Wallstreetcn Morning FM-Radio | May 27, 2026

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Huajian Good Morning Voice

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Market Overview

Despite mixed macro data and consumer confidence hitting bottom, S&P 500 and Nasdaq hit record highs amid expectations of peace between the US and Iran and strong momentum in semiconductors.

Nasdaq 100 broke through 30,000, the semiconductor sector has risen for five consecutive days, up over 80% this year. Dow closed down 0.23%. UBS significantly raised Micron’s target price, Micron soared 20%. Nvidia slipped 0.22%. Western Digital once surged about 11%, Qualcomm jumped nearly 8% intraday.

Thanks to strong bidding for 2-year US Treasuries, short-end yields outperformed long-end. 2-year yield fell by 8.3 basis points, 10-year yield decreased by 5 basis points, 30-year yield briefly fell below 5% intraday.

The US dollar rose 0.16%, holding steady at 99. Bitcoin briefly rose to $78,000 resistance, then quickly fell, down 2.9% from the daily high. Ethereum fell 1.48% intraday.

Spot gold fell 1.45%, spot silver dropped 1.51%, holding steady near $76.50. The US and Iran continue both fighting and talking, crude oil rebounded after dropping over 7% on Monday. WTI crude rebounded over 3% to near $96, Brent briefly rose above $100.

In the Asian session, A-shares surged at the close, Shanghai index barely turned positive, nonferrous metals rose, chip and semiconductor sectors plunged, Hang Seng Tech Index rose over 1%, Zhipu hit a new high.

Major News

China

As of May 25, 2026, A-share margin balance stood above 2.9 trillion yuan for the first time in history, reaching 2.90354 trillion yuan.

Huawei "Tao Law": DeepSeek moment for domestic chips!

Xiaomi Q1 revenue reached 99.1 billion yuan, beating expectations; announced a 20 billion HKD new buyback plan; Conference call: memory costs won’t drop in the short-term, "be the last company to raise prices, and increase the least".

Overseas

US media claims the US quietly resumed escorting ships through the Strait of Hormuz; US military denies, oil shipping risks remain unresolved. Iran condemns the US for violating the ceasefire agreement; freezing overseas funds remains the main point of negotiation. Iran’s president: Ready to reach a "dignified" framework agreement, unwavering in defending territorial integrity and national sovereignty.

Micron's market cap surpassed $1 trillion, closing up 19.3%, marking the largest single-day gain since 2011. UBS gave a sky-high target of $1600: LTA could support $1.8 trillion market cap.

The Pentagon is being choked by SpaceX: Starlink increased prices fivefold, sparking fierce arguments; Musk denies. SpaceX IPO planted a "governance nuclear bomb": Musk is almost impossible to oust, shareholder protection threshold as high as $52.5 billion.

Musk unveils Grok 5! 1.5 trillion parameters, learned from Cursor, intensive programming practice.

Korean stocks saw the debut of Samsung, SK Hynix double-leverage ETF on Tuesday, with daily swings up to 60%.

Market Closing

Europe and US Stock Markets: S&P 500 up 0.61%, at 7519.12, breaking the record closing high set on May 14; Dow down 0.23%, at 50461.68. Nasdaq up 1.19%, at 26656.181, breaking the record closing high set on May 14. European STOXX 600 closed down 0.57%, at 628.01.

A-shares: Shanghai Composite closed at 4145.37, down 0.17%. Shenzhen Component closed at 15876.16, up 0.12%. ChiNext closed at 4043.07, up 0.54%.

Bonds: US 10-year Treasury yield down 6.92 basis points, at 4.4886%. US 2-year yield down 7.65 basis points, at 4.0445%.

Commodities: WTI July crude futures closed down 2.81%, at $93.89/barrel. Brent July crude futures closed up 3.58%, at $99.58/barrel. Spot gold down 1.45%, at $4504.35/oz. Spot silver down 1.51%, at $76.9010/oz.

Major News Details

Global Highlights

China

As of May 25, 2026, A-share margin balance surpassed 2.9 trillion yuan for the first time in history, reaching 2.90354 trillion yuan. Previously, the margin balance surpassed 2.9 trillion yuan on May 20, 2026. Electronics sector leads net buying, semiconductor sector is the most favored.

