Preview of US Stock Market | The three major stock index futures fell together, Moody's downgraded the US rating, and the 30-year US Treasury bond yield rose to 5%.

1. Before the US stock market opened on Monday, May 19, the futures of the three major US stock indexes all fell. As of press time, the Dow Jones Industrial Average futures fell by 0.67%, the S&P 500 Index futures fell by 1.14%, and the Nasdaq futures fell by 1.52%. 2. As of press time, the Germany DAX Index fell by 0.02%, the UK FTSE 100 Index fell by 0.44%, the France CAC40 Index fell by 0.71%, and the Euro Stoxx 50 Index fell by 0.71%. 3. As of press time, WTI crude oil fell by 1.05% to $61.32 per barrel. Brent crude oil fell by 1.10% to $64.69 per barrel. Market News Moody's Corporation downgrade causes shock! 30-year US Treasury yield rises to 5%, "sell-off of US" trade resumes. Due to Moody's Corporation downgrading the US sovereign credit, concerns about US debt have intensified, and the long-term US Treasury yield rose to the psychological level of 5%, leading to a decline in US stock index futures. Moody's Corporation announced on Friday that it was cancelling the US government's highest credit rating, downgrading it from Aaa to Aa1. The company attributed the expanding US budget deficit to past presidents and members of Congress, and stated that there was almost no sign of the deficit narrowing. This downgrade may exacerbate Wall Street's concerns about the US sovereign bond market. Currently, the US Congress is discussing more unfunded tax reduction measures, while with President Donald Trump overturning long-established business partnerships and renegotiating trade agreements, the US economy seems to be slowing down. Buy US stocks on dips? Morgan Stanley: US-China tariff truce reduces recession risk, downgrade may be a good entry opportunity. Morgan Stanley strategist Michael Wilson suggests that investors should buy any US stocks that fell due to last Friday's credit rating downgrade, as the trade truce with China reduces the likelihood of an economic recession. Wilson believes that after Moody's Corporation's downgrade pushed the 10-year US Treasury yield above key level of 4.5%, there is a higher probability of market correction. However, Wilson wrote in a report, "We will buy on dips." S&P 500 Index futures fell by 1.2% on Monday, following the downgrade of US debt by Moody's Corporation. The company stated that this was to address the continually expanding budget deficit, with no sign of the deficit narrowing. This move has reignited investors' concerns about the popularity of US assets amidst ongoing global trade uncertainties. Trump tax cuts bill advances in the House of Representatives. It has been reported that Trump's tax cuts bill has received approval from a key committee in the US House of Representatives, making the bill likely to pass in the House later this week. The bill is valued at trillions of dollars. Last Thursday, efforts to pass the bill in Congress faced obstacles, as five conservative hardliners within the Republican party joined all Democratic lawmakers in voting against it, demanding further cuts to healthcare subsidies in exchange for their support in key procedural votes. Republican leaders stated that the bill is not yet mature and that tax and healthcare subsidy provisions need significant modifications to win the support of conservatives. Goldman Sachs Group, Inc. sounds alarm on US dollar depreciation: tariffs eroding the "American exceptionalism". Goldman Sachs Group, Inc. research department projects that as trade tensions, policy uncertainty, and slowing US economic growth pressure investor confidence and foreign demand for US assets, the dollar will face depreciation. Goldman Sachs Group, Inc. stated, "We expect continued weakening of the US dollar against major currencies in the first quarter of 2025." "We have previously indicated that US assets have excellent prospects for returns, which is the fundamental reason for strong US dollar valuations. However, if tariffs squeeze US corporate profit margins and reduce real income for American households, this 'American exceptionalism' may be eroded." Goldman Sachs Group, Inc. predicts a 10% drop in the US dollar against the euro, and a 9% drop against the yen and pound. The report points out that as "overseas consumers resist US products," market sentiment towards US assets is deteriorating, all of which slightly but continuously weighs on GDP. End of the golden age of US stocks? Wall Street giants betting on emerging markets: next bull market approaching. For investors in emerging markets on Wall Street who have missed the soaring US stock market for many years, they finally see an opportunity. Companies like Morgan Stanley Investment Management, AQR Capital Management, Bank of America Corp, and Franklin Templeton are betting that the situation may eventually turn in favor of emerging market stocks. Bank of America Corp's Michael