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On Monday Pre-Market Trading, the three major U.S. stock index futures fluctuated, with NVIDIA leading the gains among the seven giants.
Most star Technology stocks were lower in Pre-Market Trading. $NVIDIA (NVDA.US)$Gaining over 1.1%, $Apple (AAPL.US)$、 $Alphabet-A (GOOGL.US)$ Increased by about 0.5%, $Tesla (TSLA.US)$ Decreased by about 1.5%.
Popular Chinese concept stocks declined broadly in Pre-Market Trading, $Li Auto (LI.US)$increased by over 3%, $Tencent Music (TME.US)$、 $Weibo (WB.US)$、 $Alibaba (BABA.US)$、 $PDD Holdings (PDD.US)$Increased by nearly 2%.
Drone Concept Stocks are performing strongly, $Joby Aviation (JOBY.US)$、 $AgEagle Aerial Systems (UAVS.US)$ 、 $Draganfly (DPRO.US)$、 $Unusual Machines (UMAC.US)$、 $Eve Holding (EVEX.US)$ Pre-market trading rose over 10%, after Trump signed an executive order to support the development of drones and air taxis.With the global developer conference approaching, can Apple change the perception of its lag in AI?
$Apple (AAPL.US)$ The annual global developer conference will kick off this week. It is expected that Apple will announce software updates for multiple products and showcase more AI features, with a focus still likely on its 'Apple Intelligence' launched last year. Evercore ISI Analysts expect that Apple's 'biggest announcement' will be the opening of its foundational AI model for App developers to use for localized AI applications.
Evercore emphasizes that the narrative of Apple being 'behind' in AI underestimates Apple's true strategy. Apple chooses a capital-light path to profit by charging access fees to its user ecosystem to model providers, achieving substantial returns on AI investments while avoiding high risks. Another analyst pointed out that Apple may announce partnerships with Perplexity and Alphabet's Gemini based on existing OpenAI, introducing more AI partners for Apple Intelligence.
NVIDIA pre-market rose over 1%, collaborating with United Kingdom financial regulators.
On June 9, the United Kingdom Financial Conduct Authority (FCA) and $NVIDIA (NVDA.US)$ Announced cooperation to provide better data, technology, and regulatory support for business users through a so-called "super sandbox" to accelerate product innovation. This program is open to all financial services companies attempting artificial intelligence, with testing set to begin in October.
FCA Chief Data, Information, and Intelligence Officer Jessica Rusu stated: "This collaboration will help those who want to test artificial intelligence ideas but lack the capacity. We will assist companies in leveraging artificial intelligence for the benefit of our markets and consumers while supporting economic growth." In response, NVIDIA CEO Jensen Huang remarked that the United Kingdom is in a "Goldilocks" position regarding artificial intelligence potential.
Tesla fell over 2% in Pre-Market Trading, with multiple short-term bearish pressures? Musk and Trump have parted ways, Siasun Robot&Automation executives have resigned, and many Starlink Satellites have fallen.
After Musk's split with Trump, Tesla's stock price saw its largest one-day drop in history. In response, famous Wall Street fund manager Cathie Wood pointed out that this incident exposes Musk's companies' dependence on the U.S. government: several of Musk's companies are federal government contractors, which have received billions of dollars in federal loans, contracts, tax credits, and subsidies over the years. If Musk's relationship with the White House deteriorates, the impact on his business will be long-lasting and severe.
Coincidentally, Milan Kovac, the engineering director of Tesla's humanoid robot project "Optimus," recently announced that he will be leaving Tesla. Meanwhile, according to Beijing Daily, many Starlink Satellites launched by Musk's SpaceX have fallen recently.
Stablecoin "first stock" Circle continues to rise over 17% in Pre-Market Trading, increasing over 180% since its listing.
Regarded as the "purest" stablecoin concept stock, Circle continues to rise 17% in Pre-Market Trading. Reportedly, Circle's USDC holds about 27% of the stablecoin market, ranking second, only behind Tether USDT with 67% market share. Circle's Chief Financial Officer Jeremy Fox-Geen stated in an interview on the first day of listing: "This is a historic moment for Circle, but it is still just the beginning for our mission. We focus on building and expanding the application scenarios of new monetary technology."
Qualcomm rose over 1% in Pre-Market Trading, agreeing to acquire Alphawave for $2.4 billion, a premium of up to 96%.
Chip manufacturers $Qualcomm (QCOM.US)$ On Monday, an acquisition of the British semiconductor company was agreed upon for approximately $2.4 billion. $ALPHAWAVE IP GROUP PLC (AWEVF.US)$ According to the agreement, Alphawave's shareholders will receive 183 pence per share, about a 96% premium over the closing price before Qualcomm disclosed its acquisition intention.
JPMorgan previously released a report stating that Qualcomm's acquisition of Alphawave is a strategically important move that will help Qualcomm achieve growth in the data center field. Alphawave and its capabilities in data center connectivity IP will complement Qualcomm's other asset portfolio. Considering Alphawave's relatively small size and Qualcomm's strong balance sheet, even though Alphawave's valuation presents a significant premium over public market levels, this acquisition is still expected to bring moderate financial value addition for Qualcomm.
