Overnight US stocks | The NASDAQ surged higher and fell, and the three major indices had mixed ups and downs, Maywell Technology (MRVL.US) fell 12.7%
The Zhitong Finance App learned that on Monday, US stocks opened high and went low, and the NASDAQ rose more than 1% intraday. Iran's Supreme Leader Mujtaba Khamenei approved the government to advance peace negotiations, sending a signal that a diplomatic breakthrough might occur at a time when outsiders are increasingly worried about another outbreak of conflict between the US, Israel and Iran. Trump said late Monday that the White House was willing to hold negotiations. He hinted that negotiations had progressed, but did not provide any details or evidence.
The US midterm elections will be held on Tuesday. The Democratic Party is expected to control the House of Representatives, while control of the Senate is still uncertain.
[US Stocks] At the close, the Dow Jones index rose 213.67 points, or 0.41%, to 51983.98 points; the S&P 500 index fell 38.67 points, or 0.51%, to 7541.40 points; the Nasdaq Composite Index fell 272.68 points, or 1.07%, to 25164.32 points. The Philadelphia Semiconductor Index fell 3.3%, Intel (INTC.US) fell 8.8%, Micron (MU.US) fell 5.7%, Mywell (MRVL.US) fell 12.7%, and Oracle (ORCL.US) fell 8.8%. The Nasdaq China Golden Dragon Index closed up 2.2%, Alibaba (BABA.US) rose 3.5%, and Bili.US (BILI.US) rose 6.5%.
[European stocks] The German DAX30 index rose 168.50 points, or 0.65%, to 25986.71 points; the British FTSE 100 index rose 37.67 points, or 0.35%, to 10767.45 points; the French CAC40 index rose 78.27 points, or 0.98%, to 8047.69 points; the European Stoxx 50 index rose 47.54 points, or 0.78%, to 6178.85 points; Spain's IBEX35 index rose 311.99 points, or 1.67%, to report 18964.89 points; Italy's FTSE MIB index rose 466.53 points, or 0.94%, to 49967.50 points.
[Foreign Exchange] The US dollar index, which measures the US dollar against the six major currencies, fell 0.16% on the same day and closed at 101.719 at the end of the foreign exchange market. As of the end of the exchange market in New York, 1 euro was worth $1,194, up from $1.1167 on the previous trading day; 1 pound was worth $1.3410, up from $1.3394 on the previous trading day. 1 US dollar was worth 157.91 yen, up from 157.37 yen on the previous trading day; 1 US dollar was worth 0.8183 Swiss franc, lower than 0.8236 Swiss franc on the previous trading day; 1 US dollar was worth 1.3987 Canadian dollars, higher than 1.3956 Canadian dollars on the previous trading day; 1 US dollar was worth 9.7807 SEK, lower than 9.8170 on the previous trading day.
[Cryptocurrency] Bitcoin fell below the $77,000 mark to $7,6,720 at press time; Ethereum fell 0.77% to $2,255.
[Precious Metals] Spot gold rose 1.8% to $3945.83; spot silver rose more than 3% to $50.637 per ounce.
[Crude oil] Light crude oil futures for December delivery on the New York Mercantile Exchange fell $7.66, or 7.36%, to close at $96.46 a barrel; London Brent crude oil futures for January delivery fell $8.66, or 7.63%, to close at $104.77 a barrel.
[Macro News]
The price of US natural gas production was lowered over the weekend or prompted producers to take the initiative to cut production. US natural gas futures prices rose, and natural gas production declined over the weekend. Among them, the Appalachian shale gas production area saw the most significant reduction in production. The drop in supply indicates that producers may be actively cutting production in the face of low gas prices. Furthermore, the weather forecast is slightly colder, which means that demand for natural gas for heating and power generation is likely to increase as the winter heating season begins. However, temperatures in most parts of the US are expected to remain above the seasonal average in the next few weeks, which may limit the room for gas prices to rise and offset the support brought about by the marginal increase in heating demand. Furthermore, the amount of natural gas flowing to liquefied natural gas export terminals has also declined, causing more natural gas to remain in the US domestic market, putting downward pressure on prices.
