Morning News

**Source**: Wall Street Insights

**Market Overview**

Nvidia reignited the AI enthusiasm, boosting the three major US stock indexes to all - time highs for the third consecutive day. Nvidia closed nearly 4% higher, Oracle rose more than 6%, Apple rose more than 4%, and Metsera, a weight - loss drug developer to be acquired by Pfizer, rose nearly 61%; the China - stock index closed nearly 1% lower, suffering three consecutive declines. NIO fell more than 6%, JD.com fell more than 3%, while Baidu rose nearly 1%.

US Treasury bonds declined for four consecutive days, and the yield on the 10 - year US Treasury bond reached a two - week high again. The US dollar index fell on the first day after the Federal Reserve cut interest rates, turning down after hitting a more than one - week high intraday; Bitcoin once fell more than $3,000, breaking through the $113,000 mark, and Ethereum once fell 9%.

Gold reached an all - time high, with gold futures rising for two consecutive days and rising more than 2% intraday. Crude oil fell for four consecutive days to a more than one - week low, erasing most of the losses after falling more than 1% intraday.

During the Asian session, the ChiNext Index bottomed out and rose 0.5%, the Sci - Tech 50 Index rose more than 3%, chips and Apple - related stocks all saw a surge. The Hang Seng Tech Index fell 0.6%, Baidu rose more than 3% against the trend, and government bonds rose.

**Important News**

He Lifeng: China and the United States should be guided by the important consensus reached in the phone call between the two heads of state to promote the stable, healthy and sustainable development of bilateral economic and trade relations.

Pan Gongsheng: The press conference on Monday does not involve short - term policy adjustments. The content of the next - step financial reform will be further communicated after the unified deployment of the Central Committee; the debt risk level of local government financing platforms has been greatly reduced during the "14th Five - Year Plan" period; monetary policy adheres to the principle of taking our own situation as the main consideration, taking into account both domestic and foreign factors, and is currently supportive and moderately loose.

The China Securities Regulatory Commission: Deepen the reform of the Sci - Tech Innovation Board, ChiNext, and the Beijing Stock Exchange, improve the issuance and listing system mechanisms, and cultivate and strengthen patient capital.

Three types of naval carrier - based aircraft successfully took off and landed on the Fujian Ship.

The US Treasury Secretary said that all stabilization options are being considered to support Argentina, and Argentina's stock, exchange rate and bonds soared. The capital outflows from Argentina accelerated, and Milei admitted that the market is in a panic state.

Federal Reserve Governor Milan: The estimated value of the neutral interest rate is about 2.5%, and interest rates should be cut by another 125 basis points this year; three Federal Reserve officials poured cold water on interest rate cuts, saying that the space for further action is limited and there is no reason to cut rates again this year.

Many countries, including France, have recognized the State of Palestine, and only the United States among the five permanent members of the United Nations Security Council has not recognized it.

Nvidia made its largest - ever investment commitment, planning to invest $100 billion to help OpenAI build a 10 - gigawatt data center. Nvidia's stock price turned up intraday and closed nearly 4% higher, reaching a new high.

Oracle changed its leadership: Two CEOs took office, and the current Catz will become vice - chairman.

Berkshire Hathaway continued to increase its holdings of Japan's "Big Five Trading Houses", holding more than 10% of Mitsui & Co., and Buffett became a major shareholder.

**Market Closing Report**

European and American stock markets: The S&P 500 Index rose 0.44% to 6,693.75. The Dow Jones Industrial Average rose 0.14% to 46,381.54. The Nasdaq Composite Index rose 0.70% to 22,788.976. The European STOXX 600 Index fell 0.13% to 553.40.

A - shares: The Shanghai Composite Index rose 0.22% to 3,828.58; the Shenzhen Component Index rose 0.67% to 13,157.97; the ChiNext Index rose 0.55% to 3,107.89.

Bond market: By the end of the bond market, the yield on the 10 - year US benchmark Treasury bond was about 4.15%, rising about 2 basis points during the day; the yield on the 2 - year US Treasury bond was about 3.60%, rising about 3 basis points during the day.

