Hot News
Trump escalates the trade war, the EU warns: countermeasures may be implemented more quickly.
The European Commission expressed regret in a statement regarding the U.S. announcement to increase import tariffs on steel and aluminum, stating that the EU is prepared to take countermeasures. The statement indicated that this decision by the U.S. government adds further uncertainty to the global economy and undermines ongoing efforts to resolve issues through negotiation. The statement emphasized that the European Commission is currently in final consultations to expand countermeasures. If an acceptable solution for both parties cannot be reached, existing measures and additional measures will automatically take effect on July 14 or be implemented earlier if necessary.
U.S. stocks welcome the TACO trade, Analysts warn Trump may become more hardline.
TACO means Trump Always Chickens Out, reflecting investors' growing belief that the U.S. president speaks firmly on tariffs but will back down if the market reacts negatively. However, some Wall Street figures warn that the logic of the TACO trade may be coming to an end. Julie Beale, the chief market strategist at Kayne Anderson Rudnick, noted that when a reporter informed Trump about this TACO trade, he reacted strongly, denouncing the related question as 'terrible' and defending his trade position. 'I am concerned this may make Trump more hardline, determined to be more resolute on tariffs, which complicates the outlook further.'
Trump: If we are not allowed to retaliate with tariffs, we will have no chance of economic survival, even the smallest.
This morning, Trump stated on social media that if other countries are allowed to impose tariffs on us, while we are not permitted to respond quickly and flexibly with tariffs of our own, our country will have no chance of economic survival, not even the smallest.
The Fed's dovish voting member stated that if trade risks recede, the process of rate cuts can continue.
On Monday (June 2), local time, Chicago Fed President Goolsbee stated that the fundamentals of the U.S. economy are strong, and if the uncertainties related to Trade policy are resolved, the Fed could advance the process of interest rate cuts. Goolsbee mentioned in a public dialogue in Davenport, Iowa, "I still believe that if we can get through this period of volatility, the Fed's dual mandate appears to be performing well, and I think we may be on the right track."
Powell reiterated the importance of global economic research, without discussing the policy outlook.
Federal Reserve Chairman Jerome Powell spoke on Monday at the 75th anniversary event of the Federal Reserve's International Finance division, reflecting on the department's historical contributions to global economic research and praising its role in addressing financial crises and pandemics. However, amid significant market attention on the direction of the Fed's interest rate policy, Powell did not express any views on the current state of the U.S. economy or future interest rate outlook during this speech.
After the 'black swan', negotiations between Russia and Ukraine reportedly do not rule out the possibility of a meeting between the leaders of Russia and Ukraine in Istanbul.
According to CCTV News, on June 2 local time, delegations from Russia and Ukraine held the second round of direct negotiations in Istanbul, Turkey, to peacefully resolve the conflict. The talks lasted about an hour and ended around 4 PM local time. The two sides reached an agreement on issues such as large-scale prisoner exchanges and the exchange of the bodies of fallen soldiers, although there were slight discrepancies in their statements. Sources also revealed that the possibility of a meeting between the leaders of Russia and Ukraine in Turkey cannot be ruled out, but it is still too early to discuss the timing of such a meeting. Media reports say that there are significant differences between Russia and Ukraine on ceasefire conditions. However, on the eve of the negotiations, several 'black swan' events occurred one after another, casting a shadow over the talks.
Post-Market Trading
The escalation of the Trade war did not hinder upward momentum, with all three major indexes closing higher.
On Monday, Eastern Time, despite the renewed escalation of trade tensions, the market still moved upward, with all three major indexes closing higher. Thanks to the rise of tech stocks led by Meta, the Nasdaq rose the most among major indexes. At the close, the Dow Jones Industrial Average was up 0.08%, the S&P 500 Index was up 0.41%, and the Nasdaq Index was up 0.67%.
Most large technology stocks rose, with Apple up 0.42%, Microsoft up 0.35%, NVIDIA up 1.67%, Google down 1.58%, Amazon up 0.80%, Meta up 3.62%, and Tesla down 1.09%.
