China-US Negotiations Positive, Big Tech Advances, SPX 500 Aiming for New High

Esther_Ryan
06-11

On Tuesday, June 10, Eastern Time, U.S. stocks closed higher, continuing to approach new highs. The media said that a framework agreement was reached between China and the United States, boosting market risk appetite.

On the market, the three major U.S. stock indexes closed higher, and the $S&P 500(.SPX)$ continued to approach historical highs and attracted much attention. In terms of individual stocks, among the top ten U.S. stocks by market value, only $Microsoft(MSFT)$ and $Berkshire Hathaway(BRK.B)$ fell less than 1%, and the other eight stocks rose.

$Bitcoin(BTC.USD.CC)$ $Ethereum(ETH.USD.CC)$ $Grayscale Ethereum Mini Trust ETF(ETH)$ also rose sharply.

On the news:

  • According to Bloomberg, when US President Trump was interviewed at the White House, he expressed optimism about the progress of the negotiations: "We have good interactions with China, and China is not easy to deal with." When asked whether the US side considered lifting technology export controls on China, he responded: "Let's see."

  • US Secretary of Commerce Howard Lutnick said that the Sino-US economic and trade negotiations "are progressing smoothly." Earlier, White House economic adviser Kevin Hassett told US media CNBC that the United States is considering loosening export controls, and he expects China to release a large amount of rare earth exports next.

  • Investment bank $Citigroup(C)$ believes that the possibility of the two sides reaching a transaction agreement has increased.

On the US stock market: $Tesla Motors(TSLA)$ concept, new energy and battery concept stocks have risen in the front. Tesla rose nearly 6%, a three-day cumulative increase of 14.5%, and its market value just ranked tenth.

Currently, $Tesla Motors(TSLA)$ 's stock price is technically in the RSI golden cross, and the stock price has filled the gap left last Thursday. At present, the 120-day price moving average is only one step away, and it has risen before the market opens.

The logic of the recent rise mainly includes the following points:

Robotaxi service promotion

  • Registered as an autonomous vehicle operator: Tesla has officially registered as an autonomous vehicle operator in Austin, Texas, several days ahead of the possible launch date of June 12. This news is seen as a positive signal that its robotaxi service is about to start, which enhances the market's expectations for Tesla's layout in the field of autonomous driving.

  • Test video attracts attention: Musk shared a video on social media of Tesla testing a fully driverless electric car on the road in Austin, Texas, showing the maturity and feasibility of its technology, making investors more confident in Tesla's leading position and development potential in the field of autonomous driving.

Musk and Trump's dispute cools down

  • Trump made conciliatory remarks: Trump said he didn't mind talking to Musk and revealed that he would not sell the Tesla Model S purchased in March. The dispute between the two previously caused Tesla's stock price to fall. This change in attitude helped ease market concerns about the policy risks that Tesla may face and pushed the stock price back up.

The market's optimistic expectations for its future development

  • Wall Street institutions are optimistic: Morgan Stanley reiterated its long-term optimistic expectations for Tesla and maintained a long-term bull market target price of $800. Its long-term bullish logic lies in the deep popularization of Tesla's FSD autonomous driving system, the Robotaxi fully autonomous taxi network, and the huge AI humanoid robot business, which are considered to be Tesla's next stage of growth engine.

The industry has a bright future: Goldman Sachs' research report shows that North American self-driving electric vehicles have officially entered the commercialization stage and are expected to occupy a market share of about $7 billion in the US shared travel market by 2030. As a leader in the field of autonomous driving, Tesla is expected to occupy an important share in this huge market increment, thereby achieving rapid growth in performance.

Other key stocks changes:

  • $NVIDIA(NVDA)$ has once again become the world's largest company by market value. Nvidia CEO Huang Renxun has a busy schedule this week. On June 9th local time, he attended the "Technology Week" held in London, England, and attended the opening ceremony with British Prime Minister Sir Keir Starmer. In addition, he went to Paris, France on June 10 to attend the Vivatech Technology Conference, and has now moved to Berlin, Germany to prepare for a meeting with German Chancellor Merz.

