Breakfast | NVIDIA rises more than 4% to hit a new high, approaching Apple in market value! Wall Street fully bets on "Trump trade"

Overnight Market Overview

The US stock market saw mixed movements, with the S&P 500 and Dow Jones moving away from their highs, while the Nasdaq rose. The Russell small-cap stocks fell by 1.6%. NVIDIA surged over 4% to a new high, approaching Apple's market value. Apple closed up 0.63%, also hitting a new closing high of $236.48, with a market cap of $3.6 trillion.

Most US stock industry ETFs closed lower. Semiconductor ETFs, technology industry ETFs, and global technology stock ETFs all rose by about 0.5%. However, regional bank ETFs and banking industry ETFs each fell by nearly 3%, biotechnology index ETFs and healthcare industry ETFs each fell by over 1%, and daily consumer goods ETFs, financial industry ETFs, and consumer discretionary ETFs all fell by nearly 1%.

Chip stocks saw mixed movements. After falling by 1.2%, the Philadelphia Semiconductor Index turned around to close up by 0.13% at 5215.21 points, while the industry ETF SOXX fell by 0.19%. NVIDIA's double long ETF rose by 8.25%. AMD rose by 1.24%, TSMC ADR rose by 0.58%, Intel rose by 0.31%, Broadcom rose by 0.06%, Arm Holdings fell by 0.44%, and Micron Technology fell by 1.86%.

Among popular Chinese concept stocks, Baidu fell by 2.93%, New Oriental fell by 2.52%, Vipshop fell by 1.96%, Tencent Holdings ADR fell by 1.64%, Mengniu Dairy ADR fell by 1.8%, Nio fell by 1.53%, Alibaba fell by 1.48%, ZEEKR fell by 1.39%, NetEase fell by 1.37%, Trip.com fell by 1.22%, and JD.com fell by 0.75%. On the other hand, Li Auto rose by 0.04%, Pinduoduo rose by 0.19%, XPeng rose by 3.15%, Fangdd rose by 5.17%, Tiger Brokers rose by 3.05%, and Bilibili rose by 0.35%.

Maersk ADR rose by 3.29%, once again raised its 2024 performance guidance, the Red Sea situation pushed up freight rates, and third-quarter performance exceeded expectations.

Boeing rose by 3.11% as the company reached a temporary agreement with the union on a new contract, which, if approved by the workers, could end the strike.

Spirit Airlines surged by 53.06% as the company reached an agreement with US Bank to extend the deadline for the 2025 notes to December 23, providing more time for refinancing the 2025 debt.

Individual Stock News

NVIDIA Surges Over 4%, Market Value Approaching Apple, Wall Street Firmly Bullish

Despite NVIDIA's stock price falling after ASML's earnings report last Tuesday, and concerns in the market about a slowdown in AI spending, TSMC subsequently released a strong outlook, coupled with optimistic views from several Wall Street analysts on Blackwell's demand, believing that NVIDIA's stock price is not expensive at all. NVIDIA has recently hit new highs consecutively. NVIDIA's next test will be Tesla's earnings report released after the US market closes this Wednesday. The upcoming earnings reports of Microsoft, Amazon, Google's parent company Alphabet, and Meta will also significantly impact NVIDIA's stock performance.

Apple Stock Price Hits New High

However, there are reports that Apple's AI technology is considered to be more than two years behind industry leaders by internal employees. While the initial features of Apple Intelligence are practical, they are not impressive enough, especially compared to products from Google, OpenAI, and Meta. In addition, research shows that ChatGPT is 25% more accurate than Apple's Siri and can answer 30% more questions.

Disappointing Robotaxi launch, can Tesla regain market confidence with this week's financial report?

Analysts predict that Tesla's profit improvement prospects are not great, with the gross profit margin possibly further declining. The timing of the launch of affordable models, progress on FSD, Robotaxi financing, and detailed progress on mass production are all key points to watch during the conference call.

Microsoft launches 10 new AI agents to compete with Salesforce

Microsoft announced on Monday that it has introduced ten new autonomous agents in Dynamics 365. These tools can understand how to work on their own without human instruction and can use existing work data in the company to improve the efficiency of various teams and reduce repetitive work. These AI applications can be customized through Copilot Studio and are expected to start public testing next month. Microsoft stated that these tools are an upgraded version of the generative AI Copilot, and several software companies like Salesforce have announced similar AI features.

Exceptionally strong demand for AI, Marvell to raise prices across the board starting next year, stock price briefly rises by 3.8%

Analysis suggests that Marvell's price increase, seen as the beginning of price hikes in the optical communication field, reflects the high market demand and confirms NVIDIA CEO Jensen Huang's previous statement that "market demand is exceptionally crazy."

Musk's xAI releases its first API, pricing "boldly," hinting at new model integrations

xAI's API supports function calls and can connect the flagship generative AI model Grok to external tools such as databases and search engines. Some netizens have commented that it is "aimed at completely changing AI interactions on X." Currently, there is only one model available in the API, with potential future visual models for analyzing text and images.

Strong demand for enterprise AI, software giant SAP's cloud revenue up by 25% in the third quarter, raising full-year guidance

SAP's strong growth in cloud revenue in the third quarter is driven by a 34% increase in cloud ERP suite revenue. SAP still expects cloud revenue to increase by up to 27% for the full year, raising guidance for cloud and software revenue for the year, expecting a 10% to 11% increase. SAP stated that its restructuring plan affected up to 10,000 positions, with many covered by internal leave and retraining, incurring related costs of 2.8 billion euros in the first nine months of this year, accounting for 93% of the estimated total costs. SAP's US stock briefly rose by over 4% after hours.

Macro News

China's "interest rate cut," LPR lowered by 25BP, the largest single cut in history.

The 1-year LPR is 3.10%, and the LPR for 5 years and above is 3.60%. Analysis believes that the LPR cut is in line with the current macro policy direction and is a key link in transmitting the "forceful interest rate cut" by the central bank to the real economy

Goldman Sachs, JP Morgan, Deutsche Bank, and others collectively speak out, Wall Street fully bets on "Trump trade"

Similar to 2016, the recent main driving force behind the market rally comes from regional banks, large banks, and the energy sector. Deutsche Bank believes that the market expectations difference between Trump and Harris is mainly reflected in the foreign exchange market. If Trump wins, the US dollar will strengthen. However, the market volatility brought by a red sweep may be greater.

Multiple Fed officials speak out, supporting gradual rate cuts, long-term US Treasury bonds plummet

Dallas Fed President Logan, Minneapolis Fed President Kashkari, and Kansas Fed President Schmid all support gradual rate cuts, slowing down the pace of the significant rate cut in September. Market expectations for rate cuts next year have decreased, leading to a sharp rise in US Treasury bond yields