Futu Morning Brief | The deadlock between the US and Iran persists, inflation concerns weigh on AI-related market performance, Goldman Sachs indicates potential increase in stock market volatility; countdown to Samsung strike begins with final labor-manag

The market is significantly underpricing the tail risk associated with Iran — the longer the Strait of Hormuz remains closed, the greater the repricing shock triggered by energy shortages will be; and the higher market tolerance threshold after a rebound also implies that once optimistic expectations are hit by a larger shock, the magnitude of repricing will be even more severe.

Futu News9minutes ago

The 'New Bond King' Gundlach predicts that inflation will reach the '4% range,' and the Federal Reserve’s rate cuts are unlikely.

Jeffrey Gundlach, CEO of DoubleLine Capital, stated outright that a Fed rate cut is "simply impossible" when the two-year U.S. Treasury yield is nearly 50 basis points higher than the federal funds rate. He warned that next month’s CPI reading is more likely to "exceed 4," while speculative fervor in the stock market is brewing risks.

Golden10 Data52minutes ago

Trump and Netanyahu discuss resuming military strikes against Iran, raising risks of joint US-Israeli airstrikes!

Israeli media confirmed that Trump held a phone conversation with Netanyahu, focusing on restarting military strikes against Iran. Israeli officials stated that if the U.S. takes action, a joint aerial strike by both nations is expected. Trump warned Iran that 'time is running out,' and without a viable solution, it would face even more severe retaliation.

Golden10 Data55minutes ago

Goldman Sachs Warns AI-fueled Market Rally Is Becoming 'One Big Trade'

Seeking Alpha06:14

Preview for the week | NVIDIA's earnings release is imminent! SpaceX may unveil its IPO prospectus as early as Wednesday; Samsung Electronics’ labor-management negotiations are set for Monday amid an impending strike; Google I/O conference will take place

Russian President Putin will pay a state visit to China; the US and Israel are reportedly expected to resume strikes on Iran as early as next week; China’s housing price data for 70 cities in April, April economic data, and the May LPR quote will be released.

Futu NewsMay 17 16:45

U.S. stock market on edge! Goldman Sachs: Continue to be bullish on AI but hedge purchases; low-quality sectors have deviated from fundamentals.

The strong rally and excessive positioning in AI-themed stocks have sparked noticeable concerns in the market about potential pullbacks. Louis Miller, head of Goldman Sachs' equity basket trading desk, noted in a recent research report that while the firm's trading desk maintains its bullish stance on AI themes, it is 'entering a phase with relatively fewer catalysts, necessitating protection of year-to-date paper gains.' He highlighted that the current market exhibits structural divergence: the fundamentals of the AI sector remain solid, warranting maintaining long exposure while deploying short-term hedging against pullbacks; low-quality stocks have seen valuations significantly deviate from fundamentals, presenting opportunities for short selling. Miller emphasized that the rally in the AI sector is underpinned by robust earnings.

wallstreetcnMay 17 14:28