Morning News

# Market Overview

Source: Wall Street Insights

U.S. economic data fueled expectations of interest rate cuts, with the three major U.S. stock indices all hitting record highs. The Dow Jones Industrial Average closed up more than 1%, marking its largest gain in nearly three weeks, while the S&P 500 and Nasdaq Composite extended their winning streaks to four sessions. Tesla rose 6%, while Oracle reversed course and fell more than 6%. The semiconductor index posted a sixth consecutive day of gains, with Micron Technology up over 7%, but Broadcom dropped nearly 3% and NVIDIA edged down slightly. Warner Bros. Discovery surged nearly 29% amid reports that Paramount Global and Skydance Media plan to acquire it. Figure jumped 24% on its first day of trading, and another crypto-related stock, Circle, rose nearly 18%.

Chinese concept stocks staged a strong rebound, with the China Concept Stock Index climbing nearly 3%. Alibaba Group rose 8%, and NIO advanced more than 6%.

Following the release of U.S. Consumer Price Index (CPI) data, U.S. Treasury prices jumped. The yield on the 10-year U.S. Treasury note fell below 4.0% intraday for the first time in five months, the U.S. Dollar Index turned lower rapidly, and spot gold reversed to rise in the short term.

European Central Bank (ECB) President's hawkish remarks pushed the euro and the yield on the 10-year German Bund to refresh their daily highs.

The International Energy Agency (IEA) raised its global oil supply forecast, putting an end to crude oil's three-day winning streak. U.S. crude oil fell more than 2% intraday.

During the Asian trading session, China's ChiNext Index soared more than 5%, with AI hardware stocks leading a surge of limit-up moves. Stocks related to "Yi Zhongtian" (a well-known Chinese scholar, typically referring to concept stocks associated with his related cultural or educational businesses) rose sharply. Hong Kong's Hang Seng Index opened lower but moved higher, holding above the 26,000-point mark, and the sharp decline in innovative drug stocks narrowed significantly.

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# Key News

- State Council of China: Launch 10 comprehensive reform pilots for market-oriented allocation of factors, including the Beijing Municipal Administrative副中心 (Beijing Sub-center), key cities in southern Jiangsu, Hangzhou-Ningbo-Wenzhou, and Hefei metropolitan areas.

- Ministry of Commerce of China: Closely monitor Mexico's动向 of tariff hikes and will take necessary measures based on actual circumstances.

- U.S. inflation was largely in line with expectations. The core CPI in August rose 3.1% year-on-year and 0.3% month-on-month, consistent with Wall Street expectations and the figures in July. The number of initial jobless claims in the U.S. last week increased instead of decreasing to 263,000, a new high in nearly four years.

- The European Central Bank kept interest rates unchanged for the second consecutive meeting, stating that inflationary pressures have been brought under control. ECB President Christine Lagarde struck a hawkish tone: "The process of inflation reduction in the euro area has now ended, and trade uncertainties have significantly diminished."

- Alibaba open-sourced the Qwen3-Next model, focusing on ultra-high cost-effectiveness in training and reasoning. With a total of 80 billion parameters, only 3 billion are activated.

- Tesla's new growth driver: The earliest delivery of Model Y L in China will be in November, and its stock price rose 6%.

- Microsoft and OpenAI signed an interim agreement to advance their next-phase cooperation. OpenAI stated that its non-profit parent company will hold shares in the for-profit entity PBC (OpenAI Global, LLC) worth over 100 billion U.S. dollars.

- Crypto sector attracts more capital: Figure surged 24% in its U.S. stock market debut, with a market value exceeding 6 billion U.S. dollars.

- Even after adjusting for inflation, gold has exceeded its frenzied high of 45 years ago. Ray Dalio: Gold is a shield against U.S. debt risks.

# Market Closing Quotes

- U.S. and European Stock Markets: The S&P 500 rose 0.85% to close at 6,587.47 points. The Dow Jones Industrial Average climbed 1.36% to 46,108.00 points. The Nasdaq Composite advanced 0.72% to 22,043.075 points. Europe's STOXX 600 Index gained 0.55% to end at 555.33 points.

