Overnight U.S. Stocks | Three major indices mixed, dollar hits one-year high, Trump Media & Tech down 5%

According to Zhitong Finance, on Wednesday, the three major indices had mixed results. The U.S. October CPI reached a three-month high, reinforcing expectations for a 25 basis point rate cut by the Federal Reserve in December.

【U.S. Stocks】 As of the close, the Dow Jones Industrial Average rose 47.21 points, an increase of 0.11%, closing at 43,958.19 points; the Nasdaq fell 50.66 points, a decrease of 0.26%, closing at 19,230.74 points; the S&P 500 index rose 1.39 points, an increase of 0.02%, closing at 5,985.38 points. Amazon (AMZN.US) rose 2.4%, Trump Media & Tech (DJT.US) fell 5%, and Nvidia (NVDA.US) fell over 1%. The Nasdaq China Golden Dragon Index closed down 1.09%, Zhihu (ZH.US) rose 13%, EHang (EH.US) rose 9%, and Alibaba (BABA.US) rose 0.2%.

【European Stocks】 The German DAX 30 index fell 45.81 points, a decrease of 0.24%, closing at 19,001.75 points; the UK FTSE 100 index rose 5.21 points, an increase of 0.06%, closing at 8,030.98 points; the French CAC 40 index fell 10.15 points, a decrease of 0.14%, closing at 7,216.83 points; the Euro Stoxx 50 index fell 4.94 points, a decrease of 0.10%, closing at 4,739.75 points; the Spanish IBEX 35 index fell 6.80 points, a decrease of 0.06%, closing at 11,375.80 points; the Italian FTSE MIB index rose 103.86 points, an increase of 0.31%, closing at 33,711.00 points.

【Asia-Pacific Stock Markets】 The Nikkei 225 index fell 1.66%, the Jakarta Composite Index in Indonesia fell 0.18%, and the KOSPI index in South Korea fell 2.64%.

【Foreign Exchange】 The U.S. dollar index rose to its highest level since November 2022 on Tuesday, pushing the euro 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 uniformly turned bullish on the dollar. According to recent strategy reports, JP Morgan, Goldman Sachs, and Citigroup all expect the dollar to rise further from its current level.

【Cryptocurrency】 Bitcoin briefly climbed above $90,000, setting a new historical high, and has risen nearly 30% since the U.S. election day. Following Trump's return to the White House last week, investors are betting on a wave of deregulation and cryptocurrency-friendly policies. Dozens of congressional candidates supported by cryptocurrency super PACs won their campaigns, further boosting Bitcoin's momentum.

【Crude Oil】 The price of West Texas Intermediate (WTI) crude oil futures for December delivery on the New York Mercantile Exchange rose by $0.31, an increase of over 0.45%, closing at $68.43 per barrel.

【Metals】 LME copper futures closed down $95, at $9,047 per ton. LME aluminum futures closed down $32, at $2,530 per ton. LME zinc futures closed up $43, at $2,981 per ton. LME lead futures closed down $16, at $2,008 per ton. LME nickel futures closed down $167, at $15,730 per ton LME tin futures fell by $545, closing at $29,663 per ton. LME cobalt futures remained flat, closing at $24,300 per ton.

[Macroeconomic News]

U.S. inflation remains stable for the third consecutive month, largely in line with expectations. A measure of core inflation in the U.S. held firm in October, highlighting the ongoing risks faced by Federal Reserve officials in achieving their inflation targets. Data released showed that the core CPI, excluding food and energy costs, rose by 0.3% for the third consecutive month, with a year-on-year increase of 3.3%. Economists generally believe that core indicators better reflect inflation trends than the overall CPI. The overall CPI, which includes food and energy, rose by 0.2% for the fourth consecutive month last month, with a year-on-year increase of 2.6%, marking the first year-on-year increase since March of this year. The Bureau of Labor Statistics indicated that housing expenses accounted for more than half of the monthly total increase. These data underscore the slow and frustrating nature of the fight against inflation, with inflation often experiencing lateral fluctuations on a broader downward path—sometimes lasting for months. The latest data, combined with strong consumer spending and economic growth, will keep Federal Reserve officials cautious when discussing the pace of interest rate cuts in the coming months.

U.S. household debt reaches record high, low-income residents face financial strain. Data shows that U.S. household debt rose to a new high last quarter, with income increases allowing many consumers to manage their debt, but low-income groups are showing signs of financial stress. According to data from the Federal Reserve Bank of New York, last quarter's increases in mortgages, auto loans, credit cards, and student loans pushed total consumer debt to a record $17.9 trillion.

St. Louis Fed President Musalem: If inflation continues to decline, the Fed will gradually cut interest rates. Musalem stated that the Fed's inflation and employment targets are within reach, but he emphasized that officials should keep policies "moderately restrictive" while price growth remains above the Fed's 2% target. "As long as the inflation rate continues to decline towards 2%, monetary policy is in a favorable position to gradually adjust policy rates towards neutral levels, allowing the inflation rate to return to target levels and supporting full employment," Musalem said in a speech prepared for the Memphis Economic Club on Wednesday. The neutral policy rate is the level of interest rates that neither stimulates nor restrains economic growth. He also mentioned that the central bank can "wisely and patiently" assess future economic data when considering further rate cuts.

OpenAI shares plans for AI data center construction with the U.S. government, calling for expanded energy capacity. According to foreign media reports, OpenAI has shared information with U.S. government officials on how to build an AI data center expected to consume 5 gigawatts of power (five times larger than the data center currently being developed by the company). This concept appears to be similar to "Stargate," a codename for a $100 billion supercomputing data center that OpenAI discussed with its major supporter, Microsoft. OpenAI also called on the federal government to help expand the country's data center energy capacity to maintain its leading edge in the AI field, while suggesting that the government expedite the approval process for AI data centers and develop a "National Transmission Highway Act" to expand energy capacity and support high-cost energy projects through power purchase commitments This reduces the credit risk of such projects, among other things.

U.S. Senator John Thune elected Senate Majority Leader. According to foreign media reports, U.S. Senator John Thune from South Dakota has been elected as the Senate Majority Leader and will lead the Senate Republican caucus in the next session. He won a three-way race in a closed-door vote on Wednesday, successfully succeeding Minority Leader Mitch McConnell. In the Senate, given that the Republican Party holds a majority with 53 seats, Thune will have some operational space. The 63-year-old Thune has not committed to setting term limits for the caucus leadership position, which means he is likely to hold this position for several years to come. He will not face re-election until 2028, and South Dakota is a solid "red state" (a state that leans Republican).

【Stock News】

Nvidia (NVDA.US) to collaborate with SoftBank Group to create Japan's strongest supercomputer. Nvidia will collaborate with SoftBank Group to create Japan's strongest supercomputer and promote a new type of telecommunications network capable of running AI tasks and providing 5G services simultaneously. On November 13, at the AI summit hosted by Nvidia in Japan, Nvidia announced a series of collaborations with SoftBank's telecommunications subsidiary aimed at accelerating Japan's sovereign AI development plan. The two companies will use Nvidia's latest Blackwell chips to jointly build Japan's most powerful AI supercomputer.

Tesla (TSLA.US) to recall some 2024 Cybertruck vehicles. The U.S. National Highway Traffic Safety Administration (NHTSA) disclosed on November 13 that Tesla (TSLA.US) will recall 2,431 units of the 2024 Cybertruck due to a fault in the drive inverter that may cause the wheels to lose drive power. This recall involves certain 2024 Cybertruck vehicles produced between November 6, 2023, and July 30, 2024, which are equipped with or were previously equipped with metal-oxide semiconductor field-effect transistors in their drive inverters