Breakfast | NVIDIA leads multiple technology blue chips to new highs, launching a price war in the mainland's large-scale model application market

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Overnight Morning Market

Federal Reserve officials once again hinted at a wait-and-see stance, believing that interest rate cuts should be considered only after ensuring that inflation falls to the target level. The three major U.S. stock indexes all closed higher, with the Nasdaq and S&P 500 both hitting new closing highs.

Nvidia rose more than 0.6%, rising for two consecutive days and hitting a new closing high with a total market value of $2.35 trillion. Tesla rose by 6.66%, with a market value of $595.1 billion.

Microsoft rose for two consecutive days, hitting a new closing high; Alphabet rose for seven consecutive days, setting new closing record highs for five days; Apple rose for seven consecutive days, while Netflix rose for three days and continued to hit new closing highs; Amazon fell for two consecutive days, while Meta fell for four days.

Retail investor favorite stocks fell, with Faraday Future dropping over 24%, GameStop (GME) falling by 4.6%, and AMC Theatres dropping by 3.7%; BlackBerry (BB) fell by 2%, and Koss fell by nearly 0.8%.

Overall, popular Chinese concept stocks continued to decline. XPeng Motors initially rose by over 26.4% and closed up nearly 6%. Nio rose by nearly 0.6%, Li Auto fell by nearly 3.5%, and ZEEKR fell by nearly 0.3%. NetEase fell by 5.6%, JD.com fell by over 4%, Bilibili fell by 3.5%, Baidu fell by over 3%, Alibaba and Tencent fell by over 2%, and Pinduoduo fell by 0.9%.

Blue Chips and Hot Stocks

Douyin, Kuaishou, and WeChat have released detailed regulations for short micro-dramas: they must obtain a filing number before they can be broadcast.

TikTok to Lay Off Employees This Week

TikTok plans to dissolve its global user operations department, with layoffs affecting a significant portion of the 1,000 employees in that department, while the remaining employees will be reassigned to other teams.

JD.com announced plans to issue $1.5 billion in convertible bonds.

In Q1 2024, XPeng Motors achieved revenue of RMB 6.55 billion, compared to RMB 4.03 billion in the same period last year, with a gross profit margin increasing to 12.9%. It is expected that revenue in the second quarter will be between RMB 7.5 billion and RMB 8.3 billion.

XPeng Motors: In the fourth quarter, it will deliver a brand-new B-class pure electric sedan, and the company is confident that there will be a significant year-on-year increase in monthly deliveries in the fourth quarter of this year. XPeng's strategy will no longer focus solely on sales growth as before, but will pursue high quality and efficiency, comprehensively enhance the company's competitiveness, make the company's strengths longer and weaknesses non-existent, and build XPeng Motors into a "polygon warrior" in order to achieve greater scale and profit in the long run.

Chips and Artificial Intelligence

Amazon Web Services Halts Nvidia Hopper Chip Orders, Awaits New Blackwell Chip

According to Nvidia CEO Jensen Huang, the new product's ability in training large language models will be twice that of the current one. Amazon stated that considering the short time between the launch of these two chips, this move is "reasonable and sensible."

The world's first comprehensive regulation on artificial intelligence (AI) is about to take effect, as the European Council officially approved the EU's "Artificial Intelligence Act."

ByteDance, Alibaba Cloud, and Baidu are competing to lower prices, sparking a price war in the mainland's large model application market. Tongyi Qianwen's GPT-4 level main model has been reduced by 97%, allowing the purchase of 2 million tokens for 1 yuan News: Samsung's semiconductor foundry department has made "winning Nvidia's 3nm product order" its top priority for this year.

Kimi's April traffic surpassed Wenxin's, with the company's latest round of financing attracting Tencent, Gaorong Capital, and others, with a valuation offer reaching up to $3 billion.

Cryptocurrency

According to CoinDesk: The Chicago Board Options Exchange (CBOE) has released a revised spot Ethereum ETF filing.

VanEck's spot Ethereum ETF has been added to the list on the Depository Trust & Clearing Corporation website in the United States.

Sources: The U.S. Securities and Exchange Commission (SEC) has requested Nasdaq and the Chicago Board Options Exchange to amend their spot Ethereum ETF applications on Monday, indicating that regulatory agencies may be prepared to approve these applications.

Market News: The Trump campaign team is now accepting cryptocurrency donations.

Macro: Taking You Around the World

Fed's Waller: If data supports it, may consider cutting interest rates by the end of the year, no need to raise rates now. The possibility of inflation accelerating can be ruled out.

Fed's Bostic reiterates the need to maintain high interest rates for a longer period.

Fed's Bostic: To ensure that inflation does not rebound, no rate cuts are expected before Q4.

Morgan Stanley Analyst: Investors Still Holding Cash, U.S. Stocks Have Room to Rise

Despite U.S. stocks hitting historic highs, investors are still holding onto cash, indicating that there is still enough room for the market to expand upwards. In this cycle, the market is still in the "fear" stage, a sign of the early stages of a bull market. The ample cash waiting to be deployed is a catalyst for further gains, as if the stock market continues to rise, the "fear of missing out" could be strong.

ECB President Lagarde hints at a rate cut in June