US House limits military action against Iran; SpaceX sets IPO price; Duan Yongping increases stake in Pop Mart; Quantinuum goes public.

U.S. House Passes Resolution to Limit Trump's Military Authority Against Iran

On June 3, the U.S. House of Representatives passed a resolution aimed at restricting President Trump's military authority regarding Iran, urging him to cease military actions against the country.

Progress in U.S.-Iran Negotiations

President Trump stated that negotiations with Iran are progressing well, with a new round of talks potentially occurring this weekend. He emphasized that if an agreement is signed, it would mean Iran commits to never developing or acquiring nuclear weapons.

Concerns Over U.S. Troops

According to the Wall Street Journal, U.S. officials revealed that Trump privately informed his aides he would consider ending the ceasefire with Iran if American soldiers were killed. Despite recent conflicts, airstrikes have remained paused for several weeks.

Federal Reserve Beige Book: Inflation Pressures and Consumer Confidence

The Federal Reserve's Beige Book indicated that 10 out of 12 districts experienced "slight to moderate" economic growth. Rising energy costs are the primary source of inflationary pressure, affecting various sectors including shipping and groceries.

Employment Stability

Most districts reported low hiring and layoffs, with strong recruitment in manufacturing.

Interest Rate Outlook

New York Fed President John Williams stated that there is currently no need to raise or lower interest rates, as monetary policy is appropriately positioned. He expressed that rising energy prices are a "one-time effect" and does not foresee significant increases in energy prices through 2027.

Industry Concerns Over AI and Chip Supply Crisis

On Wednesday, nine U.S. trade associations sent a letter to the Trump administration warning that the shortage of memory chips is threatening supply chain stability and could raise consumer prices. They urged collaboration with chip manufacturers to expand capacity.

U.S. Services PMI Surges in May

The ISM services index rose to a three-month high of 54.5 in May, surpassing expectations. New orders and business activity indicators increased, indicating resilient consumer demand.

Market Reactions to Middle East Tensions

On Wednesday, U.S. stock indices fell from historical highs due to rising tensions in the Middle East and inflation concerns. The Dow Jones dropped 1.21%, the Nasdaq fell 0.89%, and the S&P 500 decreased by 0.74%.

Notable Stock Movements

• Major tech stocks mostly declined, with Microsoft down 3.17% and Nvidia down 3.62%.
• Storage stocks, however, saw gains, with SanDisk rising over 6%.

Broadcom Reports Strong Earnings but AI Revenue Guidance Falls Short

Broadcom's revenue exceeded expectations, growing 48% year-over-year, but its AI revenue guidance disappointed investors, leading to a post-market drop of over 13%.

SpaceX Plans IPO with $135 Share Price

SpaceX plans to issue approximately 555.6 million shares at $135 each, aiming for a market valuation of nearly $1.77 trillion. The IPO is expected to begin on June 11.

Apple Adjusts Vision Pro Glasses Development

Analyst Ming-Chi Kuo reported that Apple has scaled back its roadmap for smart glasses, with only two products remaining visible in the development pipeline.

Nvidia Drives Nanowire Semiconductor Stock Surge

Nanowire Semiconductor's stock rose 19.26% on Wednesday, driven by expectations of AI power supply innovations.

Alphabet Raises $84.75 Billion in Equity Financing

Alphabet completed an equity financing round of $84.75 billion, exceeding expectations and marking a significant move towards supporting AI infrastructure.

Meta's New AI Product Pricing

Meta is considering a monthly subscription fee of up to $200 for its new AI tool, Hatch, which will compete directly with other AI companies.

Hong Kong Stock Market Activity

On June 3, southbound funds net bought HK stocks worth approximately HKD 18.68 billion, with significant purchases in SMIC and notable sales in Lenovo Group.

Conclusion

Key economic data, including U.S. jobless claims and retail sales in the Eurozone, are expected to be released soon, providing further insights into market conditions.