Overnight U.S. stocks | Three major indices closed lower, Tesla fell 5.77%

According to Zhitong Finance, on Thursday, the three major indices closed lower. Federal Reserve Chairman Jerome Powell stated that there is no need to rush to cut interest rates, suggesting that a rate cut may not occur in December.

【U.S. Stocks】 As of the close, the Dow Jones Industrial Average fell 207.33 points, a decrease of 0.47%, closing at 43,750.86 points; the Nasdaq Composite fell 123.07 points, a decrease of 0.64%, closing at 19,107.65 points; the S&P 500 index fell 36.21 points, a decrease of 0.60%, closing at 5,949.17 points. Tesla (TSLA.US) fell 5.77%, NVIDIA (NVDA.US) rose 0.33%, Microsoft (MSFT.US) rose 0.4%, and Apple (AAPL.US) rose 1.38%.

【European Stocks】 The German DAX 30 index rose 287.56 points, an increase of 1.52%, closing at 19,264.65 points; the UK FTSE 100 index rose 39.60 points, an increase of 0.49%, closing at 8,069.93 points; the French CAC 40 index rose 94.97 points, an increase of 1.32%, closing at 7,311.80 points; the Euro Stoxx 50 index rose 93.71 points, an increase of 1.98%, closing at 4,834.05 points; the Spanish IBEX 35 index rose 143.66 points, an increase of 1.26%, closing at 11,520.76 points; the Italian FTSE MIB index rose 659.48 points, an increase of 1.96%, closing at 34,367.00 points.

【Asia-Pacific Stock Markets】 The Nikkei 225 index fell 0.48%, the Jakarta Composite Index in Indonesia fell 1.29%, and the KOSPI index in South Korea saw a slight increase.

【Cryptocurrency】 Bitcoin briefly surged above $90,000, setting a new historical high, and has risen nearly 30% since the U.S. election day. After Trump reclaimed the White House last week, investors bet 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.

【Gold】 COMEX gold futures fell 0.59%, closing at $2,571.20 per ounce; spot gold fell 0.25%, closing at $2,566.54 per ounce. Adam Button, an analyst at financial website Forexlive, stated that the gold market had previously priced in the uncertainty of the U.S. election, but when the results became clear, gold prices plummeted and have remained defensive since. Gold fell to $2,537 on Thursday, marking the fifth consecutive day of decline, and did find some support there, with this low point nearly matching the highs from August. The rebound in gold prices coincided with some buying of bonds and selling of Trump trades. Additionally, the Asia-Pacific stock markets are also retreating, and further declines may prompt people to buy gold again.

【Crude Oil】 The price of West Texas Intermediate (WTI) crude oil futures for December delivery rose by $0.27, an increase of 0.39%, closing at $68.70 per barrel. Year-to-date, this futures contract has fallen about 4%; January Brent crude oil futures rose by $0.28, an increase of 0.39%, closing at $72.56 per barrel. Year-to-date, this futures contract has fallen about 6% [Metals] Most London metals fell, with London copper rising 0.16%, London nickel falling 0.2%, London aluminum falling 0.28%, and London zinc falling over 1.1%.

[Macroeconomic News]

U.S. Initial Jobless Claims Decrease, Indicating Stability in the Job Market. The U.S. Department of Labor reported on Thursday that for the week ending November 9, initial jobless claims decreased by 4,000 to a seasonally adjusted 217,000, compared to market expectations of 223,000. This decline suggests that the U.S. job market continues to remain stable, and the sudden slowdown in job growth in October was merely an anomaly. The number of people applying for unemployment benefits surged in early October due to the impacts of hurricanes "Helen" and "Milton" and a strike by Boeing factory workers. However, layoffs remain at historically low levels, supporting the economy. Lou Crandall, chief analyst at Wrightson ICAP, stated, "Although many employment-related indicators show a significant softening in the job market this year, this change has yet to affect unemployment insurance data." While regions severely impacted by Hurricane Helen may take some time to recover, economists are optimistic that with the end of the Boeing strike, job growth in November will regain momentum, allowing the aircraft manufacturer to lift the rotating layoffs implemented to conserve cash.

U.S. PPI Rose 0.2% Month-on-Month in October, In Line with Expectations. According to the U.S. Bureau of Labor Statistics, the Producer Price Index (PPI) for final demand rose 0.2% month-on-month in October, following a 0.1% increase in the previous month. The median estimate was a growth of 0.2%, with predictions from 51 economists ranging from a decline of 0.1% to an increase of 0.4%; the year-on-year final demand PPI increased by 2.4%, compared to an expected growth of 2.3%; the year-on-year final demand PPI excluding food and energy rose by 3.1%, compared to an expected increase of 3%; the month-on-month final demand PPI excluding food and energy rose by 0.3%, compared to an expected growth of 0.2%; the month-on-month final demand PPI excluding food, energy, and trade services rose by 0.3%, with a year-on-year increase of 3.5%.

Powell: The Federal Reserve Does Not Need to "Rush" to Cut Rates. Federal Reserve Chairman Powell stated that due to the strong U.S. economy, the Federal Reserve does not need to "rush" to lower interest rates, and the Fed will "carefully observe" to ensure that certain inflation indicators remain within acceptable ranges. Powell reiterated that the path of the Fed's policy interest rate will depend on upcoming data and the evolution of the economic outlook. He noted that inflation is approaching the Fed's 2% target but has not yet been reached. The Fed will closely monitor core inflation indicators for goods and services excluding housing, which have been declining over the past two years. "We expect these indicators to continue to fluctuate within a recent range, and the path to the Fed's 2% target can be bumpy at times."

