nearly 1%.

according to$Amazon (AMZN.US)$The latest news from Global Logistics public number shows that Amazon's MCF (Multi-Channel Fulfillment) now supports ERP aggregation functions specially designed for Chinese sellers. As a logistics solution dedicated to multi-channel sales, MCF not only provides sellers with powerful inventory and order management capabilities, but also cooperates with a series of professional ERP systems to bring sellers an automated experience. As of press time, the stock was down 0.46%.

$Intel (INTC.US)$Intel announced the launch of a new AI chip designed to compete with chip competitors like Nvidia and AMD for market share. Despite the hype surrounding AI, Intel has still fallen nearly 40% this year, while Nvidia and AMD have risen 132% and 11%, respectively. As of press time, the stock was down 0.26%.

Alphabet's stock price rose yesterday, leading retail investors to reveal their holdings. But the stock's performance was weak today, down more than 7% as of press time.$Alphabet-A (GOOGL.US)$Alphabet is reportedly cutting at least 100 jobs from several teams in its rapidly growing cloud department. According to reports, last week, employees received layoff notices, and positions in sales, consulting, and other departments were eliminated. As of press time, the stock was down 0.37%.

$GameStop (GME.US)$The stock price rose yesterday, with retail investors leading the way in revealing their holdings. But today the stock's performance was weak, down more than 7% as of press time.

$Sony (SONY.US)$Its semiconductor division will cut spending by 30% over the next three years. As of press time, the stock was up more than 2%.

Institutions are bullish on its new game potential in the second half of the year. As of press time, the stock was up more than 1%.$NetEase (NTES.US)$Potential for new games in the second half of the year. As of press time, the stock has risen more than 1%.

$Legend Biotech (LEGN.US)$Research on drugs for treating multiple myeloma shows that it can achieve deep and lasting remission. As of the time of writing, the stock has risen by 0.42%.

$Taiwan Semiconductor (TSM.US)$It is reported that there is no plan for share buyback. As of the time of writing, the stock has fallen by nearly 2%.

Editor/ruby