Commodities: WTI October crude oil futures closed 0.06% lower at $62.64 per barrel. Brent November crude oil futures closed 0.16% lower at $66.57 per barrel. COMEX December gold futures closed 1.87% higher at $3,775.1 per ounce.

# Detailed News Highlights

## Global Heavyweight News

He Lifeng: China and the United States should be guided by the important consensus reached in the phone calls between the two heads of state to promote the stable, healthy and sustainable development of bilateral economic and trade relations. According to Xinhua News Agency, He Lifeng stated that China and the United States have broad space for cooperation and extensive common interests. He hopes that the US side will conduct candid communication, enhance mutual trust and dispel doubts with China in accordance with the principles of mutual respect, peaceful coexistence and win - win cooperation, so as to promote the stable, healthy and sustainable development of China - US economic and trade relations. He also hopes that US lawmakers will actively build communication channels, strengthen dialogue and exchanges, and play a positive role in the common development of the two countries.

Pan Gongsheng: The press conference on Monday did not involve short - term policy adjustments, and the content of the next phase of financial reform will be further communicated after the unified deployment of the Central Government. Pan Gongsheng said that on the whole, the debt risk level of local government financing platforms has been significantly reduced during the "14th Five - Year Plan" period. The number of financing platforms has decreased by more than 60%, and the scale of financial debt has dropped by more than 50%. When responding to the Federal Reserve's interest rate cut, Pan Gongsheng said that the People's Bank of China adheres to taking China's own conditions as the main consideration in formulating monetary policy while taking into account both domestic and international factors. At present, China's monetary policy stance is supportive, and a moderately loose monetary policy is being implemented. Chairman of the China Securities Regulatory Commission (CSRC) Wu Qing stated that currently, foreign capital holds A - share market value of 3.4 trillion yuan, and 269 enterprises have been listed overseas.

CSRC: Deepen the reform of the Science and Technology Innovation Board, ChiNext Board and Beijing Stock Exchange, improve institutional mechanisms such as issuance and listing, and cultivate and expand patient capital. In the next step, the Party Committee of the CSRC will implement various arrangements for comprehensively deepening the reform of the capital market in a detailed manner. It will further implement the arrangements of the Third Plenary Session of the 20th CPC Central Committee and accelerate the implementation of the tasks of the new round of comprehensive deepening of the capital market reform. Focusing on serving the development of new quality productive forces, it will deepen the reform of the Science and Technology Innovation Board, ChiNext Board and Beijing Stock Exchange, improve institutional mechanisms such as issuance and listing, and cultivate and expand patient capital. It will accelerate the development of the multi - level bond market and promote the improvement of the futures supervision system and business model with Chinese characteristics. It will expand high - level institutional opening - up and enhance the attractiveness and competitiveness of China's capital market.

At the press conference on the theme of "High - quality Completion of the '14th Five - Year Plan'" held by the State Council Information Office on Monday, Wu Qing, Chairman of the CSRC, introduced that by the end of August this year, various types of medium - and long - term funds held a total of about 21.4 trillion yuan in the circulating market value of A - shares, an increase of 32% compared with the end of the "13th Five - Year Plan" period.

Three types of naval carrier - based aircraft successfully took off and landed on the Fujian warship, with training details revealed. The J - 15T, J - 35 and KJ - 600 carrier - based aircraft have previously completed their first catapult take - off and landing training on the Fujian warship, marking that the Fujian warship has acquired electromagnetic catapult and recovery capabilities.

U.S. Treasury Secretary said that "all stabilization options" are being considered to support Argentina, and Argentina's stocks, exchange rates and bonds soared. Yellen said she is prepared to take necessary actions to support Argentina, and "all stabilization options" are under consideration. The assistance options include but are not limited to currency swap lines, direct repurchase of Argentine pesos, and the use of the U.S. Treasury's Foreign Exchange Stabilization Fund to provide U.S. dollar - denominated debts. Argentina's stock index once rose by more than 8%, and the peso rose by more than 3% intraday.