Speculative Frenzy in Bitcoin Shows Signs of Cooling in the Futures Market. K33 Research indicated that the premium of Bitcoin futures contracts on the Chicago Mercantile Exchange (CME) relative to spot market prices has decreased. According to data from crypto tracking company Amberdata, open contracts for put options with an exercise price of $80,000 surged in the past 24 hours. Vetle Lunde, head of research at K33, stated, "The market seems to be cooling down, with the premium of the CME benchmark contract declining since yesterday's close." The overall hovering around 10%, below the 13%-16% since the U.S. elections, may be a subtle indication of easing risk conditions. The liquidation of bullish bets in the entire cryptocurrency market has contributed to Bitcoin's retreat from its record high. According to data compiled by Coinglass, in the past 24 hours, the liquidation amount of long positions was twice that of short positions, at $447 million and $207 million, respectively.

Federal Reserve Governor Kugler: Both inflation and employment targets must be monitored simultaneously. Federal Reserve Governor Adriana Kugler stated that policymakers must focus on both the Fed's inflation and employment targets, as the labor market is currently cooling and the progress towards the 2% inflation target is slowing. In a written statement on Thursday, Kugler noted that the trend of slowing inflation coinciding with a cooling labor market means that both aspects of the dual mandate cannot be ignored. She stated, "If there are any risks that hinder progress or accelerate inflation again, then pausing rate cuts would be appropriate, but if the labor market suddenly slows, then continuing to gradually lower the policy rate would be appropriate." When asked if she had set a higher threshold for continuing rate cuts, Kugler said she could only emphasize the need to monitor both types of risks. "What I want to say is that we need to continue to focus on the two pillars of our mission."

U.S. money market fund assets exceed $7 trillion for the first time. According to data from Crane Data, which has long studied the money market fund sector, as of the week of November 13, the assets managed by U.S. money market funds increased by approximately $91 billion, surpassing $7 trillion for the first time, marking a milestone for the industry. The sector's popularity among investors has surged due to high and reliable yields. Before crossing the $7 trillion mark, U.S. money market assets had been setting historical highs for several months, countering doubts about whether the sector could remain popular as Federal Reserve officials lowered interest rates from a 20-year high. Following a 50 basis point rate cut in September and a 25 basis point cut this month by U.S. policymakers, investors continued to flock to money market funds, primarily because the yields of these funds are higher than other instruments—especially bank deposits. Compared to banks, these funds tend to transmit the impact of low interest rates more slowly.

[Individual Stock News]

Buffett's latest holdings: Building positions in pizza stocks, reducing holdings is the main theme. The 13F filing shows that Buffett's Berkshire Hathaway initiated a position of 1.27 million shares in Domino's Pizza and 400,000 shares in Pool Corp in the third quarter. As previously announced, he reduced his holdings in Apple (AAPL.US) by 100 million shares, bringing the holding ratio down to 26.24%. He also reduced holdings in First Capital Credit, Nu Holdings, and Charter Communications. He completely exited Floor & Decor and Liberty Sirius XM, and nearly exited Ulta Beauty. Aside from a slight increase in Haikou Aviation, there were no additional purchases. As of the end of the third quarter, the total market value of Berkshire Hathaway's holdings decreased from $280 billion to $266 billion BlackRock Q3 aggressively buys Apple, continues to increase holdings in the "Seven Giants." The 13F filing shows that asset management giant BlackRock continued to increase its holdings in the U.S. tech "Seven Giants" in the third quarter, including adding 43.4 million shares of Apple (AAPL.US), 7.5 million shares of Microsoft (MSFT.US), 12.35 million shares of NVIDIA (NVDA.US), 18.55 million shares of Amazon (AMZN.US), 980,000 shares of Meta Platforms (META.US), 4.66 million shares of Tesla (TSLA.US), and 6.21 million shares of Google A+C; it reduced its holdings in Eli Lilly (LLY.US) by 1.51 million shares. Additionally, BlackRock increased its holdings in Berkshire Hathaway (BRK.B.US) by 2.59 million shares. As of the end of the third quarter, BlackRock reported a portfolio value of $4.76 trillion, up from $4.42 trillion previously.

Tesla (TSLA.US) supports Trump's plan to eliminate U.S. electric vehicle tax credits. Sources indicate that as part of broader tax reform legislation, Trump's transition team is planning to eliminate the $7,500 electric vehicle tax credit, and Tesla representatives also support the termination of the subsidy. The repeal of this subsidy, which is a key component of Biden's Inflation Reduction Act, would significantly impact the adoption of electric vehicles in the U.S. Due to high car prices and inconsistent charging infrastructure, the adoption rate of electric vehicles in the U.S. has already declined. Trump previously stated that he would reverse Biden's electric vehicle policies on his first day in office.

Ford (F.US) fined $165 million by the U.S. for failing to timely recall defective vehicles. The National Highway Traffic Safety Administration announced that Ford Motor Company has agreed to pay a civil penalty of $165 million. This follows a government investigation that found the automaker failed to timely recall vehicles with rearview camera defects. Ford will pay $65 million in cash, invest $45 million in advanced data analysis, new testing facilities, and other projects, and an additional $55 million will be deferred pending Ford's compliance with the agreement.

EU accuses Meta (META.US) of abusing market dominance, fines nearly €800 million. The European Commission stated in a press release on Thursday that it has fined Meta Platforms (META.O) €797.72 million (approximately $840.24 million) for abusing its dominance in Facebook Marketplace. Meta stated it would appeal the decision, but in the meantime, the company will comply with the penalty and will quickly undertake constructive work to implement solutions to address the issues raised. Two years ago, the European Commission accused the U.S. tech giant of bundling its classified ad service Facebook Marketplace, giving it an unfair advantage. The EU formally launched an investigation into Meta's potential anti-competitive behavior in June 2021 and expressed concerns in December 2022 about the company's linking of its dominant social network Facebook with its online classified ad service