Huawei "Tao Law": The DeepSeek Moment for Domestic Chips! According to Bernstein, the core logic of the Tau Law is shifting optimization targets from the physical area of transistors to signal delay. By coordinating at four levels—transistor, circuit, chip, system—to compress the time constant Tau, performance growth can break through the limitations of Moore’s Law. This framework provides a predictable, scalable technology roadmap for China’s semiconductor industry to continue iterating under EUV constraints and gradually narrow the gap with global leaders.

Xiaomi Q1 revenue reached 99.1 billion yuan, beating expectations; announced a 20 billion HKD new buyback plan; Conference call: memory costs not likely to drop in short-term, "be the last company to raise prices, increase the least".

Xiaomi Group's Q1 2026 revenue reached 99.14 billion yuan, slightly above market expectations; adjusted net profit was 6.1 billion yuan, down 43.1% year-on-year but stable quarter-on-quarter. Innovation business revenue neared 20 billion yuan, cars are in a product transition phase, new SU7 and YU7 models launched. Phone ASP hits a record high, IoT gross margin improved significantly. Company announced a 20 billion HKD share buyback plan, cash reserves at 220.6 billion yuan.
Lu Weibing stated that the current cycle of memory price increases is longer, don’t expect a short-term drop. Xiaomi doesn’t simply pass cost increases, but digests the pressure through product upgrades and structural optimization. Automotive business has emerged from its most difficult period; SU7 GT expands into the high-end market, and is confident in the target of 550,000 units for the year. In AI, Xiaomi has a hardware ecosystem with over 1 billion devices, "may become a leader in the AI era," and will launch a new generation operating system this July/August.

Overseas

US media claims US quietly resumed escorting ships through the Strait of Hormuz, US military denies, oil shipping risks remain unresolved. US media reports a Greek oil tanker with 2 million barrels was guided by the US Navy along Oman’s coast through Hormuz; the US Navy plans to assist more than ten ships in coming days. US military says they are only maintaining basic contact and navigation coordination, not restarting "Freedom Plan." Iran military says 25 ships were cleared in past 24 hours.

Ceasefire agreement is essentially void! Iran opened fire, retaliated against US airstrikes; Khamenei Jr.: Mideast countries will no longer shelter US troops. IRGC fired at a US F-35 fighter jet and several drones entering Iranian airspace in the Persian Gulf region, further escalating tensions. Brent crude surged, up over 3% intraday.

Iran condemns US for "violating the ceasefire agreement", freezing overseas funds remains a key point in negotiations. US-Iran military conflict and diplomatic maneuvering are escalating. Iran accuses the US of openly violating the ceasefire; US says its strikes are defensive against Iran’s threats like mine-laying, Iran then shot down US drones and retaliated. On negotiations, both sides deadlocked over Iran’s overseas $24 billion funds, Iran demanding half be unfrozen immediately after agreement memo, and insists no agreement can be reached until funds are received.

Iran’s president: Ready to reach a "dignified" framework agreement, unwavering in defending territory and national sovereignty. Pezeh Kiziyan said he spoke with leaders of Iraq, Oman, Qatar, Turkey, Tajikistan, Egypt, Kyrgyzstan, and Azerbaijan, hoping to expand cooperation in various fields and offer mutual support against threats.

Experts: US strikes in Iran aim for "coercing talks", pressuring Iran to open the strait. Experts say Iran did not retaliate on a large scale, so this minor conflict will not affect overall US-Iran negotiations. US intent: first, to pressure Iran by force when negotiations stall; second, to regain control of Hormuz and demand Iran reopen the strait.

Micron’s market cap surpassed $1 trillion, closing up 19.3%, biggest single-day gain since 2011. Micron soared eightfold in the past year, UBS says fixed-price long-term agreements will smooth earnings volatility, reduce cyclical risk, and revalue Micron. US AI stocks surged on Tuesday: Western Digital up 8.3%, Qualcomm up 4.5%, Sandisk up 7.5%, Philadelphia Semiconductor Index up 5.5%.

Micron's cyclical curse broken? UBS gives $1600 price target: LTA could support $1.8 trillion market cap. UBS raised Micron’s target from $535 to $1625; core logic is not HBM, but first-ever long-term agreements with partial fixed pricing in the memory industry (LTA). This model may significantly smooth earnings volatility and reduce cyclicality, shifting market valuation from "cyclical" to "growth". Combined with strong HBM demand, tight supply cycle lasting longer, UBS sees structural revaluation, market cap may approach $1.8 trillion.

