Breakfast | S&P 500 hits new highs for three consecutive days, short-selling giant Citron announces it will stop shorting GME

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Overnight Morning Market

The Federal Reserve kept interest rates unchanged and released a hawkish dot plot. The Dow fell by 0.09%, the S&P 500 rose by 0.85%, and the Nasdaq rose by 1.53%, with the latter two hitting new closing highs for the third consecutive trading day.

Apple rose by 2.86%, briefly reclaiming the title of the world's largest market cap during trading. Microsoft rose by nearly 2% to a new high. Oracle surged by 13%, marking its best single-day performance since December 2021. NVIDIA rose by 3.6% to a new high, with a market value exceeding $3 trillion, ranking third. NVIDIA's double long ETF surged by about 10% to a new high. Taiwan Semiconductor rose by over 4%, reaching a total market value of $912 billion during trading, surpassing Berkshire Hathaway to become the 7th largest listed company in the U.S. Micron Tech rose by over 4%, hitting a new high.

GameStop (GME.N) fell by 16.5%. AMC dropped by nearly 6%.

Chinese concept stocks showed mixed performance. JD.com rose by 0.5%, Baidu rose by 0.5%, Pinduoduo rose by 2.8%. Alibaba rose by 0.2%, Tencent ADR rose by 0.3%, Bilibili surged by over 3%, Nio fell by 0.3%, Li Auto fell by 0.6%, XPeng fell by 2.7%, ZEEKR fell by 0.8%.

Blue Chips and Hot Stocks

Short-selling firm Citron announced on social platform X that it will no longer short GameStop.

Broadcom (AVGO.O) reported first-quarter revenue of $12.49 billion, compared to $8.733 billion in the same period last year, with the market expecting $120.2 billion. It is expected to generate revenue of around $51 billion in fiscal year 2024, with the market expecting $505.8 billion.

According to Business Insider, Meta is considering reducing the number of vice presidents.

The CEO of the California retirement fund stated that they will vote against Tesla CEO Musk's $56 billion compensation plan.

SpaceX: Postponed tonight's Falcon 9 rocket launch attempt, rescheduled for Friday.

The Wall Street Journal: Musk pursued SpaceX female employees for sexual purposes. A former SpaceX employee sued Musk and the company for sexual harassment.

News revealed that XPeng will collaborate with Didi on a new model to be released in the first half of next year, potentially featuring a new logo and named "想往".

ZEEKR will add 16% more marketing service personnel, aiming to have 520 stores by the end of the year.

Chips and Artificial Intelligence

The Information: OpenAI's annualized revenue is expected to reach $1.6 billion by the end of 2023.

Market news: Apple did not use cash in its deal with OpenAI, instead opting to pay for the use of ChatGPT through distribution.

TSMC responds to price hike rumors: Pricing is strategy-driven rather than opportunistic, and the company continues to work closely with its customers.

Ranked third globally for the first time, according to TrendForce's report, SMIC's first-quarter wafer foundry output value is only behind TSMC and Samsung.

ByteDance personnel respond to "developing AI phone": It is actually a large-model software solution based on smartphones.

Cryptocurrency

Cryptocurrency company Terraform Labs has agreed to pay $4.47 billion in a lawsuit with the U.S. Securities and Exchange Commission (SEC).

Macro: Taking You Around the World

Federal Reserve FOMC Statement and Powell Press Conference Highlights

FOMC Statement:

1. Statement Overview: The Federal Reserve has kept the benchmark interest rate unchanged in the 5.25%-5.50% range for the seventh consecutive time, in line with market expectations.

2. Interest Rate Outlook: The dot plot has reduced the expected rate cuts for this year from 3 times to 1 time, and increased it to 4 times next year; among the 19 officials, 4 believe there should be no rate cuts in 2024, 7 believe there should be 1 rate cut, and 8 believe there should be 2 rate cuts. It is deemed inappropriate to cut rates before having greater confidence in sustainable inflation reaching 2%.

3. Inflation Outlook: The PCE and core PCE expectations for this year and next have been raised, indicating further moderate progress in inflation over the past few months.

4. Economic Outlook: The Federal Reserve has maintained its GDP growth forecasts for 2024-2026. There has been a slight increase in the unemployment rate forecast for next year.

Powell Press Conference:

1. Interest Rate Outlook: Prepared to keep rates unchanged under appropriate circumstances, decisions will be data-dependent. No one sees rate hikes as the baseline expectation. If unexpected weakness in employment occurs, preparations have been made, but it is not yet the stage to announce a date for rate cuts. Reiterated that the dot plot is not a guidance path. Long-term rates are a theoretical concept, current policies are restrictive.

2. Inflation Outlook: Inflation has eased significantly but remains high. There is not yet enough confidence in inflation this year to justify rate cuts. More good data is needed. Officials expect good but not excellent inflation data. The latest CPI data has been preliminarily reflected in this meeting.

3. Economic Outlook: Recent indicators show that economic growth is still expanding at a steady pace. It is widely expected that GDP growth this year will be lower than last year. May employment data may have been somewhat overinterpreted, but still strong. The labor market is moving towards a better balance, the unemployment rate remains low, and the expectation is for the labor market's strength to continue.

Federal Reserve Chairman Powell: Will not jeopardize the job market to lower inflation

The Fed's plan is not to "wait until things start to collapse before trying to fix them." Instead, the Fed will decide how to balance the dual tasks of employment and inflation when formulating monetary policy.

The Hong Kong Monetary Authority has kept the benchmark interest rate unchanged at 5.75%.

JPMorgan: There is a risk to the expectation of the Fed's first rate cut in September, with the baseline forecast still for a cut in November.

"New Bond King" Gundlach: Confidence in a rate cut by the Fed this year has actually decreased.

U.S. May non-seasonally adjusted CPI recorded a 3.3% year-on-year, lower than the market's expected 3.4%, dropping to a 3-month low. U.S. May non-seasonally adjusted core CPI recorded a 3.4% year-on-year, lower than the expected 3.5%, the lowest level since April 2021.

U.S. May CPI data came in below expectations across the board, significantly boosting market bets on a 50 basis point rate cut by the Fed this year, but reduced to 44 basis points after the Fed's decision announcement Japanese media: Bank of Japan considers reducing government bond purchases

IEA Monthly Report: Expects a significant oversupply of oil supply in the next decade

Moscow Exchange halts trading activities in US dollars and euros, following US sanctions.

The EU plans to impose a temporary anti-subsidy tax on imported electric cars from China, with an additional 25% tariff next month. In response, the Chinese Ministry of Commerce stated: closely monitoring developments and will resolutely take all necessary measures to defend the legitimate rights and interests of Chinese enterprises.

The People's Bank of China held a meeting to promote the progress of re-lending for affordable housing: accelerate the destocking of existing commercial housing