Overnight U.S. Stocks | Three Major Indices Rise, NVIDIA Up Nearly 3%

According to Zhitong Finance APP, on Tuesday, the three major indices rose. The number of job vacancies in the U.S. unexpectedly increased to 7.4 million in April. The White House issued a statement saying that U.S. President Trump announced an increase in tariffs on imported steel, aluminum, and their derivatives from 25% to 50%, effective from 00:01 Eastern Time on June 4, 2025. The statement noted that tariffs on steel and aluminum imported from the UK will remain at 25%. Starting from July 9, 2025, the U.S. may adjust the applicable tariff rates according to the terms of the Environmental Policy Statement and establish import quotas for steel and aluminum. If the UK is found to be non-compliant with the relevant provisions of the Environmental Policy Statement, the applicable tariff rate may be increased to 50%.

【U.S. Stocks】 As of the close, the Dow Jones Industrial Average rose 214.16 points, an increase of 0.51%, closing at 42,519.64 points; the Nasdaq rose 156.34 points, an increase of 0.81%, closing at 19,398.96 points; the S&P 500 index rose 34.43 points, an increase of 0.58%, closing at 5,970.37 points. NVIDIA (NVDA.US) rose nearly 3%, Coinbase (COIN.US) rose 4.9%, Strategy (MSTR.US) rose 4%, and Google (GOOG.US) fell over 1%. The Nasdaq China Golden Dragon Index rose 0.56%, Li Auto (LI.US) rose 6%, and iQIYI (IQ.US) rose 3%.

【European Stocks】 The German DAX 30 index rose 140.58 points, an increase of 0.59%, closing at 24,086.96 points; the UK FTSE 100 index rose 7.76 points, an increase of 0.09%, closing at 8,782.02 points; the French CAC 40 index rose 26.64 points, an increase of 0.34%, closing at 7,763.84 points; the Euro Stoxx 50 index rose 18.29 points, an increase of 0.34%, closing at 5,373.85 points; the Spanish IBEX 35 index fell 98.43 points, a decrease of 0.69%, closing at 14,119.27 points; the Italian FTSE MIB index rose 70.85 points, an increase of 0.18%, closing at 40,055.00 points.

【Asia-Pacific Stock Markets】 The Nikkei 225 index slightly fell, and the Indonesia Composite Index fell 0.29%.

【Foreign Exchange】 The U.S. Dollar Index, which measures the dollar against six major currencies, rose 0.53% on the day, closing at 99.228. As of the close of the New York foreign exchange market, 1 euro exchanged for 1.1375 U.S. dollars, down from 1.1441 U.S. dollars the previous trading day; 1 pound exchanged for 1.3525 U.S. dollars, down from 1.3540 U.S. dollars the previous trading day. 1 U.S. dollar exchanged for 143.91 Japanese yen, up from 142.82 Japanese yen the previous trading day; 1 U.S. dollar exchanged for 0.8238 Swiss francs, up from 0.8170 Swiss francs the previous trading day; 1 U.S. dollar exchanged for 1.3716 Canadian dollars, up from 1.3712 Canadian dollars the previous trading day; 1 U.S. dollar exchanged for 9.6231 Swedish kronor, up from 9.5267 Swedish kronor the previous trading day.

【Metals】 COMEX gold futures fell 0.58%, closing at 3,377.40 U.S. dollars per ounce [Cryptocurrency] Bitcoin fell 0.29% to $105,580.4; Ethereum fell 0.58% to $2,592.41.

[Crude Oil] The price of light crude oil futures for July delivery on the New York Mercantile Exchange rose by $0.89, closing at $63.41 per barrel, an increase of 1.42%; the price of Brent crude oil futures for August delivery rose by $1.00, closing at $65.63 per barrel, an increase of 1.55%.

[Macroeconomic News]

U.S. April Job Openings Unexpectedly Surge, Supporting Fed's Claim of a Healthy Job Market. Job openings in the U.S. unexpectedly increased in April, with a significant rise in hiring, indicating that despite heightened economic uncertainty, demand for workers remains strong. Data released by the U.S. Bureau of Labor Statistics on Tuesday showed that job vacancies rose from a revised 7.2 million in March to 7.39 million, exceeding the expected 7.1 million. The increase in job openings was driven by private sectors such as professional and business services, healthcare, and social assistance. Although state and local education led to a decrease in total government job vacancies, federal job vacancies increased. The rise in job openings, along with stable hiring and low unemployment rates, supports the Fed's claim of a healthy job market. However, unemployed individuals are expected to take longer to find jobs, and economists anticipate that the labor market will show more signs of weakness in the coming months under the heavy pressure of tariffs imposed by President Trump.

U.S. April Factory Orders Decline After Significant Increase in March Due to Tariff Hike Expectations. Factory orders in the U.S. fell more than expected in April, following a significant increase in March as buyers accelerated purchases in anticipation of tariff hikes. New orders in April dropped from $617.4 billion in March to $594.6 billion, a decrease of 3.7%. Economists surveyed by The Wall Street Journal had expected orders to decline by 3.3%. In March, factory orders increased by 3.4% as buyers ramped up purchases in anticipation of new tariffs. The value of unfilled orders in April remained roughly flat at $1.409 trillion. Inventories grew for the seventh consecutive month, reaching $586.8 billion.

