Overnight US stocks | 30-year US Treasury yields rose for six days, the three major indices closed down, Meta (META.US) rose more than 3%

The Zhitong Finance App learned that on Tuesday, the three major indices closed down, and US 30-year Treasury yields rose for the sixth consecutive trading day. Due to large corporate debt issuance and rising inflationary pressure caused by high energy prices, the yield on 30-year US Treasury bonds surpassed 5.61% to the highest level since 2002.

[US Stocks] At the close, the Dow Jones index fell 347.11 points, or 0.67%, to 51481.51 points; the S&P 500 index fell 59.72 points, or 0.77%, to 7683.69 points; the Nasdaq Composite Index fell 248.34 points, or 0.92%, to 26820.38 points. Meta Platforms (META.US) rose more than 3%, SK Hynix (SKHY.US) rose 2.6%, and Oracle (ORCL.US) rose 4%. The Nasdaq China Golden Dragon Index closed down 1.55%.

[European stocks] The German DAX30 index fell 14.81 points, or 0.06%, to 25392.30 points; the UK FTSE 100 index fell 52.67 points, or 0.49%, to 10632.21 points; the French CAC40 index fell 42.61 points, or 0.53%, to 8035.87 points; the European Stoxx 50 index rose 20.07 points, or 0.32%, to 6321.35 points; Spain's IBEX35 index fell 85.49 points, or 0.44%, to report 19514.81 points; Italy's FTSE MIB index rose 15.60 points, or 0.03%, to 51775.50 points.

[Asia Pacific Stock Market] The Nikkei 225 Index fell 0.6%, South Korea's KOSPI Index fell 0.27%, and the Indonesian Composite Index fell 0.43%.

[Foreign Exchange] The US dollar index, which measures the US dollar against the six major currencies, rose 0.17% on the same day and closed at 101.372 at the end of the foreign exchange market. As of the end of the exchange market in New York, 1 euro was worth 1.1341 US dollars, lower than 1.1368 US dollars on the previous trading day; 1 pound was worth 1.3229 US dollars, lower than 1.3261 US dollars on the previous trading day. 1 US dollar was worth 157.22 yen, lower than 157.40 yen on the previous trading day; 1 US dollar was worth 0.8336 Swiss franc, higher than 0.8319 Swiss franc on the previous trading day; 1 US dollar was worth 1.4178 Canadian dollars, higher than 1.4171 Canadian dollars on the previous trading day; 1 US dollar was worth 9.9892 SEK, up from 9.9537 on the previous trading day.

[Cryptocurrency] Bitcoin hovered around $83,000, at $8,3,533 at press time; Ethereum fell 0.15% to $2,681.

[Precious Metals] Spot gold reports 4181.86 US dollars/ounce; spot silver reports US $61.47/oz.

[Crude oil] International oil prices fell significantly on the 29th. Light crude oil futures for November delivery on the New York Mercantile Exchange fell $3.22, or 3.48%, to close at $89.38 a barrel by the close of the day; London Brent crude oil futures for November delivery fell $2.69, or 2.56%, to close at $102.59 a barrel by the close of the day.

[Macro News]

Trump is about to appoint Clayton, the AI intelligence director, as a potential candidate. According to reports, US President Trump said on Tuesday that National Intelligence Director Jay Clayton would be a good candidate for an “artificial intelligence executive.” When asked who he would like to be in charge of artificial intelligence, Trump said, “I have already chosen someone in my mind.” When asked about Clayton, Trump added, “Clayton is a great guy. He's right here. That's a great idea.” The specific responsibilities of this position have yet to be clarified, but Trump said earlier that he wants to set up a new government agency, the “Artificial Intelligence Force.” Clayton said at the nomination confirmation hearing in July this year that similar to Treasury Secretary Bezent's opinion, the view that “artificial intelligence is both an opportunity and a threat” also applies to the intelligence community. Trump told reporters outside the White House that he hopes to determine the candidates within the next three to four days.

Federal Reserve Goulsby: Inflation continues to be above target and is “playing with fire.” Chicago Federal Reserve Chairman Austin Goulsby said that US inflation has continued to be above the Fed's 2% target for five and a half years. Maintaining a high level of inflation for a long time is “playing with fire,” and the Federal Reserve needs to pay attention to the impact of ongoing supply shocks. Goulsby said that the current situation is “uncomfortable,” but if supply shocks have a long-term impact, the Federal Reserve may need to reconsider the previous policy logic of “ignoring supply shocks.” He said that before considering cutting interest rates, the Federal Reserve needs to see more evidence to confirm that inflation is declining and that factors previously thought to be temporary are fading. Goulsby also warned that large fiscal deficits themselves are a stimulus measure that could cause the economy to overheat. He said that the market's expectations for future increases in AI productivity may also bring the risk of the current economy overheating, and the Federal Reserve needs to pay close attention to changes in productivity. He pointed out that oil prices may fall rapidly, but the deeper problem lies in the process of oil refining facilities resuming operations. Goulsby said that factors such as energy prices, AI investment, and fiscal stimulus may affect the future path of inflation.

