Key pre-market news includes a sharp escalation in US-Iran tensions, a sell-off in US tech stocks, a surge in crude oil, and a decline in precious metals.

Market Sentiment: Negative

US stocks fell for a second consecutive session. The US Central Command stated it had struck multiple targets within Iran, while former President Trump escalated threats against the country. Iran announced the closure of the Strait of Hormuz to all vessels. A continued sell-off in technology stocks weighed on major indices, with the Nasdaq and Dow Jones Industrial Average falling nearly 2%. The Philadelphia Semiconductor Index dropped 3.6%, underperforming the broader market for two days. Qualcomm shares fell nearly 7%, and Nvidia shares declined almost 4%. Crude oil prices surged, with WTI crude rising over 3.5% at one point. Gold and silver extended their losing streak to four days, with spot silver falling more than 2%.

Eight Government Bodies Issue Significant Policy to Integrate Railways and Tourism

Industry Sentiment: Positive

On June 10th, eight departments including the Ministry of Commerce issued several measures to promote the integrated development of railways and tourism to expand service consumption. The measures propose that tourism-related planning should coordinate the layout and development of cultural, tourism, and railway resources, promoting mutual reinforcement between railways and tourism. Chen Guo of East Money Securities commented that the current state of Chinese consumption is the best it has been in the past five years, yet also potentially the worst for the next five, suggesting Chinese consumer stocks are at a historic low and present widespread opportunities.

US May CPI Returns to 4% Era, Energy Surge Fuels Inflation

Macro Sentiment: Neutral

Data released by the US Labor Department showed that, driven by rising energy prices, the US Consumer Price Index (CPI) for May increased by 4.2% year-on-year, reaching its highest level since May 2023. This marks the first time in three years that US inflation has returned above 4%. Excluding food and energy, the core CPI for May rose 2.9% year-on-year. Analysis suggests that increased price pressures on consumers further reinforce the rationale for the Federal Reserve to maintain high-interest rates and remain on hold for an extended period.

NDRC Announces Comprehensive "AI+" Action Plan, Vows to Curb "Involutionary" Competition

Industry Sentiment: Positive

On June 10th, Zheng Shanjie, Chairman of the National Development and Reform Commission (NDRC), presided over an expert symposium on the economic situation. Zheng stated that the NDRC will strengthen the planning and construction of water networks, new-type power grids, computing power networks, next-generation communication networks, urban underground pipelines, and logistics networks. It will accelerate the development of a modern industrial system and comprehensively implement an "AI+" action plan. Efforts will also deepen the construction of a national unified market and intensify the crackdown on "involutionary" competition.

Investment Calendar

Ministry of Commerce Press Conference.

Investment Insight

It's not blameworthy to take risks, but one must remember never to stake everything on a single venture.

Institutional Perspectives

CITIC Securities suggests that the AI sector has seen significant short-term gains and increased trading congestion, making it inadvisable to further increase overall AI exposure in June.

Founder Securities believes A-shares are likely to continue a volatile pattern and recommends focusing on high-dividend yield stocks and technology growth sectors for allocation.

Oriental Securities views the current period as a consolidation phase for technology, stating that the performance realization of the AI computing power chain will determine whether the medium-term uptrend continues.

Positive and Negative Developments to Watch

Ministry of Industry and Information Technology aims to create new intelligent network terminals and strengthen the integration of embodied AI with information and communication technologies. Soochow Securities notes that embodied AI will accumulate knowledge and skills through perception, control, and autonomous learning, forming the ability to influence the physical world. With breakthroughs in large model technology, the embodied AI market is projected to reach 632.8 billion yuan by 2027.

Domestic sulfur prices have broken through the 10,000 yuan per ton mark, with industry insiders predicting the uptrend may continue. Oriental Securities states that the global energy transition is boosting sulfur demand while constraining supply, and geopolitical conflicts are not the sole reason for its price increase. They are optimistic about a systemic, medium-to-long-term rise in sulfur prices, which will reshape the industrial landscape of downstream chemical products.

The 2026 FIFA World Cup hosted by the US, Canada, and Mexico will kick off, setting a record for the scale of the event. Bank of China Securities outlines the logic for sports-related stock gains, following the chain of "event hosting -> gathering of popularity -> spillover consumption -> thematic diffusion." They recommend investment focusing on three main lines: sports equipment, event scene support and sports consumption, and event broadcasting.

Announcement Summary

Positive Announcements

BYD Company Limited reported that production capacity for its second-generation Blade Battery cannot meet demand, with orders experiencing explosive growth.

ST Jingfeng announced the removal of other risk warnings, with its stock abbreviation changing to "Jingfeng Pharmaceutical."

Oriental Cable disclosed recent project wins with a total contract value of approximately 5.231 billion yuan.

Negative Announcements

Tianqi Lithium reported a partial fire incident at the third-phase chemical-grade lithium concentrate plant of its subsidiary, Talison.

Shanghai Yashi received an administrative supervision decision from the Shanghai Securities Regulatory Bureau.

DAS Intelligence Network announced that its first, second, and fifth-largest shareholders, among others, plan to collectively reduce their holdings by no more than 4.09%.

Overseas Markets

The three major US stock indices closed lower collectively on Wednesday, with the Dow Jones Industrial Average falling 1.88% and the Nasdaq Composite dropping 1.98%. The semiconductor sector saw another wave of selling, with Qualcomm down over 6%, and Broadcom and ARM declining more than 5%. Most popular US-listed Chinese stocks trended lower, with Alibaba falling over 3%.