White House Confirms Letter Urging Trade Negotiation Partners to Submit Proposals. On June 3rd local time, the White House press secretary confirmed the authenticity of the letter regarding the trade negotiation deadline. She stated that the U.S. Trade Representative's Office sent the letter to trade partners merely to remind these countries that the deadline is approaching, and President Trump looks forward to reaching a good agreement. According to a previous report by Reuters, with only five weeks remaining until the deadline for reciprocal tariff restoration, the Trump administration sent an urgent letter requesting countries to submit their best proposals for trade negotiations by Wednesday. A draft letter obtained by Reuters from the U.S. Trade Representative's Office shows that the U.S. government is pressuring negotiating partners to provide their best proposals in key areas, including tariffs and quotas for purchasing U.S. agricultural and industrial products.

Goldman Sachs: Demand for Dollar Financing Against Euro Weakens. Goldman Sachs stated that a key indicator measuring global currency demand shows that investors' preference for euro financing is rising. Goldman Sachs analysts Simon Freycenet and Friedrich Schaper wrote in a report: "For most of the history of the eurozone, investors have been paying a premium to obtain dollar financing in the cross-currency basis swap market." Looking ahead, our analysis indicates that the European Central Bank's policies and the savings-investment dynamics across the Atlantic will lead to an increase in basis over time, and the premium on dollar borrowing will turn into a discount. Goldman Sachs believes that factors driving the euro's premium against the dollar include: "The European Central Bank has a long way to go in reducing its balance sheet compared to the Federal Reserve." The long-standing budget deficit in the U.S. relative to Europe's solid net international investment position. Increased foreign exchange hedging of dollar assets (especially U.S. stocks).

Bostic Responds: Why Can't the Federal Reserve Assume That Tariff-Induced Inflation Is a One-Time Impact? In assessing the impact of tariffs on inflation, standard economic models are straightforward: this should be a one-time price increase. However, Federal Reserve's Bostic stated on Tuesday that the uncertainty and rapidly changing policies of the Trump administration's tariffs make the situation more complex and less clear than what textbooks suggest. "The textbook concept of tariffs is... tariffs are only imposed once, and everyone knows what they are." "This is not the environment we have been in for the past few months, so the question is how people will react—accepting a long-term change in tariff policy." Bostic expressed his main concern about how this long-term, gradual shift in tariff policy would affect business and consumer behavior. If businesses and households begin to anticipate ongoing tariff adjustments, it could lead to more persistent inflationary pressures.

【Individual Stock News】

Jefferies Predicts NVIDIA (NVDA.US) Profit Margin Will Soar to 80%. Brokerage Jefferies has listed NVIDIA as a preferred stock and predicts that its profit margin could reach as high as 80% this year. Jefferies analyst Blayne Curtis included NVIDIA in the investment bank's "highest conviction" stock list, noting that the ramp-up in production capacity of the new generation Blackwell chips is a key driving factor. He believes that the surge in demand for Blackwell chips will significantly drive margin expansion. Currently, NVIDIA's gross margin is about 61%, but Jefferies predicts that as the mass production of Blackwell chips accelerates, this figure could jump to 80%. Such a high profit margin is rare in the hardware sector, highlighting NVIDIA's strong pricing power and market position. The firm noted that NVIDIA has moved beyond simple chip sales to become a comprehensive AI infrastructure provider. From hyperscale data centers to hedge funds, customers are scrambling to procure its integrated hardware, software, and systems solutions. With the surge in AI workloads, ongoing software licensing and large-scale deployments are expected to further enhance profitability.

Surging Demand for Artificial Intelligence: Meta to Purchase Nuclear Power from Constellation Energy. Constellation Energy (CEG.US) has agreed to sell electricity from an operating nuclear power plant in Illinois to Meta Platforms (META.US), and this agreement may also allow Constellation to build a new reactor at the plant. According to a statement on Tuesday, Meta and Constellation signed a 20-year contract to purchase power from the Clinton Power Station starting in mid-2027, when state subsidies will expire. This agreement indicates that tech companies are eager to secure energy for operating data centers and artificial intelligence According to the agreement, Constellation Energy will invest to increase the power generation capacity of the Clinton power plant. The company is also considering plans to build another reactor at Clinton, which has already received federal government approval.

Barclays: If Google (GOOG.US, GOOGL.US) is forced to split Chrome, the parent company's stock price could drop by 25%. Barclays analysts stated that if a U.S. judge rules that Google must split its Chrome browser, the parent company Alphabet's stock price could fall by 15% to 25%. Google lost an antitrust lawsuit last August, with Judge Mehta ruling that Google monopolized the search engine market. Last Friday, both parties completed their final statements in the remedy phase of the case. Department of Justice lawyers argued that the judge should force Google to divest the Chrome browser, share search data with competitors, and prohibit Google from entering into exclusive agreements for default search engines on mobile devices and browsers. Barclays analyst Ross Sandler indicated that the likelihood of a Chrome divestiture has increased, and such a split would constitute a "significant blow." Sandler noted that if Chrome is divested, it could not only lead to a 25% drop in stock price but also pose a potential 30% impact on earnings per share.

【Major Ratings】

Truist Securities: Raised the target price for BioNTech (BNTX.US) from $151 to $155, maintaining a "Buy" rating.

Citigroup: Raised the target price for Broadcom (AVGO.US) from $210 to $276