Top News
U.S. House of Representatives passes resolution limiting Trump's authority to use military force against Iran; Trump says U.S.-Iran deal could be reached this weekend
On the 3rd local time, the U.S. House of Representatives passed a resolution aimed at restricting President Trump’s authority to use military force against Iran, demanding that he end military operations against the country. On the same day, President Trump stated that negotiations with Iran were progressing very smoothly and that a new round of talks could take place this weekend. He added that once an agreement is signed, the Strait of Hormuz would immediately reopen. Trump emphasized that if Iran signs the deal, it would mean Tehran has committed to never possessing nuclear weapons—neither developing them domestically nor acquiring them from external sources.
According to The Wall Street Journal, U.S. officials revealed that President Trump has privately informed his aides that he would consider terminating the ceasefire agreement with Iran if Tehran causes the death of American soldiers. Officials also stressed that despite recent flare-ups, the weeks-long pause in airstrikes remains intact. Trump’s reluctance to reignite hostilities suggests he may be willing to tolerate sporadic conflicts lasting weeks or even months to avoid a broader escalation across the Middle East.
Fed Beige Book: Middle East conflict intensifies inflationary pressures, consumer confidence weakens, and employment remains stable
The Federal Reserve's Beige Book released on Wednesday showed that economic activity in 10 of the 12 Fed districts expanded at a "slight to modest" pace. Energy costs were the primary source of inflationary pressures, with spillover effects evident in sectors including shipping, packaging, grocery retail, and fertilizers, while consumer sentiment weakened. Most districts continued to experience a pattern of 'low hiring and low layoffs,' with stronger hiring activity observed in manufacturing.
New York Fed President Williams: Rate path uncertain; policy currently well positioned
John Williams, President of the Federal Reserve Bank of New York and Vice Chair of the FOMC, stated on Wednesday that there is currently no need to either raise or lower interest rates, as monetary policy is appropriately positioned and future rate movements lack a clear direction. Regarding the oil price surge caused by war, the ongoing impact of tariffs, and investment in artificial intelligence, he said he is not overly concerned these factors will trigger significant second-round effects or persistent inflation. He noted that inflation expectations remain “well anchored,” given stable labor market conditions and the absence of upward inflationary pressures. Williams added that he views rising energy prices as a “one-off effect” and does not anticipate substantial increases in energy prices in 2027 and 2028.
U.S. industry groups urge Trump administration to address AI-driven memory chip supply crisis
On Wednesday, nine U.S. trade associations representing multiple industries jointly wrote to Treasury Secretary Bessent and Commerce Secretary Howard Lutnick, warning that a shortage of memory chips is threatening the stability of critical supply chains and could push consumer prices higher in the near term. The groups stated in their letter that the expansion of AI data centers has consumed excessive memory chip capacity, causing prices to “skyrocket unprecedentedly” and squeezing available supplies for manufacturing and consumer goods sectors. They urged the Trump administration to collaborate with chipmakers and buyers to expand production capacity both domestically and among allied nations, and recommended leveraging trade agreement mechanisms or CHIPS Act programs to secure supply chains.
U.S. May ISM Services PMI rebounds above expectations; Prices Paid sub-index hits four-year high
The Institute for Supply Management (ISM) Services Index for May rose to a three-month high of 54.5, exceeding the forecast of 53.8 and up from the prior reading of 53.6. Both the New Orders and Business Activity components improved, reflecting resilient consumer demand. Amid rising energy and transportation costs, the ISM Prices Paid index climbed to 71.3 last month—the highest level since August 2022.
Ray Dalio of Bridgewater Associates: As wealth converts into cash, the AI bubble will eventually burst.
Ray Dalio, founder of Bridgewater Associates, stated in an interview on Wednesday: "All major technological shifts create bubbles. No one can perfectly time the market. You either invest heavily to capture market share without worrying about over-investment, or you under-invest and lose market share." Dalio noted that bubbles burst when investments need to be converted into realized capital, and highlighted growing market concerns about the profitability of AI companies.
U.S. Stock Market Update
The three major indices retreated from record highs, with prominent tech stocks and popular China-concept stocks mostly declining
On Wednesday, U.S. stocks retreated from record highs as investors took profits amid escalating tensions in the Middle East and rising crude oil prices that fueled inflation concerns. At the close, the Dow Jones Industrial Average fell 1.21% to 50,687.07; the Nasdaq Composite dropped 0.89% to 26,853.98; and the S&P 500 declined 0.74% to 7,553.68.
