I. Performance and Valuation of Global Equity Indices Data Sources: Bloomberg, Tiger Asset Management Key Highlights ◼ Last week, U.S. equities generally trended higher despite some turbulence. The May PMI data caused brief market panic, but stronger-than-expected employment data quickly reignited bullish sentiment. Moreover, a high-level phone call between Chinese and U.S. leaders officially marked the beginning of the second round of bilateral trade talks, helping to dispel earlier rumors. Driven by multiple positive catalysts, nearly all major global equity indices posted gains, with U.S., Hong Kong, and emerging markets leading the advance. ◼ Notably, ISM and S&P Global released two vastly different May PMI readings last week. ISM showed figures below previous values, expectations,

I. Performance and Valuation of Global Equity Indices Data Sources: Bloomberg, Tiger Asset Management ◼ Last week, U.S. equities continued to fluctuate at high levels. Although there were several unexpected shocks, V-shaped intraday reversals occurred each time. The S&P 500$, Nasdaq$, and Russell$ led global equity markets. In contrast, Greater China equities underperformed, with the Hang Seng Index$, CSI$, and Hang Seng Tech Index$ all recording declines of over 1%. ◼ Last week, U.S. macro data was generally solid. GDP and PCE came in without negative surprises, and the University of Michigan consumer sentiment survey even unexpectedly improved. However, Trump’s tariff policies fell into a stalemate as the U.S. Court of International Trade ruled that his tariffs were invalid. Although

I. Performance and Valuation of Global Equity Indices Data Sources: Bloomberg, Tiger Asset Management Last week, global stock markets continued to experience volatility. Affected by factors such as the U.S. Treasury auctions, the three major U.S. indices pulled back slightly, with the S&P 500$, Nasdaq$, and Russell$ indices all falling more than 2% for the week. Data shows that although the yield on the 20-year U.S. Treasury surpassed 5% in the latest auction, the bid-to-cover ratio and foreign demand remained relatively solid. We believe that neither monetary nor fiscal policies currently provide support for U.S. Treasuries, and the U.S. government’s debt risk remains a concern. Last week, U.S.-EU trade talks faced setbacks as Trump threatened to impose a 50% tariff on the European Un

I. Performance and Valuation of Global Equity Indices Data Sources: Bloomberg, Tiger Asset Management Last week, global stock markets continued to experience volatility. Affected by factors such as the U.S. Treasury auctions, the three major U.S. indices pulled back slightly, with the S&P 500$, Nasdaq$, and Russell$ indices all falling more than 2% for the week. Data shows that although the yield on the 20-year U.S. Treasury surpassed 5% in the latest auction, the bid-to-cover ratio and foreign demand remained relatively solid. We believe that neither monetary nor fiscal policies currently provide support for U.S. Treasuries, and the U.S. government’s debt risk remains a concern. Last week, U.S.-EU trade talks faced setbacks as Trump threatened to impose a 50% tariff on the European Un

I. Performance and Valuation of Global Equity Indices II. Key Market Themes i. China–U.S. Talks Exceed Expectations — What’s Next?  Last week brought positive developments in U.S. tariff negotiations. Midweek, the U.S. and U.K. formally announced a trade agreement. Though still a broad framework, it marks the first bilateral deal signed under Trump’s new tariff regime. In essence, the U.S. will maintain a minimum 10% tariff while offering sector-specific relief on steel, aluminum, and automobiles. In return, the U.K. agreed to lower its average tariff on U.S. goods from 5.1% to 1.8%, expand market access for ethanol, beef, and fruit, and purchase an additional $10 billion in Boeing aircraft. While the agreement lacks granular detail, it does clarify several important takeawa

I. Performance and Valuation of Global Equity Indices  Data Sources: Bloomberg, Tiger Asset Management II. Key Market Themes i. Sentiment Recovery and Market Rebound: Is a U.S. Stock Reversal Imminent? Over the past week, three major uncertainties weighing on U.S. stocks have eased:​​ ​​On tariffs​​: Although U.S.-Japan negotiations reportedly stalled, a preliminary framework has emerged between the U.S. and India. Additionally, Trump softened his confrontational stance toward China, repeatedly hinting that the U.S. is negotiating tariff reductions with Beijing — a claim firmly denied by Chinese officials . ​​Rate cut optimism​​: Federal Reserve Governor Waller, seen as a potential successor to the Fed Chair, reiterated that "tariffs' inflationary impact is temporary" and emphasi