Hartnett calls it "the next bull market." AQR predicts that in the next 5 to 10 years, these market returns in local currency will be close to 6%, exceeding the 4% rise of the US stock market measured in USD. Despite a recent rebound in the S&P 500 Index, the index was flat for the year as of last Friday's close, while the emerging market index increased by 10%. This momentum has ignited hope: the lackluster performance of emerging markets over the past 15 years may come to an end. Stock News Sohu.com Limited Sponsored ADR (SOHU.US) Q1 total revenue was $136 million, net loss narrowed by over 20% year-on-year. In the first quarter of 2025, Sohu.com Limited Sponsored ADR total revenue was $136 million. Marketing services revenue was $14 million, and online game revenue was $117 million.In US dollars. Sohu.com Limited Sponsored ADR's non-GAAP net loss was $16 million, a decrease of over 20% compared to the net loss of $22 million in the same period of 2024. According to Sohu.com Limited Sponsored ADR's previously announced share repurchase plan with a maximum total amount of $150 million, as of May 15, 2025, Sohu.com Limited Sponsored ADR has repurchased 5.48 million shares of Sohu.com Limited Sponsored ADR's American Depositary Receipts, totaling approximately $67 million.Niu Technologies Sponsored ADR Class A (NIU.US) reported a 35.1% year-on-year growth in revenue to 682 million yuan in the first quarter. Niu Technologies Sponsored ADR Class A achieved a revenue of 682 million yuan in the first quarter, a year-on-year growth of 35.1%, showing rapid development momentum; the number of domestic stores has increased to 4,119, and the overseas sales network now covers 53 countries; global vehicle sales have exceeded 203,000 units, a significant year-on-year increase of 57.4%, setting a new historical high. Looking ahead, based on the dual boost from the peak season of sales and the launch of new products, Niu Technologies Sponsored ADR Class A is confident in the market demand, and the company expects the second quarter's operating income to be between 1.317 billion yuan to 1.411 billion yuan, corresponding to a year-on-year growth of 40% to 50%. Huang Renxun's speech at Computex sparks an AI storm: Next generation GB300 system to be launched in Q3, new RTX Pro server online. On Monday, NVIDIA Corporation (NVDA.US) CEO Huang Renxun delivered a keynote speech at Asia's largest electronics exhibition - Computex in Taipei, introducing new products and strengthening cooperation with Taiwan, China. The company introduced a series of new technologies aimed at meeting the demand for artificial intelligence computing and ensuring its products remain at the industry's core. Huang Renxun revealed the latest schedule for NVIDIA Corporation's next generation GB300 system, stating that the system will be launched in the third quarter of this year. Gloomy prospects! Apple Inc. (AAPL.US) reportedly faces significant setbacks in the AI field. According to reports citing sources familiar with the internal discussions at Apple Inc., the company's continued struggles in the field of artificial intelligence (AI) could undermine its dominant position in the smartphone market and jeopardize its broader ambitions from Siasun Robot & Automation technology to next-generation hardware. Although Apple Inc. had sparked expectations for its AI strategy with a high-profile personnel appointment in 2018, the tech giant's AI journey is now facing serious resistance. In 2018, Apple Inc. hired former Alphabet Inc. Class C (GOOGL.US) executive John Giannandrea to lead its AI strategy. This appointment was seen as a crucial turning point, particularly against the backdrop of Siri lagging far behind competitors' voice assistants. Important economic data and event previews 22:00 Beijing time: US Conference Board Leading Indicator Month-on-Month (%), April. 23:30 Beijing time: US 6-Month Treasury Bill Auction, May 19 Total Amount (billion US dollars). 20:30 Beijing time: Atlanta Fed President Bostic, FOMC Voting Member 2027, attends the 2025 Atlanta Fed Financial Market Meeting and delivers opening remarks. 20:45 Beijing time: Fed Vice Chair Quarles delivers a speech, FOMC Permanent Voting Member, New York Fed President Williams delivers a speech. 22:00 Beijing time: US President Trump speaks with Russian President Putin, Ukrainian President Zelensky, and NATO member countries. 01:15 Beijing time the next day: FOMC Voting Member 2026, Dallas Fed President Kaplan, hosts a group meeting at the Atlanta Summit. Earnings Preview Tuesday morning: Trip.com Group Ltd. Sponsored ADR (TCOM.US), Yalla Group Ltd. Sponsored ADR Class A (YALA.US) Tuesday pre-market: Home Depot, Inc. (HD.US), H World Group Limited Sponsored ADR (HTHT.US), Bilibili, Inc. Sponsored ADR Class Z (BILI.US), Vipshop Holdings Ltd Sponsored ADR (VIPS.US), Xiaoma Zhixing (PONY.US), GDS Holdings Ltd. Sponsored ADR Class A (GDS.US), Canaan Inc. Sponsored ADR Class A (CAN.US)