$Star Tech Stocks (LIST2518.US)$Most stocks declined, with Microsoft down 3.17%, Alphabet (Google-A) down 0.79%, Amazon down 2.53%, NVIDIA down 3.62%, Apple down 1.57%, Tesla down 0.01%, and Meta Platforms up 4.24%.
$Storage Concept Stocks (LIST23925.US)$Some stocks rose against the trend: SanDisk gained over 6%, closing above $1,800 for the first time; Western Digital rose more than 5%; Marvell Technology climbed over 3%; and Micron Technology advanced over 1%.
$Popular Chinese Concept Stocks (LIST2517.US)$Most Chinese stocks listed in the U.S. declined, with the Nasdaq Golden Dragon China Index closing down 2.47%. Bilibili fell over 4%, Baidu dropped nearly 3%, 21Vianet declined 4.17%, Alibaba slid 2.76%, while Zai Lab edged up 0.12%, ZTO Express rose 0.22%, and WeRide gained 2.7%.
Stock-specific news
Broadcom reported a 48% year-over-year revenue increase last quarter, surpassing expectations and reaching a new record high; however, its AI revenue guidance disappointed, leading to a sharp after-hours drop.
$Broadcom (AVGO.US)$Shares fell more than 13% in after-hours trading. For its fiscal second quarter ended May 3, 2026, the company reported net revenue exceeding $22 billion for the first time in a single quarter—slightly above analyst expectations—and a year-over-year increase of approximately 48%, nearly 1.7 times the growth rate of the prior quarter. Revenue from its semiconductor solutions business, which directly benefits from surging AI demand, jumped nearly 80% year-over-year. Non-GAAP adjusted EPS rose more than 50% year-over-year, both figures surpassing Wall Street expectations. The company guided third-quarter AI semiconductor revenue to $16 billion, representing a year-over-year increase of over 200%, though still 7% below consensus estimates. Broadcom’s CEO stated that AI chip sales for the current fiscal year are expected to reach $56 billion, about 3% below the consensus forecast. In 2027, Broadcom plans to deploy 1.3 GW of computing capacity for OpenAI and deliver its first 1 GW of capacity to Meta in the second half of the year.
SpaceX officially listed on June 12 at an IPO price of $135 per share.
According to a filing submitted to the U.S. Securities and Exchange Commission on Wednesday, SpaceX plans to issue approximately 555.6 million shares at $135 per share, valuing the company at nearly $1.77 trillion. Shares are expected to begin trading on June 11 and list on the exchange the following day.
Following the IPO, Elon Musk will retain approximately 84.4% of voting power, maintaining absolute control over the company. According to the Bloomberg Billionaires Index, at the $135 offering price, Musk’s net worth would reach $988 billion—just shy of becoming the world’s first trillionaire. A mere 2.2% increase in the share price to $138 would mark this historic milestone.
Guo Mingchi: Apple's glasses roadmap changes; successor to Vision Pro canceled
In the early hours of Thursday, well-known tech analyst Ming-Chi Kuo posted that the upcoming appointee will…$Apple(AAPL.US)$The next CEO of Apple, John Ternus, has already approved a scaled-back development roadmap for Apple Glasses, according to well-known tech analyst Ming-Chi Kuo, who posted early Thursday morning. Kuo noted that the roadmap he compiled about a year ago for Apple’s XR headsets and smart glasses is “no longer a valid reference.” Currently, only two smart glasses products remain visible on the entire roadmap. He added that this major adjustment was approved by Apple’s incoming CEO, Ternus, and that the shift has been underway for some time.
NVIDIA lifts another stock: Navitas Semiconductor surges 19%, betting on the 800V AI power revolution
On Wednesday, $Navitas Semiconductor (NVTS.US)$ The stock closed up 19.26%. Over the past year, it has surged 335%, with a year-to-date gain of 262%, and now carries a market capitalization of approximately USD 6.21 billion. On May 29, the company participated in NVIDIA’s partner event held at the Nangang Exhibition Center in Taipei and is currently showcasing its 800 V to 6 V DC-DC power distribution board (PDB) at COMPUTEX 2026. Navitas Semiconductor CEO Chris Allexandre stated that as AI workloads continue to scale, power delivery has become one of the most critical challenges in building next-generation gigawatt-scale AI factories.
