Global macro

• Before Wednesday's opening, the three major index futures showed different trends.

• Goldman Sachs predicts that in July, the S&P 500 index will set a new high!

Goldman Sachs data shows that if history is any guide, the S&P 500 index may surge 4% next month, reaching a new historical high. The bank said in a report this month that the best days of the year have typically occurred in the first two weeks of July since 1928.

• CIB believes that the S&P 500 index will maintain a "buy on dips" mode as the Fed's rate cut approaches.

Credit Suisse believes that as the Federal Reserve approaches its rate cut, investors may continue to flock to US stocks when there are signs of a decline, and the loose cycle of the Federal Reserve is expected to begin in early 2025. Credit Suisse's US stock strategy director Manish Kabra and other strategists expect that although the S&P 500 index has risen 15% so far this year, the index will "maintain a buy-on-dips mode, and the next round of rallies will be close to the Fed's rate cutting cycle."

• UBS Group: ​​10-year US Treasury yields are expected to fall below 4% by the end of 2024.

UBS Global Wealth Management stated in its outlook for the second half of 2024 that midterm bonds with a term not exceeding 10 years are more favored, and it is expected that the yield of 10-year US Treasury Bonds will fall below 4% by the end of the year. UBS believes that concerns about high US debt burden and loose fiscal policy may pose risks to long-term bonds. The bank's basic expectation is that the yield of 10-year US Treasuries will fall to 3.85% by the end of this year.

• The yen falls below the 160 level! The lowest record since 1986.

On Wednesday, the US dollar against the yen continued to rise and broke the 160 mark, now at 160.26, the highest level since 1986. As the prospect of the Federal Reserve's rate cut is still uncertain, the market's bearish sentiment towards the yen is still strong and some traders expect the yen to continue to weaken to 170.

Hot news

• Most of the growth tech stocks have risen in pre-market trading.

• Nvidia shareholder meeting and Micron financial report! Tonight will be an important day for chip stocks.

As the rise of AI chip stocks slows down, today will usher in two key events that will provide a much-needed catalyst for the chip industry. On Wednesday local time, Nvidia will hold its annual shareholder meeting, and Micron Technology will announce its third quarter results after the market closes. These two heavyweight events may be key to AI chip stocks regaining their momentum. As of press time, they have all risen more than 2%.$NVIDIA (NVDA.US)$, $Micron Technology (MU.US)$Pre-market trading before all have risen more than 2%.

• Rivian pre-market trading soared nearly 42%, announced the establishment of a joint venture with Volkswagen to develop "next-generation" electric vehicles and software.

Bit Digital, once known as the "Tesla killer", the US electric vehicle manufacturer, has soared nearly 42% before the US stock market opened, and news surfaced that Rivian and Volkswagen announced plans to establish a joint venture. Volkswagen's initial investment in Rivian was US$1 billion, and as time goes by, it will invest another US$4 billion. In exchange, Volkswagen will gain access to the startup's technology for use in its electric vehicles and work with Rivian to develop "next-generation" electric vehicles and software. At a conference call announcing the news, Rivian CEO RJ Scaringe said that Volkswagen's support would help advance the company's plans to build a new factory in Georgia.$Rivian Automotive (RIVN.US)$Before US trading started, Bit Digital has risen close to 42%, and as news surfaced that Rivian and Volkswagen announced plans to establish a joint venture. Volkswagen's initial investment in Rivian was US$1 billion, and as time goes by, it will invest another US$4 billion. In exchange, Volkswagen will gain access to the startup's technology for use in its electric vehicles and work with Rivian to develop "next-generation" electric vehicles and software.

• FedEx pre-market trading rose more than 14%, the annual profit guidance exceeded expectations.

$FedEx (FDX.US)$US stock pre-market trading rose more than 14%, the company's fourth-quarter adjusted EPS was US$5.41, analyst expectations were US$5.34. Fourth-quarter revenue was $22.1 billion, in line with analysts' expectations. It is expected to repurchase $2.5 billion in stocks by 2025. The expected adjusted EPS for the 2025 fiscal year is $20-22, and analysts expect $20.85. It is expected that the revenue growth rate for the 2025 fiscal year will be in the lower-middle range of 0%-10%. Capital expenditure for the fiscal year 2025 is expected to be US$5.2 billion, and analysts expect it to be US$5.55 billion.

• Bit Digital pre-market trading continued to rise nearly 4%, signing a $275 million encrypted mining agreement.

After soaring nearly 40% yesterday, Bit Digital's pre-market trading rose nearly 4%. On the news, the company said it had completed a deal with an unnamed existing customer to provide an additional 2,048 graphic processing units over a three-year period. The customer has paid for 2,048 GPUs and will pay $275 million for the service in the next three years.$Bit Digital (BTBT.US)$Bit Digital pre-market trading continued to rise nearly 4%, signing a $275 million encrypted mining agreement. On the news, the company said it had completed a deal with an unnamed existing customer to provide an additional 2,048 graphic processing units over a three-year period. The customer has paid for 2,048 GPUs and will pay $275 million for the service in the next three years.

• Whirlpool pre-market trading jumped nearly 20%, Bosch is considering bidding for the company.

$Whirlpool (WHR.US)$Pre-market up nearly 20%, on the news front, Bosch is considering bidding for US home appliance manufacturer Whirlpool, which would enhance its position in the white appliances market.

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 popular China concept stocks rose before the market opens.

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 US May total new home sales annualized

22:30 US crude oil product inventories until the week of June 21st according to the EIA

Next day

04:30 US Federal Reserve announces annual bank stress test results

Editor/Somer