Argentina's capital outflows accelerated, and Milei admitted that "the market is in a state of panic". After losing the local elections, Milei admitted that the market has entered a "state of panic". To defend the continuously depreciating peso, the country's government used 1.1 billion U.S. dollars in foreign exchange reserves for intervention within three days. However, capital outflows are still accelerating. In the past month, the Argentine peso has depreciated by more than 10% against the U.S. dollar, and the bond and stock markets have fallen simultaneously.

Federal Reserve Governor Milan: The estimated value of the neutral interest rate is about 2.5%, and interest rates should be cut by another 125 basis points this year. In his first policy speech since taking office as a Federal Reserve Governor, Milan said that the neutral interest rate may have been overestimated in the past and has recently been further depressed by tariffs, immigration restrictions and tax policies. Milan's estimated value of the neutral interest rate is about 2.5%, which is significantly lower than the median forecast of 3% by Federal Reserve officials. Several other officials also expect the neutral interest rate to be lower than 3%, and Milan is the only one calling for a rapid reduction to this level.

Three Federal Reserve officials poured cold water on interest rate cuts: the room for further action is limited, and there is no reason to cut rates again this year. Mester, a voting member of the FOMC this year, said that the prerequisite for further interest rate cuts is that the risk of inflation continuing to be higher than the target does not increase; the price effect of tariffs will fade in the next two or three quarters, but it is necessary to be alert to the secondary effects and the threat of persistent inflation. Bostic is worried that inflation will be too high for a long time, does not believe that the job market is in a crisis, and expects more severe challenges in the labor supply. Harker said that the employment situation is still good, he is very worried about inflation, and monetary policy easing should be cautious to avoid overheating of the economy.

France and other countries have recognized the State of Palestine, and the United States is the only one among the five permanent members of the UN Security Council that has not recognized it. According to CCTV News, at the high - level international conference of the United Nations on the peaceful settlement of the Palestinian issue and the implementation of the "two - state solution" on Monday, French President Macron announced that France officially recognizes the State of Palestine. Monaco, Luxembourg, Malta and Andorra also announced the recognition of the State of Palestine. So far, 152 out of 193 member states of the United Nations have recognized the State of Palestine.

The cryptocurrency market plummeted, with Ethereum and Solana leading the decline. On Monday, the cryptocurrency market experienced a large - scale liquidation, with more than 1.5 billion U.S. dollars of long positions being forced to close out, triggering the most severe flash crash in nearly a month. This plunge was mainly caused by excessive leverage and the recent overheating of altcoins. Among them, Ethereum was the hardest hit, with nearly 500 million U.S. dollars of leveraged long positions being wiped out. Technical indicators show that the market has entered an oversold state. Analysts believe that this is a correction to the previous market mania and also marks the end of the short - lived "altcoin season".

Nvidia's largest ever investment commitment! It will invest 100 billion U.S. dollars to help OpenAI build a 10GW data center. The first Nvidia system with a capacity of 1GW is planned to be launched in the second half of next year, using the Vera Rubin platform.

Huang Renxun said that 10GW is equivalent to up to 5 million GPUs, which is equal to Nvidia's total shipment volume this year and twice that of last year. Altman said that people should have high expectations for OpenAI in the next few months. He called both Nvidia and Microsoft "passive" investors and "the most important partners" of OpenAI. Nvidia's stock price, which had fallen by more than 1% at the opening of the market, quickly turned to rise, rose by more than 4% in the mid - day session, and closed nearly 4% higher, hitting a record high.

Nvidia's first AI development center in the Middle East is here! The Abu Dhabi Technology Innovation Institute and Nvidia jointly announced the establishment of a research laboratory in the United Arab Emirates, which will be Nvidia's first AI technology center in the Middle East. This institution will use Nvidia's dedicated "Thor" chip to promote its research and development in the fields of humanoid robots, quadruped robots and robotic arms.