- China A-Shares: The Shanghai Composite Index rose 1.65% to 3,875.31 points; the Shenzhen Component Index jumped 3.36% to 12,979.89 points; the ChiNext Index surged 5.15% to 3,053.75 points.

- Bond Market: By the end of the bond trading session, the yield on the 10-year U.S. Treasury note stood at approximately 4.02%, down nearly 3 basis points intraday; the yield on the 2-year U.S. Treasury note was around 3.54%, unchanged from Wednesday.

- Commodities: WTI crude oil futures for October fell 2.04% to settle at 62.37 U.S. dollars per barrel. Brent crude oil futures for November dropped 1.66% to 66.37 U.S. dollars per barrel. COMEX gold futures for December declined 0.23% to 3,673.6 U.S. dollars per ounce. London Aluminum rose 1.83% to 2,674 U.S. dollars per ton.

# Details of Key News

## Global Highlights

### State Council of China: Launch 10 Comprehensive Reform Pilots for Market-Oriented Allocation of Factors, Covering Beijing Sub-center, Key Cities in Southern Jiangsu, Hangzhou-Ningbo-Wenzhou, Hefei Metropolitan Area, etc.

According to Xinhua News Agency, the State Council of China recently issued the "Approval on the Implementation Plan for Comprehensive Reform Pilots of Market-Oriented Allocation of Factors in Some Regions Across the Country". It agreed to launch 10 comprehensive reform pilots for market-oriented allocation of factors, including Beijing Sub-center, key cities in southern Jiangsu, Hangzhou-Ningbo-Wenzhou, and Hefei metropolitan area, within 2 years from now. In principle, it approved the relevant implementation plans and released the full text to the public.

The approval clearly states that the relevant provincial people's governments must earnestly assume the main responsibility, strengthen organizational implementation, and advance the reform pilots focusing on key areas and links around the goals of deepening the coordinated allocation of factors, improving the efficiency of factor allocation, exploring new factor allocation methods, optimizing factor guarantees for new formats and fields, and promoting the high-quality development of the service industry. They should adhere to a problem-oriented approach, proceed from reality, implement classified policies to advance the reform, clarify key work points, task division, and forms of achievements, make overall plans for support and guarantees, carry out bold innovations in light of local actual conditions and the development needs of new formats and fields, conduct differentiated reform explorations, promptly track and evaluate the effects of the pilots, and summarize and promote experience and practices.

### Ministry of Commerce of China: Closely Monitor Mexico's Tariff Hike Moves, China Will Take Necessary Measures Based on Actual Situation

According to CCTV News, some analyses believe that Mexico's tariff increase measures are in line with the long-term attempt of the United States to contain China. They can serve Mexico's future trade negotiations with its North American partners and are in line with the "Mexico Plan" strategy to strengthen domestic production and consumption.

### U.S. Inflation Largely in Line with Expectations; August CPI Up 2.9% YoY and 0.4% MoM

In August, the core CPI rose by 3.1% year-on-year (YoY) and 0.3% month-on-month (MoM), with growth rates consistent with Wall Street expectations and the levels in July. The main drivers of the overall price increase came from automobile and service prices. After the data was released, traders fully priced in the scenario where the Federal Reserve (Fed) would cut interest rates three times before the end of the year.

### U.S. Initial Jobless Claims Rose Instead of Falling to 263,000 Last Week, Jumping to a Near Four-Year High

In the week ending September 6, the number of initial jobless claims increased by 27,000 compared with the previous month. The median forecast of economists was a slight decrease to 235,000 from the previous week. The number of continuing jobless claims, which measures the total number of people continuously receiving unemployment benefits, remained unchanged at 1.94 million in the week ending August 30.

### ECB Kept Interest Rates Unchanged for the Second Consecutive Meeting, Stating Inflation Pressures Are Under Control; President Lagarde Stuck to a Hawkish Tone: "The Inflation Reduction Process in the Euro Area Has Now Ended, and Trade Uncertainties Have Significantly Diminished"

The ECB lowered its inflation forecast for 2027, with the overall inflation rate dropping to 1.9% and the core inflation rate falling to 1.8%, which strengthened market speculation about an interest rate cut by the end of the year. The market has turned slightly dovish before the end of the year, and currently expects an interest rate cut of about 7 basis points.

