Investors are concerned that the Federal Reserve could prevent increases in interest rates this month. The four main US stock indexes closed in the black on Monday (5th) 1.64%.
Apple’s share price fell after reaching an all-time high in the market within the day, Apple launched the Vision Pro headset at this year’s Worldwide Developers Conference (WWDC23). The price is US$3,499 (about NT$108,000).
Energy stocks underperformed as oil prices pared some of their gains as concerns over the demand outlook persisted despite Saudi Arabia cutting another 1 million barrels per day (bpd) of crude output since July.
Financial stocks fell amid news that US authorities could raise capital requirements for large banks by an average of about 20 percent as early as this month. In addition, the US Securities and Exchange Commission (SEC) charged the world’s largest currency exchange Binance (Binance) and its CEO Zhao Changpeng for allegedly violating the US securities system, and blockchain concept stocks in deterioration.
In terms of data, the US ISM non-manufacturing index unexpectedly fell to 50.3 in May, and the market’s assessment of the US economy was not so optimistic, which drove some optimism that the Federal Reserve will not raise interest rates later this month.
Politically and economically, US President Joe Biden signed the debt ceiling and budget bill last Saturday, raising the US debt default crisis ahead of the June 5 deadline. The US Treasury Department said that after the act went into effect, the US Treasury Department had the tools to meet the demands of debt obligations.
The performance of the four main indices on Monday (5th):
Seven of the 11 major S&P sectors closed in the dark, with the three biggest decliners being industrials (-0.71%), financials (-0.65%), and energy (-0.58%) Communications services, utilities and healthcare performed at relatively strong.
Focus stocks
Five kings received more and more science and technology. Amazon (AMZN-US) rose 0.85 percent; Meta (META-US) fell 0.45 percent; Apple (AAPL-US) fell 0.76 percent; Alphabet (GOOGL-US) rose 1.07 percent; Microsoft (MSFT-US) rose 0.16 percent.
Dow Components led by Intel. Intel (INTC-US) fell 4.63%; 3M (MMM-US) fell 4.44%; Nike (NKE-US) fell 2.39%; Johnson & Johnson (JNJ-US) rose 0.86%; Amgen (AMGN-US) rose 1.75 % % .
Franchise electorates generally declined. Huida (NVDA-US) fell 0.40%; Applied Materials (AMAT-US) fell 0.67%; AMD (AMD-US) rose 0.059%; Micron (MU-US) fell 2.02%; Texas Instruments (TXN-US) fell 2.84) %; Qualcomm (QCOM-US) fell 2.50%.
Taiwan stock ADRs were mixed. TSMC ADR (TSM-US) fell 0.90%; ASE ADR (ASX-US) fell 1.49%; UMC ADR (UMC-US) fell 1.80%; Chunghwa Telecom ADR (CHT-US) rose 0.62%.
Corporate News
Apple (AAPL-US) fell 0.76% to $179.58 per share, falling below the $180 mark. Apple Worldwide Developers Conference debut, Apple launched the first augmented reality (AR) / mixed reality (MR) Vision Pro headset, to Meta’s new Quest 3, and a series of HTC VIVE products declared war. At the same time, Apple also launched a 15-inch MacBook Air and a series of software updates to enrich the entire Apple product line.
TF International Securities analyst Ming-Chi Kuo tweeted that Apple Vision Pro is expected to ship in the fourth quarter of this year or early next year.
Intel (INTC-US) fell 4.63% to $29.86 a share. Apple announced that the new Mac Pro computer will use the new M2 Ultra chip, compared to previous models with Intel processors, Apple claims that its own chip has a strong performance advantage.
Tesla (TSLA-US) rose 3.06% to $220.52 a share. According to data released by the China Travel Association, Tesla sold 77,695 vehicles in China in May, an increase of 141.6% year-on-year and 2.4% month-on-month. Tesla CEO Musk, during his visit to China last week, said that he had a constructive conversation with Chinese government officials, knowing that they also believe that artificial intelligence (AI) will bring certain risks, and must regulate relevant regulations.
US conglomerate General Electric (GE-US) slipped 1.61% to $104.10 per share. GE will sell its healthcare business, GE HealthCare (GEHC), for more than $2 billion.
Streaming music platform Spotify (SPOT-US) rose 3.05% to $156.34 a share. Spotify announced that it will reorganize its podcast business unit and lay off 200 people, accounting for around 2% of its total workforce.
Economic data
- U.. May Markit services PMI final value reported 54.9, expected 55.1, previous value 53.6
- The final May Markit US composite PMI was 54.3, expected 54.5, and the previous value was 53.4
- US April durable goods orders revised up 0.4%, 0.8% expected, previous 0.9%
- US factory orders in April reported 0.4%, expected 1.1%, previous value 0.6%
- US ISM non-manufacturing index reported 50.3 in May, expected 51.8, previous value 51.9
Wall Street Analysis
“Markets paused for breath after Friday’s broad rally,” said Ryan Detrick, chief market strategist at Carson Group. “Monday’s market news was lackluster and remarkably flat, but that’s not a bad thing as it consolidated some of the significant gains.”
Mark Dowding, chief investment officer of BlueBay Asset Management, believes: “Although current US economic data reflects the reason why the Federal Reserve should hold off on interest rate hikes in June, inflation remains high.”
“As long as the economy is moving forward and showing no signs of a recession, the rest of the market can catch up and investors will see some other sectors close the gap a bit,” said Chris Zaccarelli, chief executive invest in the Alliance of Independent Advisers.
All numbers are updated before the deadline, please refer to the actual quote
