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Odaily reported that the number of initial jobless claims in the United States for the week ending May 23 was 215 thousand, with an expected value of 211 thousand. The previous value was revised from 209 thousand to 210 thousand. (Golden Ten Data)

Garrett Jin pointed out in the Weekly Market Signal Strategy that the geopolitical situation and US dollar trend have reached a stalemate, with US Treasury long-term yields holding between 5.07%-5.18%, hitting a 19-year high. After briefly reaching a new high, the S&P 500 Index quickly retreated. He believes that for the market to truly shift, at least two factors—credit environment, Federal Reserve policy, and geopolitics—must resonate together. In addition, AI capital expenditure is shifting from the US to Asia; ByteDance plans to raise its capital spending to as high as 70 billion dollars, and Tencent and Alibaba are also increasing their investments.

Now, the new chairman of the Federal Reserve faces a completely different situation: while other policymakers are warning about the resurgence of inflation, he must figure out how to curb the sudden rise in interest rate hike expectations. Observers of the Federal Reserve say that the energy shock triggered by the Iran conflict has already closed the door to rate cuts. This means that for Walsh, simply maintaining the current interest rate level may already count as a victory. Stephanie Roth, chief economist at Wolfe Research, said: “There is absolutely no appetite for rate cuts. Walsh must find a way to get the market to eliminate the priced-in rate hike expectations — this is his biggest challenge this year.” (Bloomberg)