Finance and Economics Intelligence learned that on Friday, all three major indices closed higher. The three major US stock indexes recorded gains for the sixth consecutive week, with the Dow up 0.96% for the week, the S&P 500 Index up 0.85%, and the Nasdaq up 0.8%.

【US Stocks】At the close, the Dow rose 36.86 points, an increase of 0.09%, to 43,275.91 points; the Nasdaq rose 115.94 points, an increase of 0.63%, to 18,489.55 points; the S&P 500 Index rose 23.20 points, an increase of 0.40%, to 5864.67 points. Netflix (NFLX.US) closed up more than 11%, marking the largest single-day gain in a year. The Nasdaq Golden Dragon Index rose 3.03%, Ke Holdings (BEKE.NUS) rose 8.37%, and Li Auto Inc (LI.US) rose 6.3%.

【European Stocks】The German DAX30 Index rose 65.56 points, an increase of 0.33%, to 19,653.75 points; the UK FTSE100 Index fell 26.51 points, a decrease of 0.32%, to 8,358.62 points; the France CAC40 Index rose 29.32 points, an increase of 0.39%, to 7,613.05 points; the Euro Stoxx 50 Index rose 38.15 points, an increase of 0.77%, to 4,985.45 points; the Spain IBEX35 Index rose 18.50 points, an increase of 0.16%, to 11,923.00 points; the Italy FTSE MIB Index rose 164.27 points, an increase of 0.47%, to 35,203.00 points.

【Asia-Pacific Stock Markets】The Nikkei 225 Index rose 0.18%, the Indonesia Jakarta Composite Index rose 0.32%, and the Vietnam VN30 Index fell 0.01%.

【Cryptocurrencies】Bitcoin rose more than 1.2%, to $68,218.46 per coin; Ethereum also rose more than 1.2%, to $2,636.32 per coin.

In gold, COMEX gold futures rose 0.41% to $2689.90 per ounce; spot gold rose 0.42% to $2673.75 per ounce.

The price of West Texas Intermediate (WTI) crude oil futures for delivery in November on the New York Mercantile Exchange fell $1.45 on Friday, a decrease of 2.05%, closing at $69.22 per barrel, approaching the closing price of $68.17 on September 30 and $65.14 on September 10. US WTI crude oil futures fell 8.39% this week, marking the largest weekly decline since OPEC and the International Energy Agency (IEA) simultaneously lowered their forecasts for global oil demand in 2024 and 2025 on September 2. The price of Brent crude oil futures for delivery in December on the Intercontinental Exchange in Europe fell $1.39 on Friday, a decrease of 1.87%, closing at $73.06 per barrel. The futures fell over 7% this week.

Most London metals rose, with nickel falling by 0.31%; copper rising over 1.2%, zinc rising by 0.49 over 1.3%, and aluminum rising by over 2%.

Macro news

Boston Fed: Slowing down the pace can achieve dual goals. Atlanta Fed President Boston said that the Fed should gradually lower its policy rate patiently, which can bring the inflation rate down to the target level of 2% and keep the US economy from recession. At an American business economic education forum held in Mississippi, Boston pointed out, "I am not eager to adjust rates to neutral levels. We must restore the inflation rate to the 2% target level; I do not want the progress in fighting inflation to stall because our restrictive measures have not been implemented for a long enough time, so I will remain patient." Additionally, Boston stated that he expects the Fed to further lower the benchmark interest rate. "If the economy continues to develop as trends show, if inflation continues to decline, the labor market remains strong, and we still see positive production, then we will continue on the path back to neutral rates." Boston expects that by the end of 2025, the US inflation rate may reach the Fed's set 2% target, and interest rates should also be able to adjust to neutral levels.

Fed's Kashkari: Private credit may reduce systemic risks. Minneapolis Fed President Kashkari stated that while the US government lacks the willingness to increase bank capital requirements, the rise of private credit markets may reduce systemic risks in the US financial system. Kashkari said, "This is somewhat terrifying because it has grown rapidly to a market size of over a trillion dollars. But from what I have investigated, today a bank in the US - a large bank - has a leverage ratio of about 10 to 1, 10 times its equity assets. The leverage ratio of these private credit tools is usually 1 to 1, so the leverage ratio is much lower." Private credit - typically referring to non-bank institution loans - has been soaring in recent years. In an environment of rising interest rates, private credit provides investors with more attractive returns compared to other fixed income products. For borrowers, it has become another source of funding, eliminating many of the stricter requirements typical of bank loans. Kashkari mentioned that the risks brought by private credit tools may also be smaller, as these tools usually tie up capital for longer than the overnight liquidity required by banks. He added, "So, where does systemic risk come from? The intersection of leverage and maturity transformation. Therefore, from both these perspectives, the risks of these private credit tools seem to be much lower than those of banks." "While I would like to see stricter regulation of banks, in fact, I am cautiously optimistic about some developments in the market that may reduce the risks of the financial system, at least reduce systemic risks."

BlackRock ETF executive: 75% of Bitcoin buyers are cryptocurrency novices. A year ago, BlackRock's Chief Investment Officer Samara Cohen for exchange-traded funds (ETFs) and index investments believed that demand for Bitcoin was being suppressed, so she and her team at BlackRock launched one of the first physically backed Bitcoin exchange-traded products in the US. Now, investors are flocking in, many of whom are Wall Street crypto enthusiasts. BlackRock now sees market demand as a better way to access Bitcoin, "It's for packaging ETFs." Part of the strategy to attract clients to invest in their funds is introducing the benefits of Exchange-Traded Products (ETPs) to crypto investors.

[Individual stock news]

World's largest oilfield services company warns: Slowdown in oil exploration company spending. The world's largest oilfield service provider Schlumberger (SLB.US) warned that as customers take a cautious approach amid falling prices of commodities, spending by oil exploration companies has slowed in recent months. The company also told investors in a statement on Friday that it expects shareholder returns to exceed the $3 billion target this year as most of its customers' projects are ongoing. CEO Olivier Le Peuch said, "Despite some customers adopting a more cautious approach regarding recent capital expenditure and discretionary spending during the fall in commodity prices, most projects are progressing as planned. Although upstream investment growth has slowed in the past few months due to macroeconomic conditions, we still expect upstream investments to remain at a sustained level in the coming years." Schlumberger is usually a barometer for the oil and gas industry, providing a perspective on the financial health of the energy sector worldwide.

OpenAI and Microsoft (MSFT.US) have hired investment banks to negotiate the issue of equity conversion. OpenAI and Microsoft are engaged in a high-risk negotiation on an unprecedented issue: how to convert nearly $14 billion investment in a non-profit organization into equity in a for-profit company? OpenAI recently completed a round of financing with a valuation of $157 billion and is transitioning from a non-profit organization to a for-profit company. One of the biggest challenges it faces as it becomes a for-profit company is how to distribute equity. Microsoft, as the largest investor in OpenAI, may have a significant stake in the company. Given the importance of the negotiation outcome for Microsoft and OpenAI, both companies have hired investment banks to provide consulting services. Microsoft is working with Morgan Stanley, while OpenAI has chosen Goldman Sachs. In addition to determining how much stake Microsoft will have post-restructuring, it is also necessary to clarify what governance rights Microsoft will have.

Bank review:

BofA Global Research: raises the target price of Nvidia (NVDA.US) from $165 to $190

UBS: raises the target price of Uber (UBER.US) from $102 to $114; raises the target price of Netflix (NFLX.US) from $750 to $825

Keybanc: raises the target price of Microsoft (MSFT.US) from $490 to $505