ADDX GO Market Morning Wrap - 30th May

Stock Market

On Thursday, US Eastern Time, the major US stock indexes opened higher, then moved lower and closed slightly higher. Wall Street traders who cheered for Nvidia's strong performance had to face the harsh reality of slowing economic data and the chaos of Trump's trade policies.

 

The day before, the US Court of International Trade ruled that the Trump administration had no right to impose comprehensive tariffs on almost all countries and declared invalid those tariffs that had triggered a global trade war and threatened to undermine the world economy. This boosted market optimism.

 

The three major US stock indexes closed slightly higher. The Dow Jones Industrial Average rose 0.28%, the Nasdaq Composite Index rose 0.39%, and the S&P 500 Index rose 0.4%.

 

Most large-cap technology stocks rose. Amazon, Meta, and Tesla rose less than 1%, Nvidia rose more than 3%, and Broadcom rose more than 1%.

Global Hotspots

• The US Appellate Court Approves the Trump Administration's Request to Temporarily Restore Its Tariff Policy: On Thursday, May 29th, local time, the US Federal Circuit Court of Appeals approved the Trump administration's request to temporarily suspend the ruling of a lower court that had prohibited the implementation of several tariff executive orders of the US government.
• Fed Chair Powell Meets with US President Trump, No Discussion on Monetary Policy Expectations: The Federal Reserve issued a statement saying that at the invitation of the US President, Fed Chair Jerome Powell met with the President at the White House today to discuss economic growth, employment, and inflation. Powell said that the Federal Reserve will formulate policies based solely on objective analysis, and the policy path depends on the latest data and economic outlook.
• US Federal Judge "Halts" the Policy of Prohibiting Harvard University from Enrolling International Students: On Thursday, local time, a judge of the US District Court for the District of Massachusetts issued an order "halting" the Trump administration's policy of prohibiting Harvard University from enrolling foreign students. The court judge, Alison Burroughs, held a hearing on the case that day.
• Multiple Batches of Medical Fentanyl in Argentina Contaminated by Bacteria, Causing 34 Deaths: The Argentine Ministry of Health reported on the 29th that a batch of clinically used fentanyl distributed in various parts of Argentina was contaminated by bacteria, resulting in 69 infections and 34 deaths. The health department is worried that the actual number of infections may be much higher than the current statistics.

Company News

• Germany Plans to Impose a Digital Tax on US Tech Giants Google and Facebook: According to media reports, the new German Minister of Culture, Wolfram Weimer, revealed that the German government is considering imposing a 10% tax on large online platforms such as Google and Facebook.
• Meta Reportedly Preparing to Open Physical Retail Stores: According to media reports, the US tech giant Meta Platforms is planning to open physical stores and hire retail employees. According to the content of an internal communication seen by the media, Meta is working on a project to expand its retail business layout, and currently, this plan is not widely known within the company.
• The New York Times Signs Its First AI License Agreement: The New York Times, which has become a representative of "media against AI giants" due to suing OpenAI and Microsoft for copyright infringement, announced on Thursday that it has agreed to license its news content to the tech giant Amazon.

Forex & Commodities

WTI crude oil futures closed at $60.94 per barrel, down 90 cents, or 1.46%. Brent crude oil futures closed at $64.15 per barrel, down 75 cents, or 1.16%.

 

COMEX gold futures rose 0.61% to $3,342.6 per ounce, and COMEX silver futures rose 0.84% to $33.44 per ounce.

 

At the end of trading in New York, the US dollar index fell 0.54% to 99.36, and most non-US dollar currencies rose.

Key Events

• Goldman Sachs Recommends Buying Gold and Oil as Long-Term Hedges: Goldman Sachs recommends that gold and oil can be used as tools to hedge against inflation in long-term investment portfolios, and says that gold is attractive as a safe-haven asset when there are concerns about the credibility of US institutions and the ability of crude oil to resist supply shocks. Analysts such as Daan Struyven recommend a higher-than-usual allocation to gold and a lower-than-usual (but still positive) allocation to crude oil, saying that commodities are a "key" hedging tool against inflation shocks, which often damage bond and stock portfolios.

Cryptocurrency

Bitcoin was down 1.3% at $105,788, the volume of the cryptocurrency rose 14.2% to $55.38 billion.

 

Ethereum (ETH-USD) rose 1.3% to $2,652.

 

XRP (XRP-USD) gained 1.2%, BNB (BNB-USD) lost 1.4%, and Solana (SOL-USD) dropped 1.6%. Dogecoin (DOGE-USD) dipped 0.4%, while Cardano (ADA-USD) fell 1%.

 

The total market value of the cryptocurrency industry decreased 0.9% in the past 24 hours to $3.35 trillion, with trading volume rising 38.3% at $158.68 billion.

Key Events

• Investors Abandon Gold and Switch to Bitcoin and ETFs Attract $9 Billion: The US exchange-traded fund (ETF) market is showing a polarized trend: investors are reducing their gold holdings and flocking to the Bitcoin market, which is known as "digital gold".Data shows that in the past five weeks, US Bitcoin ETFs led by BlackRock's Bitcoin ETF-iShares (IBIT) have seen a cumulative net inflow of more than $9 billion, while gold ETFs have experienced an outflow of more than $2.8 billion during the same period.