Oracle changes leadership: Two co - CEOs take office, and the current Catz will switch to the position of vice chairman. Oracle announced a major personnel adjustment on Monday. Clay Magouyrk, president of cloud infrastructure, and Mike Sicilia, president of industry applications, were promoted to co - CEOs to replace Safra Catz, who will move to the position of executive vice chairman of the board. Ellison will continue to serve as chairman of the board and chief technology officer. Analysts said that this handover comes at a time when Oracle's stock price is at a record high and its AI cloud business is growing rapidly. The company hopes to take this opportunity to promote a new generation of technical leadership to avoid organizational stagnation. Stimulated by the news, Oracle's stock price rose by more than 5.4% intraday.

Berkshire continues to increase its holdings of Japan's "Big Five Trading Companies", and Buffett has become a "major shareholder". Berkshire Hathaway, owned by Buffett, has increased its shareholding ratio in Japan's Mitsui & Co. to more than 10%, becoming a major shareholder. Earlier, the company had increased its holdings of another Japanese trading company, Mitsubishi Corporation, to the same level. After the news was announced, Mitsui & Co.'s stock price rose by 2.2% at one point, and the stock prices of several other large trading companies also generally rose.

## Domestic Macroeconomics

China's LPR quotation remains unchanged in September: the LPR for more than 5 years is 3.5%, and the 1 - year LPR is 3%. In September, the 1 - year and over - 5 - year LPR remained unchanged, remaining "on hold" for the fourth consecutive month. Analysts believe that the central bank may implement a new round of interest rate cuts and reserve requirement ratio cuts around the beginning of the fourth quarter, which will drive the LPR quotations of the two - term varieties to follow the downward adjustment.

"Steady Growth Plan" for the iron and steel industry: an average annual growth of 4%, and a strict ban on new production capacity. The "Work Plan" puts forward the overall goals for 2025 - 2026: the added value of the iron and steel industry will increase by about 4% annually, economic benefits will stabilize and pick up, market supply and demand will become more balanced, the industrial structure will be more optimized, the capacity for effective supply will continue to increase, and the level of green, low - carbon and digital development will be significantly improved. It will implement precise regulation of production capacity and output, promote the classified management of iron and steel enterprises, strictly prohibit the addition of new production capacity, guide the agglomeration of resource factors to advantageous enterprises, and promote the survival of the fittest through output regulation to achieve a dynamic balance between supply and demand.

## Domestic Companies

A detailed explanation of Huawei's super node cluster and its networking form, and how to achieve large bandwidth, low latency and high reliability? Huaxi Securities believes that Huawei has achieved TB - level ultra - large bandwidth by adopting multi - port aggregation and high - density packaging technology. The interconnection bandwidth of Atlas 950 reaches 16.3PB/s, which is 62 times that of Nvidia NVL144. Through an equal architecture and a unified protocol, it achieves an ultra - low latency of 2.1 microseconds, an improvement of 24% compared with the current 3 microseconds. It has introduced nanosecond - level fault detection, protection switching mechanisms and high - reliability interconnection protocols to support long - distance multi - cabinet interconnection.

Zhiyuan Robotics has won the industry's first CR certification for humanoid robot datasets, with the serial number "001". This marks a key step forward for China in the standardization, quality evaluation and industrial application of humanoid robot datasets. Zhiyuan Robotics' successful passing of the certification not only confirms the industry benchmark status of the AgiBot World dataset, but also makes it a demonstration model for the standardization of humanoid robot datasets. It will also help promote the formation of a "standardized, open and efficient" data co - construction and sharing mechanism in the field of embodied intelligence.

DeepSeek - V3.1 version update. This update, while maintaining the original capabilities of the model, has made improvements to the problems feedback by users, including: language consistency and Agent capabilities.

## Overseas Macroeconomics

Musk and Trump "appeared together for the first time after falling out", shaking hands, chatting and sitting side by side. At the memorial service held last Sunday for Charlie Kirk, who was shot and killed, TV footage captured Musk taking the initiative to walk towards Trump, sitting in the empty seat next to him, and the two then shook hands and had a heated conversation. After the incident, Musk posted a photo with Trump on social media, with only the caption "For Charlie", implying that this thaw was to commemorate their mutual friend Kirk.

