Today’s Market Recap: Quantum Stocks Soar, Trump Issues Iran Warning, and S&P Edges Up

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TradingKey - The S&P 500 edged up 0.17% to 7,445.72 after choppy, oil-driven trading, the Nasdaq Composite added 0.09% to 26,293.10, and the Dow Jones Industrial Average climbed 0.55% to 50,285.66, rebounding from early losses.

Nvidia (NVDA) slipped from early strength despite yesterday’s blowout earnings. International Business Machines (IBM) rallied over 12% on quantum computing developments.

Walmart (WMT) dropped 7% following its Q1 results, while rival Costco Wholesale (COST) slipped 2%. Spotify Technology soared after it wowed investors with its growth plans.

IonQ (IONQ), a developer of trapped-ion quantum computing systems, closed Thursday at $58.89, up 12.24%. The stock moved higher after enthusiasm over a new $2 billion U.S. quantum funding plan and IonQ’s record Q1 results, and investors are watching how sustained demand and government support shape long-term quantum adoption.

Infleqtion (INFQ), a developer of quantum computing and sensing solutions using neutral-atom technology, closed at $14.70, up 31.44% for the session. The stock jumped after it signed a Letter of Intent with the U.S. Department of Commerce’s CHIPS R&D department for $100 million in potential funding.

Market Headline

Donald Trump discussed Iran, tariffs, and AI, stating the U.S. will acquire Iranian enriched uranium while reiterating that Iran cannot possess nuclear weapons. Trump warned that an Iranian nuclear weapon could trigger a Middle East nuclear war affecting Europe and the Americas. Reports indicated Iran and Oman are studying a permanent "transit fee" for the Strait of Hormuz; following this, Trump expressed concern over the transit fees, claiming the U.S. has total control over the strait and its naval blockade against Iran is 100% effective. Regarding AI, Trump stated he delayed signing an AI executive order because he was "not satisfied with certain aspects" and worried it might hinder AI. He also noted the U.S. might have to refund $149 billion in tariffs but would reimpose them through different methods.

The preliminary U.S. Manufacturing PMI for May unexpectedly rose to 55.3, while the Services PMI ticked down. The S&P Global Flash U.S. Composite PMI recorded 51.7, remaining flat with April. Divergence between the two sectors widened: the Manufacturing PMI reached a 48-month high of 55.3, whereas the Services PMI dropped to 50.9, nearing stagnation. Input cost growth hit its highest level since late 2022, and selling price inflation rose to a near four-year high. Economists warned that the May PMI suggests Q2 annualized GDP growth may struggle to exceed 1%, and with order growth hitting a two-year low, stagflation risks are rising further.

A Turkish court ruling "overturned" the largest opposition party, causing the stock index to plunge 6%, while state banks urgently sold $6 billion to defend the lira. The court ruled the Republican People's Party's 2023 convention election results invalid, meaning current chairman Ozel is removed from office and the former leadership is reinstated. Traders noted that about half of Thursday's $6 billion foreign exchange intervention by state banks occurred shortly after the court decision was announced.

Reports indicate OPEC+ may increase July oil production by 188,000 barrels per day at its June 7 meeting. Although blockades in the Strait of Hormuz have disrupted exports for several OPEC+ members, the core seven countries still plan to move forward with the July production hike of approximately 188,000 barrels per day. Notably, the affected exporters are the only members within the alliance that possess spare capacity to expand supply if needed—Saudi Arabia, Iraq, Kuwait, and the recently departed UAE.

The SpaceX IPO caused a major market shakeup, as institutional investors expressed dissatisfaction with the dual-class share structure, and Elon Musk linked valuations to building a colony of 1 million residents on Mars. Under the dual-class system, Musk retains around 85% of the voting power, leaving ordinary investors with virtually no governance influence, which triggered a backlash from pension funds and other institutions. Furthermore, the prospectus ties the valuation to long-term goals such as the 1 million Mars population and ultra-large computing power, leading critics to question if the $28.5 trillion market narrative is more of a vision than a verifiable financial foundation.

At Xiaomi's new product launch, the large-screen flagship Xiaomi 17 Max was unveiled starting at 4,799 yuan, and the sports-car-grade SUV YU7 GT was officially launched. The Xiaomi 17 Max features a 6.9-inch ultra-narrow flat display, an 8,000mAh Jinshajiang battery, a Leica 200-megapixel main camera, and the Snapdragon 8 Elite platform, with the price dropping to 4,299 yuan after national subsidies. The Xiaomi YU7 GT is priced from 389,900 yuan, delivering a maximum of 1,003 horsepower and a 0-100 km/h acceleration time of 2.92 seconds, with Lei Jun positioning it as an "authentic pure-blood GT + sports-car-grade SUV."

NIO's Q1 revenue surged 112% year-over-year, new vehicle deliveries jumped 98%, and vehicle gross margin hit a four-year high. NIO reported Q1 revenue of 25.53 billion yuan, up 112.2% year-over-year, alongside 83,465 vehicle deliveries, a 98.3% increase. Its consolidated gross margin reached 19.0% and vehicle gross margin hit 18.8%, both marking four-year highs. Under non-GAAP metrics, the company achieved an operating profit of 66.79 million yuan, securing its second consecutive profitable quarter. Cash reserves stood at 48.2 billion yuan, with positive operating cash flow maintained for three consecutive quarters. Revenue guidance for Q2 peaks at 34.44 billion yuan.

Top 10 Most Traded Stocks

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