To The Moon

Like a Rottweiler with a mighty bite, that once it grabs hold, it will not let go, that was exactly how US market have behaved for the past 2 days.

From my viewpoint, traders are hell bent on getting the S&P 500 and Nasdaq indexes to break through its record levels.

This was boosted by a Fed’s proposal initiated by Michelle Bowman (who else !).

On Wed 25 Jun 2025, the plan approved by a 5-2 Fed vote would reform the enhanced “supplementary leverage ratio" (SLR) where amount of capital banks provision will be directly tied to how large a role each firm plays in the global financial system.

It forecast that the proposal could free up $185 billion for banks under its coverage.

According to Morgan Stanley, Analysts, Betsy Graseck:

• SLR reform will be the first of many capital proposals to be expected during Michelle Bowman's tenure

Some commented that this policy de-regulation is even better than the Fed’s interest rate cut, that has also been closely followed.

During the House hearing on Tue, 24 Jun 2025, Powell has iterated:

• The Fed expects higher import taxes (tariffs) will push up inflation beginning in Summer.

• Due to this, the Fed will not cut interest rates until it sees if prices actually rise.

• The Fed plan’s is to monitor inflation numbers for June & July closely.

• If prices do not go up much, Fed may cut rates sooner.

• If prices do rise, that will affect the Fed’s subsequent decision.

Although nothing has been cast in stone, Fed chair has clearly indicated central bank’s flexibility when it comes to Fed funds rate - cut.

CME Fedwatch.

By the end of the Capitol Hill meeting on Wed, 25 Jun 2025: (see above)

• The CME FedWatch Tool showed a 77.3% chance that US central bank will keep interest rates unchanged at 4.25% to 4.50% at the July 2025 FOMC meeting.

• With only a 22.7% probability that an interest cut of -0.25% is on the card.

All these catalysts together with the Rottweiler attitude helped to push US market to inch closer to their all-time-high on Thu, 26 Jun 2025. (see below)

When US market called it a day:

• DJIA: +0.94% (+404.41 to 43,386.84).

• S&P 500: +0.80% (+48.86 to 6,141.01). Posted 29 new 52-week highs and 6 new lows

• Nasdaq: +0.97% (+194.36 to 20,167.91). 3,128 stocks rose and 1,359 fell as advancing issues outnumbered decliners by a 2.3-to-1 ratio.

Surprisingly, trading volume on US exchanges of 16.22 billion shares, is still lower when compared with 18.10 billion - the average for the full session over last 20 trading days.

US Dollar Index.

If you noticed there is an additional US dollar index in above chart.

This is because on Thu, 26 Jun 2025 while US market rallied, the dollar index (DXY), that measures US currency against 6 peers’ currencies, was at its lowest level since March 2022, following its slide this year. (see below)

Despite this does not bode well for US, its implications (see below) were largely ignored:

• US National Debt: Weaker dollar makes US assets less attractive to foreign investors.

• US Trade: Weaker dollar makes US exports more “price attractive” and may spurs growth. But it would raise import costs, that can fuel inflation. The benefits are limiting.

• US Citizens: Working Americans could see more jobs in export sectors, but higher prices for imported goods will erode purchasing power, leading to lower living standards.

Current government needs to strike a balance between a cheap US dollar that does not cause inflation to spike (again), while maintaining full employment.

Economic Reports.

Thursday also saw 2 reports published - (1) US Gross domestic product (final) and (2) US jobless claims.

(1) Gross domestic product - Q1 2025 (Final).

US’s GDP contracted at an annualized rate of -0.5% in Q1 2025.

It was worse than the 2 preliminary estimates taken in April (-0.3%) and May (-0.2%) respectively, reflecting weak consumer spending, coupled with a surge in imports ahead of new tariffs.

Weak GDP signals (usually) slowing economic growth and could lead to (a) reduced hiring and (b) increased job insecurity in US labour market.

(2) US Weekly Jobless claims.

For week ending 21 Jun 2025, US weekly jobless claims fell by -10,000 to 236,000 claims.

Economists polled by Reuters had forecast 245,000 claims for the latest week.