Most popular Chinese concept stocks rose, Alibaba increased by 0.80%, JD.com rose by 1.39%, PDD Holdings fell by 0.07%, NIO Inc fell by 0.56%, XIAOMI-W fell by 0.26%, Li Auto fell by 1.83%, Bilibili rose by 0.87%, Baidu rose by 1.42%, NetEase rose by 1.18%, Tencent Music increased by 3.09%.
Trump plans to raise steel tariffs, which hit automotive stocks. $Ford Motor (F.US)$ and $General Motors (GM.US)$ Stock prices fell nearly 3.9% on Monday. However, steel stocks rose significantly due to the increase in tariffs. $Cleveland-Cliffs (CLF.US)$ The stock price soared by 23%. $Steel Dynamics (STLD.US)$ and $Nucor (NUE.US)$ All rose by 10%.
Affected by tariffs and geopolitical situations, U.S. gold stocks collectively rose, with Kinross Gold up over 6% and Newmont and Eaglerise Electric & Electronic rising over 5%.
Tesla's sales in France plummeted by 67%, reaching a nearly three-year low.
$Tesla (TSLA.US)$ The new car registration in France has further declined, weakening CEO Elon Musk's assertion last month that the company has recovered from the sales slump at the beginning of the year. Data from the French automotive industry association Plateforme Automobile shows that the automaker sold only 721 vehicles in May, a year-on-year decrease of 67%. Despite Tesla launching a redesigned version of its best-selling model, Model Y, the registration has still dropped to its lowest level since July 2022.
UBS Group: NVIDIA is expected to secure a 20 billion dollar Order from the AI center in Texas.
UBS Group released a Research Report on Monday, $NVIDIA (NVDA.US)$ the competition with $Oracle (ORCL.US)$ It will become the main beneficiary of the 'Gateway to the Stars' AI data center in Texas. According to the agency's estimates, the project could bring NVIDIA up to $20 billion in GPU revenue, while generating over $2 billion for Oracle Cloud Infrastructure (OCI). Once fully constructed, the data center in Abilene, Texas, is expected to deploy 0.4 million NVIDIA GB200 GPUs—equating to approximately $20 billion in sales at current pricing, as OpenAI utilizes Oracle.$Microsoft (MSFT.US)$and$CoreWeave (CRWV.US)$Expanding the computing power scale will also bring an additional $5 billion in network equipment revenue.
According to reports, Meta aims to achieve full automation of advertising using AI next year, rising over 3% overnight.
According to the Wall Street Journal's report on Monday, $Meta Platforms (META.US)$ the goal is to allow brands to fully create and run advertisements using its artificial intelligence tools by the end of next year. It was reported that brands can provide product images and budgets, and Meta's AI will generate advertisements, including images, videos, and text, and then determine user targeting on Instagram and Facebook based on the budget suggestions. It is understood that Meta also plans to allow advertisers to use AI to personalize advertisements, so users can see different versions of the same advertisement based on factors such as geographic location. As of Monday's closing, Meta rose over 3%.
Applied Digital surged nearly 50%, signing a 15-year, $7 billion leasing agreement with CoreWeave.
$Applied Digital (APLD.US)$ On Monday, it was announced that two 15-year lease agreements have been signed with CoreWeave, a professional cloud service provider supported by NVIDIA. This lease period will bring approximately $7 billion in revenue to this data center operator. This deal could become an important lifeline for Applied Digital, which is facing challenges in the data center hosting sector during its transition to becoming a data center real estate investment trust. At the close, Applied Digital surged over 48%.
A U.S. judge cancels the trial originally scheduled for Boeing 737 MAX crash incidents.
On the 2nd, a federal judge in the United States canceled the trial that was planned to start on June 23 regarding the incidents involving the company’s 737 MAX aircraft. $Boeing (BA.US)$ In October 2018 and March 2019, Indonesia's Lion Air and Ethiopia Airlines each had a Boeing 737 MAX aircraft crash, resulting in 346 fatalities. Investigations found that the cause of the crash was related to safety design flaws in the new software system of the aircraft. During the certification process, Boeing deliberately concealed this risk from the U.S. Federal Aviation Administration and did not strengthen pilot training regarding this software system.