I. Performance and Valuation of Global Equity Indices Source: Bloomberg, Tiger Asset Management II. Key Market Themes i. Trump Threatens Powell from Afar: Where Are the Opportunities in a Weak Dollar? Last Wednesday, the U.S. March retail sales data came in, showing a 1.4% month-on-month increase. While slightly exceeding market expectations, it marked the largest monthly rise in nearly 30 months. However, the market did not view this as entirely positive。 On one hand, the robust data further reduced the urgency for the Federal Reserve to cut interest rates. On the other hand, the market widely interpreted the surge as panic buying driven by American households’ fear of impending tariffs. Breaking down the components, the automotive sector alone contributed nearly 70% of the growth—a

I. Performance and Valuation of Global Equity Indices Source: Bloomberg, Tiger Asset Management II. Key Market Themes i. Tariff Relief and Treasury Turmoil: Turning Point or Trap? ​​Last week saw dramatic swings in global financial assets. As anticipated, U.S. stocks briefly bottomed out, then staged a strong rebound after Trump announced a 90-day pause on retaliatory tariffs. The Nasdaq surged over 12% last Wednesday, marking its third-largest single-day gain in nearly 40 years. However, this might not be a positive sign—historically, such massive one-day rallies in U.S. equities have often coincided with market crises, such as the 2000 dot-com bubble, the 2008 subprime mortgage crisis, or the 1987 Black Monday crash. Source: Bloomberg, Tiger Asset Management Meanwhile, last week's U

I. Performance and Valuation of Global Equity Indices II. Key Market Themes Source: Bloomberg, Tiger Asset Management i. PCE Commentary: Expected Data Triggers Predictable Market Sell-Off Tariffs Hit Hard, Fed Refuses to Coordinate: Has Short-Term Pressure on U.S. Stocks Bottomed Out?​​ Last week, Trump's tariff measures finally took effect, with severity exceeding all expectations—imposing the most severe "countermeasures" right from the start. First, a 10% minimum baseline tariff was set for all global trade partners, followed by additional reciprocal tariffs on specific countries: 34% on China, 20% on the EU, 46% on Vietnam, 24% on Japan, and others. This instantly plunged markets into panic. The day after the tariffs were announced, U.S. stocks plummeted, with the S&P 500 and

I. Performance and Valuation of Global Equity Indices Source: Bloomberg, Tiger Asset Management II. Key Market Themes i. PCE Commentary: Expected Data Triggers Predictable Market Sell-Off Last Friday, the U.S. February PCE inflation data unsurprisingly surged again. The core PCE rose by 0.4% month-on-month and 2.8% year-on-year, both exceeding market expectations. Consequently, the three-month and six-month annualized moving averages of core PCE reversed upward to 3.58% and 3.08% respectively, once again moving further away from the Federal Reserve's long-term 2% inflation target. Source: Bloomberg, Tiger Asset Management Meanwhile, U.S. household personal income rose by 0.8% month-on-month, significantly exceeding expectations; however, personal spending growth was only 0.4%, falling

I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, Tiger Asset Management II. Key Market Themes i. FOMC Commentary: Slowing Balance Sheet Runoff Fails to Mask Stagflation Gloom; Forced Composure Unable to Alleviate Macroeconomic Concerns. Last Wednesday, the Federal Reserve's FOMC meeting unfolded as scheduled, with most actions aligning with market expectations. The central bank maintained its policy rate unchanged, while Chair Powell reiterated the Fed's position of being in no rush to cut rates. Although the dot plot continues to signal two rate cuts within this year, policymakers have adopted a more cautious stance compared to December 2022, with over 40% of officials now supporting either a single rate cut or none at all for 2024. Correspondingly, the F

I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, Complied by Tiger Brokers II. Key Market Themes i. Inflation Data Improves, Consumption Continues to Surge, Will US Stocks Begin to Rebound or Continue to Decline? Last week, the US February inflation data came in below market expectations across the board, slightly easing the tense market sentiment. Specifically, both CPI and core CPI increased by 0.22% and 0.23% month-over-month, respectively, both slightly below the expected 0.3%. Moreover, PPI and core PPI surprisingly showed a rare month-over-month decline. However, immediately after, Nick, the Fed's mouthpiece, along with major investment banks, raised their forecasts for the February PCE. Currently, Wall Street's expectations for the month-over-month

