Overnight US Stocks | Three major indices show mixed movements, NVIDIA hits a new all-time high, the US dollar rises for the first time since early August by 104 points

According to Zhitong Finance, on Monday, the three major indices closed with mixed results. NVIDIA (NVDA.US) surged over 4%, reaching a historical high. Several Federal Reserve officials support a gradual interest rate cut, leading to an 11 basis point increase in the 10-year U.S. Treasury yield. For the first time since early August, the U.S. dollar rose above 104.

[U.S. Stocks] At the close, the Dow Jones fell by 344.31 points, or 0.80%, to 42931.60 points; the Nasdaq rose by 50.45 points, or 0.27%, to 18540.01 points; the S&P 500 fell by 10.69 points, or 0.18%, to 5853.98 points. Spirit Airlines (SAVE.US) surged by 53.06% after reaching a debt refinancing extension agreement with Bank of America (BAC.US).

[European Stocks] The German DAX30 index fell by 201.06 points, or 1.02%, to 19456.95 points; the UK's FTSE 100 index fell by 40.19 points, or 0.48%, to 8318.06 points; the French CAC40 index fell by 76.82 points, or 1.01%, to 7536.23 points; the Euro Stoxx 50 index fell by 45.52 points, or 0.91%, to 4940.75 points; the Spanish IBEX35 index fell by 79.40 points, or 0.67%, to 11845.80 points; the Italian FTSE MIB index fell by 235.26 points, or 0.67%, to 34969.00 points.

[Asia-Pacific Stock Markets] The Nikkei 225 index slightly declined, the Jakarta Composite Index in Indonesia rose by 0.16%, and the VN30 index in Vietnam fell by 0.34%.

[Cryptocurrencies] Bitcoin dropped by over 1.7% to $67,751.31 per coin; Ethereum dropped by over 2.5% to $2,674.41 per coin.

[Gold] COMEX gold futures hit a new high during trading but eventually closed up by 0.17% at $2,734.70 per ounce.

[Crude Oil] NYMEX November delivery WTI crude oil futures rose by $1.34, up over 1.93%, to close at $70.56 per barrel. Brent December crude oil futures rose by $1.23, up over 1.68%, to $74.29 per barrel.

[Metals] London metals mostly fell, with nickel down by 1.9%, copper down by 0.61%, zinc down by 0.74%, and aluminum down by 0.65%.

[Macro News]

Fed's Kashkari: Weak job market may mean faster rate cuts. Minneapolis Fed President Kashkari said he expects "modest" rate cuts over the next few quarters, but a sharp deterioration in the job market could prompt him to advocate for faster cuts. Kashkari stated, "If we see real evidence that the job market is rapidly weakening, that would tell me, as a policymaker, that maybe we should be cutting rates faster than I currently anticipate." He believes rates are still acting as a brake on the economy. However, he also noted that the strong performance of the economy during Fed rate hikes and since the rate cut last month suggests that the so-called neutral rate may be higher than in the past Kashkari said, "We hope to maintain a strong labor market and also hope that inflation will fall to the target level of 2%." The appropriate interest rate path will "depend on the data."

Dallas Fed President: Rate cuts in the face of risks should proceed cautiously, liquidity remains very ample. Dallas Fed President Logan once again urged the Fed to be cautious about rate cuts, as there is still uncertainty in the economic environment. Logan delivered a written speech on Monday at the Securities Industry and Financial Markets Association annual meeting, stating that easing monetary policy restrictions would help the Fed balance the risks in achieving stable inflation and maximizing employment. Logan said, "If the economy develops as I currently expect, then gradually lowering policy rates to a more normal or neutral level will help manage risks and achieve our goals. However, any shocks could affect the path to rate normalization, including how quickly policy should proceed and where rates should stabilize." Logan said, "The Federal Open Market Committee needs to remain flexible and be willing to make adjustments at the appropriate time."

Nonpartisan group says Trump's plan will deplete US social security funds faster. A nonpartisan budget watchdog group estimated on Monday that if Trump is re-elected, his policy agenda will deplete Social Security funds three years ahead of schedule, ultimately resulting in a nearly one-third reduction in Social Security benefits. The Committee for a Responsible Federal Budget estimated that Trump's large-scale deportation of undocumented immigrants, imposition of tariffs, and tax cut plans will deplete the Social Security trust funds by 2031 and lead to a 33% reduction in Social Security benefits by 2035 if Congress does not intervene to support it, far exceeding the 23% benefit cut that would occur under current law in ten years. "The trust funds will be exhausted six years after the next president takes office, not nine," the organization wrote.

[Stock News]

Disney Power Transition: Former Morgan Stanley CEO to be appointed Chairman, new CEO to be announced in 2026. Disney (DIS.US) stated on Monday that former Morgan Stanley CEO James Gorman will take over as Disney's new chairman in January next year, succeeding Nike's executive chairman Mark Parker, and the company will appoint a successor to CEO Bob Iger in early 2026. According to sources, Iger's four direct subordinates have all been interviewed by the succession committee in recent weeks. Disney announced on Monday that James Gorman has been appointed to succeed Mark Parker as the company's next chairman, with the appointment taking effect in January next year. This move prepares Disney for the selection of a successor to CEO Bob Iger in early 2026. James Gorman, who joined the Disney board less than a year ago, was appointed chairman of the succession planning committee in August. He will continue to lead the committee while serving as chairman. Gorman has extensive experience in succession planning and previously oversaw a smooth transition of power at Morgan Stanley Bob Iger welcomes Gorman's joining, saying in a statement, "The Disney Board will benefit greatly from James Gorman's expertise and guidance, and we are fortunate to have him as the next chairman, especially as the board continues to advance its succession plan. At the same time, I am very grateful for Mark Parker's years of service and leadership on the board, which has been invaluable to the company, shareholders, and myself as CEO."

SAP's third-quarter non-IFRS revenue exceeds expectations. SAP SE (SAP.US) reported third-quarter non-IFRS revenue of 8.47 billion euros, slightly above analysts' expectations of 8.45 billion euros; non-IFRS cloud revenue was 4.35 billion euros, slightly below analysts' expectations of 4.36 billion euros; and third-quarter non-IFRS cloud/software revenue was 7.43 billion euros, surpassing analysts' expectations of 7.36 billion euros.

Qualcomm launches new smartphone chip with in-house design. Qualcomm announced at an event in Hawaii on Monday that the latest Snapdragon series will include its in-house Oryon processor design. Qualcomm stated that this chip will be 45% faster and more energy-efficient than the previous generation. Qualcomm's decision to shift back to in-house processor design is one of CEO Cristiano Amon's initiatives to increase investment in proprietary technology. Under the previous leadership, the Snapdragon series had increased its reliance on designs from Arm Holdings Plc.

Sequoia Financial Advisors heavily invested in Apple and Microsoft, among others. The 13F report shows that Sequoia Financial Advisors LLC initiated positions in Lumen Technologies and exited positions in Caesars Entertainment in the third quarter. They increased holdings in Apple (AAPL.US), NVIDIA (NVDA.US), Meta (META.US), and reduced holdings in Alphabet Class A. Major holdings include Vanguard Total Stock Market ETF (VTI.US), Vanguard Russell 1000 Growth ETF (VONG.US), Apple, iShares Core MSCI Total International Stock ETF (IXUS.US), and Microsoft (MSFT.US).

【Major Bank Ratings】

JP Morgan: Lowered Baidu's (BIDU.US) target price from $145 to $130