Preview of US Stock Market | The three major stock index futures rose together, with space and chip stocks rising. Oracle fell sharply after its performance, with the U.S. May PPI set to be announced.

Pre-market Market Trends 1. Prior to the market open on June 11th (Thursday), the futures of the three major US stock indexes rose. As of the time of writing, the Dow Jones Industrial Average futures were up 0.80%, the S&P 500 Index futures were up 0.77%, and the Nasdaq futures were up 1.26%. 2. As of the time of writing, the German DAX index was up 0.23%, the UK FTSE 100 index was up 0.97%, the French CAC40 index was up 0.99%, and the European Stoxx 50 index was up 1.10%. 3. As of the time of writing, WTI crude oil was down 1.24% at $88.91 per barrel. Brent crude oil was down 1.42% at $91.78 per barrel. Market News US-Iran Conflict Escalates! The Strait of Hormuz is closed again. The United States has launched a new round of attacks on Iran, putting greater pressure on the fragile ceasefire agreement and potentially prolonging the disruptive Middle East conflict that is affecting global markets. Following President Trump's accusation that Iran was delaying midterm peace agreement negotiations, the US military stated that it had conducted attacks on "multiple" targets for a second day in a row. Iran, on the other hand, stated that it would resolutely resist any threats. In the early hours of local time on the 11th, Iran's armed forces' Hattam Amber Command Central Command issued a statement declaring that due to the turbulent security situation in the region, the Strait of Hormuz would be closed to all types of vessels, including oil tankers and commercial ships, effective immediately. Any vessels attempting to pass through the strait would be attacked. In addition, as tensions in the Middle East escalate once again, investors are gradually abandoning expectations for a quick diplomatic solution and beginning to view the US-Iran conflict as a potentially prolonged confrontation. For investors, the more challenging aspect is not the short-term impact, but the possibility of energy and financing costs remaining high in the long term. JP Morgan: Expecting the Federal Reserve to keep interest rates unchanged next week, May may have been the peak of this inflation cycle. Despite the latest inflation data reaching its highest level in over three years, JP Morgan Asset Management believes this is not sufficient to prompt the Federal Reserve to take action at their next meeting. Decision-makers are likely to continue keeping interest rates unchanged. JP Morgan's Chief Global Strategist David Kelly states that while inflation remains above the Federal Reserve's target level, the May data is likely close to the peak of this inflation cycle. He believes that prices may gradually ease over the coming months, saying, "Essentially, I believe that the Federal Reserve will decide to do nothing next week with a vote of 12 to 0." The US core CPI in May, excluding food and energy prices, only rose by 0.2% month-on-month, below market expectations, showing that underlying inflation pressures have not significantly worsened. Kelly believes this is a key reason why the Federal Reserve is still patient and maintaining a watchful stance. He states, "Seeing inflation return to the '4s' is not a pleasant thing, but there is currently no reason to immediately relax monetary policy." Top ten US stocks supporting half of the market? Macquarie Strategy Director: Don't guess the crash, now the trend is "bubbles taking turns to inflate." The total market value of the top ten weighted stocks in the US stock market now accounts for approximately 45% of the total market size. Such extreme market concentration completely breaks traditional market trends, making it difficult for investors to judge whether this is a new normal for the capital markets or a massive bubble on the verge of bursting. In response, Macquarie Group's Global Strategy Director Victor Schwartz offers a distinctly different assessment, saying, "Neither of these is true. We are now in a market environment of successive bubbles." Schwartz stated in an interview that this extreme concentration of individual stocks is not exclusive to the US stock market but is a common feature of major stock markets around the world. Given the current market situation, Schwartz recommends adopting a thematic investment strategy: lock in themes that are expected to have upward potential in the coming years, remain flexible in rebalancing, and timely adjust the layout when one theme cycle ends and a new one emerges. He predicts that Siasun Robot&Automation, automation, quantum computing, and biotechnology will be the core themes generating large-scale bubbles in the next cycle, summarizing, "The large-scale bubble trend in these areas is yet to come." Morgan Stanley: US stock liquidity not afraid of "indigestion" from super IPO wave. Morgan Stanley's Chief US Equity Strategist Mike Wilson stated that despite the continuous influx of new offerings to investors and the tight pace, the market's ability to digest this round of stock and bond issuances indicates that the underlying financial conditions remain healthy. Wilson expressed confidence that the market has sufficient funds to cope with the recent surge in IPO activity. He described the current environment as "another bounty year," although not comparable to the peak period of 2021, it still demonstrates strong investor demand. He added that the continued inflow of funds from retail investors, pension beneficiaries, and other asset owners further supports the market's depth. Wilson acknowledged that concentrating multiple transactions in a single quarter could bring temporary "indigestion" to the market. However, he insisted that there is "ample liquidity in the market" to deal with these short-term disturbances, as the significant returns to shareholders provide a buffer for new issuances. Gold caught in a dilemma of "the more chaotic, the more it falls"! The options market bets that the cold winter for gold prices will last for two years. Gold prices seem unlikely to break out of their sluggish trend in the short term, primarily due to the risk factors surrounding the Middle East GEO Group Inc conflict being reevaluated in the market not as "safe-haven buying of gold" but rather as a macro impact chain of "rising oil prices - increasing inflation expectations - escalating betting on the Fed raising interest rates - expectations of rising real interest rates and a stronger