Hot news

• Before the US stock market opened on Thursday, the futures of the three major US stock indexes narrowed their losses.

• Before the market opened, the stock prices of growth tech were mixed, with Nvidia up more than 1% and Tesla down more than 1%.

• Before the market opened, China concept stocks were generally down, with Bilibili falling more than 6%, KE Holdings falling more than 5%, Alibaba, JD.com, PDD Holdings falling more than 3%.

• Up more than 1% before the market opens, Huang Renxun makes a heavy statement! Blackwell chip demand is "insane"

Positive news comes from the latest generation AI chips of Nvidia. After the US market closed on Wednesday, October 2, Eastern Time, Nvidia CEO Huang Renxun said in an interview with CNBC that the Blackwell architecture chips of Nvidia have been "fully produced," with "insane" demand for the Blackwell chips.

• FDA announced eli lilly and co's weight loss miracle drug is no longer in short supply, the generic drug market may be affected.

The US Food and Drug Administration (FDA) announced,$Eli Lilly and Co (LLY.US)$The shortage of popular weight loss and diabetes drugs Zepbound and Mounjaro has been resolved, which may impact the market's prevalent generics. Previously, due to drug shortages, the FDA allowed pharmacies to sell untested generic drugs. Eli Lilly and Co has been increasing investments to enhance drug supply, including building a new manufacturing plant in Indiana.

• Berkshire Hathaway plans to issue yen bonds for the second time this year. Analysts believe Buffett may be targeting financial and shipping stocks.

With its share price falling by 29.5% this year, the market has questioned Musk's multi-line operations strategy and its impact on the company's future. As CEO of Tesla, Musk also manages SpaceX, Neuralink, The Boring Co., as well as his recently acquired social media platform X (formerly Twitter) and AI startup xAI.$Berkshire Hathaway-B (BRK.B.US)$Returning to the Japanese bond market has sparked speculation that the 'Stock God' Buffett is raising funds to increase holdings in Japanese value stocks. Eiji Kinouchi, chief technical analyst at Daiwa Securities in Japan, believes that insurance companies and shipping companies are likely to be Buffett's next choices. In a research report this week, he noted that despite the news of Berkshire Hathaway issuing bonds causing the Japanese insurance and shipping company stocks to rise, they have not significantly outperformed the overall market.

• Buffett slows down the pace of shareholding reduction, selling another 0.338 billion US dollars of Bank of America stocks

Warren Buffett's Berkshire Hathaway continues to reduce holdings.$Bank of America (BAC.US)$Stocks, but the selling speed has slowed down. This week, Berkshire Hathaway sold $0.338 billion worth of Bank of America stocks, lower than the average of about $0.75 billion per round in the past few months. Despite the shareholding reduction, Berkshire Hathaway remains the largest shareholder of Bank of America with a 10.2% stake, valued at over $31 billion.

• OpenAI has raised $6.6 billion in new funding, reaching a valuation of $157 billion.

OpenAI's parent company announced on Wednesday that it has raised $6.6 billion in new funding, which has led to a valuation of $157 billion for the company. According to OpenAI's blog, this new funding will allow the generative AI company to further solidify its leadership position in AI research, increase computing power, and continue developing tools to help people solve complex problems.

Global macro

• The Fed leads the way! The global rate cut pace is starting to accelerate significantly

The latest statistics in the industry show that led by the Federal Reserve, central banks of developed economies implemented the largest interest rate cuts since the beginning of the COVID-19 pandemic in September. Among the G10 central banks that held interest rate meetings in September, five of them reduced their benchmark rates that month—among them, the Federal Reserve started its current easing cycle with an aggressive 50 basis point rate cut, while the central banks of Sweden, Switzerland, Canada, and Europe cut rates by 25 basis points in the same month.

• Goldman Sachs tech strategist: S&P 500 index target of 6000 points is too low, expecting a significant rally in US stocks by the end of the year.

Goldman Sachs technical strategist Scott Rubner stated that his bullish sentiment towards the usa stock market is so strong that he is now worried that he has set the price target for the s&p 500 index too low. Rubner expressed in a report: "I am worried that my 6000 point target is too low." He predicts that the s&p 500 index will experience a significant surge in November and December 2024, breaking through 6000 points by the end of 2024.

• The ongoing strike at ports in the USA has led to a sudden increase in the risk of rising prices.

Container ships have formed long lines at ports along the east coast and Gulf of Mexico in the usa due to a three-day strike by dockworkers, leading to disruptions in unloading and potentially causing shortages of goods. Economists indicate that since companies have accelerated the delivery of key goods in recent months, the strike is not expected to immediately raise consumer prices. However, economists at Morgan Stanley believe that a prolonged shutdown will eventually impact prices, with food prices likely to react first.

• Israel may retaliate against Iranian oil facilities, with analysts warning of the risk of energy supply disruption.

Local time on Wednesday, October 2, Israeli officials revealed to the media that Israel will launch a major retaliatory action against Iran in the coming days. In response to this, Helima Croft, Global Commodities Strategist at Royal Bank of Canada Capital Markets, told the media, "People are too confident in this war. We need to consider the risks facing Iran's oil supply."

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)

21:45 USA September final S&P Global Services PMI

22:00 USA August Factory Orders Month-over-Month

22:00 USA September ISM Non-Manufacturing PMI

22:30 USA EIA Natural Gas Inventory as of September 27th (Billion Cubic Feet)

22:40 Minneapolis Fed President Kashkari and Atlanta Fed President Bostic have a fireside chat on inclusive economy

Editor/ping