Breakfast | Chinese concept stocks soar to a two-year high! Jensen Huang cashes out and NVIDIA surges 4% afterwards

Market Overview

Unexpectedly, the confidence of American consumers plummeted, dragging down US bond yields and the US dollar. After an initial decline, US stocks rose across the board, with the S&P and Dow hitting new historical highs. Industrial giant Caterpillar reached a new high, while European and American mining, casino, automotive, and luxury stocks rose.

Chinese concept stocks shone throughout the day, closing up more than 9%, marking the largest increase in 2022 and the highest in four months. Pinduoduo, XPeng, NIO, Li Auto rose more than 11%, Bilibili rose 17%, JD.com rose nearly 14%, Alibaba rose nearly 8%, while Miniso fell 8.7% before closing down more than 2%.

The "Tech Seven Sisters" saw more gains than losses. NVIDIA closed up 3.97%, surging nearly 4.8% at one point during trading. Tesla closed up 1.71%, reaching a two-month high, Apple closed up 0.4%, Amazon closed up 0.04%, Google Class A closed up 0.27%, while "metaverse" Meta closed down 0.19% and Microsoft closed down 1%.

Jensen Huang completes this round of "cash-out", selling over $700 million in stocks

Jensen Huang executed the sale of NVIDIA stocks in this round through a 10b5-1 trading plan. From June 14 to September 13, stocks were sold at an average price of $118.83 per share, totaling a cash-out of $713 million. Jensen Huang's NVIDIA stock sale plan is valid until March 2025, but he completed all planned sales six months before the expiration date. Jensen Huang may adopt another plan to sell more shares.

Institutions: Tesla expected to achieve "historical best" quarterly performance in China in the third quarter

Piper Sandler analyst Alexander Potter raised Tesla's target price and expected delivery volume, stating that the electric vehicle manufacturer is expected to achieve its best quarterly performance ever in China. The current estimate for the third quarter delivery volume is 459,000 vehicles, with an annual delivery volume of approximately 1.75 million vehicles. Potter said, "The third quarter looks like it could be Tesla's best quarter ever in China; despite weak sales in Europe, Cybertruck deliveries are supporting demand in the United States."

If Qualcomm acquires Intel, JP Morgan: New hegemon emerges, negative for TSMC, disastrous for Samsung

JP Morgan believes that acquiring Intel will make Qualcomm a new hegemon in the fields of client computing, automotive computing chips, and data center CPUs, but it will also impact the Asian tech supply chain, be negative for TSMC, and pose a significant risk to Samsung.

PE targets software industry: Blackstone teams up with Vista, acquires Smartsheet for $8.4 billion

Blackstone and Vista's all-cash acquisition of Smartsheet has become one of the top private transactions this year, with the acquisition price representing a 41% premium over Smartsheet's average closing price over the past 90 trading days. Smartsheet surged over 6% during Thursday's trading.

"Stock Market Goddess of Capitol Hill" reappears, Pelosi buys San Francisco office building at a discount

In recent months, office real estate in San Francisco has been facing challenges. However, the Pelosi family believes that now is a good time to enter the market—on August 13, Pelosi's husband invested in REOF XXVI LLC, which acquired a commercial office building in San Francisco

US Consumer Confidence in September Records the Largest Drop in Three Years, Employment Market Shows Warning Signs

The proportion of consumers who believe that job opportunities are plentiful has been declining for the seventh consecutive month, marking the longest continuous decline since 2008. Meanwhile, the proportion of consumers who find jobs hard to get has risen to 18.3%, the highest level since early 2021. Additionally, the proportion of consumers who believe that the economy has entered a recession has slightly increased. Furthermore, due to inventory backlog, the growth rate of house prices in the US slowed down in July.

Renowned strategist Ed Yardeni: Fed's Significant Rate Cut Replays 1995, US Stocks to Soar, but Inflation May Resurface

Yardeni believes that there is an 80% chance of US stocks entering a bull market, with a 20% chance of market turbulence similar to the 1970s when global stock markets were in turmoil due to inflation and geopolitical tensions. In the current US election, both candidates have proposed policies that could trigger inflation.

People's Bank of China Makes Big Moves: Reserve Requirement Ratio Cut, Interest Rate Cut, Reduction of Existing Home Loan Rates, Innovative Monetary Tools to Support Stock Market Development

The People's Bank of China announced a recent 0.5 percentage point cut in the reserve requirement ratio, with a potential further cut of 0.25-0.5 percentage points by the end of the year. It will lower the central bank's policy rate, reduce the 7-day reverse repurchase operation rate by 0.2 percentage points, and the existing home loan rates are expected to decrease by around 0.5 percentage points to levels near the rates for new home loans. The minimum down payment ratio for second home loans has been reduced from 25% to 15%