Pentagon choked by SpaceX: Starlink raised prices fivefold, fierce dispute, Musk denies. During Iran war, SpaceX increased Starlink terminal monthly fee from $5000 to $25,000 for suicide drones. Pentagon protested but ultimately accepted. Musk later responded: media reports about Starlink "are untrue." Starlink has over 60% of satellites in orbit, deeply embedded in US military, with no comparable alternatives yet.

SpaceX IPO planted a "governance nuclear bomb": Musk is nearly impossible to oust, shareholder protection threshold set at $52.5 billion. Musk enjoys total board control, plus "can’t oust the CEO without consent" clause. Shareholder lawsuit threshold set at $52.5 billion, trying to use private arbitration to avoid class action. Institutions warn these block accountability, causing passive index fund investors severe governance risk, and almost no legal recourse for protection.

Musk unveils Grok 5! 1.5 trillion parameters, learned from Cursor for intensive programming practice. Musk announced Grok 5 with 1.5 trillion parameters now trained, three times that of current models. Extensive Cursor programming data used in training, greatly boosting coding ability. Combined with Cursor and Grok Build programming agent launch at $60 billion locked value, Musk's three moves in AI programming are complete, set for direct competition with OpenAI, Anthropic, etc in June.

Korean stocks saw the debut of Samsung, SK Hynix double-leverage ETF on Tuesday, daily swings up to 60%. Korea opens individual stock leverage trading for first time to win back funds. Sixteen leverage and inverse products based on Samsung and SK Hynix listed Wednesday, expected to attract $3.5 billion inflows.

Research Report Highlights

US Treasury yield curve flattening, market betting rates will be "higher for longer" under Walsh's leadership. Yield curve flattening, short-end under pressure, spread between 5-year and 30-year yields narrowed to lowest since May 2025. JPMorgan, Goldman Sachs warn rates will be "higher for longer", structural fiscal pressures and geopolitical risks may push 10-year yield towards 5% or higher.

SemiAnalysis deep dive: Under the 800VDC wave, power equipment market is quietly being reshaped. As AI rack power leaps above 600kW, 800VDC distribution is moving from cloud giant experiments to industry standard. SemiAnalysis estimates incremental data center capacity will reach 39GW by 2030, spawning two new markets: $1.1 billion power cabinet and $1.3 billion solid-state transformer (SST).

Expert explains CPO: AI compute power limits spark "copper out, photonics in", CPO mass production bottleneck is in testing, glass substrate era quietly opens. "Copper out, photonics in" is inevitable, but in the short term "copper and photonics together" is a high-performance, cost-effective business compromise; CPO mass production’s biggest bottleneck is testing; mega AI chips now face "sea of 50,000 pins" and "20,000 amp current tsunami"; materials rivalry is deep, glass substrate becomes a must for advanced packaging.

Power consumption surges 100x! Bank of America: Era of 1.5MW racks coming, disrupting traditional power distribution. BofA expects Nvidia rack power will surge from traditional servers’ 10–15kW to over 1.5MW in the Feynman era, driving new 233GW AI data center power demand from 2025–2030. To break bottlenecks, 800V DC architecture, storage systems, and solid-state devices will accelerate deployment, expanding the analog semiconductor blue ocean—AI analog chips projected to grow from $790M to $2.7B in five years. SiC and GaN are the biggest beneficiaries.

Domestic Macro

China-Pakistan Joint Statement: Both sides reaffirm five-point initiative for restoring peace and stability in the Gulf and Middle East. Both sides agree to explore potential in trade, energy, digital economy, finance, tech innovation, AI, telecom, water, marine cooperation; strengthen talent training; promote trade liberalization; jointly safeguard supply chain stability. China praises Pakistan for mediating US-Iran temporary ceasefire and hosting Islamabad talks. Both sides reaffirm five-point initiative for Gulf and Middle East peace, pledge to continue contributing to regional stability.

