Breakfast | Tesla and Nvidia rose nearly 20% last week, this week focusing on "Ning Wang" Hong Kong stock listing

Market Overview Last Week

Hopes for trade negotiations drove the S&P 500 to five consecutive gains, rising over 5% for the week, marking the second-largest weekly gain of the year; the Dow Jones erased its year-to-date losses.

Tesla rose 17% over the week. During the week of Trump's visit to the Middle East, Nvidia and AMD collectively rose over 10%. The China concept index rose over 4% for the entire week.

Key Focus This Week

China will release economic data today, including April retail sales and real estate investment; the May LPR quote will be released on Tuesday. S&P Global will publish PMI indices for major economies, CATL will be listed on the Hong Kong stock market, and Microsoft and Google will hold developer conferences, with Jensen Huang delivering a speech.

In addition, several Federal Reserve officials will speak in succession, and Baidu and Bilibili will announce their Q1 financial reports.

Trump: Tariff Rates for U.S. Trade Partners to Be Set in "Next Two to Three Weeks"

Trump also stated that his administration cannot negotiate agreements with all trade partners.

Additionally, Trump criticized Walmart on the social media platform Truth Social, demanding that the largest U.S. retailer absorb the potential upcoming tariff costs instead of passing them on to consumers. Trump wrote:

Walmart should stop blaming tariffs for price increases across the entire supply chain. Walmart made billions of dollars last year, far exceeding expectations. Walmart should "absorb the tariffs" instead of charging any fees to valued customers. I will be watching you, and your customers will too!!!

Global Times: Media Reports Nvidia Plans to Build Research Center in Shanghai, "Focusing on Customized Needs of Chinese Customers"

The research center will study the specific needs of Chinese customers and meet the complex technical requirements of U.S. export controls. However, core design and production will remain overseas. The Shanghai municipal government has expressed preliminary support for the plan, and Nvidia is also lobbying the U.S. government for approval.

Reference News: Reports Indicate Nvidia Will Adjust Chip Exports to China

Jensen Huang stated on Saturday that Nvidia will not launch the Hopper series products after the H20 chip for the Chinese market. He said, "It won't be Hopper because Hopper can no longer be adjusted."

Moody's Downgrades U.S. Credit Rating to Aa1, Concerned About Government Deficit; U.S. Stocks and Bonds Fell After Hours Last Friday

Due to the increasing U.S. government debt, Moody's downgraded the U.S. credit rating from the highest Aaa to Aa1 and changed the rating outlook from "negative" to "stable." Moody's decision means that the U.S. has been downgraded by all three major rating agencies. Previously, when S&P Global and Fitch downgraded the U.S. credit rating, U.S. stocks fell sharply without exception.

OpenAI's Global "Star Gate" May First Station in UAE; OpenAI and Nvidia Reportedly Involved in Building 5GW Data Center

Media reports indicate that in the 5GW AI park co-built by the U.S. and UAE in Abu Dhabi, OpenAI is expected to become a major tenant. The 5GW power will not be entirely allocated to OpenAI but shared among multiple companies; Nvidia and Cisco also support the UAE's data center project, with Nvidia supplying hardware configured with Blackwell GB300

Supporting "New Forces" and Partnering with the "National Team," Nvidia Remains Cautious of Its "Biggest Client"

Nvidia is vigorously promoting a diversification strategy, seeking to reduce its dependence on tech giants like Microsoft, Amazon, and Google. By establishing "sovereign AI" and supporting "new cloud" platforms like CoreWeave, Nvidia aims to create new revenue sources outside of the tech giants.

Microsoft's Massive Layoffs Spark Controversy! Will AI Completely Replace White-Collar Workers, Leaving No Escape?

Microsoft's recent layoffs are not coincidental but rather a result of the company's internal AI automation strategy. Other tech companies in the U.S. are showing a trend of "AI replacing employees." Analysts believe that employment at the "Big Seven Tech Giants" has peaked, and we may see these companies stop increasing their workforce.

Countdown to CATL's IPO: Pricing at HKD 263 per Share, Subscription Over 120 Times, IPO Size Expected to Be the Largest Globally This Year

CATL will begin trading on the main board of the Hong Kong Stock Exchange on May 20, priced at HKD 263.00 per share, with fundraising expanded to USD 4.6 billion. Monthly options will be launched on the same day as the listing. Additionally, CATL plans to participate in overseas private equity investment funds through its wholly-owned subsidiary.

