Continue upward, US stocks have a perfect Q1 finish! [Learn Premium Weekly Review]

This week, the focus is on whether the U.S. PCE index for February, released on Friday, March 29th, will drop or show signs of bouncing back along with the CPI. Despite February's CPI and PPI exceeding expectations, Federal Reserve officials have not changed their expectation of three rate cuts this year, possibly limiting the PCE's market impact.

March marks the end of the quarter, and with no particularly positive news in the final week, overall market sentiment was low, especially with the seven major tech stocks facing antitrust investigations, pressuring their stock prices. However, under the dual main lines of Fed rate cut expectations and the AI boom, major U.S. stock indexes still secured a five-month winning streak. $SPDR S&P 500 ETF(SPY.US)$ up 3.27%, $Dow Jones Industrial Average(.DJI.US)$ up 2.08%, $Nasdaq Composite Index(.IXIC.US)$ up 1.79%.

The $S&P 500(BK91326.US)$ rose 10.39% in the first quarter, marking its best first-quarter performance since 2019. 📈

On Tuesday, Trump Media & Technology Group (TMTG) ,Now the stock ticker is $Trump Media & Technology(DJT.US)$ debuted on Nasdaq through a SPAC (Special Purpose Acquisition Company) merger, and in just two days, its market value soared to over $7 billion. Remarkably, this is for a company that reported less than $3.5 million in revenue for the first three quarters of the previous year and had losses more than ten times its revenue.

From a fundamental perspective, $Trump Media & Technology(DJT.US)$ losses continue to grow. Some academic experts believe that $Trump Media & Technology(DJT.US)$ is worth only about $2, significantly lower than its closing price of $66 on Wednesday. The stock's valuation is almost entirely disconnected from the underlying business, much like the meme stocks of $GameStop(GME.US)$ and $AMC Entertainment(AMC.US)$, which are valued more for their speculative appeal than their business fundamentals.

Nonetheless, the more detached the valuation becomes from the company’s financials, the more brazen speculators seem to get. While it's widely recognized that the bubble surrounding meme stocks will eventually burst, the process could last a while, leading many to join in, fueling a speculative frenzy akin to a game of hot potato. Investors must be aware of the risks involved.

On Monday, March 18, 2024, Tesla's stock saw its biggest single-day surge of the year, climbing 6.25% after the company revealed price hikes for its Model Y EVs in several European nations and the US. Since $Tesla(TSLA.US)$ suddenly announced a significant price reduction for its models in various markets at the beginning of last year, its profit margin continued to decline. This surge has boosted market attention: Tesla to bottom out? Follow this week's lesson to track the struggling “Magnificent Seven”, $Tesla(TSLA.US)$. 🎯

$Micron Technology(MU.US)$, regarded as a barometer for the semiconductor industry, stock surged by 14% after the earnings on February 20 and hit record highs in the following days. Finally, AI is making waves in the memory chip industry. 🔥

$Micron Technology(MU.US)$ experienced an industry winter in 2023, but current inventory and pricing data suggest that it may have entered a recovery period. Among its products, the HBM chip, which is considered "best suited for AI training and inference," is key to Micron's growth potential and is expected to generate hundreds of millions of dollars in revenue for the company by fiscal year 2024. 📈