Preview of US Stock Market | Three major stock index futures rise together, US promises a 60-day comprehensive ceasefire on all fronts, commercial aerospace and storage chip stocks rise before the market.

Pre-market market movements 1. Before the market on May 27 (Wednesday), the futures of the three major stock indexes in the US rose. At the time of writing, the Dow Jones futures rose by 0.28%, the S&P 500 index futures rose by 0.34%, and the Nasdaq futures rose by 0.66%. 2. At the time of writing, the DAX index in Germany rose by 0.32%, the FTSE 100 index in the UK increased by 0.11%, the CAC 40 index in France rose by 0.80%, and the Euro Stoxx 50 index rose by 0.77%. 3. At the time of writing, WTI crude oil fell by 3.35% to $90.74 per barrel. Brent crude oil fell by 2.38% to $94.37 per barrel. Market news Major news in the US-Iran conflict! The US has promised a 60-day full ceasefire on all fronts. On May 27th local time, member of the Iranian National Security Committee Brugedi announced that according to the preliminary agreement draft reached between Iran and the US, the US will commit to a 60-day full ceasefire on all fronts in the first phase, especially within Lebanon. Brugedi stated that the release of a considerable portion of Iran's frozen assets and the end of the maritime blockade are also part of the agreement. In addition, Iranian Islamic Revolutionary Guard Navy officer Mohammad Akbarzadeh stated that the likelihood of renewed war with the US is "low", but Iranian armed forces are "ready with loaded magazines". Goldman Sachs Group, Inc. remains bullish on US stocks: Raises S&P 500 target to 8000 points, as the AI profit wave continues. Goldman Sachs Group, Inc. raised its target point for the S&P 500 index at the end of 2026 from 7600 points to 8000 points, citing the continued strong growth in corporate profits. Goldman Sachs Group, Inc. stated: "So far this year, all returns of the S&P 500 index have been driven by profit growth, and we expect this trend to continue in the coming months." The bank also raised its earnings per share forecast for the S&P 500 index: to $340 in 2026, a 24% increase year on year; to $385 in 2027, another 13% increase year on year. Goldman Sachs Group, Inc. stated that companies benefiting from AI infrastructure will contribute to about half of the S&P 500's profit growth this year, and added that despite risks from weak consumer spending and high costs, strong AI investments will offset these pressures. "Inflation is the bigger risk"! Castle Securities urges the Federal Reserve: Turn to a rate hike stance quickly to avoid falling behind the situation. As US inflation continues to rise due to multiple factors, calls for a shift in Federal Reserve policy on Wall Street are growing. Castle Securities recently issued a clear warning, stating that the Fed should shift its focus from supporting employment to fighting inflation, and adjust its policy stance quickly. Nohshad Shah, Head of Fixed Income Sales for Europe, the Middle East, and Africa at Castle Securities, said: "Inflation, not the labor market, is the bigger risk. The Fed should take it seriously and adjust its stance quickly to avoid lagging behind the situation." Castle Securities' model shows that the Fed's current interest rate level is close to the neutral rate, neither stimulating nor inhibiting economic growth. Shah believes that this stance contradicts the market's expectation of "robust economic expansion". Fed credibility alert sounded! Former New York Fed President warns of failing to achieve the 2% inflation target for five years, signaling a weakening logic for rate cuts in the Powell era. Former New York Fed President Dudley warns that the Fed faces a major risk of losing its anti-inflation credibility after failing to achieve the 2% inflation target for a long time. Dudley stated that there is a risk, especially with the new Fed Chair Powell appointed by President Trump, that the Fed may cut rates against the tide of rising inflation, which would exacerbate the Fed's credibility crisis. Dudley said: "Our inflation data has been significantly above the Fed's 2% inflation target for more than five years." "And there is a risk that inflation expectations may actually become completely unanchored." Investment bank Piper Sandler skeptical about the "Iran agreement" narrative: Strait of Hormuz likely to remain paralyzed, oil prices expected to reach new highs this summer. Piper Sandler stated that they do not believe that an agreement between the US and Iran is imminent, and informed clients that the Strait of Hormuz is likely to remain largely closed, leading to a shortage of supply and a new high in oil prices. According to a recent report by the bank's energy and macro team: "We believe that the Strait of Hormuz will remain largely closed in the coming months, which means that the supply shortage will become more urgent, and oil prices will reach new highs this summer." Piper Sandler said that whether it is next week or next month, they have no confidence in whether commercial traffic through this strait can recover to 50% of pre-crisis levels. Stock news US commercial space stocks soar in pre-market trading. On Wednesday pre-market trading, the commercial aerospace sector, ignited by SpaceX, continued to rally, boosted by NASA's announcement of a three-phase roadmap for building a lunar base. At the time of writing, Momentus (MNTS.US) surged by over 50%, Redwire (RDW.US), Intuitive Machines (LUNR.US) rose by