Core Viewpoint - The article discusses the recent ADP employment report indicating a significant drop in private sector job growth, raising concerns about the U.S. employment situation, while contrasting it with strong job vacancy data from JOLTs, leading to a disconnect in the labor market dynamics [1][2][3]. Employment Data Analysis - The ADP report revealed that only 37,000 jobs were added in May, far below the expected 130,000, marking the lowest increase since March 2023 [1]. - In contrast, JOLTs data showed 7.391 million job openings, exceeding the forecast of 7.1 million, indicating a paradox where many job postings exist but few new hires are made [2]. Market Reaction - Despite the concerning employment data, the market experienced a slight increase, with the index rising by 7.9 points, and a near balance in the number of advancing and declining stocks [4]. - However, a closer look at sector performance revealed a decline in previously strong sectors such as jewelry, beauty care, food and beverage, pharmaceuticals, and banking, suggesting a shift in market sentiment [5]. Sector Focus - The article emphasizes a shift in investment focus towards the technology sector, suggesting that only technology stocks can generate real profits in the current market environment [7]. - The commentary on the technology sector is reinforced by a report on DeepSeek's R2 model, which is seen as a significant advancement in AI technology [8]. DeepSeek R2 Model Insights - The R2 model boasts 1.2 trillion parameters, nearly double that of its predecessor R1, and incorporates a mixed expert model (MoE) for enhanced efficiency [10][11]. - The cost of using R2 is significantly lower, with output costs at $0.27 per million tokens and input costs at $0.07, making advanced AI technology more accessible to businesses [12]. - The R2 model also marks a shift away from reliance on NVIDIA hardware, utilizing Huawei's Ascend 910B chips instead, indicating progress in domestic AI chip development [13][14]. Market Sentiment and Future Outlook - The article reflects on the pressure faced by analysts amid market volatility, emphasizing the importance of patience and a long-term investment strategy in the tech sector [19]. - The closing remarks suggest that while the market may experience fluctuations, there is potential for recovery and profitability in the technology sector, encouraging investors to remain committed [19].