Lagarde said, "Inflation is at the level we want"; the risks to economic growth have become balanced; the recently reached trade agreements have reduced uncertainties, but if trade relations deteriorate again, it may further suppress exports and drag down investment and consumption. She emphasized that due to the volatile trade environment, the price outlook is still "more uncertain than usual". She reaffirmed that the ECB will respond on a meeting-by-meeting basis. Traders responded to Lagarde's remarks by reducing their bets on further interest rate cuts.

### Alibaba Open-Sourced the Qwen3-Next Model, Focusing on Ultra-High Cost-Effectiveness in Training and Reasoning; with a Total of 8 Billion Parameters, Only 300 Million Are Activated

Alibaba released the next-generation basic model architecture Qwen3-Next and open-sourced the Qwen3-Next-80B-A3B series models based on this architecture. The new model structure aims to improve the training and reasoning efficiency of the model under long contexts and large-scale total parameters.

### Oracle's Revenue "Doubled" in Three Years, Becoming the "New NVIDIA"

For Oracle, whether it can convert the remaining performance obligations into revenue depends on the company's ability to build a network to fulfill these contracts. This requires electricity, licenses, and key equipment in high demand and continuous shortage, such as NVIDIA GPUs.

### Doubts About Oracle's "Explosive Big Orders": Relying Entirely on OpenAI, Revenue Is All Long-Term, Can It Make Money, and Does It Have the Funds to Build the Network?

The highlight of Oracle's first fiscal quarter was that the Remaining Performance Obligations (RPO) surged to 455 billion U.S. dollars, with the core driver being a 300 billion U.S. dollar computing power contract signed with OpenAI for the next five years. However, JPMorgan Chase believes that most of these orders are long-term performance obligations, and only about 10% are short-term RPO (i.e., revenue to be recognized within the next year), which means that most of the revenue will not be recognized until the distant future. The company is betting on growth driven by AI, but it faces challenges of declining profit margins and capital pressure.

### Tesla's New Growth Driver: The Earliest Delivery of Model Y L in China Will Be in November, and Its Stock Price Rose 6%

Tesla's extended-wheelbase six-seat all-electric SUV model, Model Y L, launched in China, has been sold out in the Chinese market in October. New orders show that the earliest expected delivery time is November 2025. Analysts said that this new car has quickly become one of Tesla's best-selling models in key overseas markets, and its strong momentum is of great significance to Tesla.

### Microsoft and OpenAI Signed an Interim Agreement to Advance Next-Phase Cooperation; OpenAI Stated That Its Non-Profit Parent Company Will Hold Shares in the For-Profit Entity PBC Worth Over 100 Billion U.S. Dollars

The two parties did not disclose the details of the agreement, stating that they are working to finalize the contract terms of the final agreement. This interim agreement is regarded as a step to allow OpenAI to carry out its restructuring plan. OpenAI said that the non-profit parent company holding shares in the Public Benefit Corporation (PBC) will become one of the world's most resource-rich charitable organizations. Microsoft's stock rose by more than 2% in after-hours trading.

### Crypto Sector Attracts More Capital: Figure Surged 24% in Its U.S. Stock Market Debut, with a Market Value Exceeding 6 Billion U.S. Dollars

Blockchain lending platform Figure priced its initial public offering (IPO) at 25 U.S. dollars per share, which is at least 13% higher than the upwardly revised guidance range. The IPO raised nearly 788 million U.S. dollars. On the first day of listing, the stock price rose by more than 50% at one point, but gave back half of the gains by the close. The company's CEO said that Figure is an example of a company that adds real value through blockchain in the real world, and 10 of the top 20 mortgage lenders use Figure's technology to issue loans.

### Even After Inflation Adjustment, Gold Has Surpassed Its Frenzy High of 45 Years Ago

In January 1980, when the gold price rose to 850 U.S. dollars, the United States was experiencing a currency collapse, soaring inflation, and an economic recession. At that time, the gold price doubled in just two months. Taking into account decades of consumer price increases, 850 U.S. dollars in 1980 is equivalent to approximately 3,590 U.S. dollars today. Since the beginning of this year, gold has risen by nearly 40%, against the backdrop of U.S. President Trump's tax cuts, expansion of the global trade war, and attempts to influence the Federal Reserve in an unprecedented way. The latest gold price breakthrough comes as financial markets bet that the Federal Reserve will start cutting interest rates.