Domestic Companies

Goldman’s humanoid robot in China: VLA+ world model accelerate fusion, data remains the biggest bottleneck. Goldman sees embodied intelligence and humanoid robots in China moving from single VLA to fused world model multimodal AI stack with parameters heading to 4–8 billion. Despite optimistic long-term outlook, limited by lack of high-quality real-world data, currently mostly PoC stage. Expect mass commercial deployment in industry/logistics after hundreds of millions of hours of data, between 2027–2029.

TSMC stock surges, Taiwan overtakes India as world’s fifth largest stock market. Driven by global AI investment boom, TSMC stock is up 49% YTD, accounting for 42% of Taiwan market weight, pushing total market cap to $4.95 trillion, overtaking India as the fifth largest globally.

Overseas Macro

Iran conflict triggers inflation, how to push US bond yields lower? Besent’s options are running out. Faced with rising deficits and energy shocks making Fed rate cuts difficult, "Besent’s put" loses effectiveness. This put refers to markets believing Treasury can shift debt issuance to short maturities to lower long-term yields.

Report: Malaysia imposes 10% import tariff on some gold bars. Malaysia quietly imposed 10% import duty on some gold bars, putting pressure on precious metals trade—goods stuck at customs, some shipped elsewhere, importers suffer losses as domestic gold price hasn’t matched. Comes amid Malaysia’s rapid gold demand growth; non-monetary gold imports nearly $2.5 billion in the first four months this year.

Guinea’s fourth "bauxite regulation", will it be serious this time? Previous three rounds saw setbacks due to lack of execution details; this time, for the first time, there’s a specific deadline. Middle East aluminum disruptions and global supply tightness add up, inventory only 15 days; supply chain repricing window opening, key is strict quota enforcement.

Overseas Companies

Altman changes tune: AI unlikely to cause "end of employment", human relationships are irreplaceable "moat". OpenAI CEO Altman says AI is unlikely to trigger "employment apocalypse", impact on junior white-collar jobs is much lower than expected. He emphasizes interpersonal interaction is a "moat" technology cannot replace, but cautions future impact is still uncertain. Meanwhile, large enterprises continue advancing AI job replacement.

Samsung’s internal pay gap intensifies! Court rejects motion, chip and non-chip employee bonuses differ by over 80 times. Korean court rejected Samsung’s DX division motion to block salary agreement voting. Semiconductor division’s huge profit contribution means staff could receive up to 513 million KRW bonus per person, with more than 80x gap vs DX division. This gap has fueled DX union membership surge, highlighting governance challenges in Samsung’s profit concentration model.

Oklo surges almost 12% pre-market, closes up over 4%, wins advanced negotiation rights for US DOE plutonium fuel project. US DOE selected Oklo for advanced phase of “surplus plutonium utilization” plan, promoting nuclear waste conversion to advanced reactor fuel; Oklo and newcleo may receive up to $2B in support. This marks a breakthrough in advanced nuclear and fuel cycle field.

Industry/Concepts

1. Solid-State Battery | According to Shanghai Securities News, on May 26, 2026, the Ministry of Industry and Information Technology issued the 2026 automobile standardization work focus. It includes improving and implementing smart vehicles, automotive chips, new energy vehicles, low-carbon auto development, focusing on reliability and solid-state battery standards, updating and refining data governance, automotive AI standards, and proactively laying out standards for cutting-edge fields.

Comment: Research institutions say new energy vehicle industry has shifted from policy-driven to market-driven after years of rapid growth. Power batteries determine vehicle safety, range, manufacturing cost, and competitiveness, and are the focus of global tech competition. The MIIT and China Auto Research jointly released the White Paper on Solid-State Battery Industrialization Progress this year, declaring China has entered mass production of hybrid solid-liquid, and is in the key pilot phase for all-solid-state batteries. The new energy vehicle industry officially enters the solid-state battery verification year.

2. Short Dramas | According to Shanghai Securities News, on May 26, the National Radio and Television Administration issued the implementation plan for the "Micro-short Drama Boutique Creation & Dissemination Plan". By the end of 2026, a system to support micro-short drama creation/dissemination will be built, management mechanism improved, industry ecology optimized, excellent works created, top creator talent cultivated, replicable/promotable experiences shaped, overall creation quality elevated, and 1,000 micro-short dramas released annually, achieving boutique production results.

