Morning News

Source: Wall Street CN

# Market Overview

Bargain-hunting buying surged into the market, driving a strong rebound in U.S. stocks on Wednesday. The S&P 500 and Nasdaq recouped all the losses from the previous day. Market enthusiasm for AI once again overshadowed concerns about its bubble, with the Nasdaq closing above the 23,000-point mark for the first time in its history. Chip stocks led the gains: NVIDIA rebounded by 2.2%, approaching its all-time high; AMD soared by over 11%; and Dell rose by more than 9%.

The yield on the 2-year U.S. Treasury note climbed by over 2 basis points and hit a new daily high after the release of the Federal Reserve's meeting minutes.

Against the backdrop of concerns over Japan's fiscal spending, the Japanese yen fell for the fifth consecutive day, dropping 0.57% intraday.

Bitcoin rebounded to $124,000 at one point, erasing most of its Tuesday losses. Driven by both the U.S. government shutdown and expectations of interest rate cuts, gold broke through $4,000, while silver rose by as much as 3.7% intraday.

Crude oil prices surged higher before retreating. U.S. oil once touched $63 per barrel and finally closed up 0.36%.

During the Asian trading session, both the Hang Seng Index and the Hang Seng Tech Index closed lower, with AI concept stocks leading the decline. However, gold stocks and nuclear power stocks bucked the trend and rose sharply.

# Key News

- **Fed Minutes**: Most officials stated that further easing this year may be appropriate, while a few might have supported no interest rate cut in September.

- **U.S. Government Shutdown**: The shutdown entered its second week with no resolution in sight. The Senate rejected a bipartisan temporary funding bill for the sixth time.

- **U.S. Congressional Budget Office (CBO)**: The U.S. federal government's budget deficit for the last fiscal year stood at $1.8 trillion, nearly flat compared to the 2024 fiscal year.

- **Jensen Huang**: AI demand has surged significantly in the past six months. NVIDIA participated in the investment in Elon Musk's xAI, but he regretted not investing more—he also expressed the same regret regarding OpenAI. Additionally, he was surprised by AMD's agreement to grant OpenAI up to a 10% stake.

- **Tesla & xAI**: Reports indicate that Tesla has continuously lowered its production target for the "Optimus" robot, which was reduced to 2,000 units in summer. The AI "closed loop" continues: Musk's xAI is close to raising $20 billion in funding, with NVIDIA investing $2 billion to take a stake, and the investment is "tied to chips".

- **Alibaba**: Alibaba has taken a direct role, with its Tongyi Qianwen leading the establishment of a robotic AI team.

- **Verisilicon Holdings (ASIC Leader)**: Verisilicon Holdings reported explosive Q3 results. Driven by AI orders, its revenue hit a record high, and a profit inflection point may be near.

- **AMD & Dell**: AMD surged by a cumulative 43% over three days! Its milestone agreement with OpenAI fueled its stock price, and analysts collectively raised their target prices. Investment banks are unanimously bullish on Dell, with its stock price target raised successively, leading to a 9% single-day jump in its share price.

- **2025 Nobel Prize in Chemistry**: The 2025 Nobel Prize in Chemistry was announced, with three scientists awarded for their contributions to the development of metal-organic frameworks (MOFs). Google has won Nobel Prizes consecutively: AI won last year's Chemistry Prize, and quantum computing won this year's Physics Prize.

- **Russia**: Putin stated that it is necessary to ensure the unconditional achievement of all goals set for the special military operation. Russia's Deputy Foreign Minister noted that the momentum for a U.S.-Russia presidential meeting has been largely exhausted, and "Tomahawk" missiles could lead to a fundamental change in the situation.

- **Gaza Ceasefire**: Sources said Hamas has agreed to a Gaza ceasefire agreement. Trump claimed that Israel and Hamas have signed the first phase of a "20-point plan" and that he may travel to the Middle East this weekend.

- **AI Bubble Warning**: The International Monetary Fund (IMF) and the Bank of England issued statements together, marking the clearest warning from global official institutions regarding the AI bubble.

# Market Closing Quotes

- **U.S. & European Stocks**: The S&P 500 Index rose 0.58% to close at 6,753.72 points, hitting a new all-time closing high after a one-day gap. The Dow Jones Industrial Average edged down to close at 46,601.78 points. The Nasdaq Composite Index climbed 1.12% to close at 23,043.378 points, setting another all-time closing high a day later. Europe's STOXX 600 Index closed up 0.79% at 573.79 points.

