1. The issue of U.S. stock valuations has come to the forefront, with the Nasdaq falling more than 2%, dragging down risk assets such as cryptocurrencies; 2. The U.S. Dollar Index breached the 100 mark, triggering a collective pullback in commodities; 3. Apple is reportedly set to launch an entry-level laptop powered by a mobile chip; 4. AMD’s revenue growth forecast for chips is significantly slower than NVIDIA’s, causing its shares to fall after-hours.
Cailian Press News on November 5 (Editor: Shi Zhengzhi) - Last night and this morning, as the call for a correction in U.S. stocks gained increasing traction, a long-delayed tech stock correction emerged, with the Nasdaq falling more than 2% and the S&P 500 dropping over 1%, both representing the largest single-day declines since the 'Black Friday' of October.
Capita Group CEO Mike Gitlin stated on Tuesday that the fundamentals of U.S.-listed companies remain strong, but "the challenge lies in valuation." When discussing whether U.S. stocks are cheap, fairly valued, or already expensive, Gitlin said that most people "would say we are between 'fairly valued' and 'expensive,' but I don't think anyone would say we are between 'cheap' and 'fair.'"
As the U.S. Dollar Index rose for the fifth consecutive trading session and broke above the key level of 100, commodities broadly declined. The cryptocurrency market, which represents extreme risk appetite, continued to plummet on Tuesday, with Bitcoin briefly dropping below $99,000, while Ethereum's decline exceeded 15% this week. Data from Coinglass shows that 473,000 wallet addresses were liquidated in the past 24 hours, with liquidation values surpassing $2 billion.
For Wednesday, the focus of the U.S. stock market will shift back to U.S. politics.
First, in just a few hours, the duration of the current U.S. government shutdown will reach an all-time high; second, the Supreme Court of the United States will hear arguments concerning the legality of 'Trump tariffs,' with U.S. Treasury Secretary Bessent confirmed to attend; finally, Tuesday also marks this year's U.S. Election Day, with preliminary results for key races, including the New York City mayoral election, expected within the next few hours.
Other news
[Plane Crash Incident at an Airport in Kentucky, USA]
On Tuesday evening local time, a plane crash occurred near Louisville Muhammad Ali International Airport in Kentucky, USA. United Parcel Service (UPS) subsequently confirmed that the crashed aircraft was its McDonnell Douglas MD-11 freighter, which had three crew members on board. The airport is home to UPS's global hub.
(Archival image of the crashed aircraft)
[Amazon Issues 'Eviction Notice' to Perplexity's AI Agent]
According to the latest reports released early Wednesday, Amazon has sent a cease-and-desist letter to Perplexity, requesting that the artificial intelligence search startup prohibit its AI browser, Comet, from making purchases on behalf of users on Amazon’s online marketplace.
[Apple Reportedly Prepares to Enter the Low-Cost Laptop Market]
Renowned Apple leaker Mark Gurman recently stated that Apple is preparing to enter the low-cost laptop market by developing an affordable Mac aimed at attracting consumers who typically use Chromebooks and entry-level Windows PCs.
[Pfizer and Novo-Nordisk A/S Acquisition Battle Heats Up]
On Tuesday, U.S. biotech company Metsera announced that both Pfizer and Novo-Nordisk A/S have raised their acquisition offers, with Novo-Nordisk A/S’s bid remaining superior. Pfizer increased its offer to up to $8.1 billion, while Novo-Nordisk A/S’s bid reached as high as $10 billion. Following the announcement, Metsera shares closed 20.5% higher on Tuesday, quadrupling from its IPO price in January this year.
Metsera stated that Pfizer has two business days remaining to negotiate its offer. If, after this period, Metsera’s board still considers Novo-Nordisk A/S’s bid superior, it reserves the right to terminate the existing acquisition agreement.
[AMD Chip Revenue Growth Forecast Significantly Slower Than NVIDIA’s]
After hours on Tuesday, AMD announced a 36% increase in third-quarter revenue, reaching $9.2 billion, while also forecasting a 25% revenue growth for the current quarter, reaching $9.6 billion. This figure falls nearly 30 percentage points below NVIDIA’s revenue growth forecast. Following the earnings report, AMD shares dropped over 3% in after-hours trading.
In a separate filing, Amazon disclosed that it liquidated its AMD stock during the third quarter. In an August filing, Amazon had reported holding 820,000 shares of AMD stock.
[IBM Announces Thousands of Layoffs in Q4]
IBM confirmed on Tuesday that the company will implement 'an initiative' in the fourth quarter, affecting a 'low single-digit percentage' of its global workforce. According to the company’s annual report, IBM employed 270,000 people at the end of 2024, meaning that a 1% layoff would result in 2,700 job losses.
[Google to Test Space Data Center Concept]
In a research paper published on Tuesday, Google outlined plans to launch its AI chips, known as Tensor Processing Units (TPUs), into low Earth orbit. This orbit will keep them within continuous view of the sun, enabling them to operate solely on solar power. Google will collaborate with satellite company Planet Labs to launch two experimental satellites by 2027, each equipped with four TPUs.
