To The Moon

Last Week's Recap

The US Market - SPX hit a record high

• All three of the major averages notched the first winning week of June, as the S&P 500 touched a record-high intraday on Friday.

• Nvidia powered the market to new highs to briefly break above a $3 trillion market capitalization and temporarily unseat Apple as the second most valuable company after Microsoft.

• Nonfarm payrolls increased by 272,000 in May, above the 190,000 estimate from the Dow Jones and April’s 175,000 gain. The unemployment rate ticked higher to 4%. That news sent the yield on the benchmark 10-year Treasury more than 15 basis points higher. The benchmark tumbled earlier in the week as the Bank of Canada and ECB both cut interest rates.

Read more >>

The US Sectors & Stocks - NVDA hit $3 trillion marketcap

• Technology、healthcare and communication services sectors helped the S&P 500 rise in the week, as Nvidia (NVDA) ended the week up 10%. The stock set a record high on Thursday after pushing past the $3 trillion mark for the first time on Wednesday.

• The chief executives of Nvidia (NVDA), AMD (AMD) and Intel (INTC) outlined their product roadmaps for artificial intelligence processors at the Computex trade show in Taiwan this week. Nvidia CEO Jensen Huang previewed the company's Blackwell Ultra chip in 2025 and next-generation Rubin chip platform in 2026. Advanced Micro Devices CEO Lisa Su said AMD, like Nvidia, is now on an annual cadence for its data center AI processors. Su discussed new Instinct AI accelerators coming later this year as well as in 2025 and 2026. Intel CEO Pat Gelsinger revealed an aggressive pricing strategy for Intel's Gaudi 2 and Gaudi 3 AI accelerators.

• The semiconductor equipment leader ASML logged a big sale to major customer TSMC. Chip foundry TSMC has purchased ASML's high numerical aperture, extreme ultraviolet lithography system. The cutting-edge machines cost about $380 million apiece. Meanwhile, Intel (INTC) has already taken delivery of a high-NA EUV system from Netherlands-based ASML. The gear enables chipmakers to make smaller transistors with higher transistor densities than previously possible. Both ASML (ASML) and TSMC (TSM) hit record highs.

• CrowdStrike (CRWD) led the Nasdaq 100’s weekly gains, with shares up about 11%. The cybersecurity leader reported an outstanding Q1 earnings, both EPS and revenue topped views. Also, it raised its full-year revenue guidance.

• Keith Gill, also known as “Roaring Kitty”, remerged to host his first livestream in three years on Friday. The retail investor discussed his position in GameStop as shares have once again reignited controversy this week.

• Friday night, GameStop (GME) and AMC Entertainment (AMC) tumbled 39% and 15%, respectively. GameStop trading was halted several times due to volatility. GameStop also reported disappointing quarterly results and said in a filing that it was selling up to 75 million shares of its stock.

• Spotify (SPOT) raised prices for its ad-free streaming music service tiers in the U.S. Shares jumped to a new high.

• Lululemon (LULU) popped after clearing estimates for Q1 views. Comparable sales rose 6%, driven by a 25% increase internationally. Lululemon guided low on Q2, but up on full-year EPS. The athleisure retailer also OK'd a $1 billion increase to its stock buyback program.

The Week Ahead

Macro Factors - May CPI & FOMC

• It will be a big week on the macroeconomic and monetary policy fronts. May inflation data and an interest-rate decision by the Federal Reserve will be the highlights.

• May CPI set to release on Wednesday morning. Consensus estimate is for the CPI to increase by 3.4% year over year, matching the April data. The core CPI, which strips out food and energy prices, is expected to rise 3.5%, one-tenth of a percentage point less than previously.

• The release will come just hours before the Fed's latest policy decision, where markets largely expect the central bank to keep rates unchanged at 5.25% to 5.50%. The central bank will also release its quarterly Summary of Economic Projections. The March SEP showed a median projection of three quarter-point interest rate cuts this year. Traders are currently pricing in between one to two quarter-point interest rate cuts by year-end.

• In corporate news, Big Tech will kick off the week with Nvidia's (NVDA) 10-for-1 stock split and Apple's (AAPL) Worldwide Developer's Conference both set for Monday. A vote on Tesla (TSLA) CEO Elon Musk's $56 billion pay package is expected on Thursday.

• Nvidia shares are set to begin trading on Monday on a new 10-for-1 split basis, revising the stock price from its Friday close of $1,208.88 to $120.88. 

• Apple's Worldwide Developers Conference is set to kick off on Monday, with investors expecting more details to be released on the tech giant's push into generative AI.

• Tesla's annual shareholder meeting is slated for after the market close on Thursday, and the most pressing issue will be the shareholder vote on a potential $56 billion pay package for CEO Elon Musk. In a survey of 109 investors, Morgan Stanley found most investors feel that approving Musk's pay package would send Tesla shares higher, while a vote not to approve would weigh on the stock.