ADDX GO Market Morning Wrap - 24th May

Stock Market

As US President Trump suddenly proposed to impose tariffs on the European Union and Apple on Friday, the three major US stock indexes collectively weakened in an atmosphere of shock and skepticism. Among them, the S&P 500 index recorded four consecutive days of decline.

By the close of trading, the S&P 500 index fell 0.67% to 5,802.82 points; the Nasdaq Composite index fell 1% to 18,737.21 points; the Dow Jones Industrial Average index fell 0.61% to 41,603.07 points. This week, the S&P 500 index accumulated a decline of 2.61%, the Nasdaq index fell 2.47%, and the Dow index fell 2.47%.

At the press conference on Friday, a reporter directly asked Trump, "How are you going to reach an agreement with the EU in 9 days?"

Trump played down the possibility of reaching an agreement with the EU and emphasized, "They are handling it the wrong way. As I just said, it's time to play this game my way."

At the same time, Trump also expanded the threat of imposing a 25% tariff on Apple to all mobile phone manufacturers including Samsung, and said that the government is promoting the implementation of this tax by the end of June.

Popular technology stocks generally fell. Apple fell more than 3%, and Nvidia, Microsoft, Google, and Meta fell more than 1%.

The cryptocurrency and consumer electronics sectors led the decline. Canaan Technology fell more than 9%, Coinbase fell more than 3%, Super Micro Computer fell nearly 3%, and Intel fell more than 2%.

The industrial metals, gold, and solar energy sectors led the gains. American Silver Corporation rose more than 6%, Gold Fields and Harmony Gold rose more than 4%, and US Gold Corporation and Freeport-McMoRan Copper & Gold rose more than 3%. US Steel rose more than 21%. Trump said that US Steel and Nippon Steel & Sumitomo Metal have agreed to establish a "planned partnership".

In addition, Trump signed an executive order on Friday aimed at accelerating the construction of nuclear power plants. Nuclear power concept stocks NNE rose more than 30%, Oklo rose more than 23%, and LEU rose more than 21%.

Global Hotspots

Trump: Impose a 50% Tariff on the EU and a 25% Tariff on Mobile Phone Manufacturers Not Producing in the US from June 1. US President Trump said that it is "not good" that the US cannot sell cars in the EU, and he does not seek to reach an agreement. A 50% tariff will be imposed on the EU from June 1. Trump said that a 25% tariff will be imposed on mobile phone manufacturers not producing in the US. Trump warned that if Samsung products are not made in the US, a 25% tariff will be imposed. If Apple and Samsung build factories in the US, they will be exempt from tariffs.
The Fifth Round of Iran-US Nuclear Talks Ends: No Decisive Progress Has Been Made. Local time on Friday, with the mediation of Oman, the fifth round of Iran-US nuclear talks in Rome, Italy, ended. The talks lasted for 3 hours. Oman's Foreign Minister Badr said that the two sides have made some progress, but it is not decisive.
Denmark Raises the Retirement Age to the Highest Level in the World, and More Countries May Follow Suit Gradually: The Danish parliament passed a resolution this week to gradually raise the country's legal retirement age to 70 years old. As Denmark, which has a good economic condition, is the first among the aging European countries to move towards the "70-year-old retirement" threshold, there are various signs indicating that Denmark is very likely not to be alone.

Company News

Trump Supports the "Cooperation" between Nippon Steel and US Steel: US President Donald Trump said on Friday that US Steel will "remain in the US" and form a "partnership" with Nippon Steel. He also said that this cooperation will create at least 70,000 jobs and add $14 billion to the US economy, and most of the investment will be completed within the next 14 months.
Trump Signs a Nuclear Energy Revitalization Order, and the Entire Nuclear Energy Industry Chain Rises SharplyLocal time on Friday: Trump signed four executive orders aimed at accelerating the construction of nuclear power plants in the US, including a new generation of small-scale advanced reactors. Affected by this, the nuclear energy industry chain collectively rose sharply.

Forex & Commodities

The international gold price rose sharply by more than 2%. The settlement price of COMEX gold futures rose by $70.80, or 2.15%, to $3,365.80 per ounce.

International oil prices rose. By the close of trading on that day, the price of light crude oil futures for July delivery on the New York Mercantile Exchange rose by 33 cents to close at $61.53 per barrel, an increase of 0.54%; the price of Brent crude oil futures for July delivery in London rose by 34 cents to close at $64.78 per barrel, an increase of 0.53%.

At the end of trading in New York, the US dollar index fell 0.82% to 99.12, down 1.84% for the week. Non-US currencies rose collectively.

Key Events

Fed Official: Monetary Policy Disrupted by Tariffs, Central Bank Forced to Stand Pat in the Short Term. Austan Goolsbee, President of the Federal Reserve Bank of Chicago, recently said that Trump's latest tariff threats will make monetary policy more complex and may delay the Fed's interest rate adjustments.
US Tariff Revenue Soared to $16.5 Billion in April, a Record High: Data released by the US Treasury Department on Friday showed that the average daily tariff revenue of the US Customs in April reached a record $16.5 billion. This revenue fully reflects the impact of President Trump's newly implemented general tariff measures for the first time.

Cryptocurrency

Bitcoin fell 2.2% to $108,807, and the cryptocurrency's 24-hour trading volume dropped 11.2% to $66.75 billion.

Ethereum (ETH-USD), the second-largest digital asset by market value, decreased 2.6% to $2,562.

XRP (XRP-USD) dropped 3%, BNB (BNB-USD) lost 2.2%, and Solana (SOL-USD) rose 0.6%. Dogecoin (DOGE-USD) declined 2.6%, and Cardano (ADA-USD) dropped 3.4%.

The total market value of the cryptocurrency industry fell 1.8% in the past 24 hours to $3.44 trillion, with trading volume rising 0.7% to $172.27 billion.

Key Events

Popular Stocks Such as Apple, Tesla, and Nvidia Will Be Traded in the Form of Tokens on the Kraken Trading Platform:Popular US stocks such as Apple, Tesla, and Nvidia will be traded in the form of tokens on the cryptocurrency trading platform Kraken. Kraken plans to allow non-US customers to trade stocks such as Apple. This new plan will be launched in the next few weeks.Kraken plans to launch tokenized versions of more than 50 stocks and ETFs. The ETFs planned to be tokenized include the well-known SPDR S&P 500 ETF and SPDR Gold ETF. Kraken will call these tokens "xStocks" and will run them on the Solana blockchain. The blockchain is a decentralized ledger that records cryptocurrency transactions.
Several Large US Banks Are Studying the Issuance of a Joint Stablecoin to Enter the Cryptocurrency Field: It is reported that several large US banks are studying whether to jointly issue a joint stablecoin. So far, the discussions have involved JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and related enterprises of other large commercial banks. However, the discussions are still in the early conceptual stage and may change.