To The Moon

💰 Last week, U.S. stocks have staged a strong rebound, and economic data this week may cause fluctuations.

💹 $Progressive(PGR)$/$Allstate(ALL)$/$Chubb(CB)$: The insurance sector has regained favor.

📣 Stay tuned, supercharge purchasing power through CashBoost!

Last week, F03 surged over 13%. Congratulations to our readers.

| Insurance stocks surge

In May 2025, the U.S. stock market welcomed the IPOs of $Aspen Insurance Holdings Ltd.(AHL)$ and $American Integrity Insurance Group, Inc.(AII)$ , drawing attention to the insurance sector.

After facing macroeconomic uncertainties and interest rate fluctuations, insurance companies with stable earnings and ample cash flow are once again appealing to capital markets.

With valuation recovery and increased industry concentration, the insurance sector may present more structural opportunities. Industry leaders $Progressive(PGR)$ and $Allstate(ALL)$ have seen three consecutive weeks of gains, while Berkshire Hathaway's holding, $Chubb(CB)$, has also performed well.

| Market recap

As trade tensions ease and Saudi Arabia makes significant AI procurement from the U.S., all three major U.S. indices rebounded last week, with $S&P 500(.SPX)$ gaining over 5% and $NASDAQ(.IXIC)$ rising over 7%.

$NASDAQ Golden Dragon China Index(HXC)$ climbed 4.6% for the week, $Zai Lab Ltd(ZLAB)$ increased by 5.8%, and $VNET Group(VNET)$ rose by 7.9%.

The sentiment of buying the expectation and selling the facts suggests a higher probability of index declines this week. A range of economic data is set to be released, raising concerns that it could disrupt the market as it will reveal the true impact of U.S. tariffs. Notably, PMI data for major economies will be released on Thursday, and the prospects for Federal Reserve interest rate cuts are also under scrutiny.

Megacaps - big rally

$NVIDIA(NVDA)$ rebounded by 16% last week, making it the biggest beneficiary of this rally. Trump's visit to the Middle East significantly boosted NVIDIA's stock. This surge stems not only from Saudi Arabia's direct chip purchases but also from market speculation that Trump may lift the U.S. “global purchase limit” policy on high-end AI chips.

MAGA - top priority

On Friday, after hours, Moody's downgrades United States credit rating, citing growth in government debt, dragged down major futures indices.

In the second 100 days of "Trump 2.0," the President's top priority remains to promptly address the significant blows to the U.S. economy, with the market hopeful for substantive benefits, rather than relying solely on social media to urge Powell.

Top Movers - drone, meds

Fueled by technological breakthroughs and defense collaborations, drones have garnered significant investment interest. $Vertical Aerospace(EVTL)$ has risen for eight consecutive trading days, up 56% this month. $Archer Aviation Inc.(ACHR)$ has also seen a rise for eight straight trading days, gaining nearly 60% this month.

Last Friday, among industry ETFs, the healthcare sector stood out, with $Direxion Daily Healthcare Bull 3X Shares(CURE)$ up 6%, $Direxion Daily Pharmaceutical & Medical Bull 3X Shares(PILL)$ up 5.8%, and $Direxion Daily S&P Biotech Bull 3x Shares(LABU)$ up 5.6%.

In Asia, $Food Empire(F03.SI)$ rose over 13% last week. Today, Xiaomi’s YU7 and its self-developed 3nm chip were recently unveiled, leading to a volatile climb for Hong Kong stock $XIAOMI-W(01810)$.

| Risk management

The U.S. auto insurance market is projected to reach $360.72 billion by 2024, growing at a compound annual growth rate of 4.70%, and expected to reach $453.83 billion by 2029. The top five insurers are estimated to hold a cumulative market share of 63.59% in 2024, up from 62.49% in 2023.

PGR

$Progressive(PGR)$ is an American insurance company currently ranked second in the U.S. auto insurance market, just behind the private company State Farm. Founded in 1937, the company provides insurance for passenger vehicles, motorcycles, recreational vehicles (RVs), trailers, boats, personal watercraft (PWCs), and commercial vehicles.

Holding onto the No. 2 spot, PGR reported over $60 billion in direct written premiums last year, with a market share of 16.73%. In the first quarter of 2025, revenue exceeded market expectations, and the company remains optimistic about the future, projecting an annual revenue growth of 8.1%, compared to the average growth rate of 5.1% for the U.S. insurance industry.

While the auto insurance sector is not characterized by high growth, PGR is a growth-oriented company in the industry, utilizing real-time driving data to price insurance policies, consistently remaining profitable and increasing its market share in the U.S.

ALL

Founded in 1931, $Allstate(ALL)$ is a leading provider of personal insurance in the U.S., covering various insurance products including auto, home, and life insurance. Allstate’s market share has remained relatively stable at 10.19%, while direct written premiums increased to $36.58 billion in 2024 from $32.85 billion in 2023.

CB

$Chubb(CB)$ is one of the largest publicly traded property and casualty insurance companies globally and one of the largest commercial insurers in the U.S., operating in 54 countries and regions.

Chubb is a significant player in the property insurance industry with a long history, maintaining steady performance while actively embracing innovation, particularly leading in cyber insurance and striving to advance technologies like large models. In 2024, the company secured holdings from Warren Buffett.

Recently, CB raised its annual dividend by 6.6%, continuing a tradition of increasing dividends for 32 consecutive years. Additionally, the board announced a new $5 billion share repurchase program.

Stay tuned. Comment, like and subscribe to @Tiger_Contra.

Open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with upcoming 0-commission, unlimited trading on SG, HK, and US stocks, as well as ETFs. Find out more here.

Other helpful links:

• 💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉

• How to open a CBA.

• How to link your CDP account.

• Other FAQs on CBA.

• Cash Boost Account Website.