Overnight U.S. Stocks | Three major indices closed lower, Tesla fell 6%, and the U.S. dollar index rose to its highest level in nearly 4 months

According to Zhitong Finance, on Tuesday, the three major indices closed lower, with the S&P 500 ending a four-day streak of gains. Bitcoin briefly broke through the $90,000 mark. The dollar index rose to its highest level in four months, putting pressure on gold prices, which fell to a nearly two-month low. COMEX December gold futures closed down 0.53% at $2,604.00 per ounce.

[U.S. Stocks] At the close, the Dow Jones Industrial Average fell 382.15 points, a decrease of 0.86%, to 43,910.98 points; the Nasdaq Composite fell 17.36 points, a decrease of 0.09%, to 19,281.40 points; the S&P 500 index fell 17.36 points, a decrease of 0.29%, to 5,983.99 points. Nvidia (NVDA.US) rose 2%, Tesla (TSLA.US) fell 6%, and Trump Media & Technology Group (DJT.US) fell 8.8%. The Nasdaq China Golden Dragon Index closed down 4.45%, Alibaba (BABA.US) fell 3.8%, and XPeng (XPEV.US) fell 10%.

[European Stocks] The German DAX 30 index fell 414.09 points, a decrease of 2.13%, to 19,036.75 points; the UK FTSE 100 index fell 100.11 points, a decrease of 1.23%, to 8,025.08 points; the French CAC 40 index fell 199.90 points, a decrease of 2.69%, to 7,226.98 points; the Euro Stoxx 50 index fell 108.78 points, a decrease of 2.24%, to 4,745.25 points; the Spanish IBEX 35 index fell 207.28 points, a decrease of 1.79%, to 11,386.00 points; the Italian FTSE MIB index fell 726.83 points, a decrease of 2.12%, to 33,617.00 points.

[Asia-Pacific Stock Markets] The Nikkei 225 index fell 0.4%, the Jakarta Composite Index in Indonesia rose 0.76%, and the KOSPI index in South Korea fell 1.94%.

[Foreign Exchange] The dollar index rose to its highest level since November 2022 on Tuesday, pushing the euro down to its lowest level in a year, with other currencies also under pressure. The yen and the Canadian dollar also fell, approaching key psychological levels. Since Trump's re-election, with the Republican Party expected to sweep both houses of Congress, strategists across Wall Street have unified in their bullish outlook on the dollar. According to recent strategy reports, JP Morgan, Goldman Sachs, and Citigroup all expect the dollar to rise further from its current levels.

[Cryptocurrency] Bitcoin briefly broke through $90,000, setting a new historical high. Ethereum fell over 3.2%, trading at $3,261 per coin.

[Crude Oil] The price of West Texas Intermediate (WTI) crude oil futures for December delivery on the New York Mercantile Exchange rose by $0.08, an increase of 0.1%, closing at $68.12 per barrel.

[Gold] COMEX gold futures fell 0.53%, trading at $2,604.00 per ounce, with intraday trading between $2,633.40 and $2,595.70.

[Metals] London metals fell, with copper down 1.69%, aluminum down 0.35%, zinc down over 1%, and nickel down 0.58% [Macroeconomic News]

New York Fed: Inflation expectations slightly decline, labor market expectations improve. The Microeconomic Data Center of the Federal Reserve Bank of New York released the October 2024 Consumer Expectations Survey, showing that the one-year inflation expectation in the U.S. for October dropped to 2.87%, a four-year low. The one-year inflation expectation in the U.S. for October fell to 2.87%, the lowest since October 2020; the previous value was 3.00%. The median of inflation uncertainty for three-year and five-year expectations has decreased. The median expectation for the unemployment rate to rise in the next year has dropped to 34.5%, the lowest since February 2022. Data shows that households have slightly lowered their inflation expectations for the short, medium, and long term, and labor market expectations have improved, reporting lower unemployment rates and unemployment risks. Households surveyed indicated that the likelihood of finding a job after being laid off has increased. The outlook on credit access improved in October, and expectations for future credit access have also risen. Households reported a decreased likelihood of failing to make minimum debt payments on time in the next three months.

Bridgewater: Holding U.S. stocks is a "good thing," expects strong economic growth during Trump's term. Bridgewater Associates Co-Chief Investment Officer Karen Karniol-Tambour stated on Tuesday that holding U.S. stocks is a "good thing," and she expects strong economic growth during President Trump's term. Karniol-Tambour noted that the outlook for U.S. economic growth is driving the stock market higher, despite the 10-year U.S. Treasury yield rising to a four-month high after Trump's victory in the presidential election on November 5. She said, "We may still have room for growth, even in the face of tariffs, and there are many unknown factors." Since Trump won the election, the S&P 500 index has risen nearly 5%.

