Last night, Chinese assets surged

On Friday local time, U.S. stocks continued their strong momentum, with the Dow Jones Industrial Average surpassing 50,000 points for the first time. At the close, the Dow rose 2.47%, to 50,115.67; the Nasdaq gained 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, then double again, then double 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%. 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 sectors saw significant gains. The world’s largest silver ETF, iShares Silver Trust, rose over 5%, Coeur Mining increased over 12%, and Pan American Silver and U.S. Gold rose over 5%.

Senior investment strategist at DBS Bank, Deng Zhijian, analyzed that currently, short-term profit-takers and long-term allocators coexist in the market. Even if professional investors take some profits, they usually do not fully sell out. Once gold prices fall to reasonable levels, medium- and long-term buyers will enter.

Deng Zhijian believes that since Q4 last year, global central banks have continued to increase holdings, and professional investors have maintained hedging demand through ETFs and other means. This is based on long-term risk-avoidance logic— including geopolitical risks, U.S. debt risks, and concerns over the sustainability of U.S. stocks and government finances. These factors have not changed, so there will still be buying interest after gold prices decline.

Dow Jones First Surpasses 50,000 Points, Chinese Assets Surge

On Friday local time, all three major U.S. stock indices rose, with the Dow Jones surpassing 50,000 points for the first time. By the close, the Dow increased 1,206.95 points, or 2.47%, to 50,115.67; the Nasdaq rose 490.63 points, or 2.18%, to 23,031.21; and the S&P 500 gained 133.90 points, or 1.97%, to 6,932.30.

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

Cryptocurrency and optical communication stocks led gains, with Strategy (+26%), MARA Holdings (+22%), and Bit Digital (+19%) among the top. Canaan Creative, The9, Coinbase, Circle, and Ebang International also posted double-digit gains. Lumen Technologies rose nearly 30%, Astera Labs nearly 19%, Credo Technology over 13%, with Lumentum and Coherent also climbing.

Pharmaceutical stocks mostly rose, with Novo Nordisk up nearly 10% and Eli Lilly over 3%. In news, the U.S. Food and Drug Administration (FDA) announced actions to combat 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 heavily 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.

Concept stocks in quantum computing, drones, nuclear power, and rare earths also performed actively. Quantum Computing and D-Wave Quantum surged over 20%, Quanten and Rigetti Computing rose more than 18%. Draganfly gained over 15%, Ondas increased more than 14%. NuScale rose over 18%, and Oklo, in which Sam Altman holds shares, gained over 14%. MP Materials and Energy Fuels rose over 8%, and USA Rare Earth increased over 6%.

Popular Chinese concept stocks all rose, with the Nasdaq China Golden Dragon Index up 3.71%. NIO gained over 7%, Li Auto over 6%, Baidu over 5%, XPeng Motors nearly 5%, Bilibili over 4%, Alibaba and Pinduoduo over 3%, JD.com and iQiyi over 2%. FTSE China A50 Index futures rose 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 cited that many top global tech companies, including Amazon, Google, Meta Platforms, and Microsoft, also faced investor concerns after their large capital expenditures were reported.

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 adoption is also very 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, then double again, then double 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 futures, 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 sectors saw significant gains. The world’s largest silver ETF, iShares Silver Trust, rose over 5%, Coeur Mining increased over 12%, and Pan American Silver and U.S. Gold rose over 5%.

Daiwa Securities senior investment strategist Deng Zhijian analyzed that currently, short-term profit-takers and long-term allocators coexist in the market. Even if professional investors take some profits, they usually do not fully sell out. Once gold prices return to reasonable levels, medium- and long-term buyers will re-enter.

He believes that since Q4 last year, global central banks have continued to increase holdings, and professional investors have maintained hedging demand through ETFs and other means. This is based on long-term risk-avoidance logic—including geopolitical risks, U.S. debt risks, and concerns over the sustainability of U.S. stocks and government finances. These factors have not changed, so gold will still attract buying after price declines.

Trump’s Social Media Account Deleted Video Related to Obama

Suspected Racial Discrimination

According to Xinhua News Agency, on the night of the 5th, former President Trump’s social media account posted a video clip involving former President Obama and his wife Michelle. The clip 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. It features two primates with faces edited to resemble Obama and Michelle. A senior White House official told media on the 6th that the post was “mistakenly posted” by a White House employee and has been deleted.

Earlier, White House Press Secretary Karine Jean-Pierre stated that the post contained no offense. In a media statement, she said the clip was taken from an online video depicting Trump as a jungle king, while Democrats are compared to characters from The Lion King. She urged to stop this false outrage and focus on reporting events 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 video was posted, many expressed strong dissatisfaction and condemnation. Several senior Republican senators accused it of being racist and called for its removal. Senate Republican Minority Leader Tim Scott posted on social media: “This is the most racist thing I’ve seen in the White House. The President should delete it.” Mississippi Republican Senator Roger Wicker 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 obsession.” California Governor Gavin Newsom condemned the posting as “despicable behavior.”

U.S. media quoted Daryl Johnson, president of the National Association for the Advancement of Colored People (NAACP), saying the clip “blatantly contains racial discrimination, is disgusting, and extremely despicable.” Johnson stated, “Voters are paying attention to this and will remember it at the polls.”