Tempus AI surged 15% on Monday after the company launched a testing method to monitor the immune therapy responses of late-stage cancer patients.
On Monday, $Tempus AI (TEM.US)$ The Fuses program was launched to revolutionize treatment research and build the largest diagnostic platform, bringing new hope to the Medical Industry through its innovative foundational model. At the same time, the introduction of the Xm detection method offers new solutions for monitoring immunotherapy responses in late-stage cancer patients. Stimulated by the news, Tempus AI surged by 15% on Monday.
Credo Technology, a connectivity solutions company, exceeded revenue expectations in the fourth quarter, soaring 12% in after-hours trading.
$Credo Technology (CRDO.US)$After-hours financial performance for the fourth quarter of fiscal year 2025 was announced, with revenues of $0.1703 billion, surpassing analysts' expectations of $0.16296 billion. Total quarterly revenue grew by 179.7% year-on-year and 25.9% quarter-on-quarter. The company reported an adjusted gross margin of 67.4%. Credo Technology Group had $0.4313 billion in Cash and short-term investments at the end of the period. Credo Technology Group President and CEO Bill Brennan stated that demand from hyperscale customers for our solutions to support advanced artificial intelligence services continues to grow, and we believe this trend will persist in the foreseeable future.
Blueprint surged by 26%! Sanofi spent $9.1 billion to acquire the company to strengthen its immunology business.
On June 2, news reported that the French pharmaceutical giant $Sanofi (SNY.US)$will acquire the American biopharmaceutical company with an equity value of $9.1 billion. $Blueprint Medicines (BPMC.US)$This move will significantly enhance its treatment pipeline in the field of rare immunological diseases. According to a joint statement发布 by both parties on Monday, Sanofi will acquire the company at a cash price of $129 per share, which represents a 27% premium over Blueprint's closing price last Friday.
Blueprint currently focuses on targeted drugs for treating systemic mastocytosis (marketed in the US as Ayvakit and in Europe as Ayvakyt), which is a rare disease that causes the abnormal accumulation of immune cells leading to symptoms such as urticaria and abdominal pain. According to the company, the sales forecast for this drug is expected to reach $0.7-0.72 billion by 2025. At market close, Blueprint shares rose by 26.09%.
Top 20 trading volumes.
Hong Kong Market Outlook
Xiaomi Autos: preparing for large-scale production of Xiaomi YU7.
$XIAOMI-W (01810.HK)$ XIAOMI's car mentioned in answering netizen questions (Episode 150) stated that it is preparing for the large-scale production of the XIAOMI YU7. We are confident that we will deliver to users at the fastest speed after its official launch.
CKH HOLDINGS has completed the merger with Vodafone for the UK telecommunications business, recovering approximately 1.3 billion British Pounds.
$CKH HOLDINGS (00001.HK)$ It is reported that, its Three UK and $Vodafone (VOD.US)$ In the United Kingdom, last Saturday, the merger of the UK telecommunications business was completed, and the merged company Vodafone Three will invest 11 billion British Pounds over the next 10 years to create one of the most advanced 5G networks in Europe. The merged company plans to invest 1.3 billion British Pounds in capital expenditures in its first year to strengthen network deployment. Vodafone holds 51% of the merged company, while CKH HOLDINGS holds 49%, and the performance of the merged company will be included in Vodafones financial report. CKH HOLDINGS Vice Chairman Ho Kwan-neng stated that the merger releases enormous value for shareholders, and the group will recover approximately 1.3 billion British Pounds in net cash.
Today's focus.
Keywords: China Caixin Manufacturing PMI, US Factory Orders Month-on-Month.
On Tuesday, regarding economic data, investors may pay attention to China's Caixin Manufacturing PMI, US factory order month-on-month rate, and US JOLTs job openings.
In terms of financial events, the Governor of the Bank of Japan, Kazuo Ueda, will give a speech.
In terms of Earnings Reports, $NIO Inc (NIO.US)$ Performance will be released before the market opens, and a performance live stream will start on the same day at 20:00 Beijing time.
Futubull Morning Reading:
Large amounts of money are never invested in things I do not understand.
——Peter Lynch
Editor/Rocky