Apollo Co-President: Don't listen to what the Fed says about inflation, keep your eyes wide open. Scott Kleinman, Co-President of Apollo Global Management, warned the market not to be overly complacent about the current trajectory of inflation and interest rates in the U.S. "Inflation is not being contained," Kleinman stated in an interview on Tuesday, "The Fed can say whatever it wants, but you need to keep your eyes wide open and take a good look. Besides the potential impact of Trump's policies, inflationary pressures have already formed due to global trends such as digital infrastructure development and decarbonization, and we will have to endure a higher interest rate environment for a longer time."

Wall Street year-end bonuses rise for the first time in three years, debt sales are the big winners. On November 12, Eastern Time, compensation consulting firm Johnson Associates released a report indicating that Wall Street bonuses are expected to rise broadly this year, marking the first comprehensive increase since 2021. This expected growth covers investment bankers, traders, and professionals in asset management and wealth management, whose year-end bonuses are expected to achieve double-digit growth, especially for bankers involved in debt sales, whose bonuses are expected to increase significantly, by as much as 35%, due to increased trading activity and a rebound in capital markets Dollar Rises to Two-Year High, Wall Street Bullish. The dollar index rose to its highest level since November 2022 on Tuesday, pushing the euro down to its lowest in a year, with other currencies also under pressure. The yen and the Canadian dollar also fell, approaching key psychological levels. Since Trump's re-election, with the Republican Party expected to sweep both houses of Congress, strategists across Wall Street have unified in their bullish outlook on the dollar. According to recent strategy reports, JP Morgan, Goldman Sachs, and Citigroup all expect the dollar to rise further from its current levels.

Federal Reserve's Barkin: Fed Capable of Responding to Economic Changes. Federal Reserve's Barkin stated that the economic conditions are good, allowing the Fed to lower borrowing costs. "Strong but more selective consumers, combined with a more productive and higher-value workforce, make for a very favorable economic situation," Barkin said in prepared remarks for a speech at the Baltimore Joint Summit on Tuesday. "Regardless of how the economy develops, the Fed has the capacity to respond appropriately," he noted, adding that interest rates have moved away from their peak but remain above historical lows. Barkin mentioned he is considering two scenarios for the economy: as election uncertainties fade, businesses may begin to reinvest and hire again, allowing the Fed to focus on inflationary risks. Alternatively, businesses may respond to weakened pricing power by laying off workers, which would increase the employment risks faced by the Fed.

【Stock News】

Boeing (BA.US) States It Will Take Weeks to Fully Resume Production After Strike. On November 12, local time, Boeing announced that it would take several weeks to fully resume aircraft production due to factory workers returning to work after nearly two months of striking. A Boeing spokesperson stated that the delays in resuming work at the Washington and Oregon factories are due to the multiple steps required to restart production. Each employee will be informed of their responsibilities and safety requirements upon returning, and the company will ensure that training certifications are up to date. The strike was reportedly due to a breakdown in contract negotiations between Boeing and its labor force. Boeing employees voted against the proposed wage plan in mid-September, leading to approximately 33,000 employees going on strike. Last week, employees voted to accept Boeing's contract offer and returned to work before November 12. Reports indicate that the strike halted production of the Boeing 737 Max, 777, and 767 models.

Meta (META.US) Cuts Facebook and Instagram Subscription Fees in the EU by 40%. Meta announced today significant changes to Facebook and Instagram in the EU, including a 40% reduction in the price of its ad-free subscription. Meta stated that users in the EU can choose to subscribe to an ad-free experience or continue using its services for free. Free users can opt to see less personalized advertising. Meta indicated that despite its efforts to comply with EU regulations, it continues to receive additional demands from regulators that exceed legal requirements. Meta will offer "less personalized ads" as a concession to the EU. Starting today, Meta will reduce the monthly subscription price on the web from €9.99 (approximately ¥76.9) to €5.99 (approximately ¥46.1), or on iOS and Android from €12.99 (approximately ¥100) to €7.99 (approximately ¥61.5) For each additional Facebook or Instagram account, a fee of 4 euros (approximately 30.8 RMB) will be charged on the web, and 5 euros (approximately 38.5 RMB) will be charged on iOS and Android.

【Major Bank Ratings】

Morgan Stanley: Raised the target price for Dell (DELL.US) from $136 to $154 and maintained an "Overweight" rating, citing an increase in sales of the company's artificial intelligence servers