Yesterday, May 27: Bracing for Nvidia's Earnings Storm
Child safety bill prompts tech concerns, RFK Jr. strays from CDC guidance, and sign-in with ChatGPT soon to take on Google.
May 27 QFR:
Texas Governor Abbott signed into law an online child safety bill requiring Apple and Google app stores to verify user age and obtain parental consent for minors
Health Secretary Kennedy announced COVID-19 vaccines are no longer recommended for healthy children and pregnant women
OpenAI is exploring a "Sign in with ChatGPT" feature for third-party apps, aiming to leverage ChatGPT's 600 million monthly active users
Notes for May 28:
0600PST: FOMC Member Williams Speaks
0815PST: Sec. Rubio, Hanrahan, and Kenna meet German FM Wadephul
1100PST: FOMC Meeting Minutes
1100PST: Trump Signs More Executive Orders
US Market:
The S&P 500 rocketed 2.1% today as President Trump’s surprise weekend delay of the 50% EU tariff unleashed a market-wide rally, sending the Dow up 1.8% and the Nasdaq 2.5% higher, with Nvidia (NVDA) jumping ahead of earnings and Hologic (HOLX) soaring 14.5% after rejecting a major buyout offer; every S&P sector finished in the green, led by tech and consumer discretionary names like Amazon (AMZN) and Home Depot (HD), as investors rotated back into risk assets and volatility cooled. Positive consumer confidence data further boosted market sentiment. Informatica (INF) also saw a rise following its acquisition by Salesforce (CRM).
The tariff delay erased last week’s losses and triggered aggressive buying in export-sensitive and tech sectors, with ETFs like Invesco QQQ Trust (QQQ), Vanguard FTSE Europe ETF (VGK), and SPDR S&P 500 ETF Trust (SPY) surging; however, persistent trade uncertainty and looming economic data keep hedging activity elevated.
🧥 – XLI 0.00%↑, FXI 0.00%↑; 🌲 – QQQ 0.00%↑, VGK 0.00%↑
Senator McCormick disclosed that Nippon Steel's U.S. Steel investment will ensure an American CEO, a U.S.-majority board, and U.S. government oversight via a "golden share." This arrangement aims to address national security concerns. Nippon Steel will invest $14 billion, including a new electric arc furnace and Pittsburgh-area facility upgrades. The deal, pending formal agreement, seeks to balance U.S. market access for Nippon Steel with U.S. control over key operations.
[This agreement may influence public perception of foreign investment in critical U.S. industries, affecting policy on national security and trade. The financial sector observes potential restructuring in the U.S. steel industry, impacting market competition. The steel industry anticipates modernization and potential market consolidation, with implications for domestic production and trade.]
🌲 - SLX 0.00%↑, X 0.00%↑, NUE 0.00%↑, STLD 0.00%↑
US Politics:
Health Secretary Kennedy announced COVID-19 vaccines are no longer recommended for healthy children and pregnant women, contradicting public health experts. This diverges from CDC guidance urging annual boosters. Experts expressed concern over bypassing scientific review processes and potential implications for vaccine coverage and public safety.
[This announcement may erode public trust in vaccine recommendations and create policy confusion regarding pediatric and maternal immunization. The financial sector observes potential decreased demand for COVID-19 vaccines, impacting pharmaceutical revenues. The vaccine industry faces challenges to established immunization schedules and potential increased skepticism.]
🧥 - NVAX 0.00%↑, MRNA 0.00%↑, JNJ 0.00%↑; 🌲 - VRTS 0.00%↑
President Trump’s administration petitioned the Supreme Court today to overturn an injunction blocking rapid deportations to third countries, aiming to restore authority for expedited removals without migrants’ ability to contest on persecution grounds; this legal escalation underscores the administration’s push for stricter immigration enforcement, with direct implications for labor, agriculture, and private prison stocks.
[Renewed immigration policy momentum could boost The GEO Group (GEO) and CoreCivic (CXW), while consumer and agricultural sectors may face labor supply jitters; market impact hinges on the Court’s response.]
