Overnight US Stocks | Three major indexes fell, some Chinese concept stocks continued to soar, and the Golden Dragon Index closed higher against the market

According to Zhitong Finance, on Monday, the three major indices fell, with the Nasdaq falling by more than 1%. The situation in the Middle East deteriorated rapidly, causing an increase in oil prices, while some Chinese concept stocks continued to soar. The U.S. bank earnings season is about to begin, with analysts predicting that profit growth will slow down from the second quarter but still expect the data to remain strong.

[US Stocks] At the close, the Dow Jones fell by 398.51 points, or 0.94%, to 41,954.24 points; the Nasdaq fell by 213.95 points, or 1.18%, to 17,923.9 points; the S&P 500 index fell by 55.13 points, or 0.96%, to 5,695.94 points. Apple (AAPL.US) fell by 2%, while Nvidia (NVDA.US) rose by 2%. The NASDAQ Golden Dragon China Index initially fell by 2.7% before closing up by 0.07%, with Alibaba (BABA.US) rising by 2.6%, Li Auto (LI.US) rising by 4%, Niu Technologies (NIU.US), EHang Holdings (EH.US) rising by over 20%, Tarena International (STG.US) rising by nearly 24%, QuantumScape (QSG.US) rising by over 25%, and Ambow Education (AMBO.US) skyrocketing by over 226%. FTSE China A50 Index futures rose by over 2.4% in overnight trading, hitting new highs since December 2021.

[European Stocks] The German DAX30 index fell by 12.33 points, or 0.06%, to 19,108.05 points; the UK's FTSE 100 index rose by 21.43 points, or 0.26%, to 8,302.06 points; the French CAC40 index rose by 34.66 points, or 0.46%, to 7,576.02 points; the Euro Stoxx 50 index rose by 14.21 points, or 0.29%, to 4,969.15 points; the Spanish IBEX35 index rose by 77.55 points, or 0.67%, to 11,727.95 points; and the Italian FTSE MIB index rose by 216.88 points, or 0.65%, to 33,811.00 points.

[Asia-Pacific Stock Markets] The Nikkei 225 index rose by 1.8%, the Indonesia Jakarta Composite Index rose by 0.11%, and the Vietnam VN30 index fell by 0.05%.

[Gold] Spot gold fell by 0.41% to $2,642.74 per ounce. Spot silver fell by 1.67% to $31.6850 per ounce. COMEX gold futures fell by 0.20% to $2,662.50 per ounce. COMEX silver futures fell by 1.39% to $31.945 per ounce. COMEX copper futures fell by 0.43% to $4.5545 per pound.

[Cryptocurrency] Bitcoin rose by 0.35% to $63,126.5 per coin; Ethereum rose by 0.12% to $2,442.07 per coin.

[Crude Oil] International oil prices rose by over 3%, with Brent crude oil prices breaking above $80 per barrel for the first time since August, as the risk of war in the Middle East intensified. Investors have been withdrawing from record short positions accumulated last month. Brent crude oil futures prices rose by $2.82, or 3.6%, to $80.87 per barrel. U.S. West Texas Intermediate crude oil futures prices rose by $2.75, or 3.6%, to $77.13 per barrel 【Metals】 London metals fluctuated, with London nickel up 0.43%, London zinc up 0.16%; London copper down 0.16%, London aluminum down 0.49%.

【Macro News】

Goldman Sachs once again raises S&P 500 index target. Goldman Sachs' latest report shows that the bank has once again raised its year-end target for the S&P 500 index to 6300 points (previously 5600 points), and raised the 12-month target to 6300 points (previously 6000 points), while adding that these targets may be "too low." Goldman Sachs stated: "Our economists' forecast for U.S. GDP growth is higher than the market consensus, and the stable macroeconomic outlook will continue into next year, which is conducive to moderate expansion of corporate profit margins. Semiconductor cycle is expected to recover, and the strength of large tech companies will continue to strengthen."