- **A-Shares**: A-share markets were closed.

- **Bond Market**: The yield on the 10-year U.S. Treasury note rose 0.58 basis points to 4.1287%. The yield on the 2-year U.S. Treasury note increased 2.07 basis points to 3.5843%.

- **Commodities**: WTI November crude oil futures closed up 1.33% at $62.55 per barrel. Brent December crude oil futures rose 1.22% to close at $66.25 per barrel. COMEX gold futures climbed 1.43% to settle at $4,061.70 per ounce.

# Details of Key News

## Global Highlights

### Fed Minutes: Most Officials See Further Easing Appropriate This Year; A Few Might Have Backed No September Cut  

The "Fed Whisperer" wrote that the September FOMC meeting minutes revealed divisions among Fed officials over the extent of interest rate cuts. Some officials argued that a rate cut was unnecessary last month, or that they could have supported keeping rates unchanged. The recent government shutdown has delayed the release of multiple economic data, leaving Fed officials with more limited information when assessing the economic outlook.

### U.S. Government Shutdown Enters Second Week with No Resolution; Senate Rejects Bipartisan Interim Funding Bill for 6th Time  

Like the previous five votes, the Democratic bill failed to gain support from any Republican senators. The Republican bill fell short of the 60 votes needed for approval, with only three Democratic senators defecting to support it. Partisan disagreements over extending healthcare subsidies persist. Republicans insist that the government must first be reopened before negotiations can take place. Democrats accuse Republicans—who control the government—of allowing the shutdown to happen, arguing that the Republican Speaker of the House is the real obstacle to resolving the crisis. Amid the ongoing shutdown, the U.S. Internal Revenue Service (IRS) announced that nearly half of its employees, approximately 34,000 people, will be placed on furlough.

### U.S. Congressional Budget Office (CBO): Federal Budget Deficit Hits $1.8 Trillion in FY2025, Nearly Flat from FY2024  

Despite a significant increase in tariff revenues, the U.S. federal government recorded a budget deficit of $1.8 trillion in the 2025 fiscal year (ending September 30), according to the CBO. This is a mere $8 billion decrease from FY2024, remaining nearly unchanged. Donald Trump’s tariff hike policy generated approximately $195 billion in tariff revenue for the federal government in FY2025. U.S. fiscal revenues rose by $308 billion (a 6% increase), while expenditures also increased by about $301 billion (a 4% increase)—driven primarily by interest payments on public debt. Interest payments on public debt exceeded the $1 trillion mark for the first time.

### Jensen Huang: AI Demand Surged in Recent Six Months; NVIDIA Invested in Musk’s xAI, Regrets Not Investing More (Same for OpenAI)  

Jensen Huang stated that demand for Blackwell chips is "very, very high," and we are at the dawn of a new industrial revolution. He added that NVIDIA wants to participate in almost everything Elon Musk is involved in, and the only regret about NVIDIA’s investment in OpenAI is not investing more. He also expressed surprise at AMD’s agreement to grant OpenAI up to a 10% stake. When discussing China-U.S. AI competition, he noted that China is far ahead in energy infrastructure development.

### Report: Tesla Continuously Lowers "Optimus" Robot Production Targets, Reduced to 2,000 Units in Summer  

Tesla has abandoned its mass production plan for this year and instead redirected resources to tackle hand design challenges and implement other improvements.

### AI "Closed Loop" Continues: Musk’s xAI Nears $20 Billion Fundraising; NVIDIA Invests $2 Billion with "Chip-Tied" Terms  

The transaction does not involve direct capital injection into xAI; instead, it will be executed through a Special Purpose Vehicle (SPV). The SPV will use the raised funds to purchase NVIDIA processors. Subsequently, xAI will obtain the right to use these chips from the SPV via a five-year lease agreement, allowing Wall Street financial investors to recoup their investments.

### Alibaba Takes Direct Action; Tongyi Qianwen Leads Establishment of Robotic AI Team  

Lin Junyang, the technical director of Tongyi Qianwen, revealed that Alibaba has established a "Robot and Embodied AI Group." He stated that multimodal foundation models are being transformed into basic intelligent agents capable of using tools and memory to perform long-sequence reasoning through reinforcement learning. These applications "should move from the virtual world to the real world," he added.

