Preview of US Stock Market | Three major stock index futures fell together, the US and Iran clashed again, April PCE is coming tonight.

Pre-Market Market Trends 1. Before the US stock market on May 28 (Thursday), the futures of the three major US stock indexes fell together. As of the time of writing, Dow futures fell by 0.17%, S&P 500 index futures fell by 0.19%, and Nasdaq futures fell by 0.38%. 2. As of the time of writing, the German DAX index fell by 0.77%, the UK FTSE 100 index fell by 1.11%, the French CAC 40 index fell by 0.61%, and the Euro Stoxx 50 index fell by 0.53%. 3. As of the time of writing, WTI crude oil rose by 3.10% to $91.43 per barrel. Brent crude oil rose by 2.84% to $94.87 per barrel. Market News Prospects for talks have changed again! The US and Iran have clashed again. On the 27th, a senior US official stated that Iran had launched four unmanned drones at a US commercial ship, "US forces shot down these drones and launched an attack on another ground drone unit before it could launch." In addition, an Iranian military source stated that a US oil tanker attempted to shut down its radar system to pass through the Strait of Hormuz, but due to a quick and decisive action by the Iranian Islamic Revolutionary Guard Navy, it fired at the tanker, forcing it to stop and turn back. In retaliation, the US military fired at the vicinity of the Abbas port. US President Trump stated at a cabinet meeting on the 27th at the White House that the US has not discussed any relaxation of sanctions or providing funds to Iran, "these two things are not related to each other." Earlier in the day, Trump stated in an interview that even if Iran abandons highly enriched uranium, it cannot obtain "sanctions exemptions." April PCE Outlook: Inflation fears may reach near three-year highs, Fed may return to hawkish stance. At 20:30 on Thursday Beijing time, the US Department of Commerce's Bureau of Economic Analysis will release the April Personal Consumption Expenditures (PCE) Price Index report. This key inflation indicator for the Fed is expected to show that inflationary pressures are not easing but rather spreading to broader areas. The market generally expects the April PCE year-on-year increase to climb to 3.8%, exceeding the previous value of 3.5%, reaching the highest level since June 2023. Even excluding volatile food and energy prices, the core PCE annual rate is expected to slightly rise to 3.3%. Fed officials turn hawkish! Vice Chairman warns inflation risks still "skewed to the upside," Bostic warns of "AI frenzy" potentially driving up inflation and forcing rate hikes. Chicago Fed President Bostic increased his warning on Thursday. He pointed out that expectations for AI to boost productivity potential are rising, which could push up inflation and force the Fed and other central banks to raise interest rates. He stated, "The more speculative the future productivity is, the more likely it will be necessary to raise rates to prevent the economy from overheating," "Moreover, the supply shocks in the short termwhether from oil prices, supply chain disruptions, or other factorswill make the situation worse." In addition, Fed Vice Chair Jefferson stated that he expects inflation to cool later this year as the impact of tariffs and rising energy costs subsides, but he warned that inflation risks still skew towards the upside. Silver under pressure at high levels! Bank of America calls for a target price of $100 but warns that the rally may not be sustainable, photovoltaic "de-silverization" becomes the biggest obstacle. Bank of America's commodities team gave a "rise first, fall later" assessment in its latest research reportthe analysis team led by Metal Research Director Michael Widmer still maintains an optimistic outlook, believing that silver prices are expected to reach $100 per ounce in the fourth quarter of 2026. However, the Bank of America also issued a clear warning that this round of upward movement may be "transient" and not sustainable. The bank expects that with the structural decline in industrial demand, silver prices will return to around $75 per ounce by the second quarter of 2027. In Bank of America's view, the biggest structural resistance facing silver comes from the wave of "de-silverization" in the industrial sector. Tariff deadline at the end of June, copper market panic triggers cross-market arbitrage. As the US government approaches the final deadline (end of