Morning News

Source: Wall Street CN

# Market Overview

Technology stocks continued to weigh on the market, with the three major U.S. stock indexes posting a second consecutive day of decline. Oracle fell nearly 2%, and along with NVIDIA and the semiconductor index, it closed lower for two straight days. However, Intel rose more than 6%, and Tesla rebounded nearly 4%. Chinese concept stocks staged a strong rebound: the Chinese concept stock index rose nearly 3%, reversing a four-day losing streak. Alibaba closed up over 8%, hitting a nearly four-year high, while JD.com rose nearly 6%.

U.S. Treasuries declined, with yields approaching a more than two-week high. The U.S. Dollar Index rebounded to a nearly two-week high; the offshore RMB recorded its largest drop in nearly two months and broke below the 7.14 level intraday for the first time in more than two weeks; Bitcoin fell below the 112,000 mark intraday before rebounding by nearly 3,000 U.S. dollars.

London copper rose more than 3% to a more than one-year high. New York copper closed at a nearly two-month high, with an intraday gain of over 4%. Gold pulled back from its record high, with gold futures falling nearly 2% at one point. Fears over supply intensified, pushing crude oil up more than 2% intraday for two consecutive days; Brent crude closed at a more than seven-week high.

During the Asian trading session, marking the first anniversary of the "September 24th" event, A-shares and H-shares surged. The ChiNext Index rose over 2%, and a buying spree drove semiconductor stocks to hit their daily limit. SMIC (Semiconductor Manufacturing International Corporation) reached an all-time high. The Hang Seng Tech Index rose more than 2%, and Alibaba's Hong Kong-listed shares soared over 9%.

# Key News

1. The President of the People's Republic of China delivered a video address at the UN Climate Change Summit, announcing China's new round of nationally determined contributions (NDCs). By 2035, China's net greenhouse gas emissions will drop by 7%-10% from the peak, and the total installed capacity of wind and solar power will strive to reach 3.6 billion kilowatts.

2. Li Qiang met with Ursula von der Leyen, President of the European Commission.

3. Wang Wentao, Minister of Commerce, convened a roundtable meeting with some Chinese-funded enterprises in the United States.

4. The United States officially announced the implementation of the U.S.-EU trade agreement, reducing tariffs on EU automobiles to 15% starting from August 1st.

5. Bessent stated that he does not understand why Jerome Powell "backed down," urging a 100-150 basis point interest rate cut by the end of the year, and revealed that he is interviewing 11 candidates for the Federal Reserve Chair position; the U.S. Treasury Department is preparing to purchase Argentine dollar-denominated bonds and is discussing a 20 billion U.S. dollar currency swap line.

6. Alibaba Cloud Summit 2025: Alibaba will increase capital expenditure on top of the existing 380 billion yuan and reach a physical AI cooperation agreement with NVIDIA.

7. Report: Intel is seeking investment from Apple to help turn around its business difficulties, and its stock price surged 8% intraday in response.

8. OpenAI is facing challenges on multiple fronts: Microsoft 365 Copilot business customers can now use Anthropic's models for the first time.

9. SAP and OpenAI announced a partnership, planning to launch a "German version of OpenAI."

10. New York copper surged over 4% intraday. Grasberg, the world's second-largest copper mine, suspended operations due to a mining accident, and its copper and gold output is expected to plummet by 35% in 2026.

11. Saudi Arabia's stock market soared 5% in a single day, as restrictions on foreign ownership are expected to be relaxed.

# Market Closing Quotes

## U.S. and European Stock Markets

- S&P 500 Index: Fell 0.28% to close at 6,637.97 points.

- Dow Jones Industrial Average: Fell 0.37% to close at 46,121.28 points.

- Nasdaq Composite Index: Fell 0.34% to close at 22,497.855 points.

- Euro Stoxx 600 Index: Fell 0.19% to close at 553.88 points.

## A-Shares

- Shanghai Composite Index: Rose 0.83% to close at 3,853.64 points.

- Shenzhen Component Index: Rose 1.8% to close at 13,356.14 points.

- ChiNext Index: Rose 2.28% to close at 3,185.57 points.

