Last night, Chinese assets surged

Local time on Friday, the U.S. stock market continued its strong momentum, with the Dow Jones Industrial Average (DJIA) surpassing 50,000 points for the first time. At the close, the DJIA rose 2.47%, to 50,115.67; the Nasdaq rose 2.18%, to 23,031.21; and the S&P 500 increased by 1.97%, to 6,932.30. Popular Chinese concept stocks all rose, with the Nasdaq Golden Dragon China Index up 3.71%, NIO up over 7%, and Li Auto up over 6%.

In individual stocks, NVIDIA surged nearly 8%. CEO Jensen Huang emphasized again on Friday that massive AI spending is “reasonable and sustainable,” and admitted that as long as people are willing to pay for artificial intelligence and AI companies can profit from it, they will continue to invest “double, then double again, and again, and again.”

Additionally, the precious metals market rebounded strongly. Data shows that by the close, London spot silver rose nearly 10%, and London spot gold increased nearly 4%. Analysts noted that currently, the market has both short-term profit-takers and long-term allocators, and given the unchanged medium- and long-term risk hedging logic, gold prices still have support at the bottom.

DJIA surpasses 50,000 points for the first time, Chinese assets soar

On Friday, local time, the three major U.S. stock indices all rose, with the DJIA crossing the 50,000-point mark for the first time. By the close, the DJIA gained 1,206.95 points, or 2.47%, to 50,115.67; the Nasdaq increased 490…63 points, or 2.18%, to 23,031.21; and the S&P 500 rose 133.90 points, or 1.97%, to 6,932.30.

Most large tech stocks rose, with Tesla up over 3%, Microsoft up nearly 2%, Netflix up over 1%, Apple up nearly 1%, Amazon down over 5%, Google down over 2%, and Meta down more than 1%. In chip stocks, ARM and AMD surged over 11%, Western Digital and AMD rose more than 8%, NVIDIA up nearly 8%, Broadcom up over 7%, Seagate Technology and TSMC up over 5%, SanDisk and Micron Technology up over 3%.

Cryptocurrency and optical communication stocks led gains, with Strategy up over 26%, MARA Holdings up over 22%, Bit Digital up over 19%, Canaan Creative, The9, Coinbase, Circle, and Ebang International also recorded double-digit increases. Lumen Technologies rose nearly 30%, Astera Labs nearly 19%, Credo Technology over 13%, with Lumentum and Coherent also rising.

Pharmaceutical stocks generally rose, with Novo Nordisk up nearly 10%, and Eli Lilly up over 3%. On the news front, the U.S. Food and Drug Administration (FDA) took action to crack down on counterfeit weight-loss drugs. The FDA will restrict the use of GLP-1 active pharmaceutical ingredients in non-FDA-approved compounded drugs, which are being widely marketed as alternatives to FDA-approved medications. This move aims to protect consumers from drugs whose quality, safety, or efficacy cannot be verified by the FDA.

Quantum computing, drones, nuclear power, and rare earth concept stocks also performed actively, with Quantum Computing and D-Wave Quantum up over 20%, Quanten and Rigetti Computing up over 18%. Draganfly surged over 15%, Ondas over 14%. NuScale rose over 18%, Oklo (which holds shares of Sam Altman) up over 14%. MP Materials and Energy Fuels gained over 8%, USA Rare Earth up over 6%.

Popular Chinese concept stocks all rose, with the Nasdaq Golden Dragon China Index up 3.71%, NIO up over 7%, Li Auto up over 6%, Baidu up over 5%, XPeng Motors nearly 5%, Bilibili up over 4%, Alibaba and Pinduoduo up over 3%, JD.com and iQiyi up over 2%. FTSE China A50 Index futures increased over 1%.

Jensen Huang: Massive AI spending is “reasonable and sustainable”

On Friday, NVIDIA surged nearly 8%.

In response to recent market concerns about excessive AI spending, Jensen Huang reiterated that such spending is “reasonable and sustainable.” He believes that despite worries about overconsumption in data centers, the level of expenditure is justified and sustainable. He also cited that many top global tech companies, including Amazon, Google, Meta Platforms, and Microsoft, have large-scale capital expenditures that caused concern among investors after their earnings reports.

Huang sees this period as “the largest infrastructure build in history,” driven by AI transforming the way “everything is computed.” The construction of AI infrastructure will take seven to eight years, with global demand for AI extremely high. “AI has become very useful and powerful. Its application has become highly widespread.”

He added that as long as people are willing to pay for AI and AI companies can profit from it, they will continue to invest “double, then double again, and again, and again.”

Precious metals rebound strongly

Overnight, the precious metals market remained active. Data shows that by the close, London spot silver rose nearly 10%, and London spot gold increased nearly 4%. In the futures market, COMEX gold rose over 2%, and COMEX silver gained more than 1%.

Driven by the sharp rebound in gold and silver prices, U.S. stock precious metals sector saw significant gains. The world’s largest silver ETF, iShares Silver Trust, rose over 5%, Coeur Mining surged over 12%, and Pan American Silver and U.S. Gold rose over 5%.

Derek Johnson, senior investment strategist at DBS Bank, analyzed that currently, the market has both short-term profit-takers and long-term allocators. Even if professional investors take some profits, they usually do not fully sell out. When gold prices fall to reasonable levels, medium- and long-term buyers will enter.

Johnson believes that since Q4 last year, global central banks have continued to increase holdings, and professional investors have maintained hedging needs through ETFs and other means, based on medium- and long-term risk hedging logic—including geopolitical risks, U.S. debt risks, and concerns over U.S. stock market and government fiscal sustainability. These factors have not changed, so there will still be buying interest after gold prices decline.

Trump’s social media account deletes video related to Obama, suspected of racial discrimination

According to Xinhua News Agency, on the night of the 5th, U.S. President Trump’s social media account posted a video clip involving former President Obama and his wife Michelle. The video is suspected of racial discrimination, sparking strong dissatisfaction and condemnation from various parties. The White House removed the video on the 6th, more than 10 hours after it was posted.

The video appeared on Trump’s social media account at 11:44 p.m. Eastern Time on the 5th, showing two primates with faces edited to resemble Obama and Michelle. A senior White House official told the media at noon on the 6th that the post was “misposted” by a White House employee and has been deleted.

Earlier, White House Press Secretary Karine Jean-Pierre stated that the post was not offensive. In a media statement, she said the clip was taken from an online video depicting President Trump as a jungle king, while Democrats were compared to characters from “The Lion King.” She urged to stop this false outrage and focus on reporting issues of real significance to the American public today.

The video was produced by conservative figures. It claims that during the 2020 U.S. presidential election vote count, voting machines in key states were “deliberately tampered with.”

After the social media account posted the video, immediate strong dissatisfaction and condemnation followed. Several senior Republican senators accused the move of being racist and called for its removal. Senator Tim Scott, the only African American Republican in the Senate and chairman of the Senate Republican Midterm Election Campaign Committee, posted on social media: “This is the most racist thing I’ve seen in the White House. The President should delete it.” Senator Roger Wicker of Mississippi said the content was “completely unacceptable” and that the President should delete the post and apologize.

Democrats also strongly condemned it. House Democratic Leader Hakeem Jeffries called on all Republicans to immediately denounce Trump’s “disgusting paranoia” on social media. California Governor and Democrat Gavin Newsom condemned the posting as “despicable behavior.”

U.S. media quoted a statement from Derrick Johnson, president of the National Association for the Advancement of Colored People (NAACP), saying the video “blatantly contains racial discrimination, is disgusting, and extremely despicable.” Johnson added, “Voters are paying attention to this and will remember it when voting.”