### Ray Dalio: Gold Is a Shield Against U.S. Debt Risks

Ray Dalio compared the United States' growing debt-servicing expenditures to plaque clogging blood vessels, pointing out that this will "crowd out other expenditures" and may lead to a "heart attack". He suggested that in a well-diversified investment portfolio, 10% to 15% should be allocated to gold.

## Domestic Companies

### Computing Power Stocks Plummeted, Net Value Fell Slightly; Some Star Technology Funds Suspected of Adjusting Positions, Including the Outstanding永赢科技智选 (Yongying Technology Smart Selection) This Year!

Against the background of the recent sharp decline in computing power stocks, the net value of some star funds with heavy positions in technology stocks fell significantly less than expected, suspected of having made large-scale position adjustments. The leading computing power stocks that Yongying Technology Smart Selection, Soochow Mobile Internet and other funds held heavily at the end of the second quarter fell by more than 11%, but the net value of the funds only retracted by 5-6%. At the same time, the net value volatility of some funds that originally did not hold heavy positions in technology stocks increased significantly. Industry analysts believe that this is a cooling behavior of the market to digest the valuation bubble, and fund managers have begun to pay attention to opportunities in the AI application segment.

### The Largest M&A in China's Data Center Industry Was Born

Dongyangguang and others will acquire 100% equity of Qinhuai Data China for 28 billion yuan. Qinhuai Data China is a neutral third-party super-large-scale computing power infrastructure solution operator. From January to May 2025, its operating income was 2.608 billion yuan and net profit was 745 million yuan. As of the close of trading on September 10, the stock price of Dongyangguang was 24.05 yuan per share, with a latest market value of 72.4 billion yuan.

### Contrary to Goldman Sachs, Morgan Stanley: It's Time to "Take Profits" on Optical Modules

Morgan Stanley said that the fundamental positives of the optical module sector have been widely known and fully reflected in stock prices. From the perspective of valuation changes, the valuations of New H3C Technologies and Tianfu Communication have exceeded the historical +1 standard deviation level, which means that the fundamental positives have been at least partially digested. In contrast, the current valuation of Zhongji Innolight is below the +1 standard deviation level.

### How to Understand Tencent's "AI Monetization Potential"?

JPMorgan Chase predicts that as WeChat deeply integrates transaction functions with AI agents and consumer insights, Tencent is expected to achieve AI-related incremental revenue of up to 426 billion yuan by 2030, bringing 10%-56% upside potential for profits. The core logic is that AI will greatly improve the traffic conversion efficiency within the WeChat ecosystem, significantly enhancing Tencent's bargaining power in the e-commerce and local life service sectors, thereby occupying a larger share of merchants' lead generation budgets.

### Morgan Stanley: More Optimistic About Alibaba in E-Commerce; "Gaode Street-Sweeping Ranking" Will Reshape the Competitive Pattern of Local Life

Morgan Stanley believes that the "Gaode Street-Sweeping Ranking" is a clear signal that Alibaba is refocusing on the store-based business. It is expected that more related services and products will be launched in the future, and Alibaba is expected to gain a larger share in the local life service market. Alibaba's move directly targets Meituan Dianping, which will put pressure on Meituan's profits in the short term. It is expected that the long-term profitability of the latter's store-based business will drop from 2.5% to 2%.

## Overseas Macroeconomics

### "Animal Spirits" Are Dominating Global Stock Markets, Hitting New Highs for Four Consecutive Days!

The MSCI All-Country World Index, which tracks more than 2,500 stocks globally, has hit a new record for four consecutive trading days. The S&P 500 Index closed at a record high for the second consecutive day on Wednesday. Japan's Nikkei 225 Index, South Korea's KOSPI Index, and Singapore's Straits Times Index have all hit historical highs this week. Analysts believe that "animal spirits" are rising in the market, but at the same time, they remind that the lagging impact of U.S. tariff policies may bring uncertainty to market sentiment in the coming months.

