As of the time of writing, the three major indices have mixed performance,$Dow Jones Industrial Average (.DJI.US)$fell 0.03%,$S&P 500 Index (.SPX.US)$rose 0.45%,$Nasdaq Composite Index (.IXIC.US)$rose 1.01%.

The share price of AI chip manufacturer Nvidia has returned to an upward trend, and it is reportedly set to release its Blackwell Ultra chip next year. Since announcing highly anticipated financial reports, the stock has continued to rise and has surpassed US$1,100, with a market cap once reaching over US$2.8 trillion, but it fell in the last two trading days of May.

US stocks performed strongly in May, with all three major indices recording their sixth consecutive monthly gains in seven months. The Nasdaq rose 6.9% in May, the largest monthly increase since November 2023.

However, at the end of May, US stocks seemed to have lost their upward momentum, with all three major indices closing more than 1% lower than their record highs. In the last week of May, the Dow fell 0.96%, the Nasdaq fell 1.1%, and the S&P 500 fell 0.51%.

"Investors have high expectations, especially for growth and technology stocks. Therefore, companies that have lower-than-expected profits or release disappointing forward guidance have been punished."

Growth stocks are highly susceptible to interest rate changes. Therefore, investors will focus on the Federal Reserve's monetary policy meeting in May.

US economic data announced last weekend boosted policymakers' hopes that they will eventually begin to relax policies. The core PCE price index for April in the US rose by 0.2% month-on-month, the slowest growth rate this year, and the year-on-year growth rate slowed to 2.8%, the lowest level in three years.

Solita Marcelli, Chief Investment Officer for the Americas at UBS Global Wealth Management, said in a report, "Although April's core PCE inflation data is not enough to prove that the Fed will cut interest rates soon, we believe that recent data indicates that the economy is facing a soft landing, and the Fed is most likely to cut interest rates at its rate-setting meeting in September."

Vincent Chaigneau, head of research at Generali Investments, expects the Fed to cut interest rates in September.

There are many economic data releases this week, including manufacturing data on Monday and the May non-farm employment report on Friday.

Focus stocks

Technology stocks surged, with Nvidia up over 4%, Qualcomm up nearly 3%, Tesla up nearly 2%, AMD, Google, Amazon, and Meta up about 1%.

Chip stocks strengthened, with Arm up nearly 7%, Nvidia and Taiwan Semiconductor up nearly 4%, Qualcomm up more than 3%, AMD, Micron Technology, and Marvell Technology up about 2%.

Popular Chinese concept stocks rose across the board, with Bilibili and Li Auto up more than 3%, JD.com, Ctrip, and Futu up more than 2%, Alibaba up nearly 1%, and Nio and Netease following suit.

according to$NVIDIA (NVDA.US)$The company's CEO, Huang Renxun, introduced Nvidia's development roadmap at a speech yesterday. In terms of AI chips, Nvidia will maintain a pace of launching one chip per year.

Huang Renxun revealed that with the start of production of the Blackwell chip, Nvidia plans to upgrade its AI accelerator and AI chips every year, with the Blackwell Ultra expected to be launched in 2025 and the next generation AI platform called Rubin in 2026, which will use HBM4 memory.

Nvidia stock will undergo a 1:10 stock split after market close on June 7th (Friday), and the lower price is expected to make Nvidia more likely to be included in the Dow Jones Industrial Average. As of press time, the stock is up nearly 4%.

$Advanced Micro Devices (AMD.US)$Announced on Monday the launch of a new AI chip that can be used in a wide range of products from cutting-edge data centers to advanced laptops, increasing the challenge to market leader Nvidia. The demand for dedicated processors to assist in developing, training, and running AI applications like ChatGPT has surged in the past two years. As of press time, the stock is up over 2%.

$Tesla (TSLA.US)$In a filing submitted to the US Securities and Exchange Commission on June 3rd, Tesla responded to ISS stating that Tesla shareholders should make their own decisions. Tesla stated that if CEO Musk's $56 billion compensation plan is not approved, Tesla will not be able to create the current market cap, and Musk will not have the motivation to make Tesla a leading company in the field of autonomous driving.

Tesla also urged shareholders to think critically about ISS' comments and called on shareholders to approve Musk's compensation plan so that Tesla can continue to fulfill its mission.

In addition, Tesla officially released its "Impact Report 2023", which stated that Tesla produced and delivered more than 1.8 million electric vehicles worldwide and reduced carbon dioxide emissions by more than 20 million tons in 2023, with 94% of waste from the Shanghai Gigafactory recycled. In terms of vehicle safety, Tesla stated that its products have a fire risk of only one-eighth of that of gasoline vehicles, and 99% of Tesla recalls can be completed through OTA updates. As of press time, the stock is up over 2%.

$Microsoft (MSFT.US)$Announced on Monday that it will invest SEK 33.7 billion ($3.2 billion) in expanding its cloud computing and AI infrastructure in Sweden in two years. The company also promised to help train about 250,000 Swedish AI professionals, or about 2.4% of the country's population, to help boost its competitiveness.

The increasing popularity of generative AI is driving demand for cloud services and prompting companies like Microsoft and Amazon to invest billions in data centers in Europe. Microsoft invested in data centers in the UK in November last year and in Germany and Spain in February this year. As of press time, Microsoft is fluctuating and is up 0.12%.

$Alphabet-A (GOOGL.US)$Announced on Monday that the expansion of its data centers and cloud facilities in Singapore has been completed, which means that the company has invested $5 billion in technology infrastructure in the country. The company said it has employed more than 500 staff in its Singapore data center, responsible for services such as Google Search and Maps. Last week, Google announced plans to invest $2 billion to develop its first data center in Malaysia.

In addition, Google Cloud announced on Monday that it is expanding its partnership with US cloud financial and human capital management software company Workday, and through the partnership, Workday will use the Gemini model and Vertex AI to enable AI functionality in Workday Extend, helping customers optimize business performance and accelerate transaction and settlement processes. As of press time, the stock is up over 1%.

$GlaxoSmithKline (GSK.US)$The company's stock price plummeted after an important ruling by a judge in Delaware allowed over 70,000 lawsuits against GlaxoSmithKline and its heartburn drug Zantac to continue, alleging that the drug may cause cancer. As of press time, the stock is down nearly 7%.

According to reports, Japanese officials stated on Monday that a total of 85 automotive manufacturers, including Daihatsu Industries, have been instructed by the Japanese Ministry of Land, Infrastructure, Transport, and Tourism to investigate whether there have been any violations during the certification process for mass-produced cars and engines.

As of the end of May, Toyota Motor, Mazda, Yamaha Motor, Honda Motor, and Suzuki, all five companies, have engaged in misconduct, including falsifying vehicle performance testing. The Japanese Ministry of Land, Infrastructure, Transport, and Tourism will investigate these five companies under the Road Transport Vehicle Act.

$GameStop (GME.US)$The stock price soared after well-known individual investor "Roaring Kitty" Keith Gill posted a position worth $116 million on his Reddit account, sparking speculation about the return of the meme stock craze. As of press time, the stock is up over 43%.

$Bilibili (BILI.US)$UBS Group has upgraded its rating to "buy" and raised its earnings forecast per share. As of the time of publication, the stock has risen nearly 3%.

$Li Auto (LI.US)$More than 35,000 vehicles were delivered in May, with L6 cumulative deliveries exceeding 15,000. As of the time of publication, the stock has risen over 2%.

Editor/ruby