Key Takeaways

• New EV Manufacturers Reveal Delivery Figures, Li Auto Leading the Pack
• Tesla Raises Prices on Some Vehicles in China And the US
• Gold Prices Soar to All-Time-High on Hopes of Fed Cut
• Microsoft and OpenAI Reportedly Considering a $100B Data Center Project

I. Market Report

Stock futures rose slightly on Monday as Wall Street kicked off the second quarter following a strong start to the year, and traders weighed fresh U.S. inflation data.

As of 08:05 am, EST (or 20:05 in Malaysia), futures tied to the Dow Jones Industrial Average added 89 points, or 0.22%, while S&P 500 futures and Nasdaq-100 futures gained 0.23% and 0.28%, respectively.

II. Market Movers

As of 08:06 am, EST (or 20:06 in Malaysia), top pre-market movements are as follows:

Note: We are pleased to inform you that our app now supports pre/after-market trading for US stocks. The trading hours for these sessions are as follows:

• Pre-market: 16:00 to 21:30 in Malaysia
• After-hours market: 04:00 to 08:00 the next day in Malaysia

Please note that regular trading hours are from 21:30 to 04:00 UTC.

III. Flash Headlines

PCE Rise Below Estimates, Rate Cuts Anticipated

The PCE index in February rose less than expected, boosting bets for a rate cut. Fed Chair Powell's comments further supported expectations of lower interest rates, with Citigroup anticipating up to five cuts this year. The FedWatch tool indicated the probability of a cut in June increasing from 55% to 69%.

Gold Prices Soar to All-Time-High on Hopes of Fed Cut, IG Strategist Sees More Room

Gold prices reached a new high, driven by anticipation of USA interest rate cuts and its safe haven status. At today's opening, Spot gold rose 1.32% to $2,265.53, while USA gold futures increased over 2% to $2,286.39.

IG Market Strategist Yeap Jun Rong suggests gold could climb further as fund manager positions, at a two-year peak, haven't reached the long-term highs of 2016 or 2020, indicating room for more buying.

Retail Investors Embrace Risk as Stocks Surge

USA stocks hit record highs in Q1, leading retail investors to favor riskier, leveraged bets, shifting from major ETFs to triple-leveraged funds, coinciding with major indices like the Dow Jones, S&P 500, and Nasdaq posting gains of 5.62%, 10.16%, and 9.11%, respectively. Retail investors, having recovered from 2022's bear market losses, are now focusing on gains and diversifying investments beyond top-performing stocks, as per Vanda Research.

US Considers Second Wave of Chip Subsidy Plan to Sustain Semiconductor Manufacturing Capability in America

As a pioneer in the chip subsidy war, the U.S. government is considering rolling out a second wave of chip subsidy policy following the Chip Act, aimed at sustaining the country's semiconductor manufacturing capacity. This is highly anticipated by numerous chip companies. Industry experts and market think tanks believe that the second wave of subsidies should place a stronger emphasis on the supply chain and be more targeted.

Citi Sees Market Digestion Amid Optimism

Citi's Scott Chronert highlights the Levkovich Index entering "optimistic" territory for the first time in this bull market, signaling a potential market "digestion" phase despite recent investor enthusiasm. The index, not meant for short-term timing, suggests a cautious balance amid current dynamics.

Oil Steady After Q1 Surge

Brent Crude Oil prices remained stable, hovering around $86 a barrel, following a 13% increase in Q1 due to robust demand in Europe. China’s industrial activity rebounded in March to snap a five-month decline, stoking hopes that oil use in the biggest crude importer might be on the mend. OPEC+ supply cuts further supported the bullish market, with an upcoming meeting expected to maintain the current output policy.

IV. Stocks to Watch

New EV Manufacturers Reveal March Delivery Figures, with Li Auto Leading the Pack

In March 2024, NIO $NIO NIO$ delivered 11,866 new vehicles, reflecting a 14.3% YoY increase and a 45.9% QoQ increase. Xiaopeng Motors $XPENG INC. XPEV$ delivered 9026 new vehicles, indicating a 29% YoY increase and a 99% QoQ increase. Additionally, $LI AUto LI$ delivered 28,984 new vehicles, representing a 39.2% YoY increase and approximately 43% QoQ increase.

During 1Q24, NIO delivered a total of 30,053 vehicles, showing a slight 3% YoY decrease. XPENG delivered a total of 21,821 smart EVs, indicating a solid 20% YoY increase. Li Auto delivered a total of 80,400 vehicles, reflecting a substantial 52.9% YoY growth. As of 19:45 GMT+8, Li Auto's stock climbed 3.83%.

Tesla Raises Prices on Some Vehicles in China And the US as Q2 Begins

Tesla $Tesla Motors, Inc. TSLA$ announced on Monday price increases on certain models in China and the U.S. The Model Y saw a price hike of $1,000 in the U.S. to $44,990, while the price on the Model Y AWD Long Range was increased to $49,990.

In China, the basic Model Y is now listed on Tesla's website as priced at CNY263,900 ($36,519), up from last week's level of CNY258,900.

Microsoft and OpenAI Reportedly Considering a $100B Data Center Project

Microsoft $Microsoft Corporation MSFT$ and OpenAI have been in talks to invest as much as $100B for a data center project that would contain a supercomputer, the biggest in a series of installations the companies plan to establish over the next six years, The Information reported, citing people familiar with the matter.

The planned U.S.-based supercomputer, referred to as “Stargate,” will be designed to house millions of specialized server chips to boost OpenAI’s artificial intelligence capabilities, the people added.

HBM Experiences Surging Demand, SK Hynix Market Value Surges Past $100 Billion

Due to the increasing demand for high bandwidth memory (HBM) used in conjunction with artificial intelligence processors by SK Hynix and Nvidia $NVIDIA Corporation NVDA$ , SK Hynix's stock price has more than doubled over the past year. This performance has positioned SK Hynix as the second largest company in South Korea, following only Samsung. Analysts noted that SK Hynix holds over 90% of the market share in the latest version of HBM.

V. Calendar

Earnings:

$PVH Corp. PVH$
$Sigma Lithium Corporation Ordinary Shares SGML$

Expected IPO:

--

Please note that the timing of IPOs is subject to change at any time (including being advanced or delayed). Investors should therefore keep up-to-date with relevant news.

Events:

21:45 GMT+8 USD S&P Global US Manufacturing PMI (Mar)
22:00 GMT+8 USD Construction Spending (MoM) (Feb)
22:00 GMT+8 USD ISM Manufacturing Employment (Mar)
22:00 GMT+8 USD ISM Manufacturing PMI (Mar)
22:00 GMT+8 USD ISM Manufacturing Prices (Mar)

Read more on the full week's calendar:
Weekly Watch | US Jobs Report To Be Released; Tesla Set to Announce Delivery Numbers; HK Stock Market Closed on Monday and Thursday

Finally, just a little reminder:

The regular trading hours for US stocks in the Daylight Saving Time (DST) are from 21:30 to 04:00+1 GMT+8, with pre-market trading available from 16:00 to 21:30.

Have a nice trading day!