Last week, the stock market experienced notable losses with major indexes breaking or testing key levels. However, a bullish thrust on Friday offered some optimism. Software stocks saw significant sell-offs, affecting many leading companies.
Keynote Speeches at COMPUTEX 2024
Nvidia and AMD Announcements
- Nvidia CEO Jensen Huang: On the eve of Taiwan’s COMPUTEX 2024, Huang teased future artificial intelligence chips, generating significant interest.
- AMD CEO Lisa Su: Su showcased upcoming AI mobile processors during her keynote speech on Monday.
Other Keynote Speakers
- Intel and Qualcomm: Both companies are set to deliver keynote speeches throughout the week.
- Arm Holdings and Super Micro Computer: CEOs from these companies will also present, highlighting their latest advancements and collaborations.
Developments in the Electric Vehicle Market
China EV Makers Report Rising Deliveries
- Li Auto, Nio, XPeng, Zeekr, and BYD reported significant increases in deliveries for May. Nio and Zeekr achieved new monthly bests, indicating strong market performance.
Tesla Shareholder Voting Issues
The Financial Times reported technical issues preventing international Tesla shareholders from voting in the upcoming annual meeting. This affects about $17 billion worth of shares, potentially influencing decisions on CEO Elon Musk’s pay deal and the plan to reincorporate Tesla in Texas.
Stock Market Performance
Dow Jones Futures and Treasury Yields
- Dow Jones Futures: Rose 0.25% vs. fair value.
- S&P 500 Futures: Climbed 0.3%.
- Nasdaq 100 Futures: Advanced 0.25%.
- 10-Year Treasury Yield: Edged down to 4.49%.
Crude Oil and Manufacturing Index
- Crude Oil Futures: Little changed, with OPEC+ extending production cuts into 2025.
- Caixin Manufacturing Index: Increased 0.3 points to a two-year high of 51.7 in May.
Stock Market Rally Details
Weekly Performance
- Dow Jones Industrial Average: Fell 1%, despite a 1.5% bounce on Friday.
- S&P 500: Lost 0.5%.
- Nasdaq Composite: Dropped 1.1%.
- Small-Cap Russell 2000: Rose slightly, rebounding from earlier losses.
- Invesco S&P 500 Equal Weight ETF (RSP): Reclaimed its 50-day line, down just 0.1% for the week.
- First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW): Tumbled 2%, finishing just below its 50-day despite a Friday bounce.
Commodity Prices
- U.S. Crude Oil Futures: Fell 0.9% to $76.99 a barrel.
- Copper Futures: Sank 2.9%, marking a second straight weekly decline but up 1% for May.
ETFs Performance
- iShares Expanded Tech-Software Sector ETF (IGV): Plunged 5.8%.
- VanEck Vectors Semiconductor ETF (SMH): Fell 1.55%.
- ARK Innovation ETF (ARKK): Tumbled 4.35%.
- ARK Genomics ETF (ARKG): Lost 4.4%.
- SPDR S&P Metals & Mining ETF (XME): Rose 1.7%.
- Global X U.S. Infrastructure Development ETF (PAVE): Gave up 1.05%.
- U.S. Global Jets ETF (JETS): Shed 1.2%.
- SPDR S&P Homebuilders ETF (XHB): Edged up 0.1%.
- Energy Select SPDR ETF (XLE): Gained 2%.
- Health Care Select Sector SPDR Fund (XLV): Declined 0.5%.
- Industrial Select Sector SPDR Fund (XLI): Sank 0.8%.
- Financial Select SPDR ETF (XLF): Edged up 0.1%.
Key Earnings and Economic Reports
- CrowdStrike (CRWD): Earnings report on Tuesday night will be crucial for the cybersecurity and software sectors.
- May Jobs Report: Investors are awaiting this key economic indicator on Friday.
Nvidia CEO Jensen Huang’s Speech
Huang highlighted significant gains from adding advanced GPUs to data centers or PCs. He also announced plans for future AI chips, including the Blackwell Ultra chip in 2025 and the Rubin platform for 2026.
China EV Sales
Chinese EV makers reported strong sales for May, with several companies achieving record deliveries. Notably, BYD unveiled a fifth-generation hybrid system capable of impressive range on a single charge.
What Investors Should Do Now
Despite a positive close on Friday, the stock market rally remains uncertain. Investors should consider waiting for more clarity before making new investments. Notable events like Nvidia’s announcements and the upcoming jobs report could significantly impact market trends.
Conclusion
The stock market faces a challenging yet potentially rewarding period ahead. Keynote speeches, earnings reports, and economic data releases will play pivotal roles in shaping investor sentiment and market direction.