As data included last week's Juneteenth public holiday, which likely injected a downward bias.

If anyone thinks this deserves a small celebration, it does not! (see below)

(3) US Continuing Claims.

For week ending 17 Jun 2025, US continuing claims, rose to 1.97 million, the highest level since November 2021.

Continuing claims for the week has sharply increased by +37,000. This ‘worrying’ trend has continued for about 6 weeks.

It also suggests a possible slowdown in US labour market, with leading economists forecasting US unemployment will rise to 4.3%, up from May’s 4.2%.

Despite latest weak economic reports, US traders turned a blind eye to them and pushed US market to a new high.

This included $Cyngn Inc(CYN)$ that has skyrocketed by +300%, by Thursday intraday.

What is CYN ?

It is a technology company specializing in autonomous vehicle (AV) software for industrial applications, primarily.

Product Suite.

Its Enterprise Autonomy Suite consists of:

• DriveMod, a modular autonomous driving software that can be retrofitted onto existing industrial vehicles.

• Cyngn Insight, a tool for monitoring and managing AV fleets.

• Cyngn Evolve, an internal platform for improving AI algorithms through data and simulation.

CYN aims to help industries like manufacturing, logistics, and defense automate vehicle operations, — improve safety, and reduce labour costs without needing to buy new vehicles.

The Spike.

The tech momentum on Nasdaq is gaining ground as CYN witnessed a rally of over 300% (intraday) on Thursday after receiving a spotlight in a blog post by Nvidia. (see above)

CYN stock displayed strength in the pre-market trading on Thursday after the high-profile collaboration with $NVIDIA(NVDA)$ was announced at the Automatica 2025 robotics showcase.

Nvidia highlighted Cyngn as one of a select group of robotics innovators leveraging its Isaac platform to build autonomous industrial solutions.

Developed using DriveMod, CYN autonomous vehicles (including DriveMod Tugger and Forklift) are already used in real-world commercial settings.

They help manufacturers and logistics companies, to lower labor costs, boost operational efficiency, and improve workplace safety.

The major thrust for CYN stock came after its collaboration with NVDA, at a time when EU is making significant investments in industrial AI and robotics to tackle labour shortages and improve productivity.

This trend puts Cyngn in a strong position to benefit from rising demand for its automation solutions.

The collaboration also gives CYN access to NVDA’s powerful AI infrastructure and tools.

By integrating Nvidia’s Isaac, CYN can enhance the performance, safety, and scalability of its DriveMod solutions, making them more attractive to enterprise customers across logistics, manufacturing, and automotive sectors.

Q1 2025 Earnings.

Cyngn reported strong growth for Q1 2025:

• Revenue: came in at $47,200, a +758.18% YoY jump from Q1 2024’s $5,500.

• Net loss: came in at -$7.6 million vs Q1 2024’s -$6.0 million; a further -23.53% YoY decline.

• Loss per share: was -$6.60, also a +98.44% YoY gain from Q1 2024’s -$422.87.

• It is noteworthy to mention that “loss per share” was calculated based on different share volume. For Q1 2025 volume was 1.2 million shares vs Q1 2024’’s volume was14,000.

CYN on Fri, 27 Jun 2025.

It is believed that CYN will continue its meteoric rise to end off Friday on a “super” high.

It is definitely not because of the company’s strong fundamentals but news that the US-China trade agreement has been signed by both presidents. (see above)

Given all the tell-tale signs that CYN could look & behave like a meme stock, will you to take a chance and dive in headlong for this NVDA-collab stock ? For me, I will pass.

Remember to check out my other posts. (See below). Help to Repost ok, Thanks.

Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks.

• Trump's Tax Bill : Crash Market & Investors Flee ? Fri, 27 June. Picked post.

• AI stocks to fuel US Market rally again ? Thu, 26 June. Picked post.

• Thursday: TSLA cont'd to fall, UBER recover ? Thu, 26 June. Picked post.

• Do you think US market will continue to rally and close Friday on a new high ’?

• Do you think it makes bold sense to invest in CYN, a Nvidia’s collaboration partner ?

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