### Head of Goldman Sachs Hedge Fund: AI Drives the Market Again and Again, Controversies Are Intensifying, but Don't Fight the Bull Market, and Don't Chase It Either

Tony Pasquariello, head of Goldman Sachs Hedge Fund, pointed out in a research report that the current AI-driven U.S. stock technology giants and loose monetary and fiscal policies are the two pillars supporting the bull market. However, record-high valuations and the weakening of short-term capital inflows indicate that the market needs "consolidation" in the short term. In the short term, consideration can be given to using low-cost options for hedging to prepare for the next wave of upward market trends that may occur in the fourth quarter.

### U.S. SEC Chairman: On-Chain Capital Markets and AI Agent Finance Are About to Emerge, and We Will Encourage Rather Than Suppress Them

The U.S. SEC Chairman said that digital asset regulation will move away from the previous tough law enforcement and turn to supporting financial innovation. As part of the "crypto project", the SEC will clarify that most tokens are not securities, support on-chain financing and the development of "super app" trading platforms, and embrace the era of "agent finance" brought about by the integration of AI and blockchain.

### To Reduce Tariffs, Switzerland Reportedly Proposes to Establish a Gold Refinery in the U.S.

It is reported that Switzerland has proposed a comprehensive plan, whose core measures include suggesting its domestic gold industry to establish a refinery in the United States to resolve trade disputes and tariffs with the United States. In addition, Switzerland has also proposed similar plans in the fields of pharmaceuticals, military procurement, and energy.

### Bank of Japan Is Planning to Launch ETF Selling; the Selling Plan Is Gradually Taking Shape, and the Timing Is the Biggest Suspense

A deputy governor of the Bank of Japan recently stated that the central bank will consider how to handle its ETF and real estate investment trust assets, releasing one of the strongest signals of the reduction plan. Analysts believe that the bank tends to adopt a long-term, phased market selling plan. It is unlikely to make a decision on selling at the policy meeting next week, but Kazuo Ueda may comment on this at the press conference after the meeting.

### The Stock Index Just Hit a New High; South Korean President Lee Jae-myung Said "South Korean Stocks Are Still Severely Undervalued", but "Capital Gains Tax" Is Up to the National Assembly to Decide

Lee Jae-myung said on Thursday that there is no need to lower the threshold for personal stock-holding capital gains tax, and the proposal will be left to the National Assembly to decide. This statement disappointed the market, as investors generally expected Lee Jae-myung to directly announce the cancellation of the plan.

### Brazil's Supreme Court Found Former President Bolsonaro Guilty of Multiple Charges by a Majority Vote

Bolsonaro's multiple charges include participating in a criminal organization and attempting a coup.

## Overseas Companies

### Hollywood Earthquake: Paramount and Skydance Plan to Bid for Warner Bros. Discovery; Warner Bros. Stock Soared by Nearly 29%

It is reported that Paramount has hired an investment bank to prepare for the acquisition offer, but has not yet launched formal negotiations with Warner Bros. This will be a full acquisition mainly in the form of cash, and no specific terms have been provided yet.

### Apple Begins to Break into the 2,000 U.S. Dollar Price Range; the 2TB Memory Version of iPhone Is Priced at 1,999 U.S. Dollars

Mark Gurman, a Bloomberg technology reporter who has long focused on Apple product developments, believes that the pricing of 1,999 U.S. dollars is a "market test balloon" launched by Apple, and this price also indicates that it believes that a considerable number of customer groups are willing to pay for it. With the launch of future products such as foldable iPhones and iPhone 20, Apple is preparing to establish a higher price standard.

### An "Unprecedented" Auction Attracts the Attention of Everyone in the Crypto Sector, and May Subvert the Stablecoin Pattern

Decentralized exchange Hyperliquid publicly auctioned the issuance rights of its native stablecoin USDH, attracting 10 major institutions including Ethena Labs, Paxos, Frax Finance, and Sky Ecosystem to compete fiercely for the annual revenue stream of up to 220 million U.S. dollars. The far-reaching impact of this bidding goes beyond immediate revenue and involves fundamental issues of stablecoin governance and control. Analysts regard this as a touchstone for traditional financial institutions and native DeFi teams to compete for the dominance of the next-generation stablecoin infrastructure. The competition will be officially decided through on-chain voting on Sunday.