## Bond Market

By the end of the bond market session, the yield on the 10-year U.S. Treasury note was approximately 4.15%, up about 4 basis points intraday; the yield on the 2-year U.S. Treasury note was around 3.60%, up roughly 1 basis point intraday.

## Commodities

- WTI Crude Oil Futures (November contract): Closed up 2.49% at 64.99 U.S. dollars per barrel.

- Brent Crude Oil Futures (November contract): Closed up 2.48% at 69.31 U.S. dollars per barrel.

- COMEX Gold Futures (December contract): Closed down 1.25% at 3,768.1 U.S. dollars per ounce.

- London Copper: Closed up 3.63% at 10,336 U.S. dollars per ton.

- COMEX Copper Futures (December contract): Closed up 3.65% at 4.8135 U.S. dollars per pound.

# Detailed Key News

## Global Highlights

The President of the People's Republic of China delivered a video address at the UN Climate Change Summit and announced China's new round of nationally determined contributions (NDCs). By 2035, China's economy-wide net greenhouse gas emissions will decrease by 7%-10% from the peak, with efforts to achieve an even better result. The share of non-fossil energy consumption in total energy consumption will reach over 30%; the total installed capacity of wind and solar power will be more than six times that of 2020, striving to hit 3.6 billion kilowatts; forest stock volume will reach over 24 billion cubic meters; new energy vehicles will become the mainstream of newly sold vehicles; the national carbon emissions trading market will cover major high-emission industries; and a climate-resilient society will be basically built.

Li Qiang met with Ursula von der Leyen, President of the European Commission. Li Qiang stated that he hopes the EU will fulfill its commitment to keeping trade and investment markets open, adhere to fair competition and WTO rules, and avoid over-politicizing or over-securitizing economic and trade issues. Von der Leyen said the EU is willing to work with China to actively implement the consensus reached at this year's China-EU Leaders' Meeting, properly resolve differences through dialogue and consultation, and achieve new cooperation results in areas such as trade, investment, environmental protection, and development assistance. She also expressed the EU's willingness to deepen cooperation with China in climate change, promote their respective green transitions, and jointly advance global sustainable development.

Wang Wentao, Minister of Commerce, convened a roundtable meeting with some Chinese-funded enterprises in the United States. On September 23, Wang Wentao, Minister of Commerce of China, held a roundtable meeting with representatives of some Chinese-funded enterprises in New York, the United States. More than a dozen Chinese-funded enterprises operating in the U.S. in fields including finance, logistics, cross-border e-commerce, petrochemicals, telecommunications, rail transit, auto parts, new energy, and pharmaceuticals, as well as the head of the China General Chamber of Commerce - USA, attended the meeting. They shared updates on their business operations in the U.S. and put forward specific demands and suggestions regarding safeguarding corporate interests and expanding practical cooperation.

U.S. Officially Announces Implementation of U.S.-EU Trade Agreement: Tariffs on EU Automobiles to Be Reduced to 15% from August 1. The European stock market's auto sector once erased an earlier intraday decline of 1.7%, turned slightly higher, and finally closed down by approximately 0.6%. According to CCTV News, on the local time of the 24th, the U.S. Trump administration issued an official announcement to implement the trade agreement reached between the U.S. and the EU, confirming that tariffs on automobiles and auto products imported from the EU will be reduced to 15% starting from August 1. The document also lists tariff exemptions for certain pharmaceutical compounds, aircraft parts, and other imported goods.

Bessent: Cannot Understand Why Powell "Backed Down", Urges 100-150 Basis Point Interest Rate Cut by Year-End, and Is Interviewing 11 Candidates for Fed Chair. Bessent stated on Wednesday that he is looking for an open-minded person to serve as the Federal Reserve Chair. He believes that current interest rates are "excessively restrictive and need to be lowered" and expressed "some surprise" that Powell has not signaled an interest rate cut of at least 100 to 150 basis points by the end of the year.

Bessent: U.S. Treasury Prepares to Purchase Argentine Dollar-Denominated Bonds, in Talks on $2 Billion Currency Swap Line. Bessent described U.S. assistance as a "bridge" to Argentina's crucial midterm elections, stating that market volatility will not be allowed to hinder Milei's implementation of major economic reforms. Media reports on Wednesday indicated that Argentina's central bank sharply cut the one-day repo rate for the peso by 10 percentage points to 25%. This move curbed the peso's upward trend; after rising by 2.7% intraday, the peso's gain narrowed to less than 1%.