Economist: The expansion of the US manufacturing industry coexists with cost pressure, and the future inflation trend is facing a new test. Chris Williamson, chief business economist at S&P Global Market Intelligence, said, “US factories continued to expand strongly in October, and the manufacturing industry continued its best growth momentum since the beginning of 2022. The recovery also led to the fastest growth in employment in five and a half years, reaching the highest level since demand surged during the COVID-19 pandemic. However, the pressure brought about by the growth of the manufacturing industry is also evident. In the context of supply chain disruptions, it is difficult for factories to meet strong demand, especially products and equipment related to artificial intelligence. Due to shipping and logistics issues, delivery delays are more common than at any time since 2022. As demand often exceeds supply, the ability of producers to pass on rising costs to customers is increasing, particularly for energy-related inputs. As a result, manufacturer ex-factory price inflation accelerated further in October, reaching the highest level since September 2022. Such a sharp rise in factory prices is bound to be transmitted to consumers in the coming months, keeping inflation above the Federal Reserve's target, and further increasing the pressure on policymakers to continue to raise interest rates.”
The battle for UK bank deposits is heating up, and traditional banks are under pressure to lose capital. The focus of the third-quarter earnings reports of major British banks was not bank taxes, rising interest rates, inflation, or artificial intelligence, but deposit competition. UBS analyst Jason Napier said during the Lloyds Bank Group earnings call that deposits have become “the top concern of investors.” Other analysts have even apologized for repeatedly asking deposit questions themselves. The financial reports of various banks highlight the level of competition for deposits. Lloyds Bank's retail savings deposits in the UK were reduced by £300 million (about US$403 million) in the three months ending September 30. Deposits in private banking and wealth management businesses of the National Westminster Bank Group also experienced a similar decline. Barclays UK corporate bank deposits decreased by £2 billion compared to the previous quarter. HSBC Holdings, on the other hand, said that one of its key profitability indicators has remained stable, but the emerging competitive pressure on customer deposits in markets such as the UK has offset some of the positive effects. Deposits are a source of capital where bank costs are lower than in the wholesale financing market. Wholesale financing refers to banks borrowing money from sources such as institutional investors. Banks use deposits to issue loans and receive income from them. The reduction in the size of deposits means that banks either issue fewer loans or bear higher financing costs.
[Individual Stock News]
Apple's revenue exceeded expectations, but slowing growth is putting pressure on the performance of the Greater China region and service business. Apple (AAPL.US)'s Q4 revenue for the 2026 fiscal year increased 12% year over year to US$114.5 billion, higher than market expectations of US$113.5 billion, but the growth rate slowed from 16% in the previous quarter. Greater China's revenue increased 21% year over year to US$17.53 billion, but it still fell short of market expectations of US$18.75 billion. The company is facing pressure such as the standard iPhone not being updated in September as usual, limited product supply, slowing service business growth, and poor progress in the AI field. The service business grew by less than 10% year-on-year during the quarter, the lowest growth rate since 2022, covering iCloud storage, AppStore commissions, AppleCare warranty services, and Google search engine licensing revenue. Furthermore, Apple's capital expenditure for the quarter was only 2.24 billion US dollars, lower than market expectations of 3.33 billion US dollars, and far lower than the investment of other large technology companies in AI infrastructure. The market will focus on the folding-screen iPhone Duo's contribution to holiday shopping season sales and when the company can ease supply restrictions. After announcing the results, Apple's US stocks fell slightly after the market.
AI giant Anthropic's revenue grew rapidly, and huge losses grew at the same time as expenses. Anthropic's revenue for the third quarter ended September 30 was close to US$17 billion, up 12 times from the same period last year. This performance is expected to further boost market expectations for the AI company's IPO, and the scale of its listing may set a record. According to Anthropic's filing with the US Securities and Exchange Commission on Monday, the Claude platform developer's net loss for the three months to the end of September reached US$23.3 billion, compared with a net loss of US$12.1 billion for the same period last year. Operating expenses for the quarter rose to $17.5 billion, up 292% year over year. According to documents, Anthropic's current contract and other committed expenses amount to US$895 billion, most of which are related to computing power and infrastructure. Approximately $448 billion is expected to occur before the end of 2030, of which approximately $70 billion will be disbursed in the 12 months ending September 2027. Anthropic submitted an initial public offering (IPO) application on October 26 and plans to go public before the US Thanksgiving holiday. People familiar with the matter previously revealed that the company hopes to raise capital for this IPO to reach or exceed the US$86.2 billion raised when SpaceX went public.