Breakfast | Trump trade retreat: Tesla falls 6%, DJT drops 9%, only Bitcoin briefly breaks through $90,000

Overnight Market Overview

After the U.S. election day, the S&P 500 and Nasdaq fell for the first time, ending a five-day winning streak, while the Dow Jones closed near its daily low.

Trump-related stocks led the decline, with the Russell small-cap index, seen as a potential beneficiary of Trump's return to the White House, dropping 1.77%. Trump Media's DJT fell nearly 9%. Bitcoin was one of the few Trump trades that had not yet receded, breaking through $90,000 during the session, reaching a new high.

Most of the "Tech Seven Sisters" rose, but Tesla fell 6.1%, and the closed-end fund related to Musk, DXYZ, dropped 28.35%. Google A rose 0.7%. Amazon rose 1.02%, as its subsidiary AWS is negotiating a deal to supply services related to NVIDIA GPUs to IBM, with both parties expected to reach a $475 million AI cloud agreement. "Metaverse" Meta rose 0.28%, and Microsoft rose 1.25%. Apple closed flat, with plans to launch smart home devices with AI capabilities as early as March next year. NVIDIA rose 2.1%.

Among popular Chinese concept stocks, XPeng fell 10.65%, Tiger Brokers fell 10.16%, Nio fell 9.49%, ZEEKR fell 8.32%, JD.com fell 7.48%, Bilibili fell 7.34%, Miniso fell 7.09%, Li Auto fell 7.07%, Meituan ADR fell 6.44%, Trip.com fell 3.99%, Baidu fell 3.94%, Alibaba fell 3.81%, New Oriental fell 3.13%, Fangdd fell 3.11%, Pinduoduo fell 2.86%, Daqo New Energy closed flat, while NetEase rose 1.11%.

Wall Street Raises Target Price Ahead of NVIDIA Earnings Report

Analysts generally believe that the development of AI applications is still in its early stages, and the Blackwell cycle will continue to drive NVIDIA's performance upward. Morgan Stanley expects that the new Blackwell product line is expected to boost the company's revenue in the January quarter, with sales projected to be between $5 billion and $6 billion.

With Deep Ties to "Trump 2.0," Is a $500 Tesla Possible?

In the options market, last Friday, the nominal trading volume of Tesla options reached an astonishing $245 billion, while the total trading volume of all other single-stock options in the U.S. stock market was $310 billion.

Morgan Stanley stated that the market is full of expectations for Tesla's potential in autonomous driving, energy, and AI, with the company's stock price expected to hit $500 next year. Musk has risen from a political "outsider" to a potential key figure in policy-making, which may accelerate Tesla's development to some extent.

Not Just Tesla's Surge, Trump's Election Sparks Betting Frenzy on Musk, Boosting Dogecoin and SpaceX-Focused Closed-End Funds

In the week following Trump's victory, as of the end of June, the Destiny Tech 100 fund, which holds 38% of its assets in SpaceX, surged nearly 280%. The trading price of this fund is nearly ten times its net asset value, ranking among the highest premiums in similar closed-end funds. Dogecoin has risen over 120% in the past seven days.

Apple to Launch Wall-Mounted Smart Home Devices, Apple Intelligence Combined with Siri Support, Expected by March

Media reports that the wall-mounted display is positioned as a home command center, capable of controlling home appliances and using an AI navigation app. The screen is approximately 6 inches, about the size of two iPhones side by side, with a camera at the top front. The device has a touch interface, but Apple expects most people to interact with it using voice commands via Siri. Earlier, Ming-Chi Kuo stated that Apple will launch its first smart home network camera, deeply integrated with Apple Intelligence and Siri, with plans for mass production in 2026.

Alibaba Launches First AI Search Engine in B2B Field Overseas

According to LatePost, an Alibaba overseas representative stated that during the trial run, the conversion rate for user searches related to procurement increased by 20% - 30%. Accio employs a "Multi-Agent" architecture, where each time a user interacts, Accio performs 5 - 10 backend task reallocations, introducing more specialized "Agents" with detailed knowledge.

Federal Reserve Officials Speak for the First Time After Trump's Election

This year's voting member Barkin stated that the Federal Reserve is prepared to respond to risks of declining employment or rising inflation as needed. Minneapolis Fed President Kashkari mentioned that it is necessary to observe the evolution of U.S. government policies before making any judgments. Former Cleveland Fed President Mester stated that if Trump's tariff policies are implemented, the Fed's rate cuts next year may be lower than the previously expected four times. "Hot" voting member and Fed Governor Waller stated that stablecoins could benefit the financial system, but legislative solutions are needed to address security issues.

Hedge Fund Giant Elliott Targets Honeywell with Over $5 Billion Stake!

Activist investor Elliott has invested over $5 billion in Honeywell, setting a record for the company's largest investment in a single stock. Elliott is urging Honeywell to consider splitting up like its industrial peers.

Tesla Rival Waymo's Robotaxi Launches in Los Angeles, Initiating Largest Expansion Ever

Waymo announced that starting Tuesday, anyone in Los Angeles can use the Waymo One app to book a self-driving taxi within nearly 80 square miles of Los Angeles County. Additionally, Waymo's ride-hailing service is fully operational in Phoenix and San Francisco. Thanks to increased funding support, Waymo has accelerated its business expansion over the past year.

Indian IPO Boom, SoftBank Profits, Q3 Turns Profit Exceeding Expectations

SoftBank's revenue in the first half of the year grew by 7% year-on-year to 3.15 trillion yen, achieving a net profit of 1.18 trillion yen, far exceeding the expected 295 billion yen. Its Vision Fund turned a profit in the second fiscal quarter, reaching 373 billion yen, primarily driven by the Indian IPO boom.

CICC 2025 Annual Outlook: Hong Kong Stocks "Rebound is Intermittent, Structure is the Main Line"

CICC believes that Hong Kong stocks have not completely escaped the volatile pattern, with limited valuation and risk premium space. Profit improvement requires greater stimulus, and stronger expectations at the index level need to be based on greater pressure. However, the more thorough clearing of Hong Kong stock valuations and positions, along with better profit structures, make it easier for them to rebound under suitable catalysts