Oil Surges, Nvidia Enters the PC Chip Race, Chinese Equities Slide

Market Overview

Investor sentiment was initially lifted by expectations that President Trump could help ease tensions in the Middle East, pushing both the S&P 500 and Nasdaq to fresh record highs. However, reports that Iran may move to block the Strait of Hormuz quickly reignited geopolitical concerns, sending WTI crude oil soaring more than 5% in a single session to nearly $92 per barrel.

Meanwhile, the AI sector delivered another wave of major developments. Nvidia expanded into the PC processor market, driving its shares more than 6% higher, while Anthropic reportedly confidentially filed for an IPO ahead of OpenAI. On the risk-off front, the U.S. dollar strengthened sharply, Bitcoin fell below $71,000, and Chinese equities came under broad pressure, with the ChiNext Index dropping 2.15%.

■ Geopolitical Tensions Fuel Oil Rally

Reports indicated that Iran has suspended communications with the United States and is considering a complete closure of the Strait of Hormuz. As a result, WTI crude surged more than 5% to around $92 per barrel, while Brent crude approached $95, marking its largest daily gain in nearly a month.

President Trump stated that the U.S. and Iran could potentially reach an agreement within a week, extending the ceasefire and reopening the strategic waterway. As a result, the future direction of oil prices remains highly dependent on diplomatic negotiations.

■ Nvidia Expands into the PC Chip Market

Nvidia unveiled its RTX Spark platform, directly challenging Intel and formally entering the PC processor market. Nvidia shares climbed more than 6%, while Arm Holdings surged nearly 16%. In contrast, Intel fell nearly 5% and Qualcomm declined close to 9%.

The announcement also boosted PC manufacturers, with Dell rising more than 10% and HP gaining 8.5%.

In addition, Nvidia introduced Cosmos 3, a fully open-source multimodal foundation model designed for physical AI applications. The company claims the model can reduce AI training cycles from months to just days.

■ Anthropic Leads the AI IPO Race

Anthropic reportedly submitted a confidential IPO filing and could go public as early as this fall, potentially beating OpenAI to the public markets. The company recently completed a funding round at a valuation of approximately $965 billion.

Meanwhile, SpaceX is reportedly targeting an IPO valuation of at least $1.8 trillion and plans to raise $75 billion, with its investor roadshow scheduled to begin on June 4.

Alphabet announced an $80 billion financing initiative, with Berkshire Hathaway participating through a $10 billion investment. OpenAI also officially launched its robotics division, signaling broader ambitions beyond generative AI.

■ Chinese Equities Under Pressure as New-Economy Stocks Diverge

Chinese equities broadly weakened, with the ChiNext Index falling 2.15%, the Shenzhen Component Index losing 1.51%, and the Shanghai Composite Index declining 0.27%. The offshore Chinese yuan also weakened beyond 6.77 against the U.S. dollar.

On the corporate front, Unitree Robotics completed its IPO approval process in just 73 days, reaching a valuation of at least RMB 42 billion and positioning itself as China's first publicly listed embodied AI company.

Competition among China's EV startups continued to intensify in May. Leapmotor delivered 81,600 vehicles, up 81% year-over-year, while NIO's deliveries rose 62.3% and Zeekr posted growth of 81.8%.

Market OutlookAI IPO Momentum and Technology Catalysts Take Center Stage

This week features an exceptionally dense lineup of AI and technology catalysts.

Anthropic's confidential IPO filing could pave the way for a public listing as early as this fall. SpaceX will begin its investor roadshow on June 4 and is expected to price its offering on June 11, targeting a valuation of at least $1.8 trillion.

At the same time, Nvidia's COMPUTEX Taipei conference (through June 4) and Microsoft's Build Developer Conference (June 2-3) are expected to generate significant momentum for both AI hardware and capital market themes. Whether this positive sentiment can be sustained will likely be the key market narrative this week.

Oil Prices and U.S.-Iran Negotiations Remain Critical

Reports of a potential closure of the Strait of Hormuz have pushed WTI crude higher by more than 5% in a single session, while Brent crude approaches the $95 level.

At the same time, President Trump has suggested that the United States and Iran may reach an agreement within a week, potentially extending the ceasefire and reopening the shipping route.

Markets are currently caught between two competing scenarios: escalating disruption versus diplomatic resolution. The timing of any reopening of the Strait of Hormuz and the details of a potential agreement will be key determinants of oil price direction, with volatility expected to remain elevated.