Breakfast | Chinese concept stocks surged across the board! Super Micro Computer plummeted 12%, dragging down NVIDIA

Market Overview

Overall, the US economic data is positive, stabilizing the market's bet on a soft landing. Although the Nasdaq and S&P briefly turned downward during the trading session, the Dow approached its highest level, and the S&P hit a new high.

Tech stocks boosted the US market, with the chip index rising by 3.5%. Micron Technology surged by 20% at one point, marking its best performance in thirteen years. Super Micro Computer fell by 18.6% but recovered by over 12% by the close, dragging down major client NVIDIA, which initially rose by over 3% in early trading, then turned downward before ending slightly higher.

China's "policy gift package" sparked a luxury stock frenzy, with European luxury stocks LVMH, Kering Group, and Hermes surging by nearly 10%.

Chinese concept stocks soared. The Nasdaq Golden Dragon China Index closed up by 10.85%, marking the largest single-day increase in 2022 at 6958.10 points. In ETFs, the China Technology Index ETF (CQQQ) rose by 9.68%. The China Internet Index ETF (KWEB) rose by 11.55%. The FTSE China 3x Bull ETF (YINN) rose by 23.55%, while the FTSE China 3x Bear ETF (YANG) fell by 23.13%.

Among popular Chinese concept stocks, Bilibili rose by over 15%, Fangdd doubled, Gaotu Techedu surged by over 27%. Mengniu Dairy ADR rose by 15.22%, JD.com rose by 14.39%, New Oriental rose by 14.16%, Pinduoduo rose by 13.57%, Meituan ADR rose by 12.86%.

Nio rose by 2.3%, Li Auto rose by 6.73%, ZEEKR rose by 4.92%, XPeng rose by 11.89%, Vipshop rose by 10.4%, Trip.com rose by 10.96%, NetEase rose by 4.88%, Alibaba rose by 10.07%, Baidu rose by 0.09%, Tencent Holdings ADR rose by 9.29%, Miniso rose by 10.21%.

The Political Bureau of the CPC Central Committee held a meeting to analyze and study the current economic situation and economic work

The meeting emphasized the need to increase the counter-cyclical adjustment of fiscal and monetary policies, ensure necessary fiscal expenditures, and effectively carry out grassroots "three guarantees" work. Efforts should be made to stabilize the real estate market, strictly control the increment of commercial housing construction, optimize the existing stock, improve quality, increase the lending for "white-listed" projects, and support the revitalization of idle land.

Wall Street tycoon David Tepper: Strongly betting on Chinese stocks, buying everything, not fond of US stocks

Tepper has become one of the well-known long investors in Chinese stocks among hedge fund investors. He stated that Chinese stocks are much cheaper than US stocks, and he may double the investment limit for Chinese stocks. According to last month's 13F filing, Chinese stocks and ETFs accounted for 26% of his fund's stock investment portfolio. Tepper mentioned that China's easing policies have exceeded his expectations, and he has already bought almost all major Chinese tech stocks.

Reports suggest that the US Department of Justice is investigating Super Micro Computer, causing its stock price to plummet by 18% and triggering multiple circuit breakers, while NVIDIA initially rose by over 3% in early trading before turning downward

Regarding the short-term plunge in NVIDIA's stock price, some social media users mentioned that NVIDIA's third-largest client, Super Micro Computer, is under investigation by the Department of Justice for "accounting irregularities," making it hard not to associate negative news with NVIDIAThe U.S. Department of Justice is seeking information from a whistleblower who accused Super Micro Computer and its CEO of accounting irregularities in April.

Tesla's crucial October is coming, and the market can't wait

In October, Tesla will release its third-quarter delivery data and financial report, and officially launch Robotaxi. Currently, Tesla's trading volume accounts for 17% of all options trading on the S&P, surpassing NVIDIA.

Guo Mingchi: Meta AR glasses Orion to be mass-produced as early as 2027, aiming to replace phones and computers

Guo Mingchi stated that Meta's internal product roadmap indicates that Orion could be mass-produced as early as 2027. Before the official mass production of Orion, Meta may first launch a lower-spec version. Orion is positioned to replace smartphones and tablets, with its main selling point being the integration of AI technology and spatial computing.

Americans are more cautious in spending: Costco favored by the middle class, last quarter's profit exceeded expectations but revenue fell short, dropping more than 1% after hours

Costco's fourth-quarter revenue growth exceeded expectations but slowed down, with growth slowing from over 9% in the previous quarter to less than 1%. EPS growth slowed to 8.8%, still stronger than expected; same-store sales growth in the quarter slowed to 5.4%, foot traffic increased by 6.4%, but customer spending decreased by 0.9%. Before implementing the first membership fee increase in seven years this month, the renewal rate of U.S. and Canadian members in the fourth quarter was nearly 93%, and the impact of the fee increase remains to be seen.

Harris plans to "revitalize American manufacturing"

Harris plans to provide funding for a $100 billion tax credit over the next decade by increasing taxes on U.S. companies' overseas earnings. This tax credit plan will invest billions of dollars in American manufacturing, aiming to stimulate next-generation industries critical to economic development and national security, including biotechnology, aerospace, artificial intelligence, quantum computing, and traditional industries such as iron and steel.

U.S. actual GDP for the second quarter grew at an annualized rate of 3%, exceeding expectations

The core PCE price index was 2.8%, lower than the initial value. GDP adjusted for the period from the second quarter of 2020 to 2023 was significantly revised upwards, with last year's GDP growth rate revised from 2.5% to 2.9%.

The number of initial jobless claims in the U.S. fell to 218,000 last week, approaching a decades-low level

Despite rising unemployment rates and a slowdown in job creation, the number of initial jobless claims has remained at a low level in recent months. Economists attribute this to eligible workers not losing their jobs.

U.S. durable goods orders in August plummeted from 9.8% to 0% month-on-month, dragged down by a decrease in commercial aircraft orders

Commercial equipment orders in U.S. factories only rose slightly in August. Companies continue to limit investment in production equipment until after the election and further declines in borrowing costs