nearly 15%, York Space Systems (YSS.US) rose by 10%, MDA Space (MDA.US), Firefly Aerospace (FLY.US), Rocket Lab (RKLB.US) all rose by over 7%, and Voyager Technologies (VOYG.US), AST SpaceMobile (ASTS.US) rose by over 6%. Storage chip stocks rise. In Wednesday's pre-market trading, at the time of writing, Micron Technology, Inc. (MU.US) rose by over 8%, Seagate Technology Holdings PLC (STX.US) and Western Digital Corporation (WDC.US) rose by nearly 5%, and SanDisk (SNDK.US) rose by over 3%. $2 trillion IPO upcoming, Musk rumored to discuss merger of SpaceX and Tesla, Inc. (TSLA.US). As SpaceX's listing countdown begins, discussions on what could be the largest technology company integration in history are moving from market speculation to more concrete talks. According to sources, SpaceX and Tesla, Inc. have already shared a series of resources, and Musk has also discussed the possibility of merging the two companies with colleagues. Although rumors about this have been circulating for the past few months, Musk's involvement undeniably makes this prospect more realistic. Of note is that this topic is no longer a secret within Tesla, Inc. A current Tesla, Inc. employee stated that many employees have long expected such a deal to eventually happen, and the topic is openly discussed internally. Another individual close to the company pointed out that shared challenges in power and computing constraints have led the two companies to collaborate frequently in recent years. Lithium industry giant Sociedad Quimica y Minera de Chile S.A. Sponsored ADR Pfd Series B (SQM.US) doubles Q1 profits, raises sales volume expectations as a strong start. One of the world's largest lithium producers, Sociedad Quimica y Minera de Chile S.A. Sponsored ADR Pfd Series B reported a significant increase in first-quarter profits and raised its lithium sales forecast, citing strong demand from battery energy storage systems that will keep the market in a tight balance. In the three months ending on March 31, the company's adjusted Earnings before interest, taxes, depreciation, and amortization (EBITDA) was $837 million, more than twice the level of the same period last year, and higher than analysts' average expectations. Revenue rose to $1.76 billion, a 69.8% year-on-year growth, slightly exceeding expectations. SQM's quarter lithium sales volume reached approximately 69,000 metric tons of lithium carbonate equivalent, driven by the company's "fully operational" capacity to meet demand. The company currently expects lithium sales volumes to increase by about 15% this year, higher than the previously forecasted 10% growth. PDD Holdings Inc. Sponsored ADR Class A (PDD.US) releases Q1 financial report, continues to support businesses, accelerates supply chain transformation and upgrades with new initiatives. PDD Holdings Inc. Sponsored ADR Class A released its first-quarter financial report ending on March 31. Benefiting from continued investments in strategies such as the "billion-dollar support", the platform's ecosystem and supply chain system have shown steady improvement, with first-quarter revenue reaching 106.2 billion yuan, an 11% year-on-year increase. In the first quarter, the new Pingmu special company was officially established in Shanghai, with the brand's self-operated business making steady progress. The "rebuilding of PDD Holdings Inc. Sponsored ADR Class A in three years" strategy has entered a new stage of deepening development. Meanwhile, the long-term investment of Pinduoduo in the "billion-dollar support" initiative for businesses continues to enhance the platform's governance and compliance construction, actively fulfilling greater social responsibilities. KINGSOFT CLOUD (KC.US) achieves a 37.2% year-on-year revenue growth in Q1, continuing its high-quality growth trend. The financial report shows that KINGSOFT CLOUD achieved revenue of 2.7 billion yuan in Q1, a 37.2% year-on-year increase. In the first quarter, the company continued its high-quality growth trend, with adjusted gross profit of 350 million yuan, a 7.2% year-on-year growth; adjusted EBITDA of 750 million yuan, a 134.7% year-on-year growth; adjusted EBITDA margin of 27.6%, an 11.4 percentage point improvement year-on-year. During the quarter, both public cloud and industry cloud businesses saw year-on-year growth. Agora, Inc. Sponsored ADR Class A (API.US) sees a 13.5% year-on-year increase in revenue in Q1, achieves GAAP profits for the sixth consecutive quarter. The financial report shows that the company's revenue in Q1 was $37.7 million, a 13.5% year-on-year increase; net profit was $1.1 million, compared to $400,000 in the same period last year; diluted earnings per ADS were $0.01, compared to $0.004 in the same period last year. In the first quarter, the company's gross profit was $23.9 million, a 5.7% increase from $22.6 million in the same period last year. The gross margin was 63.4%, a 4.6 percentage point decrease from 68.0% in the same period last year, mainly due to changes in the product mix, including early-stage scaling of conversational AI products. Performance forecasts Thursday morning: Marvell Technology, Inc. (MRVL.US), Salesforce, Inc. (CRM.US), Synopsys, Inc. (SNPS.US), HP Inc. (HPQ.US), NOAH HOLDINGS (NOAH.US) Thursday pre-market: Best Buy Co., Inc. (BBY.US), Kohl's (KSS.US), Li Auto, Inc. Sponsored ADR Class A (LI.US), XPeng Inc. (XPEV.US), Futu (FUTU.US), Weibo Corp. Sponsored ADR Class A (WB.US), Autohome Inc. Sponsored ADR Class A (ATHM.US)