🧥 – XLP 0.00%↑, XRT 0.00%↑; 🌲 – GEO 0.00%↑, CXW 0.00%↑
The State Department has temporarily halted scheduling new visa interviews for foreign students to prepare for expanded social media screening. A cable signed by Secretary Rubio instructs consulates to suspend adding student visa appointment capacity pending new guidance. This move is part of the Trump administration's increased scrutiny of international students.
[This suspension may create uncertainty for prospective international students and potentially delay their enrollment, impacting academic institutions. The financial sector observes potential negative effects on university budgets reliant on international student tuition. The higher education industry faces increased administrative burdens and potential declines in international student enrollment.]
🧥 - EDUT 0.00%↑, EDU 0.00%↑ ; 🌲 - PLTR 0.00%↑, BAH 0.00%↑
Global Politics:
On Tuesday, May 27, Russian forces continued their aerial onslaught by launching 60 drones overnight across multiple regions of Ukraine, with Kyiv’s air defenses intercepting 43 and at least ten people injured; this attack followed the unprecedented barrage on Sunday night, May 25, when Russia fired nine cruise missiles and a record 355 drones—the largest drone assault of the war—resulting in extensive civilian infrastructure damage and dozens of casualties, underscoring a sharp escalation and intensifying conflict risk in Eastern Europe. Russian forces seized four border villages in Ukraine's Sumy region following Putin's order to establish a buffer zone.
[Heightened geopolitical risk is fueling defensive flows into Energy Select Sector SPDR Fund (XLE) and iShares U.S. Aerospace & Defense ETF (ITA), while European equities remain vulnerable to further escalation.]
🧥 – EWG 0.00%↑, FXI 0.00%↑; 🌲 – XLE 0.00%↑, ITA 0.00%↑
King Charles III, in Canada, addressed unprecedented global challenges amid Trump's annexation suggestions, reaffirming Canada's sovereignty. Trump later joked about Canada joining his missile defense program. The King's visit and speech, at Prime Minister Carney's request, emphasized Canada's distinct identity and its ties to Britain and France.
[This event may strengthen Canadian national identity and resolve against external pressures, influencing policy towards closer ties with Europe. The financial sector observes potential shifts in trade dynamics as Canada seeks to diversify beyond the US. The defense industry may see increased collaboration between Canada and European arms producers.]
🧥 - WMT 0.00%↑, CNI 0.00%↑; 🌲 - EWC 0.00%↑, BBD 0.00%↑
Technology:
SpaceX launched its Starship mega rocket for the ninth time, but it tumbled out of control and broke apart after reaching space. A mock satellite deployment was canceled due to a door malfunction. Fuel leaks caused the spacecraft to spin, preventing a controlled landing in the Indian Ocean. Despite the failure, Musk noted it was an improvement over previous demos and aims for a faster launch cadence.
[This setback may raise public concerns about the reliability of Starship and impact timelines for lunar and Mars missions, potentially influencing NASA's Artemis program. The financial sector observes increased risk and uncertainty in SpaceX's development trajectory. The space exploration industry faces continued challenges in achieving fully reusable heavy-lift capabilities.]
🧥 - TSLA 0.00%↑, GOOG 0.00%↑; 🌲 - LMT 0.00%↑, BA 0.00%↑
Tesla's European and U.K. sales plummeted by 49% in April, despite a new Model Y release. This contrasts with overall EU, U.K., and EFTA EV sales, which grew 27.8%. Chinese EV manufacturers, like BYD, saw a 59% increase, despite EU tariffs. Tesla's decline coincides with CEO Musk's political activities and alignment with Trump, potentially impacting brand perception.
[This sales drop may intensify public scrutiny of Musk's leadership and political influence on Tesla's brand, potentially influencing consumer confidence. The financial sector observes increased competitive pressure on Tesla in the European market. The automotive industry experiences a shift in market share, with Chinese EV manufacturers gaining ground despite trade barriers.]
