On October 10, Caixin.com (Editor: Shi Zhengcheng) last night and this morning, in a relatively calm and relaxed trading day, the three major US stock indexes closed higher collectively, with the S&P 500 index hitting a new historical high and the Dow Jones index also setting a new historical closing high.

As of the close on Wednesday, the S&P 500 index rose by 0.71% to 5792.04 points. Statistics show that this is the 44th time this year that the index has reached a historical high.

The Nasdaq index rose by 0.6% to 18,291.62 points, about 400 points away from its historic high; the Dow Jones Industrial Index rose by 1.03% to 42,512 points, with the index touching 42,628 points on September 28.

Wednesday's rise is still led by the moderate rise of technology stocks. Slightly different, the previously leading NVIDIA, which surged for five consecutive days in the US stock market, took a temporary rest, with giants like Apple, Microsoft, and Amazon taking over the rally and pushing the index to higher levels.

Another favorable event is that the minutes of the Federal Reserve meeting did not impact the market. Although the minutes themselves showed different views among Federal Reserve officials on a 50 basis point rate cut in September, it did not disrupt the overall tone of the rate cut cycle.

Solita Marcelli, Chief Investment Officer for the Americas at UBS Global Wealth Management, interpreted that today's meeting minutes were quite "bland," which could actually be good news for stock investors. Policymakers unanimously believe that inflation is subsiding, and they see potential weakness in job growth. If needed, a rate cut remains an option. Overall, Powell may provide support to the market by the end of the year.

UBS remains optimistic about the prospects of the technology industry and artificial intelligence. Marcelli believes that in this context, volatility should be utilized to build long-term AI investments.

For the US stock market, Thursday's pre-market will face the biggest challenge of the week - September CPI data. The market expects the year-on-year growth rate of CPI in September to be 2.3%, slowing for the sixth consecutive time. The more closely watched core CPI annual rate is expected to remain at 3.2%.

Against the backdrop of the US stock market hitting new highs, Chinese assets narrowed their losses after opening sharply lower. The Nasdaq Golden Dragon Index plunged over 3.71% at the beginning of the session but narrowed the decline to 1.29% by the close.

Popular stocks performance

Most of the US technology giants closed higher, with Apple up 1.67%, Microsoft up 0.66%, Amazon up 1.34%, Meta down 0.4%, Google Class A down 1.53%, Tesla down 1.41%, Nvidia down 0.18%, Intel up 0.6%.

Chinese concept stocks gradually stabilized and rebounded after a rapid decline at the opening. As of the close, Alibaba fell 1.63%, Tencent ADR fell 1.36%, Baidu fell 1.84%, Pinduoduo fell 2.34%, JD.com fell 1.61%, NetEase fell 5.67%, Nio Inc. rose 0.80%, Xpeng rose 3.46%, Tal Education rose 2.62%, GDS Holdings rose 3.25%, and 21Vianet rose 3.10%.

Other news

In his latest interview, Huang Renxun said that the future of AI lies in 'reasoning.'

In a podcast interview on Wednesday, Nvidia CEO Huang Renxun said that the future of artificial intelligence (AI) will be services capable of 'reasoning,' but reaching this stage requires first reducing the cost of computation. Nvidia will lay the foundation for these advancements by increasing chip performance two to three times each year, while maintaining the same cost and power consumption levels.

Renowned analysts believe that Tesla's mass production of Robotaxi will have to wait until 2027.

Renowned technology industry analyst Ming-Chi Kuo stated on Wednesday that his latest supply chain investigation shows that Tesla's Robotaxi (also known as Cybercab) may not start mass production until the first quarter of 2027, so the expectation of a significant increase in stock price after this week's event may be overly optimistic. As of the close on Wednesday, Tesla fell by 1.41%.

Kuo believes that Tesla currently has the hardware design and production capacity to manufacture Cybercab, but the issue lies in FSD. Many regulations require an L4 level system for operating autonomous taxis. The production timeline reflects that FSD may not reach L4 level until after 2026.

【Latest Analysis Report: M4 version iPad Pro shipment expectations downgraded】

Market research firm DSCC pointed out in its latest report that demand for the M4 iPad Pro since its launch in the second quarter of this year has been lower than expected, with the annual shipment expectation lowered from 10 million units to 6.7 million units. The report indicates that due to high pricing, compared to the previous quarter, the shipment volume of the 11-inch iPad Pro in the third quarter may decrease by 40%, and then drop by 30% in the fourth quarter; the 13-inch model will experience even larger declines, with shipment volumes decreasing by 50% and 90% in the last two quarters.

【US Government Confirms Considering Breaking Up Google】

The US Department of Justice stated in court documents submitted on October 8th local time that it is considering "a range of comprehensive tools" as remedial measures for the Google antitrust case, including breaking up this tech giant. It is worth mentioning that the federal government does not have the authority to break up companies, it requires court orders. However, US law enforcement agencies have not succeeded in forcibly splitting tech companies before. In 2001, the US Federal Appeals Court rejected the lower court's decision to split up Microsoft.

The last major antitrust breakup case in the US was in 1984 when American Telephone and Telegraph Company (AT&T) voluntarily split up after reaching an agreement with the Department of Justice, without waiting for a court order.

【Roche Announces Further Expansion of Production Capacity in China】

Swiss pharmaceutical giant Roche announced on Wednesday that in order to meet the ever-growing demand in the Chinese market, it will further increase its local production capacity in China. Dr. Thomas Schinecker, CEO of Roche, stated that the company will produce more diagnostic products in China and increase pharmaceutical production capacity.