Federal Reserve Williams: Interest rates may be raised once more during the year but there is no need to rush. New York Federal Reserve Chairman John Williams said that there is no need for the Federal Reserve to rush to act again after the September meeting; it can wait for more economic data to determine the next policy direction. Williams said that if economic development generally meets his expectations, the federal funds rate target range may need to be raised further before the end of the year to push inflation back to the 2% target in a more timely manner. However, he stressed that this is just a personal prediction, and the final decision will depend on future data performance. Williams said that while economic growth remains steady and the job market performs well, inflationary pressure will continue to be the focus of monetary policy. He said that the Federal Reserve must ensure that inflation does not continue to rise due to shocks and avoid secondary inflationary effects. He pointed out that inflationary pressure this year was affected by Trump's tariff policy and the rise in energy prices caused by the Middle East conflict, while investment in artificial intelligence also boosted some price pressure. Williams expects the US inflation rate to reach about 3.5% by the end of this year, then gradually fall back and return to the target level in 2028. Williams predicts that the US economy will grow by about 2.25% this year, and the unemployment rate will be around 4% next year. He said that immigration factors, population aging, and limited productivity growth have limited the room for long-term economic growth.

OPEC representative: OPEC+ may keep the November production quota unchanged. Two OPEC+ representatives said that major OPEC+ member states may keep their November crude oil production quotas unchanged at this weekend's meeting and continue to implement existing supply plans. Member states led by Saudi Arabia and Russia have basically completed the nominal retracement of the 2023 production reduction measures, and it is expected that the November production target will remain stable in a video conference on Sunday. The report said that although OPEC+ previously agreed to gradually increase production, the Middle East region has been affected by the conflict with Iran, and some production capacity has not been restored, leaving the previously announced plans to increase production more on paper. OPEC+ previously said that some of the capacity recovery plans suspended in 2022 will not be considered until at least the end of this year. However, as some member countries are affected by insufficient investment, sanctions, and other supply disruptions, it is still difficult to restore previous production levels. OPEC+'s supply policy for next year will also depend on the results of member countries' crude oil production capacity assessments, which are expected to be completed this week and discussed at a formal ministerial meeting on November 29.

The US plans to release 40 million barrels of strategic oil reserves to ease the pressure on fuel prices. According to reports, the US Department of Energy said on Tuesday that the Trump administration plans to provide 40 million barrels of strategic petroleum reserve (SPR) crude oil to energy companies to cope with rising fuel prices due to the escalation of the Iran conflict and the Russian-Ukrainian war. The US Department of Energy said that this measure takes the form of a “loan”, and companies will borrow SPR crude oil and need to return it in the future. Previously, the US reached an agreement with the International Energy Agency (IEA) and about 30 countries in March. As part of the plan to release about 400 million barrels of crude oil worldwide, the US promised to provide 172 million barrels of strategic reserves. The Trump administration proposed in June to release the remaining 40 million barrels of crude oil in the agreement, but data at the end of the month showed that energy companies actually agreed to borrow only about 500,000 barrels.

[Individual Stock News]

Tesla signed a $30 billion financing arrangement including revolving credit and deferred withdrawal loans. According to US Securities and Exchange (SEC) documents, Tesla (TSLA.US) has signed a number of financing arrangements, including a US$20 billion three-year deferred withdrawal term loan line, an US$8 billion five-year revolving credit line, and a US$2 billion 364-day revolving credit line. Documents show that Tesla terminated the original revolving credit agreement at the same time. The new 5-year revolving credit line allows for up to $500 million in letters of credit, and the 3-year deferred withdrawal term loan line expires on September 29, 2029. Additionally, Tesla's revolving credit line can be increased by up to $4 billion to reach $14 billion.

OpenAI is seeking $30 billion in new financing with a valuation target of $1.4 trillion. According to people familiar with the matter, OpenAI plans to raise at least 30 billion US dollars from investors in the new round of financing. Previously, due to delays in the initial public offering plan, the company was seeking new financial support. According to people familiar with the matter, OpenAI's current financing target valuation is about 1.4 trillion US dollars (not including the amount of additional financing). If achieved, the valuation could once again exceed the previous private equity valuation of long-time competitor Anthropic. People familiar with the matter said that the financing negotiations are still in the early stages, and the relevant arrangements may change. OpenAI declined to comment. OpenAI CEO Sam Altman previously said that the company will not go public this year and will instead focus on solving artificial intelligence security issues, saying the timing of the current IPO is “unwise.” This financing is seen as a transition round to replace the IPO, providing additional capital for OpenAI. OpenAI's most recent funding took place in March of this year, when the company raised $122 billion at a valuation of $852 billion, including the amount of financing.