Has the market underestimated the possibility of higher U.S. stock earnings? Morgan Stanley: There will be a Federal Reserve with "higher inflation tolerance" next year. Morgan Stanley said that positive operating leverage, declining salary costs and suppressed demand are driving the revision of earnings per share to be positive, indicating that the economic recession that some people are worried about has passed. If the U.S. economy turns to recovery next year while the Federal Reserve cuts interest rates, the revenue and profit growth of U.S. stock companies may far exceed expectations.

Goldman Sachs trader: U.S. stocks are just like in 1999, all trading on liquidity. Who still pays attention to fundamentals? People think "money is depreciating, it's better to spend it than hold it". Goldman Sachs traders believe that although recession warnings are flashing, the market is entering a speculative stage dominated by liquidity. The current U.S. stock market is similar to that in 1999, and the investment logic has shifted from fundamentals to liquidity, market positions and price trends. Consumers even have the mentality that "money is depreciating, it's better to spend it than hold it", and market sentiment is also shifting from fear to "fear of missing out" (FOMO).

FOMO sweeps the entire market, and the speculative boom spreads to traditional safe - haven assets! When all assets are rising sharply at the same time and the market is in a state of frenzy, it often means that risks are accumulating, and eventually a certain link may collapse, leading to a sharp decline.

Britain, Canada and Australia issued official statements on the same day, and the United Nations held a special meeting. The State of Palestine ushered in a wave of recognition. According to the Global Times, British Prime Minister Starmer emphasized that this is not a "reward" for Hamas, but an action to maintain the possibility of peace. France, Belgium and other countries will also recognize the State of Palestine, making the total number of recognizing countries exceed 140. Israeli Prime Minister Netanyahu strongly opposes it, and U.S. Republican figures have also expressed their opposition. Experts believe that this not only has symbolic significance, but also will have clear legal consequences and promote changes in the situation.

## Overseas Companies

It is reported that Samsung has significantly increased the prices of memory and flash memory products by 30%. Samsung has significantly raised the prices of memory and flash memory products, with DRAM products rising by as much as 30% and NAND flash memory prices increasing by 5 - 10%. The reason is the tight supply and the surge in demand from cloud enterprises. Micron and SanDisk have also announced similar price increase measures earlier, among which Micron's increase has reached 20 - 30% and it has suspended accepting new orders.

The antitrust trial has begun, and Google's advertising business is facing the threat of split. A coalition composed of the U.S. Department of Justice and multiple states requires Google to sell its advertising trading platform AdX, which charges online publishers a 20% fee for advertising auctions conducted when users load websites. The government also seeks to open source the source code of Google's advertising bidding winning mechanism.

This year's financing has exceeded 20 billion U.S. dollars, and the model has become a "red ocean". How much "ammunition" do "digital currency treasury companies" still have? With the compression of premiums, pressure on liquidity and valuations falling below net asset value, the industry is moving from a boom to internal competition. Most companies' stock prices have fallen below their net asset value, liquidity pressure has become prominent, and the industry is facing consolidation. Leading enterprises are surviving through differentiated strategies, including locked - up period token investment and enhanced liquidity. Funds have begun to shift to new tracks such as DeFi, real - world assets and stablecoins.

Who can supply power to AI immediately? The underestimated "value" of Bitcoin mining enterprises. Morgan Stanley believes that Bitcoin mining enterprises have about 6.3 gigawatts of operating large - scale sites and another 2.5 gigawatts of under - construction capacity, making them the "fastest to obtain power and with the lowest implementation risk" choice for AI companies. If mining sites are transformed into data centers, the equity value created can reach 5 to 8 U.S. dollars per watt, which is much higher than the current trading level of many Bitcoin mining enterprises.

Will AI subvert the cultural and entertainment industry? Internet platforms will be the first to benefit, and the value of "experiential" and "sports" assets will be prominent. Morgan Stanley said that large media companies use AI to optimize content recommendations, reduce production costs and improve advertising efficiency, and it is expected that program production costs can be reduced by about 10%. In this context, the value of experiential assets that cannot be replicated by AI, such as theme parks and live entertainment, as well as scarce top - tier sports event copyrights, will be further highlighted.