I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, Complied by Tiger Brokers II. Key Market Themes i. Trump Sparks a U.S. Version of the "Debt Reduction Movement" – When Will the Slumping U.S. Stock Market Bottom Out? Trump Sparks a U.S. Version of the "Debt Reduction Movement" – When Will the Slumping U.S. Stock Market Bottom Out?** Recently, the sharp decline in U.S. stocks has undoubtedly been the most pressing concern for investors. Since mid-to-late February, over just a dozen trading days, the Nasdaq has plunged approximately 12%; the Philadelphia Semiconductor Index has led the downturn with a 16% drop; and the once red-hot "Magnificent Seven" tech stocks have suffered significant losses. Tesla has been cut in half, Nvidia has retraced 30% from its pe

I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, Complied by Tiger Brokers II. Key Market Themes i. NVIDIA’s Stellar Earnings, Yet Stock Plummets—Is the U.S. Market Narrative Over? Last week, U.S. tech giant NVIDIA $英伟达(NVDA)$ released its latest earnings report, showing an astounding 78% year-over-year revenue growth and an 80% surge in profits—once again exceeding market expectations. In terms of performance, NVIDIA’s report was nearly flawless. The only notable downside was a sequential decline in gross margin, which was already anticipated, given the higher costs and lower margins of the new Blackwell architecture. However, despite the strong earnings, NVIDIA’s stock price fell nearly 8% in a single day, trigg

I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, Complied by Tiger Brokers II. Key Market Themes i. Greater China Market Volatility Intensifies as Trump Announces China Restrictions—How to Position for the Future? Recently, Greater China tech stocks have continued to lead the global market. Alibaba’s latest earnings report revealed a quarterly capital expenditure of $31.7 billion, further igniting investment enthusiasm in China’s AI sector. However, over the weekend, the White House released a presidential memorandum on the “America First” investment policy, restricting both Chinese capital from investing in core U.S. assets and U.S. capital from flowing into related Chinese enterprises. This has caused significant market fluctuations in Greater China. In

I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, Complied by Tiger Brokers II. Key Market Themes i. Greater China Tech Stocks Surge—Is It Too Late to Invest? Recently, driven by DeepSeek’s impact, the Greater China technology sector has experienced a significant rally. Since February, the Hang Seng Tech Index has surged over 15%, with Alibaba leading the charge, rising nearly 40% in just half a month. Additionally, trading volume in the Hang Seng Tech Index has surged, exceeding HKD 1 trillion in just two weeks. If this trend continues, February’s total trading volume could reach a historic high. Despite the rally, Greater China tech stocks remain undervalued. Current data shows that the Hang Seng Tech Index’s P/E ratio

I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, Complied by Tiger Brokers II. Key Market Themes i. DeepSeek Reshapes the Global AI Landscape: Rising Demand for Computing Power—Where Are the Future Opportunities? Recently, DeepSeek launched China's first large-scale AI model with inference capabilities comparable to OpenAI, at just one-tenth of the cost. This move has sparked widespread discussion within the industry, significantly boosting confidence in Chinese tech stocks while causing volatility in U.S. AI-related stocks. After two weeks of market digestion, discussions around DeepSeek have largely settled. Consensus has formed around computing power and NVIDIA $英伟达(NVDA)$ , with the realization that demand for

I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, Complied by Tiger Brokers II. Key Market Themes i. U.S. Inflation Cools Surprisingly, Market Concerns Ease Slightly, Opportunities Remain Last week, U.S. December inflation data was released, showing a slight cooling compared to previously strong economic indicators. Specifically, headline CPI rose 2.9% year-over-year, higher than the prior figure but in line with expectations. Notably, the increase was primarily driven by energy prices, which are subject to short-term volatility and lack long-term persistence. Meanwhile, core CPI increased 3.2% year-over-year, exceeding the prior figure but slightly below expectations. Core goods prices continued to cool, while core services remained resilient, particularly

I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, Complied by Tiger Brokers II. Key Market Themes i. Biden Administration Proposes Stricter Chip Export Ban: Could the Tech Industry Face Deep Impacts? Last week, Bloomberg reported, citing insiders, that the Biden administration plans to introduce further AI chip export restrictions before leaving office on January 20. According to rumors, the new regulations would categorize countries and regions into three tiers: Tier 1: Includes major U.S. allies such as Germany, Japan, and the Netherlands. These countries would face almost no restrictions on acquiring U.S.-exported AI chips. Tier 2: Covers most countries and regions worldwide. These would face aggregate computational power limits at a country or regional