US Stock Market Outlook: Trump’s China Visit Boosts Optimism; Major Indices Rise.

US Stock Futures Rise Ahead of Market Open

As of the latest update, US stock futures are collectively up, with the Dow futures rising by 0.70%, Nasdaq futures by 0.20%, and S&P 500 futures by 0.26%.

Pre-Market Movements in Tech Stocks

Star tech stocks are showing mixed results in pre-market trading. Cisco (CSCO) has surged over 15%, while Qualcomm (QCOM) has dropped more than 3%.

Semiconductor Sector Performance

The semiconductor sector is also experiencing varied movements. POET Technologies (POET) has increased by over 24%, while Marvell Technology (MRVL) is up more than 3%. Conversely, Arm Holdings (ARM) has seen a decline of over 4%.

Chinese Stocks in Focus

Among popular Chinese stocks, UMC has risen over 3%, while Alibaba (BABA) and Xpeng Motors (XPEV) have both dropped more than 3%.

Ondas Reports Strong Earnings

Drone company Ondas (ONDS) has reported earnings that exceeded expectations, leading to a pre-market increase of over 13%. The company’s Q1 revenue reached $50.1 million, marking a year-on-year growth of over tenfold.

Nvidia Receives Approval for Chip Sales to China

Nvidia (NVDA) has received US government approval to sell H200 AI chips to approximately ten Chinese companies, surpassing market expectations regarding the uncertainty of this licensing process.

Microsoft Plans to Diversify AI Investments

Microsoft is evaluating the acquisition of several AI startups to diversify its AI business and reduce reliance on OpenAI. The company has already invested over $100 billion in projects with OpenAI.

Tesla CEO Elon Musk Visits China

Elon Musk has arrived in China for a work visit, where he is expected to discuss Tesla's business development and energy projects in the region.

Honda Reports First Annual Loss

Honda (HMC) has reported its first annual loss due to significant asset write-downs related to electric vehicles. However, the company expects a rebound in operating profit for the current fiscal year, with sales projected to grow by 0.5%.

Upcoming US Retail Sales Data

The US is set to release April retail sales data, with expectations of a 0.5% month-on-month increase. This data could influence the Federal Reserve's stance on maintaining high interest rates.

Morgan Stanley Raises S&P 500 Target

Morgan Stanley has raised its 12-month target for the S&P 500 to 8,300, citing potential for earnings growth driven by the AI industry, even without interest rate cuts.

New Fed Chair Kevin Walsh Takes Office

Kevin Walsh has officially taken over as the new Federal Reserve Chair, with market attention focused on his policy direction amid persistent inflation.

Bank of America Upgrades AI Infrastructure Market Forecast

Bank of America has upgraded its forecast for the AI infrastructure market, predicting it will reach $1.7 trillion by 2030, significantly exceeding previous expectations.

Key Economic Data to Watch

• 20:30: US April Retail Sales Month-on-Month
• 20:30: US April Core Retail Sales Month-on-Month
• 20:30: Initial Jobless Claims for the week ending May 9

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