### Musk's "Starlink" Is "Taking Over" the Internet in Emerging Markets

JPMorgan Chase said that with the technological iteration of low-orbit satellite Internet providers such as Starlink, their network capacity is expected to increase by 100 times in the future, and reusable rocket technology may drive the marginal bandwidth cost down by up to 90%. The reduction in costs and innovation in services are making satellite Internet change from an expensive supplementary option to an increasingly competitive mainstream choice.

# Beyond Weight Loss, Heart Disease, and Liver Disease: Can Semaglutide Also "Combat Dementia"? Novo Nordisk Has "High Hopes"

This autumn, Novo Nordisk will release the results of clinical trials for its GLP-1 drug, semaglutide, in the treatment of Alzheimer's disease. Analysts at UBS estimate that the probability of success is only one in ten. However, if successful, the company could gain an additional $15 billion in annual sales revenue. For Novo Nordisk, which is under pressure from slowing growth, the success or failure of this investment is crucial.

## Industry/Concepts

### 1. Solid-State Drives (SSDs)

Analysts believe that as a key innovation in AI computing infrastructure, the SSD direct-connection-to-GPU technology is poised to capture dual dividends from technological advancement and explosive demand, leading to promising market prospects. In 2024, China's intelligent computing scale reached 725.3 EFLOPS, with a year-on-year growth rate of 74.1%. It is expected that the scale of intelligent computing in China will exceed 1037.3 EFLOPS in 2025. By improving data throughput, SSD direct-connection technology has become a critical path to meet computing demand. Leveraging its advantages in computing efficiency, cost control, and scenario adaptability, SSD direct-connection-to-GPU technology will serve as a core driver for the growth of the AI computing market. Over the next five years, the global AI storage market is projected to surpass $100 billion in scale. Backed by policy support, technological iterations, and advantages in application scenarios, China is expected to account for over 30% of the global market share.

### 2. Mobile Payment

Research institutions argue that Alipay's "Tap-to-Pay" feature has redefined the payment experience through technological innovation and scenario expansion. Its convenience, security, and ecosystem expansion capabilities have made it another milestone in the mobile payment field. As the "Tap-to-Pay" model gains popularity, Alipay's "Tap-to-Pay" has formed a complete ecological chain covering software development, hardware manufacturing, mobile phone manufacturers, service providers, brand merchants, and industry scenarios. Behind Alipay's "Tap-to-Pay" becoming an innovative gateway lies the support of independent and controllable Chinese manufacturing. This new gateway has also driven the continuous iteration of domestic consumer and daily-life scenarios. These three elements—technological innovation, manufacturing support, and scenario iteration—mutually reinforce each other. They embody the connotation of Alipay creating a new gateway and have fostered stronger endogenous momentum for innovative development.

### 3. Data Elements

At a regular policy briefing held by the State Council, information was released regarding the implementation of comprehensive reform pilots for the market-oriented allocation of factors in some regions across the country. The National Data Administration will support pilot regions in enhancing the sharing, opening-up, and authorized operation of public data, developing a number of influential projects, and establishing replicable and promotable models for the development and utilization of public data resources. Meanwhile, the National Data Administration will also assist pilot regions in exploring new models for data circulation and transactions, establishing data security governance systems, and promoting positive interaction between high-quality development and high-level security.

Research institutions point out that currently, China's data infrastructure is in the initial stage of construction. Around business scenarios related to data circulation and utilization, various localities, industries, and fields have explored and developed a variety of targeted technical solutions and approaches, which are constantly evolving and advancing. With breakthroughs in domestic computing power and the democratization of algorithms, China's current artificial intelligence strategy is expected to shift toward fully leveraging the country's data advantages, building high-quality datasets, and fully activating applications for B-end (business-to-business) and G-end (government) users—particularly in scenarios such as manufacturing, commercial circulation, and government services. Additionally, as regulations and systems related to government data circulation are gradually improved and local governments step up efforts to advance pilot projects for the marketization of data elements, the development of the data element industry is expected to accelerate.

## Preview of Key News Today

- Preliminary reading of the University of Michigan Consumer Sentiment Index and Inflation Expectations for the U.S. in September.

- CPI data for Germany and France in August.

- GDP data for the UK in July.

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