Breakfast | US restricts Nvidia and AMD from selling AI chips to the Middle East, major accidents occur in the US stock market indices
US stocks collectively fell, with the Dow falling for three consecutive days. The Dow and S&P 500 were temporarily suspended. Faraday Future rose by 27%, Logistic Properties surged by 480%, and Summit Therapeutics surged by 272%. Dell plummeted by 20% after hours. Musk denied the possibility of serving as an advisor to Trump. Apple plans to make comprehensive improvements to Siri, or may be absent from the first version of iOS18. Kuaishou launched its self-developed Wenshengtu large model "Ketu", with a parameter scale of billions. JD's JD Production Development, under JD, has temporarily postponed its listing plan in Hong Kong
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Overnight Market Update
Data released on Thursday showed a significant slowdown in the US economy growth compared to the end of last year, with weak consumer spending: the revised annualized quarter-on-quarter GDP growth rate for the first quarter in the US was 1.3%, a sharp slowdown from 3.4% in the fourth quarter of last year. The main engine of economic growth, Personal Consumption Expenditures (PCE), slowed down more than expected to 2.0% in the first quarter, with the PCE price index growing by 3.6%, slightly lower than the previous value and the expected 3.7%.
The three major US stock indexes fell collectively for two consecutive days, with the Dow falling for three consecutive days.
Nvidia fell by about 3.8%, Micron Technology fell by 4%. Microsoft dropped by 3.4%, Alphabet by nearly 2.2%, Meta by over 1.5%, Amazon by nearly 1.5%, Apple rose by 0.5%, rising for four consecutive days. Salesforce fell by 20%, marking its worst single-day performance since 2004.
Logistic Properties surged by 480%, Summit Therapeutics surged by 272%, with both stocks triggering circuit breakers during trading. GME rose by 6.42%, Faraday Future rose by 27%, AMC fell by over 5%.
Popular Chinese concept stocks rebounded overall. Nio rose by over 9.6%, XPeng rose by 5.5%, ZEEKR rose by 4.8%, Li Auto rose by 2.9%.
Baozun's US stock fell by over 6% after hours, and Alibaba cleared its shares. Dell's US stock extended its decline to 20% after hours. Trump Media & Technology Group (DJT.O) fell by 13% after hours, with reports stating that Trump was found guilty in the hush money trial.
Blue Chips and Hot Stocks
Nvidia and the other five tech giants account for 30% of the S&P 500 index
Among the constituents of the S&P 500 index, the top six US companies account for 30%, a historical first, compared to around 26% at the beginning of 2024. In the S&P 500 index, the weight of constituents is calculated based on market capitalization.
Apple's upgraded Siri may be absent from the first version of iOS 18
Apple is set to unveil iOS 18 at the WWDC keynote on June 11, with the system reportedly featuring multiple AI-driven functions. Renowned tech journalist Mark Gurman suggests that the upgraded Siri is not expected to be introduced in the first official version of iOS 18 to be released in September, with the related features anticipated to be officially launched in the 2025 iOS 18.1/18.2 versions.
Market News: Apple plans a comprehensive overhaul of Siri to enhance user control over applications. Apple's improvements to Siri will be a core aspect of its re-entry into the field of artificial intelligence.
Media: Google invests $2 billion in Malaysia.
Xiaomi: Xiaomi's automotive division has never had any plans or actions to acquire or take control of Evergrande Auto.
Kuaishou launches its self-developed WenShengTu large model "KeTu," with a parameter scale reaching the billion level, currently supporting two types of functions: WenShengTu and TuShengTu, which can be used for AI image creation and AI image customization Cainiao Express enters the fresh food market: currently the fresh food business is at breakeven, and the pace and scale of market investment will increase in the second half of the year.
JD.com's subsidiary JD Production and Development has temporarily postponed its listing plan in Hong Kong.
Chips and Artificial Intelligence
Media: US restricts NVIDIA and AMD from selling AI chips to the Middle East
US officials have slowed down the issuance of licenses to chip manufacturers such as NVIDIA and AMD to export large quantities of AI accelerators to the Middle East. At the same time, officials are conducting a national security assessment of AI development in that region.
According to Forbes: OpenAI will revive its previously abandoned robotics team.
US senior officials: Antitrust scrutiny on AI content transactions.
Cryptocurrency
Robinhood will introduce a cryptocurrency trading API, allowing customers in the US to view cryptocurrency market data, manage portfolios, and place cryptocurrency orders programmatically using the API.
Sources cited by the media indicate that discussions between Trump and Musk have heated up, with Musk offering suggestions to Trump on cryptocurrency issues, and Trump's campaign team discussing inviting Musk to the Republican National Convention.
Musk denies the possibility of serving as an advisor to Trump and denies discussing cryptocurrency with him.
Startups and IPO Opportunities
Market news: Fidelity Investments increased the value of its stake in "X," a social media platform under Musk, by 4.4% in April. As of April 30, Fidelity valued its stake in X company at $5.51 million.
Market news: Elon Musk has agreed to cooperate with the US Securities and Exchange Commission (SEC) in an investigation and testimony related to the acquisition of Twitter stock.
Macro: A Look at the World
S&P Dow Jones Indices reports connectivity issues, leading to a temporary halt in quoting the two major US stock indices
S&P Dow Jones Indices reported that there were some delays in files as they attempted to resolve the EDX (SFTP) connectivity issue. Earlier real-time index issues have been resolved, and values are being published normally.
US major market index calculations experience issues, but trading remains stable
On Thursday, data input issues affected the calculation of major US market average indices, leading to a halt in the calculation of the S&P 500 and Dow Jones Industrial Average indices. The calculation of these two indices by the CME Group was at least impacted. The last calculation of the Dow Jones and S&P 500 indices appears to have occurred at 10:41 am Eastern Time. However, the data input issues may not necessarily affect trading, as currently the futures markets for the S&P 500 and Dow Jones indices seem to be operating normally, and individual stock prices have not been affected.
The revised annualized seasonally adjusted real GDP for the US in the first quarter recorded 1.3%, marking a new low since the first quarter of 2023.
Boston Fed's Rosengren: Does not believe there will be a rate cut in July, remains open if data supports it, will consider a rate cut if suitable in September. Monetary policy is currently restrictive, and next year's inflation is expected to approach 2% Fed's Powell: It's premature to consider rate cuts now.
Official from the People's Bank of China told Financial Times: Deposits continue to "flow" into the financial markets, May M2 and other data may be affected