Comment: Huajin Securities cites iMedia Consulting data: In 2025, China’s micro-short drama market will reach 67.79 billion yuan, up 34.40% YoY, and is forecast to exceed 150 billion yuan by 2030. Previously, "爽剧" single genres dominated the market, but as the industry and user aesthetics develop, diverse creative genres flourish, branded IP customization becomes mainstream. From Jan–Aug 2025, short video platforms released 233 branded micro-short dramas, 87 new brands entered, brand repurchase rate exceeds 60%, significant YoY increase. Micro-short dramas’ monetization in vertical sectors and branded customization is expected to keep strengthening.

3. Mobile Payment | Shanghai Securities News reports that on May 26, Alipay announced “AI Payment” has completed 300 million AI agent payments, supports 95% of generic agent frameworks, becoming the world’s first large-scale commercial AI-native payment infrastructure. Alipay also launched the world’s first Token Pay service and Al Wallet product; together with previous AI Pay and AI Receipts, it’s built a full-stack AI-native payment system for the AI era. After fast payment and QR payment fueled e-commerce and mobile internet eras, Alipay once again drives innovation in the AI era with AI payment.

Comment: Institutions say Ant International is accelerating collaboration with global leading AI models, integrating the full AI shopping process; launched agent payment solution integrating digital wallet, bank card, etc, for cross-scenario, cross-device recurring auto-pay service; in security, Ant and partners focus on identity authentication, authorization token management, building an international security trust framework for AI-native environments; meanwhile, Ant is improving wallet integration of AI payment, facilitating global AI commerce and agent-based autonomous large-scale transactions.

4. Glass Substrate | China Securities News reports that amid surging AI compute demand and tight advanced packaging substrate supply, Intel is speeding up the commercialization of next-gen glass substrate tech. Intel plans to refit its Rio Rancho plant in New Mexico as the world’s first mass-production glass substrate base. Intel is a glass substrate tech pioneer; as early as September 2023, it included glass substrate in its advanced packaging roadmap.

Comment: Glass substrate packaging is widely seen as the “next-gen key material” for post-Moore advanced semiconductors, mainly driven by AI compute demand for cutting-edge packaging tech. Intel says glass substrates can increase interconnect density by up to 10x compared to organic materials, key to achieving 1 trillion transistors in a single package by 2030. Industry forecasts 2026 as the key year for pilot commercial shipments, 2028–2030 will see rapid growth.

5. Synthetic Biology | China Securities News reports that the Shenzhen Institute of Advanced Technology, Chinese Academy of Sciences, with over 100 labs from six Asian countries, published Asia’s first 10-year synthetic cell technology roadmap in Nature Biotechnology on May 26. The roadmap systematically addresses core challenges for constructing synthetic cells, with phased targets to guide Asia’s next decade of breakthroughs in this field.

Comment: Synthetic cells ("building a living cell from scratch") is one of the most challenging goals in life sciences. Synthetic cells are the core carrier of synthetic biology, considered the "third biotech revolution" after DNA double helix and Human Genome Project, reshaping pharma, chemicals, agriculture and solving global health, energy, and environmental issues. In 2026, global synthetic biology manufacturing market expected to surpass $3.98 billion (~30 billion RMB), with annual growth over 30%.

6. Synthetic Rubber | China Securities News reports that this year, natural rubber prices have continued to rise, near two-year highs. Processing companies are scrambling for raw materials amid high prices. Natural rubber spot price is between 17,500–17,900 yuan/ton, up 2,200 yuan from start of 2026, rise about 14%. Futures are at 17,460 yuan/ton, up 11% since yearstart. In week ending May 22, Qingdao bonded area inventory was 133,600 tons, down 5,900 tons (4.23%); analysts say reduced inventory leaves room for further price rises.

Comment: Supply side data shows 2026 global demand for natural rubber will rise to 15.602 million tons, but output forecast only 15.324 million tons, clear supply shortfall, main production zones face output risks, heightening concerns over supply tightness. On demand, 2026 global auto industry recovers moderately, downstream demand remains stable, supporting prices.

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Risk disclosures and disclaimerThe market has risks, invest carefully. This article does not constitute individual investment advice and does not consider users’ specific investment objectives, financial circumstances, or needs. Users should consider whether any opinions, views, or conclusions herein are suitable for their own situation. Investments made in reliance on this are at your own risk. ```