News

Morning News

# Market Overview and Key News

Source: Wall Street CN

## Market Overview

Global trade tensions have eased, and the market expects the Federal Reserve to continue cutting interest rates this week. The three major U.S. stock indexes hit record highs, with the S&P 500 posting its best three-day gain since May. As the market awaits the earnings reports of large tech stocks this week, tech stocks led the rally. All of the "Magnificent Seven" tech giants surged, with Tesla rising more than 6% at one point. Semiconductor stocks generally advanced, with Qualcomm soaring as much as 20% and closing 11.09% higher.

Long-term U.S. Treasury yields generally declined, with the 10-year Treasury yield falling 3.65 basis points to below 4% again. Safe-haven sentiment faded, and short-term U.S. Treasuries edged down slightly. The U.S. dollar fluctuated 0.16% lower. The RMB recorded its largest gain in two months. The Argentine peso rose more than 3% against the U.S. dollar after Javier Milei won Argentina's midterm elections.

Cryptocurrencies rallied sharply, but gains narrowed in late New York trading on Monday. Ethereum rose as much as 4.7% in 24 hours before retreating about 3% from its daily high. Diminished safe-haven demand led to a sharp drop in gold prices, which broke below $4,000 an ounce, down 3.2% from last Friday's closing price. London copper rose 1.2%, closing at a record high above $11,000 per ton for the first time.

During the Asian session, the Shanghai Composite Index was just one step away from the 4,000-point mark, hitting an intraday high of 3,999.07 points. Memory chips and CPO (Coherent Pluggable Optics) sectors surged alternately. The Hang Seng Tech Index rose nearly 2%, and national bonds rebounded across the board.

## Key News

- Wang Yi held a phone call with U.S. Secretary of State Marco Rubio: He hoped both sides would work towards the same goal and make preparations for high-level interactions between China and the United States.

- Pan Gongsheng: The People's Bank of China will resume open market Treasury bond trading and continue to crack down on virtual currency speculation.

- Zhu Hexin: Focusing on trade facilitation, the State Administration of Foreign Exchange will introduce 9 new policy measures.

- Wu Qing: The China Securities Regulatory Commission will deepen the reform of the ChiNext Board and strive to give play to the role of medium and long-term funds as a "ballast stone" and "stabilizer".

- Li Yunze: Centering on the strategy of expanding domestic demand, we will strengthen the capital supply for major projects and promote the expansion and upgrading of consumption.

- Donald Trump extended the U.S.-Mexico trade negotiation period and stated that he would not restart U.S.-Canada negotiations "for a period of time". The United States reached trade agreements with several Southeast Asian countries, but "details are insufficient, and subsequent negotiations will determine whether key industries such as apparel and electronic products can obtain tariff reductions and exemptions".

- Liquidity in the London silver market has eased, and physical rental rates have dropped significantly. Copper prices are approaching historical highs, driven by eased trade tensions and disrupted supply.

- Qualcomm soared as much as 20% after launching artificial intelligence chips to compete with Nvidia in the data center market.

- AMD turned higher intraday; reports stated that it reached a $1 billion AI cooperation with the U.S. Department of Energy to build two supercomputers.

- Tesla's "World Simulator" is here: It can learn 500 years of human driving experience in one day, and Optimus can share the same "brain".

- Report: Amazon will announce its largest layoffs in history, involving up to 30,000 employees in core departments such as cloud computing.

- PCB industry chain surged: Shenghong Technology achieved a net profit of 1.102 billion yuan in Q3, with aggressive capacity expansion and a sharp increase of 1,283.08% in construction in progress.

- VeriSilicon Holdings, a leading domestic custom chip company, saw Q3 revenue increase by 78.38% year-on-year, and net loss narrowed to 26.8511 million yuan.

- Northern Rare Earth's Q3 net profit increased by 69.48% year-on-year, and revenue rose by 33.32%.

## Market Closing Quotes

### U.S. and European Stock Markets

- S&P 500: Rose 1.23% to 6,875.16 points.

- Dow Jones Industrial Average: Rose 0.71% to 47,544.59 points.

- Nasdaq Composite Index: Rose 1.86% to 23,637.456 points.

- Europe STOXX 600 Index: Closed 0.21% higher at 576.99 points.

### A-Shares

- Shanghai Composite Index: Rose 1.18% to 3,996.94 points.

- Shenzhen Component Index: Rose 1.51% to 13,489.40 points.

- ChiNext Index: Rose 1.98% to 3,234.45 points.

### Bond Market