Preview of US Stock Market | Three major stock index futures fell together, the "AI bubble panic" resurged, storage chips and optical communication stocks plunged before the market.

Pre-market Market Trends 1. In the pre-market of the US stock market on June 23 (Tuesday), the futures of the three major US stock market indexes all fell. As of the time of writing, the Dow Jones Industrial Average futures fell by 0.39%, the S&P 500 Index futures fell by 1.22%, and the Nasdaq futures rose and fell by 2.59%. 2. As of the time of writing, the Germany DAX Index fell by 1.02%, the UK FTSE 100 Index fell by 0.43%, the France CAC 40 Index fell by 0.61%, and the European Stoxx 50 Index fell by 1.07%. 3. As of the time of writing, WTI crude oil fell by 0.01% to $73.85 per barrel. Brent crude oil fell by 0.14% to $77.41 per barrel. Market News The "AI Bubble Panic" has severely hit crowded AI trading, and global stock markets have experienced a Black Tuesday! The hot AI computing infrastructure theme stocks that have led global stock markets to repeatedly hit new highs this year collectively plummeted on Tuesday, causing a sharp decline in global stock markets, which can be described as experiencing a "Black Tuesday." Market concerns about the bursting of the "AI bubble" have reignited, as some speculative forces using leverage strategies and investors focusing on high-frequency short-term trading have accelerated their rotation out of over-crowded AI computing-related technology stocks that have performed strongly since the beginning of the year, while also waiting for further positive progress in peace talks between the U.S. and Iran. The root of this sell-off is a reassessment by the market of the sustainability of AI investment frenzy. In the past few quarters, tech stocks have risen sharply thanks to the AI investment frenzy, but as borrowing costs remain high, investors have begun to focus on whether companies can translate their massive AI capital expenditures into actual profits. Kiran Ganesh, Global Head of Investment Communication at UBS Group AG, warned that if companies continue to fund AI investments through debt and the related investments have not generated sufficient returns, the market may begin to question the company's debt structure and profit sustainability in the future. Morgan Stanley warns! Two factors may trigger a stock market plunge, and the Fed may not necessarily step in to rescue the market. Investors are looking for signals to judge whether the AI-driven uptrend still has momentum. Morgan Stanley believes that faced with the tightening liquidity expectations of the Fed's balance sheet reduction and corporate profit upward revision reaching a peak, the stock market will experience severe volatility. The Morgan Stanley strategy team, led by star analyst Mike Wilson, believes, "In light of the various factors, the liquidity in the market has actually entered a tightening channel, unless there are runs on the money market, a significant increase in U.S. Treasury bond volatility, or a liquidity crisis in the credit market, it will be difficult to reverse the trend of tightening liquidity. In other words, the greatest short-term risk to U.S. stocks comes from liquidity tightening, rather than the market's concerns over the Fed's interest rate hike to combat inflation." As liquidity continues to decline, institutional expectations for the speed of future corporate profit upgrades have also peaked and declined in recent weeks. Morgan Stanley warns that the market may test the Washington "endure short-term pain in exchange for long-term economic stability" policy promise in the coming weeks. This indicates that the U.S. stock market is about to face a major test, and the Fed may not step in to support it. Optimistic signals emerge! Several oil tankers are positioning to cross the Strait of Hormuz, and shipping confidence continues to recover. More and more ships are voluntarily opening their positioning systems, signaling their passage through the Strait of Hormuz. This indicates that with the easing of tensions in the Gulf, shipowners and traders' confidence in the free passage through the chokepoint continues to rise. Ship tracking data shows that there were seven oil tankers in the strait on Tuesday morning. Two fully loaded non-Iranian super tankers are leaving the Persian Gulf, three product tankers are heading out to sea, and two suexmax tankers flying the Iranian flag are coming from the other side of the strait. Muyu Xu, Senior Crude Oil Analyst at Kpler Ltd., said that this change "reflects a restoration of shipowners' confidence and the market's expectation that Iran will not attack passing ships." However, he also warned that whether the waterway can maintain continuous safe and unobstructed passage remains to be seen. Individual Stocks Storage chip stocks in the US