Key Takeaways

• US Treasury yields fall as Fed meets.
• Economist Dent predicts massive market crash.
• Goldman expects oil surge with summer demand.
• Musk threatens Apple ban over AI fears.
• Intel halts new Israel chip factory plans.
• Ark sells Robinhood amid market turbulence.

I. Market Report

Stock futures inched lower Tuesday as investors await the start of June’s Federal Reserve policy meeting.

As of 08:29 am, EST (or 20:29 in Malaysia), Dow Jones Industrial Average futures lost 132 points, or 0.3%. S&P 500 futures and Nasdaq 100 futures both lost roughly 0.2%.

II. Market Movers

As of 08:27 am, EST (or 20:27 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

Analysts Warn: No Fed Rate Cut This Year Could Trigger Major Stock Market Decline

Recent robust US May non-farm payroll data dashed hopes for a Fed rate cut. Analysts now predict no rate cuts this year, contrasting earlier expectations. Lori Calvasina of RBC believes failure to cut rates could push S&P 500 down 8.5%. Others warn prolonged high rates may lead to economic instability.

US Treasury Yields Dip as Fed Meets

US Treasury yields retreat as the Federal Reserve commences its meeting. Markets anticipate unchanged rates, with potential cuts looming. Economic indicators like CPI and PPI releases hold sway over Fed's future moves. Investors keenly await policy signals, seeking clarity on the central bank's stance amidst economic uncertainties.

Economist Warns 'Crash Of A Lifetime' Is Coming, Predicts S&P 500 To Plummet '86% From The Top'

Prominent financial author and economist Harry Dent remains steadfast in his December prediction of the “crash of a lifetime.” In a recent interview with Fox Business, Dent warned that the current “everything” bubble has yet to burst and that the impending crash might surpass the severity of the Great Recession. Read in detail>>

Goldman Sachs Predicts Oil Price Surge to US$86 Amid Summer Demand

Goldman Sachs forecasts Brent crude to reach US$86 per barrel in Q3 due to peak summer travel and energy demand. Recent reports indicate a bullish outlook despite previous skepticism. Concerns linger over long-term supply as drilling activity remains a key factor.

Gold Mining Struggles as Deposits Become Scarcer

The gold mining industry faces challenges in sustaining production as deposits become harder to find, says the World Gold Council. Mine production increased only 0.5% in 2023. WGC's John Reade highlighted the growing difficulty in finding, permitting, and operating new mines. Despite record first-quarter production in 2024, growth has stagnated since 2016. Gold prices, recently boosted by strong demand from China, are currently US$2,294.3 per ounce.

IV. Stocks to Watch

Ming-Chi Kuo Praises Apple's Intelligence, but Investors Seek More Innovation

Ming-Chi Kuo, a well-known analyst, has lauded Apple Inc. ($Apple Inc. AAPL$) for its AI and ecosystem integration advancements. However, he indicated that investors are seeking more substantial developments. Read in detail>>

Musk Threatens to Ban Apple Devices at Tesla, SpaceX Over AI Security Concerns

The Tesla Inc ($Tesla Motors, Inc. TSLA$) CEO, on Monday, made a series of tweets warning that if Apple ($Apple Inc. AAPL$) integrates OpenAI at the OS level, it would be considered an “unacceptable security violation.” He further stated that Apple devices would be banned from his companies, including SpaceX, and visitors would have to check their devices at the door, where they would be “stored in a Faraday cage.” Read in detail>>

Broadcom Could Report A Modest Beat For Q2, Says Bullish Analyst

Broadcom Inc ($Broadcom Limited AVGO$) shares were climbing in trading on Monday, just days after JPMorgan analyst Harlan Sur named the company as the top AI semiconductor supplier behind NVIDIA Corp ($NVIDIA Corporation NVDA$). The company is likely to report a modest beat when it releases its fiscal second-quarter results on June 12, according to BofA Securities. Read in detail>>

Intel Reportedly Stopping Work on New Chip Factory in Israel

Intel ($Intel Corporation INTC$) is reportedly stopping work on a proposed US$25 billion chip factory project in Israel, multiple media reports said Monday. Read in detail>>

Cathie Wood's Ark Dumps US$7.6M in Robinhood Shares Amid GameStop, Bitcoin Volatility

On Monday, Cathie Wood-led Ark Invest made a significant move by reducing its holdings in Robinhood Markets Inc ($Robinhood Markets, Inc. HOOD$). This decision came amidst a period of market fluctuations and followed a recent trend of the investment firm adjusting its portfolio. Read in detail>>

UBS, Credit Suisse Swiss Units to Merge on July 1 - UBS Executive

The Swiss units of UBS Group AG ($UBS Group AG UBS$) and Credit Suisse Group ($Credit Suisse Group AG Sponsored ADR CS$) are on track to merge by Jul. 1, according to a senior UBS executive. “The merger could be done by July 1, 2024,” she said. Customers will start transferring to UBS’s IT systems in 2025. The merger of the parent companies of UBS and Credit Suisse concluded at the end of last month, leaving Switzerland with a single global bank. Read in detail>>

AT&T On Track to Meet 2024 Financial Guidance, Expects Capital Investment of Up to US$22 Billion

AT&T ($AT&T Inc. T$) said Monday it remains on track to achieve its previously-announced 2024 financial guidance and continues to expect capital investment of US$21 billion to US$22 billion for this year to expand its 5G and fiber networks. Read in detail>>

V. Calendar

Earnings:

$Oracle Corporation ORCL$
$GameStop Corp. Class A GME$
$ZEEKR Intelligent Technology Holding Limited ZK$

Expected IPO:

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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:

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!