🧥 - TSLA 0.00%↑, XPEV 0.00%↑; 🌲 - STLA 0.00%↑, LCID 0.00%↑
The increasing misuse of drones for various threats has spurred a technological race to counter them midair. Methods include projectiles, jamming, and drone-fired nets, each with drawbacks. Hacking systems, like D-Fend's EnforceAir, offer safer interception and analysis but may not work on cyber-secure military drones. Experts anticipate widespread use of diverse anti-drone technologies for critical infrastructure and public safety, contingent on updated federal laws.
[This trend may increase public demand for enhanced security measures against drone threats, influencing policy and funding for counter-drone technology. The financial sector observes growth potential in the counter-drone technology market. The defense and security industries anticipate significant expansion in the development and deployment of anti-drone systems.]
🧥 - EH 0.00%↑, BLDE 0.00%↑; 🌲 - KTOS 0.00%↑, RTX 0.00%↑
OpenAI is exploring a "Sign in with ChatGPT" feature for third-party apps, aiming to leverage ChatGPT's 600 million monthly active users. This could position OpenAI to compete with established tech giants offering similar sign-in services. A developer preview was launched in Codex CLI, offering API credits for integration. OpenAI is gauging interest across various app sizes and API usage.
[This initiative may increase public convenience and potentially expand OpenAI's influence across various online platforms. The financial sector observes OpenAI's ambition to broaden its service offerings and competitive landscape. The software industry anticipates potential integration opportunities and competition with existing sign-in providers.]
🧥 - AAPL 0.00%↑, GOOG 0.00%↑; 🌲 - MSFT 0.00%↑, META 0.00%↑
Salesforce acquired Informatica for $8 billion in an all-equity deal to enhance its AI and data infrastructure. The acquisition aims to bolster Salesforce’s agentic AI capabilities by integrating Informatica’s data management and governance tools. This move follows earlier acquisition rumors and a prior denial from Informatica. The deal is expected to close in early fiscal year 2026.
[This acquisition may strengthen Salesforce's competitive position in the AI-driven enterprise software market, influencing investor confidence. The financial sector observes a significant consolidation in the data management and CRM spaces. The software industry anticipates further integration of AI with data management platforms, potentially reshaping enterprise technology solutions.]
🧥 - SNOW 0.00%↑, SPLK 0.00%↑; 🌲 - CRM 0.00%↑, ADBE 0.00%↑
Texas Governor Abbott signed into law an online child safety bill requiring Apple and Google app stores to verify user age and obtain parental consent for minors' downloads and in-app purchases, effective January 1. Apple CEO Tim Cook reportedly opposed the bill, citing privacy concerns. Similar legislation is being considered in other states.
[This law may increase public pressure on tech companies to enhance child safety measures online, influencing policy debates on digital regulation. The financial sector observes potential compliance costs and operational adjustments for app store operators. The technology industry, particularly app stores, faces new regulatory requirements and potential impacts on user acquisition and revenue from minors.]
🧥 - AAPL 0.00%↑, GOOG 0.00%↑; 🌲 - MSFT 0.00%↑, META 0.00%↑
Synyi AI made headlines today by launching the world’s first fully autonomous AI doctor clinic in Riyadh, Saudi Arabia, where patients can now receive diagnoses, prescriptions, and follow-up care from an AI system without human medical staff present; the clinic, developed in partnership with Saudi health authorities, leverages large language models and real-time health data to deliver care, and plans are underway to expand the model to other Gulf countries, with Synyi AI’s parent company signaling potential IPO ambitions.
Synyi AI’s breakthrough is set to disrupt global healthcare and diagnostics markets, potentially boosting AI healthcare stocks and ETFs like Global X Telemedicine & Digital Health ETF (EDOC) and ARK Genomic Revolution ETF (ARKG), while putting pressure on traditional healthcare providers and medical staffing firms such as HCA Healthcare (HCA) and AMN Healthcare Services (AMN).
🧥 – HCA 0.00%↑, AMN 0.00%↑; 🌲 – EDOC 0.00%↑, ARKG 0.00%↑
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