# Industries/Concepts

1. **Domestic Chips**: According to Shanghai Securities News, Moore Threads' IPO on the Sci-Tech Innovation Board (STAR Market) will be reviewed on September 26, while Muxi Semiconductor's IPO process has entered the second round of inquiries. Moore Threads is mainly engaged in the R&D, design, and sales of full-function GPUs and related products. It is committed to providing computing acceleration platforms for high-performance computing fields such as AI, digital twins, and scientific computing, and is a domestic GPU company that balances graphics rendering and AI computing. Muxi Semiconductor is one of the leading domestic enterprises in high-performance general-purpose GPU products, dedicated to the independent R&D of full-stack high-performance GPU chips and computing platforms.

2. **OCS**: It is reported that Google has recently made new progress in the field of Optical Circuit Switch (OCS) technology and is actively testing an OCS solution based on Piezoelectric Ceramics (DLBS) to optimize the network performance of its AI supercomputing clusters. Relying on advantages such as direct optical path transmission without reflection loss and switching latency as low as the millisecond level, piezoelectric ceramic technology has become an important technical route following MEMS (Micro-Electro-Mechanical Systems) and Digital Liquid Crystal (DLC).

3. **Nuclear Power**: The National Energy Administration and other departments have issued guiding opinions on promoting the high-quality development of energy equipment. In terms of nuclear energy equipment, efforts will be accelerated to make breakthroughs in key equipment for pressurized water reactor units, improve and enhance the capabilities of test verification and product inspection, and continuously improve the reliability and stability of equipment. R&D and verification of new equipment, new processes, and new materials for advanced nuclear power technologies such as small modular reactors and fourth-generation reactors will be carried out. The long-term service performance of materials in coupled environments such as strong radiation fields, corrosive media, and high temperatures will be improved, and the construction of irradiation test capabilities will be strengthened. Research on advanced manufacturing technologies such as automatic welding, additive manufacturing, and intelligent manufacturing will be promoted to build an equipment development system covering multiple reactor types.

4. **Smart Parks**: The Ministry of Industry and Information Technology and the National Development and Reform Commission have issued the *Guidelines for the High-Quality Development of Industrial Parks*. The guidelines propose to encourage enterprises in the parks to carry out digital transformation of old equipment and promote intelligent manufacturing equipment and systems. The deployment of networks such as 5G, gigabit optical networks, IPv6, and the Internet of Things (IoT) will be advanced to promote the integration of the industrial Internet into the parks. Support will be provided for the construction of new technology facilities such as data storage, cloud computing, and artificial intelligence to enhance digital infrastructure capabilities. In-depth cooperation between upstream and downstream of the industrial chain will be guided to foster characteristic industrial clusters. Models such as "fly-in-the-air parks" (cross-regional cooperative parks) and cross-border cooperation will be supported to promote international industrial and technological cooperation. Incentive funds, tax incentives, and financing support will be established to facilitate the implementation of major projects.

5. **Brain-Computer Interface (BCI)**: To meet the urgent needs of supervision and promote the high-quality development of medical devices using BCI technology, the National Medical Products Administration (NMPA) recently issued a notice approving the project initiation for the formulation and revision of the medical device industry standard *Test Method for Motion Intention Encoding and Decoding Performance of RACA Robots in Medical Devices Using Brain-Computer Interface Technology*. It requires the National Institutes for Food and Drug Control (NIFDC, also known as the Medical Device Standardization Management Center) to formulate the standard in accordance with the relevant requirements of the *Administrative Specifications for the Formulation and Revision of Medical Device Standards* using an accelerated procedure. The NIFDC shall complete the drafting, verification, solicitation of opinions, and technical review of the standard to ensure its quality and level.

# Preview of Today's Key News

- September Manufacturing and Services PMIs for the US, Eurozone, and UK

- Speech by Jerome Powell, Chairman of the Federal Reserve

- Speech by Raphael Bostic, President of the Federal Reserve Bank of Atlanta

- Earnings report of Micron Technology

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