Metaplanet splurged $5.4 billion to boost Bitcoin, with stock prices in Tokyo soaring 16%.
June 9,$Metaplanet (3350.JP)$ Stocks listed in Tokyo rose over 16% on Monday. This followed the company's announcement of plans to raise approximately 5.4 billion dollars to expand its Bitcoin holdings, which are currently valued close to 1 billion dollars. The company's goal is to hold more than 210,000 Bitcoins by 2027. $Bitcoin (BTC.CC)$ This is seen as a way to hedge against challenges in the Japanese economy. Metaplanet's stock on the Tokyo Stock Exchange has risen over 340% so far this year, and the company is currently advancing its Bitcoin shareholding plan.
Global Macro
The China-U.S. economic and trade talks are being held today in London, focusing on tariffs, technology, and rare earths.
Less than two days after a call between the leaders of China and the U.S. on June 5, U.S. President Trump announced on social media on June 6, local time, that U.S. economic and trade officials would hold talks with Chinese representatives in London on Monday (June 9). Trump also stated, "The talks should go smoothly." Reports indicate that the China-U.S. economic and trade consultations in London will focus on topics such as tariffs, technology, and rare earths. After the Geneva talks, the U.S. continued to impose restrictions on chips to China, while China implemented export controls on rare earths, forming a 'rare earths vs. chips' game pattern. The U.S. has increased the delegation by sending Secretary of Commerce Ross to participate in the new round of consultations, which may indicate that technology export controls 'may no longer be a non-negotiable area.'
Regarding this China-U.S. economic and trade consultation, sources from the British government indicated that the current geopolitical advantages of the United Kingdom enable it to act as a bridge and facilitator: on one hand, Sino-British relations are in a stage of 'rebooting'; on the other hand, equally important, this may greatly assist the United Kingdom in seeking a trade agreement with the U.S. to eliminate or significantly reduce (the tariffs imposed by the U.S.).
The $22 billion "money borrowing drama" in U.S. bonds is the focus of this week's market.
The U.S. Treasury will issue $22 billion in 30-year Treasury bonds on Thursday, serving as an immediate gauge of market appetite amid waning demand for 30-year U.S. bonds. The yield on U.S. 30-Year Treasury Bonds reached a nearly 20-year high of 5.15% last month. Rising yields indicate increased financing pressure - the U.S. is currently expanding its borrowing, while government spending remains unchecked. The Trump tax and spending bill passed by the House is predicted to increase the U.S. fiscal deficit by trillions of dollars over the next few years, according to some forecasts. Moody's downgraded the U.S. credit rating last month.
This week, inflation data such as May's CPI and PPI, as well as inflation expectation indicators, could lead to fluctuations in the yield curve. Kathy Jones, head of fixed income strategy at Charles Schwab, pointed out: “The further steepening of the yield curve is the most likely outcome. If economic data is weak prompting the Fed to cut rates, short-term yields will decline, but long-term yields will still be constrained by deficits, a weak dollar expectation, and issues of capital inflow.”
The U.S. May CPI may struggle to mask the trend of rising inflation, with analysts indicating uncertainty around the Federal Reserve's interest rate cuts this year.
The U.S. May CPI data report, to be released on Wednesday, may further support optimistic expectations regarding the Federal Reserve's pace of interest rate cuts. A closer examination of key market signals reveals that U.S. inflation likely reached a bottom and has begun to move upward. Market pricing suggests that by the second half of 2025, the year-on-year growth rate of U.S. CPI will rise above 3%. The good news is that this is better than the market's initial expectation after the tariff announcement on Liberation Day, April 2, when CPI pricing nearly soared to 4%.
Analysts state that if inflation is expected to rebound to 3.2%, it will be difficult for the Federal Reserve to cut interest rates in the short term, as the current federal funds rate is 4.3% while the inflation rate is 3.2%. This results in a real federal funds rate of around 1.1%, which aligns with the neutral interest rate level as suggested by the Federal Reserve's March economic projection summary.
Major adjustments to the Trump tax reform bill? The U.S. Senate plans to propose a revised version this week.
According to media reports, Republican members of the U.S. Senate plan to revise the Trump tax reform bill this week, hoping to pass it before July 4. It is reported that the Senate Finance Committee plans to propose cuts to Medicaid spending - potentially even including Medicare - to save the budget, which may differ from the version passed by the House. After the new version of the bill is announced, it is expected to spark a new round of disputes between fiscal conservatives and moderates.
Despite ongoing controversies, congressional Republican leaders still stated that the progress of the tax reform bill is on track and expect that most of the content from the House version will be retained.
Top 20 transactions in Pre-Market Trading.
Macro economic events reminder for U.S. Stocks.
(The following is in Beijing Time)
22:00, U.S. wholesale sales month-on-month rate for April.
23:00, U.S. May one-year inflation expectation from the New York Fed.
Editor/joryn