Alphabet has increased its equity financing to $84.75 billion, and Gemini 3.5 Pro is scheduled for release in June.
Google-C (GOOG.US) This week, the company raised USD 84.75 billion through a publicly underwritten equity offering, exceeding the previously anticipated USD 80 billion—a landmark transaction signaling the tech sector’s strategic shift toward equity financing to support AI infrastructure. The offering reportedly received multiple times oversubscription. Gemini 3.5 Pro is expected to launch in June.
Meta Plans to Launch 'Hatch' AI Agent with Monthly Fee Up to $200
$Meta Platforms(META.US)$ It is considering setting a maximum monthly price of USD 200 for its new consumer-facing OpenClaw AI agent tool. Codenamed Hatch, the product will adopt tiered pricing, with the premium subscription tier priced at USD 199.99 per month. Hatch offers broad functionality: it can write custom software on demand, schedule appointments in users’ calendars, and send emails on their behalf. With the launch of this paid premium version, Meta Platforms will directly compete with AI firms such as OpenAI and Anthropic.
$CrowdStrike(CRWD.US)$ Shares fell more than 11% in after-hours trading. The company reported Q1 revenue of USD 1.39 billion for fiscal year 2027, up 26% year-over-year, with adjusted EPS of USD 1.10.
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Hong Kong Market Outlook
Southbound capital purchased nearly HKD 18.7 billion worth of Hong Kong-listed stocks, net buying over HKD 1.6 billion of SMIC shares, while net selling nearly HKD 900 million of Lenovo Group and reducing its position in Yangtze Optical Fibre and Cable by nearly HKD 500 million.
On Wednesday, June 3, southbound capital recorded net purchases of HKD 18.682 billion in Hong Kong-listed equities.
$Ying Fu Fund (02800.HK)$、$Hang Seng China Enterprises (02828.HK)$、$SMIC (00981.HK)$received net purchases of HKD 7.534 billion, HKD 1.661 billion, and HKD 1.627 billion, respectively;
Lenovo Group (00992.HK)、$Yangtze Optical Fibre and Cable Joint Stock Limited Company (06869.HK)$、$Meituan-W(03690.HK)$suffered net sales of HKD 874 million, HKD 494 million, and HKD 344 million, respectively.
Duan Yongping has again increased his stake in Pop Mart, raising his ownership above 6%.
Duan Yongping has again increased his stake in $Pop Mart (09992.HK)$ , increasing his stake from 5.69% to 6.04%. He began establishing a position in April this year by selling put options, sold China Shenhua in May, and transferred the proceeds into Pop Mart—triggering a mandatory disclosure within less than two months. Duan Yongping stated that the company’s earnings report sparked his interest, adding, “I haven’t felt this excited in a long time.”
Yankuang Energy: Plans to Acquire 100% Equity Interests in New Energy Group and Shanneng Electricity Sales from Controlling Shareholder for RMB 16.415 Billion
Yanzhou Energy (01171.HK) The announcement stated that the company intends to acquire, for RMB 16.415 billion in cash, 100% of the equity interests in New Energy Group and Shanneng Power Sales, both wholly owned subsidiaries of its controlling shareholder, Shanneng Group. This transaction aims to rapidly expand the company’s power business by injecting high-quality power assets, strengthen emerging industries, and substantially reduce competition between the company and its controlling shareholder in the power sector, thereby further improving corporate governance.
Today's Focus
Keywords: U.S. initial jobless claims, SpaceX IPO roadshow, Ciena/Planet Labs earnings
On the economic data front, the eurozone's April retail sales month-over-month rate, U.S. May Challenger job cuts, and U.S. initial jobless claims for the week ending May 30 will be released.
19:30 — U.S. May Challenger job cuts
20:30 — U.S. initial jobless claims for the week ending May 30
On major developments, reports indicated that SpaceX has launched its IPO roadshow.
Earnings reports: $Ciena(CIEN.US)$ released its earnings report before the US stock market opened, $Lululemon Athletica(LULU.US)$ 、 $Planet Labs PBC(PL.US)$ will release earnings after the U.S. stock market closes.
In terms of new stocks,$Lung Fung Group (02290.HK)$ 、 $Tianchen Bio-B (01779.HK)$ 、 $Dajin Heavy Industry (01081.HK)$ will open for grey-market trading; quantum computing standout company $Quantinuum (QNT.US)$ officially listed on the U.S. stock market.
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Editor/KOKO