pre-market plunged. In the pre-market of the US stock market on Tuesday, as of the time of writing, SanDisk (SNDK.US) fell nearly 8%, Micron Technology, Inc. (MU.US), Western Digital Corporation (WDC.US), Seagate Technology Holdings PLC (STX.US) all fell by over 7%. On the news front, the stock indexes in the Asia-Pacific markets plummeted across the board on Tuesday, with the storage concept dragging down the US storage sector in the pre-market. Optical communication concept stocks fell in the pre-market. In the pre-market of the US stock market on Tuesday, as of the time of writing, Tower Semiconductor Ltd (TSEM.US) fell by nearly 10%, Marvell Technology, Inc. (MRVL.US), AXT Inc (AXT.US) fell by over 8%, Astera Labs (ALAB.US), Coherent (COHR.US), Credo Technology (CRDO.US) fell by nearly 7%, Corning Inc (GLW.US), Nokia Oyj Sponsored ADR (NOK.US), Lumentum (LITE.US) fell by over 6%. Star tech stocks fell in the pre-market. In the pre-market of the US stock market on Tuesday, as of the time of writing, ASML Holding NV ADR (ASML.US) fell by over 7%, Qualcomm (QCOM.US), Intel Corporation (INTC.US), AMD (AMD.US) fell by over 6%, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US), Broadcom Inc. (AVGO.US) fell by over 4%, Oracle Corporation (ORCL.US), NVIDIA Corporation (NVDA.US), Tesla, Inc. (TSLA.US) fell by over 2%, Alphabet Inc. Class C (GOOGL.US) fell by nearly 2%. GPU rental prices are under short-term pressure vs. delivery cycles lengthened to 15 months, has NVIDIA Corporation been misunderstood by the market? Recently, NVIDIA Corporation is experiencing a rare market divergence on the one hand, the stock price is falling, GPU spot rental prices are softening in the short term, and on the other hand, forward rental contract prices are about to skyrocket, and GPU delivery cycles are lengthened to 15 months. These pieces of information seem to put this AI chip giant at a crossroads of short-term volatility and long-term scarcity. In the face of pressure on spot prices, a singular weak data point is being viewed as "conclusive evidence" of the AI cycle weakening in the market. However, this misinterpretation may be the real trap that investors need to be wary of. Equating loose pricing of GPU computing power at any level to demand collapse is a rash misjudgment. As investors gradually digest the evidence, AI infrastructure spending remains strong, and the demand logic remains solid, NVIDIA Corporation still faces potential supply shortages that may continue until the 2027 fiscal year, unless feedback from suppliers begins to show softening orders, data center expansions slow down, or widespread and persistent compute price erosion occurs within the ecosystem. May Sales Doubled! Tesla, Inc.'s momentum in Europe continues to strengthen, breaking out of the low point with a "V-shaped rebound." After a year of slumping sales, Tesla, Inc. (TSLA.US) in the European market is experiencing an accelerating rebound in momentum, further confirmed in May data. The latest data from the European Automobile Manufacturers Association (ACEA) shows that Tesla, Inc.'s new car registrations in the EU, UK, Iceland, Liechtenstein, Norway, and Switzerland markets totaled 28,610 in May, doubling year-on-year; in the EU market alone, 21,767 were sold, a 152.4% increase year-on-year. This is the fourth consecutive month of sales growth year-on-year for Tesla, Inc. in the European market. The data shows that this momentum is mainly driven by strong growth in key markets such as Germany and the UK. The cumulative year-on-year sales increase for Tesla, Inc. in the first five months of the year is 57%. This rebound is built on top of the "deep pit" of a significant decline in 2025 sales. Qualcomm plans to acquire AI chip unicorn again: close to acquiring Modular for $4 billion, planning to spend $14 billion to reshape the landscape in the coming weeks. According to sources familiar with the matter, Qualcomm is in advanced negotiations to acquire the AI chip startup Modular, with the deal valued at around $4 billion. The sources indicated that the deal could be formally announced in the next few weeks, but the final agreement has not yet been reached, and there is still the possibility of a breakdown or changes in terms. If this acquisition goes through, it will be Qualcomm's second major AI chip acquisition in a short period. Earlier this month, reports indicated that the chip giant was in deep negotiations with AI chip startup Tenstorrent, with a potential deal valuation between $8 billion to $10 billion. If both deals are successfully completed, Qualcomm will spend nearly $14 billion in the next few weeks to significantly reshape its AI chip business. Important Economic Data and Events Forecast 9:45 PM Beijing time: US June S&P Composite PMI preliminary value Earnings Forecast Wednesday morning: FedEx Corporation (FDX.US)