Global macro
Non-farm payroll data and unemployment rate data both exceeded expectations, leading to a straight plunge in the three major futures indexes.
In May, the seasonally adjusted non-farm employment population in the United States increased by 272,000, the largest increase since March this year, significantly higher than market expectations, and much higher than the 175,000 in the previous month.
In addition, the US unemployment rate rose to 4.0% in May, the first time since January 2022, higher than market expectations, and it has been below 4% for 27 consecutive months before this.
Senior analyst on Wall Street: Powell is expected to boost the US stock market next week.
Ed Yardeni, a Wall Street veteran strategist, former Fed economist, and president of Yardeni Research, said that after the Fed interest rate meeting next week, any dovish keywords in Powell's speech may trigger a sharp rise in US stocks. Investors will closely watch Fed Chairman Powell's press conference after the rate meeting next week.
CIO of Morgan Stanley Wealth Management harshly evaluated US stocks: the upward trend is expected to continue in the second half of the year, but the growth rate is limited.
Lisa Shalett, chief investment officer of Morgan Stanley Wealth Management, said on Thursday that the US stock market will continue to rise in the second half of 2024, despite the pace will slow down. "From now until the end of the year, the least resistant path is to go up. However, investors should have 'moderate expectations' for stock returns from now until December. The S&P 500 index has risen 12% so far this year." She also expects returns to expand to other areas of the market rather than focusing on the large technology giants that have driven most of the growth since last year.
Bitcoin ETF has seen continuous net inflows for 18 consecutive days, driving the spot price to a new high expectation.
Bitcoin is expected to once again hit a new all-time high this year. According to statistics, Bitcoin ETF has reported net fund inflows for 18 consecutive days, and the surge in demand may help Bitcoin's price break through the peak again. Only on Thursday, net inflows of funds for 11 Bitcoin ETFs in the United States reached US$218 million. As of the time of publication, the price of Bitcoin is stable at around US$71,000. Sean Farrell, head of digital asset strategy at Fundstrat Advisory, pointed out that a large amount of funds flowed into spot Bitcoin ETFs, coupled with the expectation of future Fed interest rate cuts, and the macro level continue to be favorable for cryptocurrencies.
Hot news
Pre-market of Growth Tech stocks falls across the board.
Is the banking crisis happening again? Moody's places 6 US regional banks with large amounts of commercial real estate loans on negative watchlist.
International rating agency Moody's said that at least 6 US regional banks with a large amount of commercial real estate loans are at risk of having their debt ratings downgraded. Moody's has put the long-term ratings of First Merchants, F.N.B. Corp, Fulton Financial, Old National Bancorp, Peapack-Gladstone Financial, and WAFD on the "watchlist" for possible downgrades.$First Merchants (FRME.US)$, $F.N.B. Corp (FNB.US)$, $Fulton Financial (FULT.US)$, $Old National Bancorp (ONB.US)$, $Peapack Gladstone Financial (PGC.US)$ and $WaFd (WAFD.US)$'s long-term ratings have been included in the 'watchlist' for possible downgrades.
WSB concept stocks turned down before trading, and the retail investor 'leader' will open a live broadcast on YouTube today.
WSB concept stocks turned down before trading.$GameStop (GME.US)$Currently down about 17%, previously up over 35%.$AMC Entertainment (AMC.US)$Down more than 9%, previously up over 13%.$BlackBerry (BB.US)$Down nearly 2%. 'Retail investor leader' Keith Gill will return to the platform for live streaming at noon on June 7th, Friday, Eastern Time. This will be the first time in three years.
Is Nvidia not at its limit yet? Bank of America says it can rise another 24% and dominate the computing market in the next 10 years.
According to the latest report released by Bank of America on Wednesday,$NVIDIA (NVDA.US)$After hitting an all-time high recently, there is still greater room for growth for this chip manufacturer, as the company led by Huang Renxun appears to be poised to dominate the computing market in the next few years. The Bank reaffirmed its 'buy' rating on Nvidia's stock and said that the company led by Huang Renxun is still the preferred choice in the IT industry. Bank of America strategist set the target price for the stock at $1,500 per share over the next 12 months, implying about 24% upside for the share.
The short position of Nvidia is now comparable to the sum of Apple and Tesla.
According to a report released by S3 Partners on Thursday, the current scale of open short bets on Nvidia is nearly $34 billion, almost equivalent to the sum of short positions behind AMD and Intel, the two chip manufacturers that follow it in the short position rank.$NVIDIA (NVDA.US)$The current open short interest in Nvidia is about $34 billion, almost equivalent to the total short interest of Apple and Tesla behind it.$Apple (AAPL.US)$ and $Tesla (TSLA.US)$It is worth mentioning that even though the scale of short bets on Nvidia looks extremely stunning, according to the data from LSEG, short bets on Nvidia are still only equivalent to about 1% of its market capitalization.
Password management industry may face changes! It is rumored that Apple will launch a password management app.
According to sources, $Apple (AAPL.US)$will launch a new self-made application called 'Password' next week, which aims to make it easier for users to log in to websites and software. Sources said that Apple is planning to make this new application part of iOS 18, iPadOS 18 and macOS 15. This software can generate and track passwords and will be released at WWDC on June 10th.
Calculating power increased by 10 times! Rivian uses Nvidia chips to redesign its flagship products R1 pickup truck and SUV.
$Rivian Automotive (RIVN.US)$Rivian has redesigned its pure electric R1 pickup truck and SUV models, and improved the vehicle's range, performance and computing power with Nvidia chips. Although the 2025 models are not much different in appearance from the existing ones, the company has replaced more than half of the hardware components for the second-generation products, and redesigned the batteries and electrical architecture.
Not to be outdone, after NVIDIA CEO Huang Renxun announced the latest AI chip iteration schedule on the evening of June 2nd, AMD CEO Su Zifeng also threw out an iteration roadmap during her speech on the morning of June 3rd before the COMPUTEX opened. The company will launch the MI325 X and Ryzen AI300 this year, the MI350 series in 2025, and the MI400 series in 2026.
Most China concept stocks are falling before the opening.
Taiwan Semiconductor's sales in May was NTD 229.62 billion, a YoY growth of 30%.
On Friday, June 7th, $Taiwan Semiconductor (TSM.US)$Taiwan Semiconductor announced the latest monthly data, showing that the company's sales in May were NT $229.62 billion (about $7.114 billion), a year-on-year growth of 30.1%. From January to May this year, TSMC's cumulative sales reached NT $1.06 trillion (about $32.839 billion), a year-on-year increase of 27%.
Bilibili rose more than 3% pre-market trading and was upgraded to "buy" by UBS, which raised its EPS estimate per share.
Reminder for US Macro Events
(All in Peking Time)
22:00 Wholesale Sales MoM (%) in the USA
The total number of oil rigs in the US for the week ending at 1:00 am the next day.
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