News

Morning News

# Market Overview

Source: Wall Street CN

## Market Summary

- U.S. ISM manufacturing data underperformed: the Dow Jones Industrial Average turned lower intraday, falling back to a one-week low. Amid a boom in AI-related trading, the Nasdaq Composite approached a record high. Both the S&P 500 and the Nasdaq posted a second consecutive day of gains.

- NVIDIA closed up over 2%, and Amazon rose 4%, with both stocks approaching their record highs.

- Cipher Mining surged 22% after signing a data center lease agreement with Amazon.

- IREN climbed 11.5% following the signing of a cloud computing service agreement with Microsoft.

- Palantir, which reported strong earnings, saw its stock jump by as much as 7% in after-hours trading.

- U.S. Treasuries declined, with the 10-year U.S. Treasury yield hitting a three-week high.

- The U.S. Dollar Index recorded a fourth straight day of gains, reaching a three-month high, though it briefly turned lower after the release of the U.S. ISM index.

- Offshore renminbi (CNH) fell by over 100 pips at one point, approaching 7.13 and touching a one-week low.

- Cryptocurrencies plummeted intraday: Bitcoin dropped nearly 5%, and Ethereum fell close to 9%.

- After OPEC+ decided to pause production increases next year, crude oil rose for four consecutive days to a one-week high.

- Gold rebounded, with COMEX gold futures climbing over 1% at one point.

- London copper (LME Copper) fell for three straight days, hitting another one-week low, while London aluminum (LME Aluminum) rose for two consecutive days to a high not seen in more than three years.

- During the Asian trading session, China’s A-shares staged a V-shaped rebound, with all three major indices closing in positive territory. The thorium-based molten salt reactor concept sector saw a surge, while precious metals and battery sectors led the declines. Hong Kong’s Hang Seng Index rose nearly 1%, and Laopu Gold dropped over 7%.

## Key News

1. Lan Fo’an, China’s Minister of Finance: Treating "no new hidden debts" as an "iron-clad rule".

2. Signs of cooling in the U.S. job market: The number of corporate layoffs this year has reached the highest level since 2020.

3. U.S. ISM Manufacturing PMI for October fell to 48.7% (contrary to expectations of an increase), remaining in contraction for the eighth consecutive month, dragged down by weak demand and employment, while inflation cooled. The final reading of the Eurozone’s October Manufacturing PMI stood at 50, with Germany and France continuing to see contraction; weak new orders hindered the recovery process.

4. Federal Reserve Governor Michelle Bowman: Fed policy is overly restrictive, and a series of 50-basis-point interest rate cuts should be implemented to reach a neutral interest rate. Federal Reserve Governor Lisa Cook, in her first public speech since being sued by Donald Trump: No decision has been made yet on an interest rate cut in December.

5. The U.S. Treasury Department lowered its borrowing estimate for the current quarter by $21 billion to $569 billion, due to a larger-than-expected cash balance on hand.

6. A U.S. government shutdown threatens aviation safety: U.S. Transportation Secretary stated that national airspace would be closed if necessary.

7. "The first long-term price hike since the AI era": Reports indicate that TSMC has launched a four-year consecutive price increase, with advanced process nodes rising by approximately 3%-10%.

8. Amazon signed a seven-year, $38 billion computing capacity deal with OpenAI; AWS will supply NVIDIA chips.

9. Microsoft partnered with Dell to support new cloud service provider IREN, securing a $9.7 billion AI cloud deal and jointly building a supercomputing center in Texas.

10. The AI arms race has fueled a financing boom among tech giants: Following Meta, Alphabet (Google’s parent company) plans to issue bonds totaling over $20 billion in Europe and the U.S.

11. NVIDIA’s AI chip exports were approved for the first time; Microsoft invested $15.2 billion in the United Arab Emirates (UAE).

12. Palantir’s Q3 revenue exceeded expectations, surging 63% to a new high; its Q4 guidance also beat expectations, and the company raised its full-year guidance, leading its stock to rise by as much as 7% in after-hours trading.

13. Boyu Capital plans to acquire up to 60% of Starbucks China’s business for $4 billion.

## Market Closing Quotes

### Stocks (U.S. & Europe)

- S&P 500: Rose 0.17% to close at 6,851.97 points.

- Dow Jones Industrial Average: Fell 0.48% to close at 47,336.68 points.

- Nasdaq Composite: Rose 0.46% to close at 23,834.723 points.

- Europe’s STOXX 600 Index: Rose 0.07% to close at 572.28 points.

### A-Shares (China)

- Shanghai Composite Index: Rose 0.55% to close at 3,976.52 points.

- Shenzhen Component Index: Rose 0.19% to close at 13,404.06 points.

- ChiNext Index: Rose 0.29% to close at 3,196.87 points.

### Bond Market

By the end of the bond trading session:

- The yield on the 10-year U.S. Treasury note stood at approximately 4.10%, up about 2 basis points intraday.

- The yield on the 2-year U.S. Treasury note was around 3.60%, rising roughly 3 basis points intraday.

### Commodities

- WTI Crude Oil Futures (December contract): Rose 0.11% to close at $61.05 per barrel.

- Brent Crude Oil Futures (January contract): Rose 0.19% to close at $64.89 per barrel.

- COMEX Gold Futures (December contract): Rose 0.44% to close at $4,014 per ounce.

- LME Copper Futures: Fell approximately 0.3% to close at $10,855 per ton.

- LME Aluminum Futures: Rose around 0.6% to close at $2,902 per ton.

### Key Notes on Terminology

- **ISM Manufacturing PMI**: Institute for Supply Management Manufacturing Purchasing Managers’ Index, a key indicator of U.S. manufacturing activity (a reading below 50 indicates contraction).

- **OPEC+**: A group consisting of OPEC (Organization of the Petroleum Exporting Countries) members and non-OPEC oil-producing countries, which coordinates oil production policies.

- **LME**: London Metal Exchange, one of the world’s major commodity exchanges focusing on non-ferrous metals trading.

- **AWS**: Amazon Web Services, Amazon’s cloud computing service division.