Hot news

Pre-market trading on Wednesday, the futures of the three major US stock indexes all fell.

Most growth tech stocks are down in pre-market trading, with Meta and Taiwan Semiconductor slightly up, Nvidia down 0.51%, Amazon and Google down 0.29%.

Chinese concept stocks soar before the market opens, with Agora up over 140%, KE Holdings up over 12%, JD.com up nearly 10%, PDD Holdings up nearly 7%, Alibaba up 4.3%.

Chinese concept stocks ETF leads pre-market trading of US ETFs, as of the time of writing,$Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$up 21.28%.$Direxion Daily CSI 300 China A Share Bull 2X Shares (CHAU.US)$ Rising by 15.18%,$Direxion Daily CSI China Internet Index Bull 2x Shares ETF (CWEB.US)$Rising by 15.12%. Leading in trading volume among Chinese concept stocks ETF, $iShares China Large-Cap ETF (FXI.US)$ Up by 7.19%, with pre-market trading volume of 42.977 million US dollars.

• Nvidia pauses the development of the dual-chassis version GB200 (NVL36×2) AI server

Renowned analyst Ming-Chi Kuo stated that, in the absence of customer customization requirements, $NVIDIA (NVDA.US)$ Will no longer provide the double-cabinet version of the GB200 (NVL36×2) AI server, only the single-cabinet versions of GB200 NVL72 and NVL36. Nvidia's move is reportedly due to limited resources and customer preferences. Guo Mingji supplemented that this move will not affect artificial intelligence or Nvidia's long-term trends, but it does bring into question the company and its supply chain execution capabilities.

• China is increasing subsidies for electric vehicles, tesla is expected to see its first quarter sales growth this year.

Due to increased subsidies from the Chinese government in key markets, stimulating domestic electric vehicle sales, Wall Street expects to see a year-on-year positive growth in quarterly sales for the first time this year. $Tesla (TSLA.US)$ Bloomberg survey of analysts shows that analysts expect Tesla's global delivery volume in the third quarter of this year to be around 0.4639 million units, an increase of about 7% from the same period last year.

• Alibaba repurchased $4.1 billion of stocks in the third quarter.

$Alibaba (BABA.US)$ In an announcement issued by the Hong Kong Stock Exchange, as of the quarter ended September 30, 2024, the company repurchased a total of 0.414 billion ordinary shares (equivalent to 52 million American depositary shares) at a total price of $4.1 billion. These repurchases were conducted in the U.S. and Hong Kong markets under the company's share repurchase program. There remains $22 billion in repurchase authorization under the board-approved share repurchase program, valid until March 2027.

• Following a fire at the iPhone factory in India, production has been indefinitely suspended, and Apple may once again rely on the Chinese supply chain.

Last Saturday local time, a major fire broke out at an iPhone components factory in Hosur, Tamil Nadu, owned by Tata Electronics in India. $Apple (AAPL.US)$ The fire resulted in at least 10 people receiving treatment, with 2 hospitalized. Indian officials stated on Monday that the factory will remain closed indefinitely after the weekend fire and measures will be taken to prevent further damage. The factory was initially planning to produce complete iPhones in the coming months.

• Difficult to improve Q2 revenue, nike withdraws full-year performance guidance, pre-market trading drops more than 7%.

$Nike (NKE.US)$ Due to lower than expected sales, the full-year performance expectations were withdrawn. The financial report shows that Nike's revenue for the first quarter of the 2025 fiscal year was $11.6 billion, a 10.4% year-on-year decrease, less than market expectations; net income was $1.051 billion, a 28% year-on-year decrease; diluted EPS was $0.70, exceeding the market's expected $0.52. During the company's conference call with analysts, Chief Financial Officer Matt Friend stated that the guidance withdrawal is due to an upcoming leadership transition. As of the time of writing, Nike's pre-market trading has dropped more than 7%.

• General Motors' Q3 delivery volume in the United States decreased by 2% year-on-year, while electric vehicle sales surged 60% to reach a new high.

$General Motors (GM.US)$In the third quarter, the U.S. delivered 659,601 vehicles, a 2.2% decrease year-on-year. However, electric vehicle sales reached 32,195 units, hitting a new high with a 60% year-on-year increase, up 46% from the second quarter. Therefore, General Motors' share in the U.S. electric vehicle market rose from 7.1% in the second quarter to 9.5%.

• Agora's pre-market trading surged more than 140%, with its sister company collaborating with OpenAI.