June) to decide whether to impose tariffs on refined copper imports, market risk aversion is sharply increasing, directly igniting the arbitrage space between copper prices on the New York Mercantile Exchange (COMEX) and the London Metal Exchange (LME). The US delivery copper price premium has continued to rise, global copper flows to the US market, while supplies in other regions are tightening simultaneously. This scene is reminiscent of the market anxiety during the same period in 2025. Data shows that the COMEX spot copper price is about 3% higher than the LME price, and the forward contract premium in March 2027 approaches $1000 per ton, equivalent to 7% of the LME price. Combining signals released by the US governmentthe 15% tariff on refined copper starting in early 2027, rising to 30% in early 2028, COMEX premiums still have ample room for further increases. Stock News Marvell Technology, Inc. (MRVL.US) Q1 earnings report significantly exceeded expectations: Full-year guidance sharply raised, custom chip revenue in 2029 aims for $10 billion. Thanks to the strong push from the AI data center construction boom, Marvell Technology, Inc. delivered a significantly better-than-expected earnings report for the first quarter of the 2027 fiscal year and sharply raised its performance outlook for the full year and the coming years. The quarterly report showed that Marvell Technology, Inc.'s first-quarter revenue increased by 28% year-on-year to $24.2 billion, exceeding the market's expected $24.1 billion. Adjusted earnings per share were $0.80, higher than the analysts' consensus of $0.79. The adjusted gross margin reached 58.9%, roughly in line with market expectations. The data center business, as the company's core growth engine, achieved revenue of $1.83 billion in the first quarter, a 27% year-on-year increase, also exceeding the market's expected $1.81 billion. The company expects second-quarter revenue to be $2.7 billion, significantly higher than analysts' average expectation of $2.6 billion; the adjusted earnings per share guidance midpoint is $0.93, also higher than the market's expectation of $0.90. Furthermore, the company expects full-year revenue for the 2027 fiscal year to reach approximately $11.5 billion, a growth of about 40% year-on-year, higher than the analysts' and the company's previous expectations of $11 billion. Of particular note is the outlook for the custom chip business. Marvell Technology, Inc. expects its custom chip business revenue to exceed $10 billion by the 2029 fiscal year. EDA leader raises full-year profit guidance! After delivering an impressive second quarter, Synopsys, Inc. (SNPS.US) reached a settlement with activist investor Elliott. In the quarter ending April 30th, Synopsys, Inc. reported an adjusted earnings per share of $3.35, a year-on-year revenue increase of 42.5% to $22.8 billion. Analysts had previously expected the company's adjusted earnings per share to be $3.16 and revenue to be $22.5 billion. Design automation revenue soared 62% to $16.2 billion, while design IP revenue fell 5.8% year-on-year to $4.395 billion. Looking ahead to the third quarter, Synopsys, Inc. stated that it expects adjusted earnings per share to be between $3.63 and $3.69, and revenue to be between $24.1 billion and $24.6 billion. Analysts had previously expected the company's adjusted earnings per share to be $3.62 and revenue to be $23.9 billion. In addition to the financial results, Synopsys, Inc. announced that it has reached an agreement with Elliott Management and will appoint Jesse Conn's, Inc. a representative of the activist investment firm, to its board of directors. As of the time of writing, Synopsys, Inc. fell over 2% before the US stock market opened on Thursday. Commercial PC recovery unable to mask rising memory costs! HP Inc. (HPQ.US) lowers the upper limit of fiscal year profit and faces potential overextension of Q4 growth. HP Inc.'s profit forecast for the current quarter indicates that the company is still struggling to cope with the challenges posed by the sharp rise in memory chip prices. HP Inc. expects adjusted earnings per share for the quarter ending in July to be between 61 cents and 71 cents, although the midpoint of this range, 66 cents, exceeds the average expectation. However, data shows that some analysts forecast as high as 73 cents. In the second quarter, HP Inc. reported earnings per share of 86 cents, exceeding market expectations; revenue