Market Analysis Summary - June 1, 2026

Last Week's Recap

The week was marked by optimism surrounding a potential US-Iran ceasefire, persistent inflation in the US and Australia, and mixed signals from China's PMI data indicating fragile demand.

Key Market Highlights

• Nasdaq 100: Surged above 30,000 for the first time, driven by strong earnings in AI hardware.
• WTI Crude Oil: Fell sharply by 10% due to hopes of a ceasefire in the Strait of Hormuz.
• Hang Seng Index: Underperformed regional peers, declining by 1.7% amid tightening cross-border capital controls.

Detailed Market Analysis

US-Iran Ceasefire Negotiations

A tentative 60-day ceasefire extension is under review, with the US setting conditions for resolution, including free navigation in the Strait of Hormuz and the surrender of enriched uranium. This optimism led to an 11% drop in Brent crude oil prices.

US Inflation Trends

Core PCE rose 0.2% MoM and 3.3% YoY in April, indicating persistent inflationary pressures. Personal income growth stagnated, raising concerns among central bank officials about second-round inflation risks.

Australia's Inflation Data

Australia's CPI eased to 4.2% YoY in April, but underlying pressures remain, with trimmed mean CPI rising to 3.4%. Rate hike expectations have significantly decreased.

China's PMI Insights

China's manufacturing PMI slightly decreased to 50.0, indicating fragile domestic demand, while the non-manufacturing PMI showed a recovery to 50.1, suggesting mixed economic signals.

Market Performance

Nasdaq 100 Performance

The Nasdaq 100 gained 2.9%, closing above 30,000, with Dell Technologies and Micron Technology leading the charge due to exceptional earnings reports. Dell's revenue surged 88% YoY, while Micron reached a market cap of $1 trillion.

Hang Seng Index Performance

The Hang Seng Index fell 1.7%, hindered by limited exposure to tech stocks and regulatory pressures on cross-border capital flows. Lenovo was a standout performer, surging 52% due to strong AI server demand.

WTI Crude Oil Trends

WTI crude oil prices fell nearly 10% as ceasefire hopes emerged, although supply disruptions remain significant. The IEA projects a supply deficit for the year, with prices expected to stay elevated.

Looking Ahead

This week, key economic indicators will be released, including US ISM PMIs, non-farm payrolls, and Eurozone inflation data. These reports will be crucial for assessing economic momentum and potential monetary policy adjustments.

• US Non-Farm Payrolls: Expected to rise by 96,000 in May.
• Eurozone Inflation: Anticipated to show a YoY increase of 3.3%.
• Corporate Earnings: Focus on Meituan and Broadcom for insights into market trends.