U.S. stocks rose on Tuesday, with chip stocks strengthening to support the market. Investors are closely monitoring the interactions between Washington and major trading partners, looking for more clues regarding the direction of tariff policies.
On June 3 local time, the three major U.S. stock indices collectively rose, with the Dow up 0.51%, the Nasdaq up 0.81%, and the S&P 500 up 0.58%. Most popular tech stocks rose, with Broadcom up over 3% and NVIDIA up over 2%, surpassing Microsoft to become the company with the highest market capitalization in the world, reaching $3.445 trillion, above Microsoft's $3.441 trillion.
NVIDIA rose about 3% on that day, closing at $141.40, with a cumulative increase of nearly 24% over the past month. Despite facing uncertainties from export controls and tariffs, its financial performance remains outstanding. The earnings report released last week showed a year-on-year revenue growth of 69% in the first fiscal quarter, reaching $44.06 billion, far exceeding market expectations. NVIDIA expects second fiscal quarter revenue to fluctuate around $45 billion, with analysts predicting $45.5 billion.
NVIDIA's current market capitalization is $3.45 trillion. Microsoft's market capitalization at the close on Tuesday was $3.44 trillion. Since June 2023, NVIDIA, Microsoft, and Apple have taken turns ranking at the top of the global market capitalization list, with NVIDIA last at the top on January 24.
The Nasdaq Golden Dragon China Index rose 0.56%. Most popular Chinese concept stocks rose, with Li Auto up over 6%, iQIYI up over 3%, and Pinduoduo and XPeng up nearly 2%; Bilibili fell over 2%, and JD.com fell over 1%.
Chris Zaccarelli, Chief Investment Officer of Northlight Asset Management, pointed out that investors are most concerned about whether tariff policies will escalate further. "If the imposed tariffs are eliminated or reduced, the risk of the economy falling into recession can almost be ruled out."
He believes that the U.S. is actively engaging with multiple economies to seek consensus, and the progress of related negotiations will become a key variable of interest for the market.
In terms of macro data, the U.S. job vacancies increased month-on-month in April, but the number of layoffs also rose during the same period, indicating that companies are becoming more cautious in hiring. According to data from the U.S. Department of Commerce, factory orders decreased by 3.7% month-on-month in April, partly due to the fading impact of earlier 'panic buying' purchases.
Investors are awaiting the non-farm payroll data to be released this Friday to assess the impact of current trade uncertainties and changes in policy expectations on the economic fundamentals.
In other stocks, Wells Fargo rose 1.2% and further increased by about 2% in after-hours trading. The Federal Reserve announced that it would lift the asset size limit imposed on the bank. Previously, due to sales behavior issues, regulators had set an asset operation limit of $1.95 trillion on Wells Fargo since 2018.
In the commodities market, international oil prices rose. WTI crude oil futures were up 1.42%, at $63.41 per barrel; Brent crude oil rose 1.55%, closing at $65.63 per barrel. Gold futures, on the other hand, faced downward pressure, with COMEX gold futures down 0.59%, at $3,377.1 per ounce.