- Global stock markets continue their upward trend driven by the AI boom, with the S&P 500 index setting its longest rally in over a year, followed by a slight 0.1% pullback in U.S. stock futures.
- Brent crude futures fell 1.9% to around $93 per barrel, as the market closely watches the marginal changes in U.S.-Iran negotiations over a temporary peace agreement.
- Bitcoin fell below the $70,000 mark to a nearly two-month low, pressured by specific institutional sell-offs and ongoing tensions in the Middle East.
Tech Sector and AI Ecosystem Immediate Developments
At the Taipei International Computer Show, NVIDIA CEO Jensen Huang stated that the company has sufficient supply to support strong growth in CPUs and GPUs, but acknowledged that supply chain constraints remain a potential concern. Pre-market, Hewlett Packard Enterprise saw its stock surge 28% due to a significant increase in demand for servers and networking equipment. Deutsche Bank strategist Jim Reid noted that if the S&P 500 continues to rise this week, it will achieve a 10-week consecutive increase, a historic trend not seen since 1985. Meanwhile, startup giant Anthropic has secretly filed for an IPO with the SEC, ahead of competitor OpenAI, while Google's parent company Alphabet plans to raise $80 billion through equity financing to expand its AI infrastructure.
Energy and Geopolitical Tug-of-War
The commodities market is digesting the latest developments in the Middle East situation. After the Lebanese embassy in the U.S. confirmed that Hezbollah accepted part of the U.S. ceasefire proposal, the previous surge in the oil market has eased. Although U.S. President Donald Trump remains optimistic about reaching a temporary peace agreement with Iran within a week, the high uncertainty in the negotiations poses a risk of bidirectional volatility in oil prices in the short term. ING analysts pointed out that oil trends are currently entirely driven by Iran-related news, with the reopening of the Strait of Hormuz being a key variable.
Forex, Bond Markets, and Macroeconomic Data Reassessment
Macroeconomic data shows that the U.S. manufacturing PMI rose to 54.0 in May, reaching a four-year high, mainly driven by companies placing orders in advance due to price increase expectations triggered by the war. Strong economic data limits the market's room for dovish rate reassessment by the Federal Reserve. In the bond market, the yield on the 100-year U.S. Treasury fell 4.4 basis points to 4.433%, easing recent selling pressure due to inflation concerns. In the forex market, the dollar remained stable overall, with the yen trading around 159.70 against the dollar, as Japan's Finance Minister Katayama Satsuki stated readiness to intervene in the forex market if necessary. Gold prices were guided by the oil market, with New York gold futures rising 1.2% to $4,562.40.
