Nasdaq Tops 17,000; Nvidia Hits $2.8T Market Cap

* Nasdaq Index Surpasses 17,000 Points for the First Time

* Nvidia's Market Value Exceeds $2.8 Trillion

* US Consumer Confidence Unexpectedly Rebounds in May

On May 28th (Tuesday), the first trading day after a public holiday in the United States, the three major US stock indices showed divergent trends. Driven by bullish sentiment towards Nvidia, the Nasdaq Composite Index once again set a new historical record for the highest closing level, closing above 17,000 points for the first time. On one hand, the market widely anticipates that the Federal Reserve's preferred inflation indicator—core PCE—scheduled to be released this week, may send a positive signal, prompting the Fed to consider interest rate cuts. On the other hand, Federal Reserve officials continue to speak out intensively, conveying a consistent view that they are not in a hurry to adjust interest rates before it is clear that inflation is effectively controlled.

As of the close of the day, the Dow Jones Industrial Average fell by 216.73 points, a decrease of 0.55%, closing at 38,852.86 points. The Nasdaq Composite Index rose by 99.09 points, an increase of 0.59%, closing at 17,019.88 points. The S&P 500 Index increased by 1.32 points, a rise of 0.02%, closing at 5,306.04 points. The Nasdaq Index once reached a peak of 17,032.66 points, also setting a new intraday historical high.

In terms of individual stocks, Nvidia's share price broke through $1,100, closing at $1,140.59, setting a new historical high. The company announced strong financial reports and performance outlook last week, along with a 1-for-10 stock split plan, which propelled its share price to break through $1,000 for the first time.

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Dell rose by 3.67%, closing at $166.08, also setting a historical highest closing price. Based on Nvidia's performance, several analysts have recently raised their target price for Dell.

GameStop rose by 25.16%, as the company announced it had raised $933 million by selling 45 million shares.

Hess increased by 0.4%, following the approval of its shareholders for a transaction to be sold to Chevron for $53 billion.

Unexpected rebound in US consumer confidence in May.A report released by the Conference Board, a research institution, on Tuesday showed that the U.S. consumer confidence index unexpectedly rose for the first time in four months in May.

The report indicated that the Conference Board Consumer Confidence Index for May was 102, higher than the revised 97.5 in April. In detail, the present situation index, which reflects current conditions, increased from 140.6 last month to 143.1, marking the first rise since January. The future expectations index, which reflects anticipated conditions, rose from 68.8 last month to 74.6, the largest increase since July.

The report also revealed that consumer perceptions of the labor market improved in May, with the difference between the proportions of respondents who believe there are plenty of jobs and those who think jobs are hard to get widening from 22.9 last month to 24.

Oren Klachkin, an economist at Nationwide, a U.S. insurance company, stated: "Despite rising prices and borrowing costs, continued positive job growth, increasing wages, active stock markets, and healthy household balance sheets have kept the momentum of U.S. consumption strong."

After the data was announced, the interest rate futures market fully priced in the expectation of a 25 basis point rate cut by the Federal Reserve this year, with the timing of the rate cut expected to be in September or November.

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, said on Tuesday that the Fed should wait for significant progress in inflation before cutting rates, adding that if inflation fails to decline further, there could even be a possibility of raising interest rates.

U.S. Stock Settlement Time Shortened to T+1

U.S. stocks marked a historic moment today. The U.S. stock trading settlement cycle was shortened from "T+2" to "T+1," signifying the return to the "T+1" system after a century. The implementation of this regulation also means that in the U.S. market, stocks will now align with other financial instruments such as bonds, options, and ETFs.

Market participants have said that a shorter settlement cycle helps to increase market efficiency, enhance liquidity, and allow for faster trading of stocks. Funds from the sale of securities will be credited more quickly, enabling faster reinvestment. However, the purchase of securities will require funds to be prepared in advance, which could affect cash flow in certain situations, such as when foreign currency exchange is involved.

Similarly, the T+1 settlement mechanism may also bring some operational risks. The most obvious point is that this will make the U.S. different from many other countries around the world, where the settlement cycle is still T+2."More cash balances are needed in funds to cover any potential gaps and cash mismatches," said Ben Springett, Head of European Electronic and Program Trading at Jefferies. "Therefore, this will harm fund performance."

In the commodity market, international oil prices began to rebound after last week's decline. As of the close on the 28th, the futures price of West Texas Light Sweet Crude (WTI) for delivery in July at the New York Mercantile Exchange rose by $2.11, closing at $79.83 per barrel, an increase of 2.71%.

Analysts stated that, on one hand, the official start of the US summer travel peak is expected to gradually strengthen the seasonal benefits, and US commercial crude oil may also begin a trend of destocking. On the other hand, the OPEC meeting may provide some new clarifications on future production reduction policies. For instance, the current policy, which was previously defined to end production cuts at the end of June, might be extended to the end of September.