### "ASIC Leader" Verisilicon Holdings Posts Explosive Q3 Results: AI Orders Drive Record Revenue; Profit Inflection Point May Be Near  

Verisilicon Holdings recently released a stellar Q3 operating performance forecast, with nearly all indicators exceeding expectations. For investors still viewing the company through the outdated lens of "the first semiconductor IP stock," this data serves as a strong reminder: Verisilicon’s growth engine has shifted, and the narrative around AI ASICs (Artificial Intelligence Application-Specific Integrated Circuits) is now being validated by data.

### AMD Surges 43% in Three Days! Landmark Deal with OpenAI Drives Stock; Analysts Uniformly Raise Target Prices  

AMD recorded its largest three-day gain in nine years, closing up 11% to a record high on Wednesday—following a nearly 24% jump on Monday when the OpenAI deal was announced. This week, 26 Wall Street analysts have raised AMD’s target price, with the highest target set at $300, implying a further nearly 30% gain after this week’s three-day rally.

### Investment Banks Unanimously Bullish on Dell; Target Prices Raised Successively, Stock Jumps 9% in a Day  

On Wednesday, UBS Group significantly raised Dell’s target price by 20% from $155 to $186 while maintaining a "Buy" rating. Prior to this, Mizuho Securities also raised its target price from $160 to $170, and Melius Research even set a target price of $200. These adjustments reflect analysts’ widespread view that Dell’s leadership in the enterprise AI sector will translate into sustainable revenue and profit growth.

### 2025 Nobel Prize in Chemistry Announced: Three Scientists Honored for Contributions to Metal-Organic Frameworks (MOFs) Development  

### Google Wins Nobel Prizes Consecutively! AI Took Last Year’s Chemistry Prize, Quantum Computing Wins This Year’s Physics Prize  

Consecutive Nobel wins are not only academic honors but also demonstrate Google’s ability to translate basic research investments into core competitiveness. This provides strong support for its leading position in future technological revolutions and has become a key indicator for investors evaluating the company’s long-term value.

### Putin: Must Ensure Unconditional Achievement of All Goals Set for the Special Military Operation  

According to CCTV News, Putin also noted that the strategic initiative is currently fully in the hands of the Russian Armed Forces, and Ukrainian troops are continuing to retreat along the entire contact line. He added that Ukraine’s attacks on purely civilian facilities in deep areas of Russian territory are an attempt to show results to its Western "sponsors."

### Russian Deputy Foreign Minister: Momentum for U.S.-Russia Presidential Meeting "Largely Exhausted"; "Tomahawk" Missiles Could Trigger "Fundamental Change" in Situation  

Sergei Ryabkov stated that the strong momentum for reaching agreements, generated by the U.S.-Russia presidential meeting in Alaska in August, has been largely exhausted—"mainly caused by the destructive actions of Europeans." If the West indeed provides Ukraine with "Tomahawk" cruise missiles, it would mean a fundamental change in the situation, but this will not affect Russia’s determination to achieve the goals of the special military operation.

### Sources: Hamas Agrees to Gaza Ceasefire Deal; Trump Claims Israel and Hamas Signed First Phase of "20-Point Plan," May Travel to Middle East This Weekend  

### "AI Closed Loop" Dominates Holiday Discussions! Understanding the North American Data Center Supply Chain  

In this unprecedented gold rush sparked by AI, supply chain giants that master core heat dissipation and power supply technologies—capable of "cooling down" and "powering" massive computing power—will undoubtedly emerge as the true winners.

### Current State of the AI Industry Chain: Upstream (NVIDIA, TSMC) Reaps Huge Profits; Downstream Faces High Debt, Low Profits  

The AI boom is creating a sharply divided industry landscape. Chip and server manufacturers in the upstream of the industry chain are enjoying substantial profits, while many downstream cloud service providers and application developers are trapped in a predicament of high costs and low profits. Meanwhile, rising debt levels are also sounding an alarm for the industry.

### IMF and Bank of England Speak Out Together! Global Official Institutions Issue Clearest Warning Yet on AI Bubble  

IMF Managing Director Kristalina Georgieva stated on Wednesday that market optimism about AI’s potential to boost productivity could shift suddenly, thereby impacting the global economy. On the same day, the Bank of England noted that current market sentiment is similar to the period before the 2000 dot-com bubble burst, and there is a risk of sudden adjustments in global financial markets. Media analysis suggests that the statements from the IMF and the Bank of England represent the clearest warning yet from global official institutions about the potential burst of the AI-driven market bubble.

