Market indices hit record highs amid ceasefire hopes; Dell and Anthropic excel.

Macro News Summary

US Treasury Secretary on Iran Negotiations

On May 28, US Treasury Secretary Steven Mnuchin stated that negotiations between the US and Iran are ongoing, but President Trump has set clear "red lines" and will not accept a "bad deal." Mnuchin emphasized that all US actions are defensive, but if a peaceful agreement cannot be reached, the US will respond accordingly. Key demands include Iran's surrender of highly enriched uranium and a commitment not to develop nuclear weapons, along with ensuring free navigation in the Strait of Hormuz.

Fed Official on AI and Inflation

Alberto Musalem, President of the St. Louis Federal Reserve, expressed skepticism about relying on AI to reduce inflation. He warned that depending on future productivity growth to address current inflation is risky. Recent data shows the PCE price index rose 3.8% over the past year, reinforcing concerns about inflation exceeding the Fed's 2% target.

EU's Chip Production Revival Plan

The EU is aiming to revitalize its semiconductor industry through a draft plan requiring €120 billion in public-private investment by 2035. The upcoming Chip Act 2.0 will focus on boosting local demand for chip manufacturing, including a €30 billion AI semiconductor fab.

Castle Securities on US-Iran Agreement Likelihood

Castle Securities indicated that investors may be underestimating the likelihood of a timely agreement to reopen the Strait of Hormuz, which could lead to a market rebound. If the Strait is fully reopened by the end of July, they predict a drop in US 10-year Treasury yields and a rise in the S&P 500.

CBOE Extends Options Trading Hours

The Chicago Board Options Exchange (CBOE) has received SEC approval to extend trading hours for certain high-liquidity stocks starting July 13, 2026. This will include around 20 stocks, primarily major tech companies.

Iran's Stance on Memorandum

As of May 28, Iranian representatives stated that no memorandum of understanding has been agreed upon, and Iran has not made any commitments regarding nuclear issues during negotiations with the US.

Goldman Sachs on Global Oil Inventory

Goldman Sachs reported that global oil inventories may fall below the equivalent of 100 days of demand by the end of May, with current supply losses exceeding 10 million barrels per day due to limited passage through the Strait of Hormuz.

CME Group Adjusts Futures Margin Requirements

The CME Group announced a reduction in margin requirements for gold and silver futures contracts following a routine market volatility review. The changes will take effect after Friday's close.

US Stock Market Performance

US stock indices closed higher, with the Dow Jones up 0.05%, S&P 500 up 0.58%, and Nasdaq up 0.91%. The SaaS sector led gains, with Snowflake surging over 36%.

Notable Earnings Reports

• Costco reported Q3 revenue of $70.53 billion, exceeding expectations.
• MongoDB posted Q1 revenue of $688 million, a 25% year-over-year increase.
• Dell Technologies saw Q1 revenue rise 88% to $43.8 billion.

Investment Trends

Recent data shows significant net buying in Hong Kong stocks, with notable inflows into SMIC and Pop Mart, while Alibaba and Xiaomi faced net selling.

Li Auto and XPeng Earnings

Li Auto reported Q1 revenue of 23 billion yuan, while XPeng's revenue was 13 billion yuan, with both companies facing challenges but maintaining optimistic delivery guidance for Q2.

Upcoming Economic Data

Key economic indicators, including Japan's April unemployment rate and the US May Chicago PMI, are set to be released soon.