Alibaba Cloud Summit 2025: To Increase Capital Expenditure on Top of RMB 380 Billion, Reaches Physical AI Cooperation with NVIDIA. Alibaba Cloud's artificial intelligence platform PAI will integrate NVIDIA's Physical AI software stack, providing enterprise users with end-to-end platform services including data preprocessing, simulation data generation, model training and evaluation, robot reinforcement learning, and simulation testing. Daniel Zhang, CEO of Alibaba Group, stated that large models are the next-generation operating systems, and AI Cloud is the next-generation computer. It is expected that there will only be 5-6 super cloud computing platforms worldwide in the future. By 2032, the energy consumption scale of Alibaba Cloud's global data centers will increase by 10 times, which means Alibaba Cloud's computing power investment will rise exponentially. The company's stock price continued to rise by over 9%.

Report: Intel Seeks Investment from Apple to Help Turn Around Difficulties, Stock Price Surges 8% Intraday in Response. The two companies also discussed the possibility of strengthening cooperation, but the negotiations are still in the early stages and may not result in an agreement.

OpenAI Facing Challenges on Both Fronts: Microsoft 365 Copilot Business Customers Gain Access to Anthropic Models for the First Time. Starting from this Wednesday, Microsoft 365 Copilot's Researcher agent and Copilot Studio platform have added Claude Sonnet 4 and Claude Opus 4.1 models as options. Users can flexibly switch between OpenAI models and these new models. The President of Copilot stated that Anthropic models will bring a "more powerful experience" to 365 Copilot.

SAP and OpenAI Announce Partnership, Plan to Launch "German Version of OpenAI". The "German Version of OpenAI" project will see three tech giants collaborate with clear divisions of labor: SAP will provide enterprise application expertise and sovereign cloud infrastructure, OpenAI will contribute leading AI technology, and Microsoft will offer technical support for Delos Cloud through the Azure platform. Currently, SAP provides sovereign cloud services in 10 regions including the United States and Europe, and the company has allocated 20 billion euros in investment to support the global promotion of sovereign cloud products.

New York Copper Surges Over 4% Intraday; Grasberg, World's Second-Largest Copper Mine, Suspends Production Due to Mining Accident, Copper and Gold Output Expected to Plummet by 35% in 2026. Freeport expects to resume pre-accident production levels no earlier than 2027, and copper and gold output in 2026 will be approximately 35% lower than previously expected. Driven by expectations of supply disruptions, the stock prices of copper companies such as Glencore and Boliden all rose.

Saudi Stock Market Soars 5% in a Single Day; Restrictions on Foreign Ownership Expected to Be Relaxed. Reports indicate that Saudi Arabia will loosen the ceiling on foreign ownership. If the policy is implemented, it is expected to attract tens of billions of U.S. dollars in new investment and increase the weight of the Saudi market in global capital indexes. Boosted by this news, Saudi Arabia's Tadawul All-Share Index once surged by 5%, with its market value jumping by 123 billion U.S. dollars. The financial sector, especially bank stocks, performed particularly prominently.

## Domestic Macroeconomics

Nine Ministries and Commissions Issue 13 Policy Measures to Support Service Exports. According to CCTV News, support will be provided for the establishment of international data centers and cloud computing centers in pilot free trade zones, Hainan Free Trade Port, and demonstration areas for expanding the opening-up of the national service industry, to provide data processing services for various enterprises in need.

New "Rules" for Food Delivery: Regulating Platform Fees and Merchant Onboarding; Meituan and JD.com Stock Prices Rise in Tandem. The State Administration for Market Regulation released the "Basic Requirements for Food Delivery Platform Service Management (Draft for Comments)". The draft clearly limits the types of fees that food delivery platforms can charge merchants and prohibits the arbitrary creation of new fee items. The new rules specify platform fees in terms of disclosure methods, disclosure content, settlement details, and promotion effects to prevent opaque fee practices.