### Goldman Sachs’ "AI Narrative Framework": Five Key Controversies in AI  

Goldman Sachs identifies five major controversies in the AI field:  

1. Consumer-side AI adoption is rapid, but monetization lags behind;  

2. Enterprise AI deployment is expanding, but ROI is limited—only 5% of companies have seen measurable benefits;  

3. AI infrastructure investment is unprecedented—the five major cloud service providers’ capital expenditures in 2025 are expected to reach $381 billion, a year-on-year increase of 68%;  

4. AI workloads will drive a 165% increase in global data center power demand by 2030;  

5. Despite bubble concerns, current valuation levels are still 46% lower than during the dot-com bubble.

## Domestic Companies

### InnoCare Secures Over $2 Billion Licensing Deal; Core Product Makes Breakthrough in Overseas Expansion  

InnoCare has opened a new chapter in the global journey of its core product orelabrutinib through a landmark licensing agreement with a potential total value exceeding $2 billion. This collaboration with U.S.-based biopharmaceutical company Zenas BioPharma not only brings InnoCare substantial near-term cash flow and equity returns but also marks its success in securing a new international partner in the key autoimmune disease field—injecting critical momentum into its internationalization strategy.

## Overseas Macroeconomics

### Vietnam Stock Index Hits Record High After Inclusion in FTSE Russell Emerging Markets Index  

FTSE Russell’s decision to include Vietnam in its Emerging Markets Index is expected to attract billions of dollars in foreign investment and boost its capital market. This marks important recognition from the international investment community following Vietnam’s implementation of market-friendly reforms.

## Overseas Companies

### OpenAI Gets Chips, AMD Gets Market Share—Will Investors Ultimately "Foot the Bill"?  

OpenAI will use AMD’s own stock to cover costs. This unique financing arrangement essentially allows AMD to finance large-scale purchases for its customers, with the ultimate cost potentially borne by investors who have driven up the stock price.

### Where Does OpenAI Get the Money for Its $1 Trillion Deal?  

Through "circular financing" that deeply binds suppliers and an innovative "equity-for-purchase" model, OpenAI is rewriting the capital rules of the AI era. According to Goldman Sachs estimates, after accounting for massive future capital expenditures, OpenAI’s total funding needs for 2026 alone will soar from $35 billion to approximately $114 billion, with the share of demand for external equity and debt financing surging to 75%.

### Longer Than Expected: This "Legacy Storage" Price Hike Cycle Will Last Until 2026  

While mainstream chips are advancing by leaps and bounds, the legacy storage chip market is opening up a notable profit window.

### When the "Largest Traditional Financial Exchange" Invests in the "Largest On-Chain Prediction Market," "Asset Tokenization" Enters Mainstream View  

Intercontinental Exchange (ICE)—the parent company of the New York Stock Exchange (NYSE)—announced a $2 billion strategic investment in prediction market Polymarket, valuing Polymarket at approximately $8 billion before the investment. This collaboration will build a complete tokenized data market ecosystem. By anchoring event data and derivatives in a transparent, verifiable decentralized finance (DeFi) market while ensuring distribution and compliance through an established intermediary, the partnership aims to meet the needs of both crypto-native participants and institutional end-users.

### MSTR’s Bitcoin Holdings Approach the Book Cash of Amazon, Google, and Microsoft  

The value of MicroStrategy’s 640,031 bitcoins once exceeded $80 billion. This figure places the size of its corporate treasury close to that of Amazon, Google, and Microsoft—each of these tech giants holds approximately $95 billion to $97 billion in cash or cash equivalents.

### SoftBank Acquires ABB’s Robotics Business for $5.375 Billion in Cash!  

The deal values ABB’s robotics business at $5.375 billion. The agreement also means ABB has abandoned its previous plan to spin off the robotics business and list it independently. This acquisition represents a major strategic move by SoftBank in the AI field, particularly in the direction of "physical AI."

## Key News Preview for Today

- China’s September financial data  

- Speech by Federal Reserve Chair Jerome Powell  

- Speech by Federal Reserve Governor Michelle Bowman  

- Release of the European Central Bank’s September monetary policy meeting minutes  

- Announcement of the Nobel Prize in Literature winner  

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