was $14.4 billion, a 9.2% year-on-year increase. Analysts on average expected adjusted earnings per share to be 71 cents and revenue to be $14 billion. The company reported an adjusted operating profit margin of 7.5%, while the average expectation was 6.6%. Salesforce, Inc. (CRM.US) outlook falls short of expectations! "AI disrupting everything" narrative hits the CRM leader. The company reported total revenue of $11.33 billion in the first quarter, up 13% year-on-year, higher than the market's expectation of about $11.05 billion; Adjusted EPS was $3.88, significantly higher than the market's expectation of about $3.13; Remaining Performance Obligations (RPO)a key indicator of future saleswere about $67.9 billion, up 11% year-on-year, compared to Wall Street analysts' average expectation of $68.9 billion. The company expects second-quarter revenue of about $11.3 billion, lower than the analysts' average expectation of $11.4 billion. While the first-quarter performance metrics overall remain on a growth trajectory, the forward-looking indicators for the second quarter are not enough to dispel valuation fears of "AI disrupting software stocks". Earnings report significantly exceeds expectations, five-year $60 billion deal with AWS, Snowflake (SNOW.US) reverses year-long decline overnight. Cloud data platform Snowflake released its first quarter fiscal year 2027 earnings report. The report showed that in the first quarter ending April 30, product revenue grew by 34% year-on-year to $1.3 billion, total revenue reached $1.39 billion, up 33% year-on-year, significantly exceeding the market's expected $1.32 billion; Adjusted earnings per share was $0.39, also surpassing analysts' expected $0.32. What's more exciting for investors is that Snowflake raised its product revenue forecast for fiscal year 2027 (ending in January 2027) from $56.6 billion given in February to $58.4 billion, higher than the Wall Street consensus of $56.8 billionproduct revenue accounts for about 95% of Snowflake's total revenue. Thanks to exceeding revenue and profit expectations, coupled with the significant increase in full-year product revenue outlook and the announcement of a $6 billion deal with Amazon.com, Inc. AWS, the stock surged nearly 38% before the US stock market opened on Thursday. Best Buy Co., Inc. (BBY.US) Q1 earnings beat expectations, reaffirms 2027 fiscal year guidance. The earnings report showed that Best Buy Co., Inc. Q1 revenue was $8.94 billion, exceeding the market's $8.83 billion expectation; adjusted earnings per share were $1.28, beating the market's $1.23 expectation. The company reaffirmed its adjusted earnings per share guidance for the 2027 fiscal year to be between $6.30 and $6.60, with revenue guidance of $41.2 billion to $42.1 billion. Analysts expect full-year adjusted earnings per share to be $6.48 and revenue to be $41.74 billion. As of the time of writing, Best Buy Co., Inc. surged over 8% before the US stock market opened on Thursday. Kohl's (KSS.US) Q1 earnings beat expectations. The earnings report showed that Kohl's Q1 sales were $3 billion, slightly lower than the previous year's $3.05 billion, and in line with the market's expectation of $2.99 billion; Diluted loss per share was $0.13, while the market expected a loss of $0.16 per share. The company reiterated its forecast for adjusted earnings per share for the 2026 fiscal year to be between $1 and $1.60, with the market's expected $1.36. The company also stated that its net sales and same-store sales for the full year are expected to decline by 2% to flat. As of the time of writing, Kohl's surged nearly 13% before the US stock market opened on Thursday. Top Economic Data and Events Preview 20:30 Beijing time US Personal Spending Month-on-Month for April 20:30 Beijing time US PCE Price Index Year-on-Year for April 20:30 Beijing time US Q1 Real GDP Annualized Rate Revision 20:30 Beijing time Number of Initial Jobless Claims for the week ending May 18th in the US 20:55 FOMC Permanent Voter, New York Fed President Williams delivers keynote speech at a conference organized by the Central Bank of Iceland 22:15 2028 FOMC Voter, St. Louis Fed President Musolame delivers speech 03:00 the next day 2027 FOMC Voter, Richmond Fed President Barkin participates in a fireside chat at the Carey Business School at Johns Hopkins University Earnings Preview Friday morning: Dell Technologies, Inc. Class C (DELL.US), NetApp (NTAP.US), MongoDB (MDB.US)