Mixed signals in US-Iran talks; Fed warns of rising inflation; SpaceX IPO sparks market concerns.

US Military Strikes Iranian Military Facility

According to Reuters, the US military has conducted a new strike on an Iranian military facility, intercepting and shooting down several drones. This facility and the drones were reportedly a threat to US forces and commercial shipping in the Strait of Hormuz. Earlier reports from Iranian media indicated explosions near the port of Abbas around 1:30 AM local time.

Trump on Strait of Hormuz Control

President Trump stated that the Strait of Hormuz will remain open to all and will not be controlled by any nation, regardless of agreements with Iran. He emphasized that the US will oversee the strait but did not specify how safety for vessels would be ensured. His comments raised doubts about the potential for immediate breakthroughs in US-Iran negotiations.

Federal Reserve Officials on Inflation and Interest Rates

Cook's Remarks

Federal Reserve Governor Lisa Cook expressed concerns about rising inflation, indicating readiness to raise interest rates if inflation persists. While she currently favors maintaining borrowing costs, her comments align with other Fed officials who view accelerating inflation as a significant policy concern.

Jefferson's Warning

Fed Vice Chair Philip Jefferson warned that rising energy prices could pose inflation risks, although he expects inflation to cool later this year as the impact of tariffs and energy costs diminishes.

Upcoming Major IPOs and Market Reactions

Wall Street funds are preparing for significant IPOs, including SpaceX and OpenAI, by reserving cash and potentially reducing holdings in large-cap stocks. Goldman Sachs noted that passive funds may need to sell existing stocks to accommodate new listings.

Changxin Technology's IPO Approval

Changxin Technology, a leading domestic DRAM chip manufacturer, has received approval for its IPO on the Shanghai Stock Exchange. The backing from major state-owned banks and insurance companies highlights the financial resources flowing into strategic emerging industries.

Market Performance Overview

The US stock market saw slight gains, with the S&P 500 up 0.02% and the Nasdaq up 0.07%. Micron Technology's market cap surpassed Berkshire Hathaway's, marking a significant milestone.

Notable Stock Movements

• Micron Technology (MU): Continued to rise, gaining over 3%.
• NVIDIA (NVDA): Fell by 1.05%.
• Apple (AAPL): Increased by 0.82%.
• Meta Platforms (META): Rose over 4% after launching a subscription service for its AI chatbot.

HP's Profit Forecast and Market Challenges

HP has lowered its profit forecast due to rising memory chip prices, indicating ongoing challenges in the PC market. Analysts suggest that early sales may impact Q4 growth.

Salesforce's Earnings Guidance

Salesforce reported Q1 revenue exceeding expectations but provided lower-than-expected guidance for Q2 and annual revenue, leading to a drop in its stock price.

Hong Kong Stock Market Activity

On May 27, net selling in Hong Kong stocks reached HKD 7.717 billion, with notable movements in stocks like SMIC and Alibaba.

Key Economic Data Releases

Upcoming economic data includes the US April core PCE price index and initial jobless claims for the week ending May 23.