ADDX GO Market Morning Wrap - 4th June

Stock Market

On Tuesday, Eastern Time in the United States, the three major stock indexes closed higher collectively. The Nasdaq led the major stock indexes, and its trend turned upward for the first time since February.

 

By the close of trading, the Dow Jones Industrial Average rose 0.51% to 42,519.64; the S&P 500 Index rose 0.58% to 5,970.37; and the Nasdaq Composite Index rose 0.81% to 19,398.96.

 

NVIDIA and other chip stocks drove the rally. NVIDIA rose nearly 3%, continuing its Monday rally. Its market capitalization exceeded that of Microsoft, and it once again became the world's most valuable company. Broadcom and Micron Technology rose more than 3% and 4% respectively.

The recent rally has been boosted by a strong earnings season. At the same time, some investors believe that Trump's trade policies are unlikely to push the US economy into a recession, which was what the market had previously feared.

 

Dan Ives, an analyst at Wedbush Securities, pointed out that the news that the leaders of China and the United States will hold a phone call this week is good news, and NVIDIA is one of the biggest beneficiaries.

 

Sam Stovall, the chief investment strategist at CFRA Research, warned that the market may oscillate between 5,700 points and the all-time high set in late February in the short term.

Global Hotspots

• South Korean Presidential Election Voting Results Bill Passed, Lee Jae-myung's Presidential Term Officially Begins: At 6:00 a.m. local time on June 4th, the Central Election Management Committee of South Korea held a plenary meeting and voted to pass the bill on the voting results of the presidential election. Lee Jae-myung's presidential term officially began.
• White House Says Trump Signs Order to Raise Steel and Aluminum Tariffs: The White House issued a statement saying that President Trump has signed an order to raise the tariffs on imported steel, aluminum, and their derivative products from 25% to 50%. It will take effect at 00:01 on June 4th, Eastern Time in the United States. The statement said that the steel and aluminum tariffs on imports from the UK will remain at 25%.
• Details of US-Iran Nuclear Talks Disclosed: US Proposes to Temporarily Allow Iran to Continue Uranium Enrichment Activities: According to anonymous Iranian and European officials, the United States has proposed to take temporary measures in the US-Iran nuclear talks to allow Iran to continue low-concentration uranium enrichment activities while the United States and other countries formulate more detailed plans.
• The United States Sets a Time Limit for Countries to Submit the Best Trade Negotiation Plans: According to a report by Reuters, with only 5 weeks left until the deadline for the restoration of "reciprocal tariffs", the Trump administration has sent an urgent letter asking countries to "submit the best trade negotiation plans by this Wednesday", including the tariff and quota plans for purchasing US industrial and agricultural products.

Company News

• Meta is reported to have adjusted its development plan: It plans to cut the upgrade projects of its current VR products and accelerate the launch of a "super-thin and open-type headset" by the end of next year.The two alternative plans "Pismo Low" and "Pismo High" for the upgrade of the VR headset Quest 4 have been cancelled. Therefore, Meta's next Quest headset with a traditional design will not be available until at least 2027. At the end of last year, Meta also confirmed that an alternative project for the high-end VR headset Quest Pro 2 had been cut.
• US eVTOL Company and Saudi Enterprise Explore Cooperation Opportunities, Delivering 200 Electric Aircraft in the Future: On Tuesday, June 3rd, local time, the well-known Saudi enterprise Abdul Latif Jameel announced on its official website that it has signed a memorandum of understanding with the US-based Joby Aviation. The two sides will explore the opportunity to establish a distribution agreement for Joby's eVTOL in Saudi Arabia.

Forex & Commodities

WTI crude oil futures closed at $63.41 per barrel, up $0.89, or 1.42%. Brent crude oil futures closed at $65.63 per barrel, up $1, or 1.55%.

 

COMEX gold futures fell 0.6% to $3,376.9 per ounce. COMEX silver futures fell 0.05% to $34.675 per ounce.

 

The US dollar index rose 0.6% to 99.3, and most non-US currencies fell.

Key Events

• Goldman Sachs Chief Asia-Pacific Economist said the US Dollar is Expected to Depreciate Further: Andrew Tilton, the chief Asia-Pacific economist at Goldman Sachs Group, talked about the outlook for the US dollar and expected that "the US dollar will depreciate further" because, according to Goldman Sachs' exchange rate model, the US dollar is still about 15% overvalued compared to its long-term fair value. "We also see signs that foreign investors may at least to some extent slightly reduce their investment allocation in the United States, which is also net negative for the US dollar," Tilton added. He also pointed out that US policymakers also seem to want the US dollar to depreciate.

Cryptocurrency

Bitcoin was up 1.6% at $106,250, and the cryptocurrency's 24-hour trading volume surged 8.6% to $47.63 billion.

 

Ethereum (ETH-USD), the second-largest digital asset by market value, rose 3.4% to $2,620.

 

XRP (XRP-USD) gained 5.2%, BNB (BNB-USD) rose 0.7%, and Solana (SOL-USD) climbed 5.1%. Dogecoin (DOGE-USD) was up 3.6%, and Cardano (ADA-USD) rose 2.6%.

 

The total market value of the cryptocurrency industry rose 2.6% in the past 24 hours to $3.35 trillion, with trading volume up 14% to $114.38 billion.

Key Events

• Bitcoin mining companies Marathon Digital and Core Scientific have been sued for cryptocurrency patents: According to Cointelegraph, Malikie Innovations has recently sued Bitcoin mining companies Marathon Digital and Core Scientific, accusing them of infringing its patents for using the elliptic curve cryptography (ECC) technology.
• Australia Strengthens Regulation of Cryptocurrency ATMs Due to Frequent Fraudulent Activities: With the rapid growth in the number of cryptocurrency ATMs, more and more criminals are using them to engage in fraud. Australia's financial crime regulator has begun to impose restrictions on such devices.