Nuclear Fusion "National Team" to Build New High-Temperature Superconducting Fusion Device in Shanghai, Named "Huanliu-4". According to The Paper, at the 25th China International Industry Fair currently being held in Shanghai, China Fusion Energy Co., Ltd., which has a registered capital of 15 billion yuan and was officially established just over two months ago, made its first public appearance, showcasing its technical routes and business layout. It is reported that in accordance with the general law of nuclear energy development (experimental reactor - demonstration reactor - commercial reactor), the company aims for the commercialization of fusion energy by 2050 and conducts joint R&D in Shanghai and Chengdu.

## Domestic Companies

"Chinese Version of NVIDIA" to Undergo Listing Review on Friday; A-Shares "Related" Stocks Have Surged: Multiple Stocks Hit Daily Limits, and Hetai Technologies Secures 3 Daily Limits in 4 Days. Muxi Threads' IPO application on the Science and Technology Innovation Board will be reviewed on September 26. This GPU chip enterprise, known as the "Chinese Version of NVIDIA", plans to raise 8 billion yuan. Driven by this news, related concept stocks in A-shares have surged. Hetai Technologies, which directly holds shares in Muxi Threads, has strongly achieved 3 daily limits in 4 days, and multiple companies with indirect shareholdings such as Lianmei Holdings have also hit daily limits. However, most of these related companies have extremely low shareholding ratios and limited business connections, leading to high risks of irrational market speculation.

Wang Xingxing of Unitree Robotics: Significant Differences in General Robot Technical Routes Have Restricted Development Speed. Although the general robot industry is currently booming, Wang Xingxing believes that the robot industry is still in the "eve before dawn". The biggest challenge at this stage is the "significant differences in technical routes" among various enterprises, which have restricted the overall progress of the industry. This is reflected in the fact that the robot industry "sees monthly breakthroughs but lacks immediate major breakthroughs". Wang Xingxing advocates "promoting collaboration with an open attitude" to break this deadlock.

After the "Anti-Involution" Trend, Morgan Stanley: China's Wind Power Industry Enters Profit Recovery Cycle. Morgan Stanley believes that after nearly three years of a downward cycle, China's wind power industry chain has successfully achieved "anti-involution" through industry self-discipline, and achieved a turnaround in prices and overall profitability at the beginning of 2025. It is expected that during the "15th Five-Year Plan" period, the annual newly installed capacity will exceed 110GW, and reach approximately 120GW during 2028-2030.

## Overseas Macroeconomics

U.S. New Home Sales Surge in August, Far Exceeding Expectations, Hitting the Highest Level Since Early 2022. U.S. new home sales reached an annualized 800,000 units in August, significantly higher than the expected 650,000 units, with the previous value being 652,000 units. Month-on-month, new home sales in August soared by 20.5%, compared with the expected decline of 0.3% and the previous month's decrease of 0.6%. The surge in demand has significantly reduced the previously large inventory of new homes in the market. The sharp increase in new home sales is attributed to substantial price cuts and sales incentives offered by homebuilders, as well as the decline in mortgage interest rates.

"Crash Expert" Black Swan Fund: U.S. Stocks Will Rise Sharply, Followed by a "1929-Style Crash". Mark Spitznagel, manager of the U.S. "Black Swan" fund, predicts that U.S. stocks will repeat the upward trend seen in early 1929, and the S&P 500 Index may reach 8,000 points "quite quickly" – meaning an increase of approximately 20% from the current level. However, he warned that this upward trend will be a prelude to a disaster, possibly followed by the most severe crash since 1929.

Nomura: Can Continue to Enjoy the AI Bull Market, but Warns Not to Abandon Hedging Now. Nomura warned that the AI-driven U.S. stock bull market has a solid foundation and is supported by multiple positive factors, but the market has accumulated significant downside risks. Currently, investors are overly bullish, the demand for bullish options in the options market has surged, and the "circular investment" model among tech giants is a cause for concern. Nomura warned that the market is in a state of extreme net long positions and negative gamma. Once a catalyst emerges, a rapid and sharp correction may be triggered by deleveraging.