U.S. Michigan Consumer Confidence Hits Second Lowest in History, Short- and Long-Term Inflation Expectations Surge to Decades Highs

In May, the University of Michigan's one-year inflation expectation preliminary value was 7.3%, the highest since 1981; the five-year inflation expectation preliminary value was 4.6%, the highest since 1991. Consumers' views on their current financial situation have dropped to the lowest since 2009, and financial expectations have also hit a new low. This survey was conducted from April 22 to May 13. On May 12, according to the joint statement from the U.S.-China Geneva Economic and Trade Talks, the U.S. and China announced a temporary reduction in tariffs.

Buffett, Soros, Gates: Let's See What the Big Shots Are Buying.

From Buffett's strategy of "holding cash and not buying," to Soros's "selling small caps and buying large caps," and Bridgewater's gold allocation, it shows that top investors are enhancing the defensiveness of their portfolios, while the keen-eyed Ackman has cleared out Nike ahead of the tariffs.

There is a divergence in attitudes towards tech stocks; Buffett continues to hold Apple, Soros has increased his position in Nvidia while clearing out AMD, and Bridgewater has reduced its holdings in Google, Nvidia, and Meta.

For Chinese concept stocks, hedge fund mogul David Tepper, who once boldly claimed to "buy all Chinese assets," remains cautiously optimistic. Although he has reduced his holdings in Alibaba, it still maintains its position as his largest holding. Bridgewater has decisively increased its stake, entering JD.com in the first quarter and increasing holdings in Alibaba and Baidu.

• David Tepper increased his holdings in Uber and Meta in the first quarter, cleared out AMD, and reduced his positions in Alibaba and Microsoft. Tepper reduced his stake in Alibaba by 22% in the first quarter but still maintains significant exposure to Chinese tech companies, with three of his top five holdings being Chinese concept stocks, including Alibaba, Pinduoduo, and JD.com.
• On the eve of the tariffs, "big short" Burry nearly cleared out all his stocks, including 150,000 shares of Alibaba and 125,000 shares of Baidu, retaining only Estée Lauder. Burry doubled his position in Estée Lauder to 200,000 shares, with a total value of USD 13.2 million He also bought put options on NVIDIA and Chinese concept stocks.
• Duan Yongping reduced his holdings in Apple and Google in the first quarter, increased his stake in Pinduoduo, and initiated positions in Microsoft, NVIDIA, and TSMC. Duan Yongping continued to increase his holdings in Pinduoduo in the first quarter, with a total of 7.7539 million shares. He initiated positions in Microsoft, NVIDIA, and TSMC, buying 299,200 shares, 645,100 shares, and 271,800 shares, respectively. He reduced his holdings in Apple by 6.64 million shares, which remains his largest position, while the reduction in Google reached 70%.
• Hillhouse's HHLR increased its investment in Chinese assets in the first quarter, newly entering Baidu and Li Auto, and heavily investing in Pinduoduo. Among the top ten holdings, Chinese concept stocks occupy nine positions. The top ten holdings are Pinduoduo, Alibaba, Futu Holdings, BeiGene, NetEase, Beike, Legend Biotech, JD.com, Vipshop, and WNS HLDGS LTD.
• Druckenmiller reduced his holdings in Google, Amazon, and Tesla in the first quarter, buying TSMC and AppLovin. In the first quarter, Druckenmiller completely liquidated 37 stocks including Skechers and SLM. The healthcare and technology sectors dominate his portfolio.
• Soros Fund added NVIDIA in the first quarter, liquidated AMD, increased holdings in utility stocks, bought the S&P, and sold the Russell 2000. In the first quarter, Soros Fund's largest holding was Smurfit WestRock (accounting for 6.1%), increased its holdings in the S&P 500 ETF, and added to the utility and financial sectors. It liquidated the Russell 2000 ETF, Alibaba, and TSMC, and significantly reduced its holdings in Google and JD.com.
• Bill Ackman increased his stake in Uber in the first quarter, liquidating Nike stocks before tariffs but buying call options. Ackman increased his holdings in Uber by over 30.3 million shares in the first quarter, making it the largest position in his portfolio, accounting for as much as 18.5%. He increased his holdings in Brookfield, one of the world's largest alternative asset management giants, and Google Class A shares; he reduced his holdings in Hilton and Google Class C shares