US-Iran Tensions Rise; Microsoft Unveils Web IQ at Build Conference; Broadcom Earnings Report Ahead.

Iranian Revolutionary Guard Attacks US Fifth Fleet Headquarters

On June 3, local time, the Iranian Revolutionary Guard announced that the US Fifth Fleet headquarters was attacked by missiles and drones from its aerospace forces. The US Central Command reported on social media that Iran launched attacks across the Middle East on June 2, intercepting several Iranian ballistic missiles and drones. In response, the US military conducted "defensive" airstrikes on Iran's Qeshm Island. Prior reports indicated that communications between the US and Iran had been suspended for several days. Former President Trump stated on Tuesday that dialogue between the US and Iran has been ongoing.

Trump Signs Executive Order on AI Innovation and Security

The White House announced that President Trump signed an executive order to promote advanced artificial intelligence (AI) innovation and security. The US will establish a "confidential benchmarking program" for the AI sector, allowing government access to "frontier models" before their release. The order emphasizes enhancing cybersecurity across government departments and requires the establishment of a cybersecurity information-sharing platform for voluntary cooperation among AI companies and critical infrastructure operators.

Fed Chair Walsh Promises Pragmatic Reforms

Federal Reserve Chair Kevin Walsh, in his inaugural memo to over 20,000 employees, pledged to uphold the Fed's best traditions while also exploring new approaches to advance its mission. Walsh noted that the Fed has deviated from its core mission and aims to repair relationships with colleagues he previously criticized.

Fed's Hamrick Signals Potential Rate Hikes

Fed's Hamrick stated that maintaining current interest rates is reasonable, but if inflation remains high, action may be needed soon, including further rate hikes. The PCE price index rose 3.8% year-over-year in April, significantly above the 2% target, indicating widespread inflationary pressures.

US Job Openings Hit Two-Year High

The US Bureau of Labor Statistics reported that job openings surged to 7.62 million in April, exceeding economists' expectations of 6.87 million. This data, alongside a decrease in layoffs, suggests a stable labor market despite rising energy costs due to the Iran conflict.

ECB Report: Gold Surpasses US Treasuries

According to a recent ECB report, gold has historically surpassed US Treasuries, becoming the world's largest reserve asset. By the end of 2025, gold is expected to account for 27% of global central bank reserves, up from 20% a year ago, while US Treasuries' share has dropped from 25% to 22%.

US Stock Indices Slightly Up Amid AI Enthusiasm

On Tuesday, US stock indices rose slightly, with the S&P 500 breaking the 7600-point mark for the first time. The Dow Jones increased by 0.45% to 51,307.79 points, while the Nasdaq rose by 0.03% to 27,093.90 points.

Cryptocurrency Market Volatility

The Iranian situation has dampened risk appetite, leading to a sell-off in cryptocurrencies. Bitcoin dropped 6% to below $67,000, triggering over $1 billion in forced liquidations in the crypto market.

Nvidia's Spectrum-X Switches Enter Mass Production

NVIDIA announced that its Spectrum-X Ethernet silicon photonics technology has entered mass production, supporting AI factory deployments in data centers. This collaboration involves key partners from Taiwan's semiconductor ecosystem.

Marvell Technology's Stock Surge

Marvell Technology's stock surged over 32% after NVIDIA's CEO expressed strong support for the company, suggesting it could become the next trillion-dollar firm.

Microsoft Unveils New AI Products at Build Conference

At the annual Build developer conference, Microsoft introduced several significant products, including the Web IQ search infrastructure for AI agents and a new quantum chip aimed for commercial application by 2029.

Wall Street Fund Managers Favor TSMC Over Nvidia

According to MarketWatch, Jonathan Cofsky, co-manager of the Janus Henderson Global Technology and Innovation Fund, stated that TSMC is the fund's largest holding, surpassing Nvidia, due to its critical role in AI development.

OpenAI Develops AI Tools for Finance and Law

OpenAI announced new plugin tools for Codex, targeting sectors like public equity investment and banking, aiming to compete with Anthropic for enterprise clients.

SpaceX Plans IPO with Low Underwriting Fees

SpaceX plans to raise at least $75 billion through a new IPO, negotiating to lower underwriting fees to below 0.75%, which could set a new benchmark for future IPOs.

Market Movements in Hong Kong Stocks

On June 2, southbound funds net bought HK stocks worth 2.223 billion HKD, with significant purchases in SMIC and CNOOC, while Tencent and Xiaomi saw net sell-offs.

SK Hynix Plans to Double Memory Production

SK Hynix announced plans to double its wafer production capacity over the next five years, with a global memory chip supply shortage expected to last until 2030.

Samsung Showcases Next-Gen AI Storage

Samsung unveiled its eighth-generation HBM5 prototype at Computex 2026, betting on the next generation of AI storage competition.

Upcoming Economic Data Releases

Key economic data to be released includes China's May services PMI, Eurozone's April PPI, and the US May ADP employment figures.