$Agora (API.US)$ Pre-market trading of Agora surged over 140% today as OpenAI released a real-time API beta for public testing. Agora and Twilio are among the voice partners, with Agora being the first Chinese company to collaborate with OpenAI, with its sister company being Agora. As of the time of publication, Agora's pre-market trading surged over 140%.

Global macro

• In September, the ADP employment in the United States increased by 0.143 million people, with an expected increase of 0.124 million people.

The ADP employment figures for September in the United States will be released tonight at 20:15. The data shows that the ADP employment in the United States increased by 0.143 million people, with an expected increase of 0.124 million people. The previous value was revised from an increase of 0.099 million people to 0.103 million people. Federal Reserve Chairman Powell stated yesterday that the labor market remains strong and has indeed "cooled off," with two 25BP rate cuts expected later this year. However, the market has been betting on a more aggressive rate cut cycle.

• Goldman Sachs sees a surge of global hedge funds flowing into China, with an inflow of $2.4 billion in three days.

A report from Goldman Sachs shows that due to the stimulus measures by the Chinese government far exceeding expectations, global hedge funds are pouring into the Chinese stock market, leading to the strongest weekly bid in history last week (September 23-27). Not only hedge funds and speculators, many foreign long-term investors are now concerned about missing out on opportunities. According to data from LSEG Refinitiv, foreign exchange-traded funds (ETFs) focusing on Chinese stocks received a capital inflow of $2.4 billion in the last three trading days of September, sharply contrasting with the $2.7 billion outflow from the beginning of the year until September 25.

• The significant rise in the Chinese stock market has resulted in nearly $7 billion in losses for short-sellers, with expectations of further boosting Chinese concept stocks by covering the losses.

Driven by stimulus policies, the sharp rise in the Chinese stock market has caused traders shorting Chinese concept stocks to suffer losses of about $6.9 billion in market value. Analysts say this has wiped out short-sellers' gains of about $3.7 billion so far this year, resulting in current paper losses of about $3.2 billion for short-sellers. Data shows that the most painful stocks for short-sellers were Alibaba and JD.com. On the other hand, traders shorting Nio Inc, Li Auto Inc, Xpeng, and Pinduoduo Holdings are still profitable.

• The escalating tensions in the Middle East have led to a two-day consecutive increase in oil prices, while gold prices are nearing record highs.

As Iran launched approximately 200 ballistic missiles at Israel, causing Israeli Prime Minister Benjamin Netanyahu to pledge retaliation and increase the risk of oil supply, oil prices rose for a second consecutive day. The rise in oil prices reflects investors revaluing the risk premium on the world's most important commodities, as the Middle East accounts for approximately one-third of global oil supply. Bonds, gold, and the US dollar also rose due to the latest escalation of the conflict.Its price has soared to a historic high, closely related to market expectations of interest rate cuts by the Federal Reserve.Also rose due to the latest escalation of the conflict.

• Bank of Japan Governor Kuroda Kanda reveals dovish signals.

The Bank of Japan Governor Kuroda Kanda said, "Will support the economy through loose policies," "Have time to think about policies," "Prime Minister Shizuo Shinoda did not make specific requests," "If expectations are met, policies will be adjusted." This is his first speech since Prime Minister Shizuo Shinoda and his close allies urged the central bank to be cautious when considering raising interest rates. Kuroda Kanda's speech indicates alignment between the central bank and the new cabinet, with Shizuo Shinoda and one of his cabinet ministers clearly opposing any premature interest rate changes.

• European Central Bank Deputy Governor bullish on economic recovery, market expects a 90% chance of rate cut in October.

European Central Bank Deputy Governor Luis de Guindos expressed optimism about the economic recovery in the Eurozone during his speech in Riga, despite acknowledging the presence of risks. He pointed out that although economic risks in the 20 Eurozone countries still tend to be downward, economic recovery is expected to strengthen over time, especially as actual income increases and the restrictive monetary policy effects fade, supporting consumption and investment. In addition, with the recovery in global demand, exports are also expected to continue driving the economic recovery.

Bilibili rose more than 3% pre-market trading and was upgraded to "buy" by UBS, which raised its EPS estimate per share.

Reminder for US Macro Events

(All in Peking Time)

8:15 PM USA September ADP Employment Figures

At 21:00 in 2024, FOMC voter and Cleveland Fed President Hammack delivered a speech.

At 22:05 in 2025, FOMC voter and St. Louis Fed President Mousalem delivered the opening speech at an event.

22:30 US weekly EIA crude oil inventory

At 23:00, Federal Reserve Board member Bauman delivered a speech.

Editor/Rocky