  • And OpenAl plans to use $Alphabet(GOOG)$ Cloud Services to increase computing power, and Google once rose nearly 3% during the session; and $Alphabet(GOOGL)$ offers a buyout plan for employees in the search/advertising department, which may save money to invest in Gemini AI marketing.

  • $Meta Platforms, Inc.(META)$ Zuckerberg personally recruited and organized a "super intelligence" team. Meta Platforms will pay $14.8 billion to acquire a 49% stake in artificial intelligence startup Scale AI.

  • The day before, $Amazon.com(AMZN)$ announced a $20 billion bet on nuclear power data centers.

  • $Apple(AAPL)$ 's WWDC2025 has opened, and its stock price has risen slightly. For example, the 50-day moving average price is $202.93, less than $0.5.

  • $Visa(V)$ & $IBM(IBM)$ hit record highs, up 17.3% and 25.66% respectively since the beginning of the year. Similar to financial services stocks, $Mastercard(MA)$ also hit a record high on Friday, up 11.96% this year.

  • In addition to $IBM(IBM)$ , $Intel(INTC)$ rose 7.8% from the low last night, which seems to be some action.

  • The semiconductor industry continued to rise, $VanEck Semiconductor ETF(SMH)$ $Micron Technology(MU)$ rose for 7 consecutive days

  • $Walt Disney(DIS)$ announced plans to split the company into two listed companies, separating its streaming and studio businesses from its TV network business by the middle of next year. The stock price rose on Tuesday.

The current market is concerned about whether the US stock market can reach a new high?

I think it is possible.

Trump directly called for the promotion of the National Investment Plan, and each newborn was given $1,000 to invest in stocks.

Asset prices in the $E-Micro Gold - main 2508(MGCmain)$ $Gold - main 2508(GCmain)$ field are consolidating at high levels, and risky assets in the US stock and BTC fields are approaching historical highs.

Judging from corporate actions, the market repurchase has exceeded history since the beginning of this year.

Looking at the big tech stocks, $Amazon.com(AMZN)$ , $Tesla Motors(TSLA)$ , $Meta Platforms, Inc.(META)$ , $Alphabet(GOOG)$ , $Apple(AAPL)$ , $NVIDIA(NVDA)$ and other stocks all have relatively positive company dynamics.

Wall Street generally expects that US stocks will continue to achieve world-leading returns in 2025, and large-cap stock indexes such as the $S&P 500(.SPX)$ are expected to achieve a growth of more than 25% for the second consecutive year.

So far this year, the $S&P 500(.SPX)$ has risen by 2.57%.

Pay attention to CPI data tonight.

1 Trln Pay Package Approved! Tesla Sell the News: Hold for Long Term?
On November 6, more than 75% of shareholders voted in favor of Tesla CEO Elon Musk’s new compensation package. Under the plan, if Musk meets a series of milestones over the next ten years, he will gradually receive about 423.7 million restricted stock units (RSUs) — up to USD 1 trillion. Can Musk realistically hit these ambitious milestones in the next decade? Will this massive pay package truly align Tesla’s growth with shareholder interests After the approval, is Tesla a “sell the news” trade — or a long-term conviction hold?
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Comments

  • Mortimer Arthur
    06-12
    Mortimer Arthur
    I wouldn't be surprised to see tsla dipping below $300 again. There is too much negative news around. Uncertainty in markets. Last quarter sales are flat.

  • Merle Ted
    06-12
    Merle Ted
    TSLA will swing right back to $350 tomorrow 🚀
  • andy66
    06-12
    andy66
    Run! Run! It's going to take a nosedive tomorrow
  • AntonyGeorge
    06-12
    AntonyGeorge
    If usa-loss china win
    china squeeze usa b...
  • AntonyGeorge
    06-12
    AntonyGeorge
    trump scared off china ,because he saw us market down
  • AntonyGeorge
    06-12
    AntonyGeorge
    trump afraid of china
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