Preview of US Stock Market | The three major stock index futures are mixed, the non-farm payrolls are about to hit hard, and the stock prices of AI semiconductor giants such as Micron (MU.US) are falling together.

Pre-market Market Trends 1. On June 5th (Friday), pre-market, the futures of the three major U.S. stock indexes were mixed. As of the time of writing, Dow futures were up 0.17%, S&P 500 futures were down 0.47%, and Nasdaq futures were down 1.12%. 2. As of the time of writing, the German DAX index was up 0.32%, the UK's FTSE 100 index was up 0.44%, the French CAC40 index was up 0.58%, and the Euro Stoxx 50 index was flat. 3. As of the time of writing, WTI crude oil was down 0.33%, trading at $92.71 per barrel. Brent crude oil was down 0.07%, trading at $94.96 per barrel. Market News Non-farm Payrolls are coming! Whether the May non-farm employment data is strong or not, it is bad news for the U.S. stock market? The market consensus expects an increase of about 88,000 non-farm jobs in May, a slowdown from the 115,000 in April. JPMorgan Chase believes that tonight's data will create a dilemma of "any result is wrong": if the data is weak, stagflation fears may resurface, posing a clear risk-negative signal; if the data is strong, inflation expectations will drive bond yields and volatility higher, which is also unfavorable for the U.S. stock market. However, there is a stark disparity among institutionsGoldman Sachs Group, Inc. predicts only 60,000, well below the consensus; Bank of America Corp predicts 95,000 and believes the upside risk is more pronounced. ADP data shows that 122,000 jobs were added in the private sector in May, the strongest since January 2025, but analysts warn that the average deviation between ADP estimates and official Bureau of Labor Statistics (BLS) data is as high as 83,000 people, limiting its reference value. U.S.-Iran negotiations stall again! Iran voices support for Hezbollah, Iran's Supreme Leader's advisor says no more concessions. Iran has once again expressed support for its ally, Hezbollah in Lebanon, demanding Israel to withdraw from southern Lebanon, which has increased the uncertainty in the temporary ceasefire agreement negotiations aimed at ending the larger-scale conflict between the U.S. and Iran. Iran has clearly defined red lines for the negotiations, stating that a ceasefire between Israel and Hezbollah is a hard prerequisite for reaching a ceasefire agreement with the U.S. and reopening the shipping lanes at the Strait of Hormuz. New Fed Chairman Wash to launch Fed communications framework reform from the June FOMC meeting, may cancel dot plot+remove forward guidance. According to the Financial Times of the UK, several former senior Federal Reserve officials expect Wash to initiate reforms at the Federal Open Market Committee (FOMC) meeting in mid-June. Specific measures include refusing to submit personal interest rate forecasts in the quarterly "dot plot" and removing the "dovish" or "hawkish" directional language in the policy statement. These changes will fundamentally alter the Fed's communication logic with Wall Street. Ren Xiong-Hun visits South Korea again, exclaims that the AI infrastructure will be more busy in the second half of the year. Ren Xiong-Hun arrived in Seoul, South Korea from Taiwan on Friday, where he revealed plans to meet with Hyundai, LG, SK Hynix, Samsung Electronics, and Naver. The core purpose is to ensure that supply chain partners "stay in sync and be fully prepared." He stated in a media interview that the construction of artificial intelligence infrastructure is accelerating and the scale in the second half of 2026 will far exceed that of the first half of the year, with even greater growth expected in 2027. He described his visit as bringing "huge business" to South Korea and hinted at "surprises" to be announced later, but refused to disclose specific details. In the most closely watched issue of memory supply in the market, Ren Xiong-Hun refuted rumors that NVIDIA Corporation was reducing the amount of High-Bandwidth Memory (HBM) in its systems due to supply constraints, stating categorically that the company will be using "a large amount of high-speed memory." This statement is directly positive for key suppliers such as Samsung Electronics and SK Hynix, who together account for about 70% of the memory supply for NVIDIA Corporation's AI chips. S&P adheres to the "profitability iron law": SpaceX misses out on the S&P 500 index, passive fund trillion-dollar buying pressure dissipates. S&P Global, Inc. made it clear on Thursday that it will not modify the inclusion criteria for its major indices, effectively rejecting the request of SpaceX, the largest IPO company in historyowned by Elon Muskto rapidly enter the benchmark S&P 500 index. This decision is undoubtedly a major setback for SpaceX, which is trying to rewrite IPO rules in unprecedented ways. According to an unchanged core rule of S&P Global, Inc., companies proposed for inclusion in the S&P 500 index must meet strict