## Overseas Companies

Too Much Cash, NVIDIA Has No Place to Invest; Instead of Share Repurchases, It Prefers to "Create an AI Closed Loop". Mergers and acquisitions are almost unfeasible, and share repurchases and R&D cannot absorb all its cash. NVIDIA, which has "too much money", is trying a brand-new way to use its capital: investing in customers, partners, and even competitors to build a self-circulating "AI closed-loop ecosystem", thereby locking in long-term demand for its chips in the future.

Wall Street Heats Up Discussion on "AI Closed Loop": Bulls Argue "Suppressing ASICs, NVIDIA's Long-Term Bull Run", Bears Warn "Lending to Customers, Just Like Cisco Back in the Day". NVIDIA plans to invest 100 billion U.S. dollars in OpenAI, and the latter will "use this money" to purchase chips from the former. This model of "investing in customers, who then buy one's own products" has made Wall Street worry about a repeat of the dot-com bubble, with some saying it is "lending to customers, just like Cisco did back then". However, bulls believe this is a strategic move by NVIDIA to consolidate its dominant position in the GPU market and suppress ASIC competition.

Oracle's AI Expansion Ambition: Issues $18 Billion in Bonds, Becoming the Second-Largest Bond Market Financing This Year. Oracle successfully completed the issuance of $18 billion in investment-grade bonds, with subscription demand peaking at nearly $88 billion. The bond issuance includes a rare 40-year bond, with a final yield 1.37 percentage points higher than that of U.S. Treasuries of the same period. The funds raised will be mainly used for AI infrastructure construction. To support its expansion, the company's cash flow turned negative for the first time since 1992, and its debt level has risen. The timing of the financing coincides with the replacement of CEO Safra Catz, triggering market concerns about the company's future financial strategy.

Detailed Explanation of Oracle's "Growth Model". Morgan Stanley stated that Oracle is transforming from a traditional software giant into a GPU data center operator. It is expected that by fiscal year 2030, its AI-related business will contribute 60% of total revenue, and OCI revenue will increase from approximately $18 billion to $144 billion. However, this high-growth model is accompanied by capital expenditures of up to $405 billion and rising debt. At the same time, the low-margin AI business will erode the company's overall profit margin.

The Fate of the "Capital Expenditure Bull Market" – The Rise and Fall of Stock Markets Amid Canal, Railway, and Telecommunications Technological Revolutions. Tech giants such as Microsoft and Google are engaged in an unprecedented AI capital expenditure race. Deutsche Bank warned that historically, capital expenditure booms driven by technological revolutions – such as canals in the 18th century, railways in the 19th century, and telecommunications in 2000 – have ultimately evolved into "boom-bust" cycles, leading to the burst of related stock bubbles and heavy losses for investors. "After the burst of the 2000 telecommunications bubble, stock prices have not returned to their previous highs to this day."

Who Will Foot the Bill for the "AI Capital Frenzy"? Over the Next Three Years, Silicon Valley Will Contribute $1.4 Trillion, and Wall Street Will Raise $1.2 Trillion. Morgan Stanley predicts that by 2028, investment in AI data centers and chips will reach $2.9 trillion, of which tech giants will bear approximately $1.4 trillion. The remaining gap is expected to be filled through debt financing, amounting to $1.2 trillion, with private credit funds projected to provide $800 billion of this.

Following Goldman Sachs, UBS Raises Tesla's Q3 Delivery Forecast; Wall Street Competitively Ups Their Projections. UBS raised its forecast for Tesla's third-quarter deliveries to 475,000 units, higher than the market consensus. The expiration of tax incentives under the U.S. Inflation Reduction Act has driven strong deliveries in the U.S. market, and deliveries in the European and Chinese markets have also performed well. Nevertheless, UBS still maintains a "sell" rating, expecting deliveries to decline month-on-month in the fourth quarter, and pointing out that Tesla's current stock price is driven more by AI themes rather than the fundamentals of its automotive business.

# Industries/Concepts

1. **AI Hardware**: Recently, 8 ministries and commissions including the Ministry of Commerce jointly issued the *Guiding Opinions on Vigorously Developing Digital Consumption and Jointly Creating a Better Life in the Digital Era*. The Opinions propose encouraging enterprises to accelerate R&D and innovation, increase the effective supply of artificial intelligence (AI) terminal products, and unlock the consumption potential of new products such as AI-enabled mobile phones, computers, intelligent robots, wearable devices, and desktop 3D printing equipment. It also calls for accelerating the R&D and interconnection of smart home appliances, intelligent security systems, and video care systems, and launching pilot programs for the access and road operation of intelligent connected vehicles.

