To The Moon

* Nvidia's chip sales in China are expected to increase, driving a rebound in technology stocks

🇺🇸 S&P 500: 1.08% 📈

🇺🇸 Nasdaq: 1.58% 📈

🇪🇺 Stoxx 600: 0.93% 📈

🇯🇵 Nikkei 225 Index: -0.16% 📉

🇭🇰 Hang Seng Index: 1.25% 📈

🇨🇳 CSI 300 Index: -0.68% 📉

* U.S. stocks rebounded, with the S&P 500 and Nasdaq Composite soaring 1.1% and 1.6% respectively, as investors snapped up large technology stocks ahead of the tech earnings season, with the S&P 500 Information Technology Index climbing 2% to top the list. It topped the list of gainers among all sectors and ended a four-day losing streak.

* Asia-Pacific markets were mixed, with the Hang Seng up 1.3% and the CSI 300 down -0.7%, as optimism over stimulus measures to further ease monetary policy to inject liquidity into the economy amid political unrest in the U.S. to cope with mood swings.

* The People's Bank of China (PBOC) cut one-year and five-year loan benchmark rates by 10 basis points to 3.35% and 3.85% respectively. This move has also been replicated on short-term rates, which can be seen as a signal from the People's Bank of China that the 7-day reverse repo rate will serve as the main policy rate.

💡 Future events: 💡

* The preliminary values of the U.S. manufacturing PMI, the preliminary services PMI, and the preliminary Japanese manufacturing PMI will be released on Wednesday.

* U.S. advanced GDP and jobless claims will be released on Thursday.

* At the end of the week, we have the U.S. core PCE price index for the month, revised University of Michigan consumer sentiment and inflation expectations.

💡 Things you need to know today: 💡

1. Nvidia shares rose 4% overnight on optimism about its China business, where the company is developing a version of its flagship AI chip that complies with U.S. export controls. Nvidia will work with major Chinese distributor Inspur to launch and distribute the "B20" chips, with shipments expected in the second quarter of 2025. I believe all the peers is developing the same strategy and this might be beneficial to the companies once they are able to develop something complies with the country export controls. A bullish view for the peers including Nvidia itself, as well as the whole semiconductor index, $NVIDIA Corp(NVDA)$  $Advanced Micro Devices(AMD)$  $Intel(INTC)$ $Semiconductor Bull 3X Shares(SOXL)$   

Nvidia B20 Chip

2. The consensus is that Alphabet's quarterly revenue will grow nearly 14%, driven by AI-powered cloud services and an improving ad market. Upcoming AI initiatives include new Pixel devices and enhanced AI capabilities in search and Google Cloud. It's the first among the big tech companies this quarter to provide further insight into the adoption and high cost of AI services. I believe Alphabet will beat the estimate and trend higher after its earnings this week $Alphabet(GOOGL)$ .

Google AI

3. Verizon Communications fell -6% as quarterly revenue fell short of expectations as fewer people upgraded their phones, while its prepaid wireless subscriber base fell sharply, with about 624,000 fewer retail subscribers, with more than half of the loss blamed on COVID-19 in May The end of the era of the Affordable Connectivity Plan (ACP).

Verizon

4. From January to May 2024, Penang remains Malaysia's largest export destination, with export value reaching RM177.99 billion. The main export products are integrated circuits, valves and other pipes, aircraft and accessories and spare parts, as well as tin and non-alloys . Penang continued its momentum from last year, when it contributed 30.5% or RM434.74 billion to the country's total exports.

✅ KEY TAKEAWAYS:

Technology stocks rallied on Monday on renewed optimism ahead of key earnings reports later this week, with Tesla and Google owner Alphabet reporting on Tuesday and Microsoft and Apple reporting next week.

@Daily_Discussion  @TigerStars  @Tiger_comments  @CaptainTiger  @MillionaireTiger  @TigerGPT