profitability requirements: positive net profits in the most recent quarter and the past four quarters, all calculated according to Generally Accepted Accounting Principles (GAAP). SpaceX's financial data clearly did not meet these standardsdespite a 33% revenue growth to $18.67 billion in 2025, it still reported a net loss of $4.94 billion. The S&P 500 index is the most widely followed benchmark index on Wall Street, representing the core of the U.S. large-cap stocks. Individual Stock News "AI bubble" rhetoric sweeps the market again, popular AI semiconductor stocks decline before the market opens. With Broadcom Inc.'s latest disclosure that the growth prospects of AI semiconductor business fall short of Wall Street expectations, signs of cooling in the AI computing industry investment frenzy have emerged recently, with value and defensive stocks showing strong rebounds. On Thursday, popular AI technology stocks related to AI, such as Broadcom Inc., ARM Ltd., Micron Technology, Inc., tumbled dragging down the Nasdaq, prompting some risk-averse funds to flow into healthcare, finance, and other value/defensive sectors. Several analysts recently pointed out that the Nikkei 225, Nasdaq 100, Philadelphia Semiconductor Index, and the KOSPI Composite Index have seen a rapid rise in stock prices recently, triggering caution and concerns about an overheated global stock market in AI investments, which prompted them to lock in profits recently. As of the time of writing, shares of Micron Technology (MU.US) fell by 3.8% before the market opened, NVIDIA Corporation (NVDA.US) fell by 2%, AMD (AMD.US) fell by 3.10%, ARM Holdings (ARM.US) fell by 5.3%, Broadcom Inc. (AVGO.US) fell by 2%, and Marvell Technology, Inc. (MRVL.US) fell by 4.5%. Target Price Surges 227%! JP Morgan shifts to a neutral rating, Wall Street sparks off a "AI narrative" reassessment wave for Tesla, Inc. (TSLA.US). JPMorgan has upgraded its rating for Tesla, Inc. from "underweight" to "neutral" and raised its target price from $145 to $475. This massive price increase of 227.6% underscores JP Morgan's fundamental change in outlook for this electric vehicle manufacturer. Led by analyst Rajat Gupta, JP Morgan's team emphasized Tesla, Inc.'s unparalleled vertical integration capabilities in hardware and software. He stated, "We believe that this advantage is still not fully recognized and understood to some extent, but it does provide a huge competitive advantage." JP Morgan stated that the company's operating income is expected to more than double from around $95 billion in 2025 to about $230 billion in 2030, with nearly half of the growth coming from services and innovative businesses related to autonomous driving and Siasun Robot & Automation technologies. Earnings guidance downgrade exacerbates growth recovery concerns! Lululemon (LULU.US) plummets 13% before market open. Leading yoga apparel brand Lululemon fell sharply by 13% before the U.S. stock market starts trading on Friday, as the company lowered its quarterly and full-year profit forecasts. The slowdown in domestic consumption demand in the U.S., increased industry competition, and rising import tariffs have fueled doubts in the market about the company's turnaround. If the decline continues after the formal market opening, the company's current total market value of $144.4 billion will evaporate over $17 billion in a single day. Lululemon expects full-year revenue to be between $11 billion and $11.5 billion this year, down from the previous forecast of $11.35 billion to $11.5 billion. Lululemon also lowered its earnings per share forecast by more than $1. The company now expects earnings per share for the full year to be between $10.95 and $11.15, below the previous estimate of $12.10 to $12.30. NVIDIA Corporation (NVDA.US) HBM4 supply chain finalized: World's top three memory giants receive Vera Rubin supply qualifications. NVIDIA Corporation CEO, Huang Ren Xiong confirmed that the company has completed the qualification certification process for the world's top three memory chip manufacturers, who will supply the company with their most advanced High-Bandwidth Memory 4 (HBM4) products for NVIDIA Corporation's next-generation Vera Rubin artificial intelligence computing platform. These three companies dominate the global computing-level memory semiconductor market and are fiercely competing for the lucrative NVIDIA Corporation supply orders. Huang Ren Xiong stated to the media after embarking on a multi-day visit to South Korea: "The three suppliers have successfully passed the qualification certification and are now in full-scale production, rushing to meet the supply needs of the Vera Rubin platform." Upcoming Important Economic Data and Events 20:30 Beijing time: U.S. unemployment rate for May, seasonally adjusted non-farm employment population in May (thousands) 01:00 Beijing time on June 6: U.S. total number of oil rigs as of the week ending June 5th, total number of rigs as of June 5th 03:30 Beijing time on June 6: CFTC releases weekly position report