2. **AI Infrastructure**: According to Shanghai Securities News, Daniel Zhang, CEO of Alibaba Group, stated at the 2025 Yunqi Congress that large models are the next-generation operating systems, while AI Cloud is the next-generation computer. It is expected that there will only be five or six super cloud computing platforms worldwide in the future. Currently, Alibaba is actively advancing the construction of AI infrastructure with an investment of 380 billion yuan and plans to make additional larger investments. To prepare for the arrival of the Artificial Superintelligence (ASI) era, compared with 2022 – the first year of generative AI – the energy consumption scale of Alibaba Cloud's global data centers will increase by 10 times by 2032. This means that Alibaba Cloud's computing power investment will rise exponentially.

3. **Cement**: Recently, the Ministry of Industry and Information Technology, together with five other ministries and commissions including the Ministry of Natural Resources, the Ministry of Ecology and Environment, the Ministry of Housing and Urban-Rural Development, the Ministry of Water Resources, and the Ministry of Agriculture and Rural Affairs, issued the *Work Plan for Stabilizing Growth in the Building Materials Industry (2025-2026)* (hereinafter referred to as the "Plan"). The Plan stipulates that the addition of new production capacity for cement clinker and flat glass is strictly prohibited, and new construction or renovation projects must formulate production capacity replacement plans. Cement enterprises shall formulate production capacity replacement plans for the capacity exceeding the project record by the end of 2025, so as to align the actual production capacity with the recorded production capacity.

4. **Nuclear Fusion**: According to China Securities Journal, at the 25th China International Industry Fair currently held in Shanghai, China Fusion Energy Co., Ltd. – with a registered capital of 15 billion yuan and officially established for only over two months – made its first public appearance, demonstrating its technical routes and business layout. It is reported that in accordance with the general law of nuclear energy development (experimental reactor - demonstration reactor - commercial reactor), the company aims at the goal of commercializing fusion energy by 2050 and conducts joint R&D in Shanghai and Chengdu. Many professionals in the field of controllable nuclear fusion in China confirmed that China Fusion Energy Co., Ltd. will build a new fusion experimental device in Shanghai to verify the high-temperature superconducting magnets developed by the company in Shanghai. The device is tentatively named "China Huanliu-4 (HL-4)".

5. **Physical AI**: On September 24, at the 2025 Hangzhou Yunqi Congress, Alibaba Cloud and NVIDIA reached a cooperation in the field of Physical AI. Alibaba Cloud's artificial intelligence platform PAI will integrate NVIDIA's Physical AI software stack, providing enterprise users with end-to-end platform services such as data preprocessing, simulation data generation, model training and evaluation, robot reinforcement learning, and simulation testing. This will further shorten the development cycle of applications such as embodied intelligence and assisted driving.

# Preview of Today's Key News

- 2025 Alibaba Yunqi Congress

- Launch event for Xiaomi 17 Series & Lei Jun's annual speech *Change*

- Final values of U.S. Q2 real GDP and core Personal Consumption Expenditures (PCE) Price Index (quarter-on-quarter annualized)

- U.S. initial jobless claims in the previous week

- U.S. August merchandise trade balance

- U.S. August existing home sales

- U.S. August durable goods orders

- Speeches by John Williams (President of the Federal Reserve Bank of New York), Michelle Bowman (Federal Reserve Governor), Michael Barr (Federal Reserve Governor), Austan Goolsbee (President of the Federal Reserve Bank of Chicago), Jeffrey Schmid (President of the Federal Reserve Bank of Kansas City), Lorie Logan (President of the Federal Reserve Bank of Dallas), and Mary Daly (President of the Federal Reserve Bank of San Francisco)

- Release of Costco's financial report

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# Risk Warning and Disclaimer

The market is risky, and investment needs to be prudent. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial status, or needs of individual users. Users should consider whether any opinion, view, or conclusion in this article is consistent with their specific situation. Any investment made based on this article shall be at the user's own risk.