dollar." The main pressure on gold at the moment is not the insufficient scale of GEO Group Inc political panic, but rather the conflict in GEO Group Inc pushing up the "opportunity cost of holding interest-free assets." Currently, the most traded put options contract for the gold ETF, coded as GLD, is one that expires today with an exercise price of $380, making it in-the-money; the second most popular contract is a put option expiring in June 2028 with an exercise price of only $240 - each contract is priced at $11.50, showcasing a deep bearish bet on the gold ETF price falling by 40% in the next two years. Stock News US space stocks rise pre-market. Pre-market, US space stocks rose across the board on Thursday as investors prepared for the highly anticipated IPO of SpaceX. As of the time of writing, Redwire (RDW.US) and Firefly Aerospace (FLY.US) were up over 5%, Momentus (MNTS.US), Intuitive Machines (LUNR.US), Voyager Technologies (VOYG.US), and AST SpaceMobile (ASTS.US) were up over 4%, Rocket Lab (RKLB.US) was up nearly 4%, and MDA Space (MDA.US) was up over 1%. Investors are increasingly viewing SpaceX's listing as a potential catalyst for the broader commercial space industry, attracting new investor attention to the sector and possibly boosting the valuations of listed space companies. SpaceX's IPO is expected to be priced on June 11th and begin trading the following day. Chip stocks rebound pre-market. Chip stocks, which experienced a general decline on Wednesday, rebounded pre-market on Thursday. As of the time of writing, Intel Corporation (INTC.US) was up over 4%, Marvell Technology, Inc. (MRVL.US) and Micron Technology, Inc. (MU.US) were up nearly 3%, AMD (AMD.US) was up nearly 2%, Broadcom Inc. (AVGO.US) and NVIDIA Corporation (NVDA.US) were up nearly 1%. In addition, ASML Holding NV ADR (ASML.US) was up over 3%, and Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) was up over 2%. Even large AI deals can't boost market confidence! Oracle Corporation's (ORCL.US) capital expenditure "out of control" leads to a sharp post-earnings drop in stock price. According to financial reports, Oracle Corporation's total revenue in the fourth quarter reached $19.18 billion, a 21% year-on-year increase, higher than analysts' expected $19 billion. Net income was $4.22 billion, with earnings per share of $1.45, up from $3.43 billion ($1.19 per share) in the same period last year, and adjusted earnings per share of $2.11, higher than the market's expected $1.96. Oracle Corporation's cloud infrastructure business (OCI), which is the most watched growth engine, generated revenue of $5.8 billion this quarter, up 93% year-on-year, slightly higher than analysts' expected 91% growth rate. Despite all core financial indicators for the fourth quarter exceeding market expectations, the company's disclosed capital expenditures were higher than expected, leading to investor concerns about the profitability of its AI infrastructure business. For the full fiscal year 2026, Oracle Corporation's capital expenditures reached $55.66 billion, up 162% year-on-year, well above the company's previous guidance of $50 billion; capital expenditures for the fourth quarter alone were around $16.5 billion. More concerning to investors is the company's free cash flow position - with a negative free cash flow of $23.7 billion for the year. As of the time of writing, Oracle Corporation was down over 9% pre-market on Thursday. Canada plans to introduce "teen social media ban," Meta (META.US), X face full lockdown risk. The Canadian government, led by Prime Minister Mark Carney, has proposed legislation that would ban teenagers under 16 from using social media unless companies like Meta and X meet a series of safety standards. The legislation unveiled on Wednesday also involves AI chatbots, with no ban on underage users. Relevant companies must reduce the risks of chatbots spreading harmful content and publicly disclose their reporting thresholds in crisis situations. The Canadian government had previously indicated it was considering banning minors from using social media, but the plan unveiled on Wednesday does not include a comprehensive ban. Miller stated that the government believes that social media platforms can be made safer through design. Microsoft Corporation (MSFT.US) targets AI computing power, Xbox's new CEO spearheads restructuring of "Microsoft gaming empire." Microsoft Corporation's massive gaming division, centered on Xbox, is planning a large-scale downsizing next month, with the new CEO of Microsoft Corporation's Xbox gaming division, Asha Sharma, leading a restructuring of the increasingly complex and redundant electronic gaming business to stem the revenue and profit decline in recent years. According to insiders, the exact scale of the downsizing is currently unclear, but is expected to occur shortly after Microsoft Corporation's fiscal year ends on June 30th. Insiders revealed that Xbox also plans to significantly reduce marketing budgets and other segment-specific budgets. Sharma has publicly discussed the challenges the organization faces, recently stating plans to "reset this business" as it is currently "not in a healthy state." BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs (BHP.US) votes in favor of a strike by hundreds of workers at the Hedland Port, posing a shutdown risk for the global iron ore export Hub Group, Inc. Class A. Two unions in Australia announced on Thursday that hundreds of BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs employees at the Hedland Port in Western Australia voted in favor of taking strike action. This elevates the risk of a potential interruption in iron ore transport at one of the world's largest iron ore export ports, which is also Australia's largest iron ore export port. The vote came after months of negotiations between the union and BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs on labor agreements. Disruption in operations at the Hedland Port could lead to significant economic losses. In the previous fiscal year, BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs exported 290 million tons of iron ore through the Hedland Port. Based on the latest available financial reports and budget data, this mining giant could face daily losses of $110 million to $126 million. Important Economic Data and Events Forecast 8:30 PM Beijing time: US May PPI 8:30 PM Beijing time: Initial Jobless Claims for the week ending June 6th in the US Earnings Forecast Friday morning: Adobe (ADBE.US)