On Friday Eastern Time, the three major US stock indexes fell slightly. As of the close, the Dow Jones Industrial Average fell 0.22%, the Nasdaq fell 0.23%, and the S&P 500 index fell 0.11%. In terms of data, the US non farm payroll data for May far exceeded expectations. Currently, Citigroup's forecast for the first rate cut by the Federal Reserve has been changed from July to September, while JPMorgan Chase has pushed back its expectation for the first rate cut from July to November.
In terms of sectors, gold stocks generally fell, with AngloGold and Hekla Mining falling more than 7%, and Cordellan Mining falling more than 9%.
Most large technology stocks fell, with Google and Netflix falling more than 1%, while Tesla, Nvidia, Microsoft, Amazon, and Meta saw a slight increase; Intel and Apple rose more than 1%. Game Station plummeted by over 39%, marking the largest decline in three years. The company's Q1 revenue was 882 million US dollars, lower than the same period last year's 1.237 billion US dollars and lower than the estimated 995.5 million US dollars. Waystar Holding Corp. (WAY), an automated payment cloud software company for healthcare, experienced a breakout on its first day of listing, falling more than 3%.
In terms of commodities, with the release of non-agricultural data, market expectations for interest rate cuts have decreased, and both gold and silver futures and spot prices have plummeted. As of the close, gold futures have fallen more than 3%, approaching the $2300/ounce mark, silver futures have fallen more than 6%, falling below the $30/ounce mark, and the US dollar index has significantly risen.
Global News
Burst table! Non farm payroll in the United States in May is nearly 50% higher than expected. The Federal Reserve's interest rate cut this year adds to the variables
Before the US stock market closed on Friday (June 7th), the employment situation report released by the US Bureau of Labor Statistics showed that non farm payroll in May was significantly stronger than market expectations, and the unemployment rate broke through 4% after two years. Specific data shows that the non farm employment population in the United States increased by 272000 people after the May quarterly adjustment, significantly higher than the market expectation of 185000 people.
The election year storm swept through this week: Be careful of the next black swan flying out on the weekend!
On Monday morning, when one of the world's most profitable foreign exchange trades, the long "super peso", collapsed due to the unexpected outcome of the Mexican election, few people realized what this meant; It wasn't until 20 hours later that Indian investors began to sell their stocks frantically, causing the local stock market to evaporate by $386 billion in a day, that people truly felt that an unprecedented election year "storm" was beginning to ravage.
Xiaomo and Citigroup insist on the "first drop in July": the key to success or failure lies in the non-agricultural employment report!
According to reports, JPMorgan Chase and Citigroup are one of the few Wall Street giants that still expect the Federal Reserve to cut interest rates in July. At the beginning of this year, it was widely predicted that the Federal Reserve would cut interest rates at least six times, but the process of reducing inflation was stalled, the labor market situation remained strong, and the market had to gradually compromise. Most major Wall Street firms abandoned their expectation of the Federal Reserve cutting interest rates before September a few weeks or even months ago.
The European Central Bank cuts interest rates! For the first time in five years! The latest interpretation is here
Professor Su Jian from the School of Economics at Peking University: On the one hand, the current unemployment rate in the Eurozone is relatively low, and the inflation rate is already below 3%. Its (Eurozone) problem lies in the relatively low economic growth rate, such as only 0.3% in the previous quarter and 0% in the previous quarter. At this point, the European Central Bank has a certain amount of room for interest rate cuts to focus more on promoting economic growth. Analysis suggests that interest rate cuts will create more financing opportunities for European economic growth, and the profitability prospects of enterprises will also improve, which is beneficial for European stock markets, especially small and medium-sized stocks.
Xiaomo: The decline in international oil prices is only temporary, and they will rise again in the coming months
JPMorgan analysts believe that the recent decline in international oil prices is only temporary, and in the coming months, as demand increases, oil prices will rise again. At last Sunday's ministerial meeting, OPEC+slightly loosened its original production reduction policy and agreed to gradually lift some production reduction measures starting from October. This decision exceeded market expectations and led to a cumulative drop of nearly 5% in international oil prices on Monday and Tuesday. The market previously expected that the OPEC+production reduction agreement would continue until the fourth quarter of this year.
Company News
US regulatory authorities will launch anti-monopoly investigations against Nvidia and others. Yellen issues an AI "major risk" warning
On June 6th local time, it was reported that the Federal Trade Commission (FTC) and the Department of Justice will conduct antitrust investigations against Microsoft, OpenAI, and Nvidia to examine their influence in the artificial intelligence industry. A person familiar with the situation confirmed this with CNBC. The FTC will lead the investigation into Microsoft and OpenAI, while the Department of Justice will focus on Nvidia, and the investigation will focus on the company's behavior rather than merger and acquisition activities, according to sources.
There are always those who don't believe in evil and want to give it a try! Nvidia's short positions are comparable to the sum of Apple and Tesla
At least some investors are betting that Nvidia will "fall back" to the ground as it is on the verge of hitting the "world stock king". According to a report released by S3 Partners on Thursday, the size of open short bets on Nvidia has reached approximately $34 billion, almost equivalent to the sum of Apple and Tesla, which are ranked second in short positions.
Reached an energy storage supply agreement with BYD? Tesla refutes rumors
Recently, it has been reported that BYD's subsidiary, Ford Battery, has reached a supply agreement with Tesla for the Shanghai Energy Storage Super Factory, with plans to supply energy storage cells to Tesla in the first quarter of 2025. "BYD's supply to Shanghai Energy Storage Super Factory is fake news," Tesla China officials responded to Shanghai Securities News on June 7th.
Horizontal Review of First Quarter Report: NIO and Ideal Bike Revenue Decline under "Price War", Xiaopeng Seeks New Profit Points by Selling Technology
On the evening of June 6th, NIO Automobile released its Q1 2024 financial report, and thus all three new car making forces, NIO Xiaoli, have released their Q1 reports. Driven by multiple rounds of price wars, NIO Xiaoli's performance has been under pressure, with varying degrees of month on month decline in revenue and delivery volume in the first quarter. For new car making forces that have not yet achieved sustained profitability, it is necessary to strike a balance between profit and sales. From the development plans announced by each party, "Weixiaoli" is also actively adjusting its strategy and seeking new profit points.
Heavyweight! The fourth test flight of the Starship has been successful! Musk: A tremendous achievement
At around 20:50 Beijing time on June 6, 2024, the SpaceX spacecraft conducted its fourth orbital level flight test, with the launch site still located at the Boca Chica Starship Base on the Gulf of Mexico in Texas, USA. Shortly after launch, the booster rocket successfully landed on the sea surface as planned. The starship flew for about an hour, but when it entered the atmosphere, the insulation tiles fell off and the wing surface was burned through. However, in the end, it persisted until landing on the sea surface, completing all the established tasks and goals.