Fed official Kashkari reiterates support for a significant rate cut in September. Minneapolis Federal Reserve Bank President Kashkari reiterated his support for the Fed's decision to cut rates by 50 basis points at the September meeting. Kashkari said: "I support this decision because we have made significant progress on inflation, and there are some signs of weakness in the labor market, the balance of risks has shifted from inflation to unemployment."

Foreign investors flock to Chinese stocks, related funds attract billions of dollars setting a new record. Data shows that in the week ending October 4, the total inflow into U.S.-listed emerging markets and specific country ETFs reached $5.96 billion, hitting the highest record in over a year. Among them, the five major ETFs investing in Chinese stocks attracted approximately $4.9 billion, reaching an unprecedented scale. iShares FTSE China Large-Cap ETF had the largest net inflow of funds last week, reaching $3.5 billion. KraneShares CSI China Internet ETF attracted over $1.4 billion - as investors return to the Chinese stock market in waves, all funds hit record highs. In addition, Direxion Daily FTSE China Bull 3X Shares ETF and iShares MSCI China ETF attracted $801 million and $340 million respectively.

ECB board member: Inflation fight is not over, core inflation remains too high. ECB board member Robert Holzmann said that the ECB must not declare victory over inflation too early because basic price pressures are still too high. "Inflation is on the right track, but it has not been defeated," he said, attributing the recent decline "mainly" to falling energy costs, "If you look at the more important core inflation rate - excluding the more volatile energy and food prices - the situation doesn't look so good."

Egyptian Foreign Minister talks with Iranian Foreign Minister to discuss the situation in the Middle East. On October 7th local time, Egyptian Foreign Minister Abdel-Ati and Iranian Foreign Minister Araghchi had a phone call to discuss the rapid developments in the Middle East, especially the situation in Lebanon and Gaza. Both sides agreed that it is extremely important to prevent the escalation of the situation in the Middle East. Abdel-Ati expressed Egypt's deep concern about the escalating situation and expanding conflicts in the region. Abdel-Ati emphasized the need to make efforts to ease tensions and exercise restraint to avoid falling into a regional war 【Individual Stock News】

US court ruling requires Google (GOOG.US, GOOGL.US) to open its app store. A federal judge in San Francisco has ordered Alphabet Inc.'s Google to make significant changes to its Play Store to allow more competition. This decision stems from a successful lawsuit by Epic Games, which argued that Google monopolized app access and in-app payment processes on Android devices. The jury's ruling in December 2023 resulted in an injunction requiring Google to allow Android users to access and download apps from other sources. Judge James Donato's ruling is based on a lawsuit filed by Epic Games in 2020, which ultimately led the jury to find Google's practices anti-competitive. In response to this ruling, Judge Donato announced the formation of a three-person compliance and technical committee to oversee the implementation and monitoring of the injunction. During the legal proceedings, Google had requested Judge Donato to dismiss Epic's proposed changes, citing potential negative impacts on consumer privacy and security, as well as mentioning the financial burden of the reforms. However, Judge Donato largely dismissed these concerns during an August hearing. He emphasized to Google's legal team that as a consequence of being found engaged in monopolistic behavior, the company would have to bear some costs. Additionally, Google is currently involved in a trial starting in September at a federal court in Virginia. This lawsuit, brought by the Department of Justice, involves Google's dominant position in the advertising technology market.

Activist investor Starboard Value holds approximately $1 billion in Pfizer (PFE.US) shares, with the latter's stock price rising over 4% at one point. Activist investor Jeff Smith's fund company, Starboard Value, has invested approximately $1 billion in Pfizer. Jeff Smith seeks to engage with former Pfizer CEO Ian Read and former CFO Frank D'Amelio. As demand for pharmaceuticals related to the COVID-19 pandemic continues to wane, Pfizer, facing a difficult situation, has begun significant cost-cutting measures. On October 7th, in early US trading, Pfizer rose by 4.4% at one point, reaching a high of $29.84, and ultimately closed up 2.17% at $29.2. On the monthly chart, Pfizer's stock price has been fluctuating around the $30 psychological level since October 2023.

【Major Bank Ratings】

Jefferies: Downgrades Apple (AAPL.US) from "Buy" to "Hold" with a target price of $205, citing "overly high" expectations for the iPhone