On Friday Eastern Time, the three major US stock indices collectively closed lower, with the Dow down 0.86% and a cumulative decline of 1.61% this week; The Nasdaq fell 1.53%, with a cumulative decline of 3.16% this week; The S&P 500 index fell 1.26%, with a cumulative decline of 2.39% this week.
Popular technology stocks generally fell, with Tesla falling more than 3%, Amazon falling more than 2%, and Apple, Microsoft, Google, and Nvidia all falling more than 1%. Nvidia fell more than 9% this week, marking its worst weekly performance since September 2022. Solar energy, automotive manufacturing, industrial metals, and WSB concept stocks led the decline, with SunPower falling more than 8%, Snitzer Steel and Fisk falling more than 4%, McMoran Copper falling more than 3%, and Rivian falling more than 2%. The tobacco, retail department stores, and precious metal sectors rose, with gold mining up over 49%, gold resources up over 6%, and Cole's department stores up over 2%.
Popular Chinese concept stocks generally fell, with the Nasdaq China Golden Dragon Index falling 1.37% and a cumulative decline of 6.13% this week. NetEase Youdao and Kingsoft Cloud fell by over 5%, while JD.com, NetEase, and Alibaba fell by over 2%. Weibo, Xiaopeng Automobile, Ideal Automobile, Bilibili, NIO, Baidu, Tencent Music, Pinduoduo, and Futu Holdings fell by over 1%, while Vipshop and Manbang slightly declined. IQiyi rose by over 2%.
Global News

For the first time in 16 years! 10 year US Treasury yields hit the 5% mark. Understand the impact of reading this article
On Thursday (October 19), the yield of benchmark 10-year US treasury bond bonds hit the 5% mark for the first time since July 20, 2007, a breakthrough in this important integer mark, marking a new milestone in the process of rising US borrowing costs... The 10-year US treasury bond yield, known as the "anchor of global asset pricing", is often regarded as a key reference for changes in global borrowing costs. According to Reuters' quotation, the yield of 10-year US treasury bond bonds climbed to a 16 year high of 5.001% overnight, and finally rose 9 basis points to 4.99% late in the day.
Federal Reserve Chairman Powell: The Federal Reserve will "act cautiously" but also open the door to interest rate hikes
On Thursday, US Eastern Time, Federal Reserve Chairman Powell delivered an important speech at the New York Economic Club. His series of remarks indicated that the Federal Reserve would once again remain silent at its next meeting, but also stated that if policymakers see further signs of strong economic growth, they may raise interest rates again. Powell said, "Considering the many uncertainties and risk factors, as well as the progress we have made, the Federal Reserve is acting cautiously." Like recent official statements, Powell also pointed out that decisions will be made on the extent of further tightening of policies and how long they will be maintained based on the upcoming economic data, constantly changing prospects, and risk balance.
How long can the hot employment continue under the 9-month new low and high interest rates after the US initial application data refresh?
Last week, the initial demand in the United States unexpectedly dropped to its lowest level since January, indicating that even under the pressure of the Federal Reserve's repeated interest rate hikes, the labor market remains exceptionally hot. Prior to the US stock market on Thursday (October 19th), data released by the US Department of Labor showed that in the week ending October 14th, the number of first-time applicants for unemployment benefits was 198000, a decrease of 13000 from the adjusted 211000 in the previous week. The market had originally expected it to rise to 212000.
What is the maximum risk exposure of the US financial system? The top regulatory agency in the United States plans to "mine" ahead of schedule
According to media reports, the top regulatory body in the United States is paying high attention to the dangers posed by highly leveraged hedge fund transactions and considering various options to control broader financial system risks. Regulators are particularly concerned about a strategy called "basis trade", which involves taking advantage of high leverage to profit from the price difference between US treasury bond bond futures and relevant spot markets. In recent years, borrowing in the repo market with US treasury bond bonds as collateral has soared to nearly $3 trillion. Although hedge funds are subject to relatively little direct regulation, many of their trading funds rely on heavily regulated large banks. Therefore, regulatory authorities can limit hedge fund leveraged trading by exerting pressure on banks.
CITIC Construction Investment: Middle East Situation Upgrades, Target for Crude Oil: $100 USD
According to the China CITIC Construction Investment Research Report, the US Treasury's large-scale issuance of bonds will continue to reduce net liquidity. This round of interest rate hikes will lead to a downward trend in the US credit cycle, which will drag down US stocks and expect the valuation of the Dow to continue to decline. In the short term, the escalation of the Palestinian-Israeli conflict in the Middle East has led to an increase in demand for safe haven gold. In the medium term, it is expected that the US unemployment rate will enter an upward channel, the Federal Reserve's interest rate hike will come to an end, and gold will enter a reverse upward trend, with a target price of $2000- $2200 at the end of the year. The escalation of the Israeli-Palestinian conflict is similar to the 1973 oil crisis, and it is expected that the fundamentals of the crude oil market will still be in short supply in the next six months. WTI oil prices may show a fluctuating upward trend, with a target price of $100 at the end of the year.
Company Message
Is Tesla's high valuation unsustainable? Wall Street: More and more like an ordinary car company!
Tesla Inc.'s continuous price cuts this year indicate that consumers are no longer willing to pay premiums for their cars. This raises a key question for Wall Street: is its high stock market valuation still reasonable? After the electric vehicle manufacturer announced its latest performance, investors immediately concluded that it was not worth that much. On Thursday, Tesla's stock price fell 9.3% to $220.11, evaporating its market value by over $70 billion. Thursday's sharp drop in stock prices also caused Tesla CEO Elon Musk's personal fortune to shrink by at least $16 billion. However, he still tops the global billionaire list.
Up to 50000 yuan overnight?! NVIDIA 4090 graphics card e-commerce platform "out of stock"
On the evening of October 18th, topics related to NVIDIA 4090 graphics cards were trending on Weibo. Nvidia RTX 4090 series graphics cards are gradually being taken off shelves in e-commerce channels. Currently, Nvidia flagship stores in China have taken off RTX 4090 graphics cards, and Nvidia partners such as Asus and Qihong have also taken off non-public graphics cards of this model, all of which have shown an out of stock status. JD's self operated channels have also fully taken down various RTX 4090 graphics cards, and some third-party stores have stock, but prices have generally increased, even reaching a high price of nearly 50000 yuan.
Minister of Industry and Information Technology Jin Zhuanglong Meets with Apple CEO Cook
On October 19th, Minister of Industry and Information Technology Jin Zhuanglong met with Apple CEO Cook in Beijing, and the two sides exchanged views on issues such as Apple's development in China and industrial chain supply chain cooperation. Cook stated that Apple is willing to actively participate in the high-quality development of the Chinese economy, continue to promote green manufacturing and intelligent manufacturing in China, continuously enrich the developer ecosystem, and support the common growth of industry chain supply chain partners.
This decision by the FCC in the United States paves the way for wireless wearable devices! Meta and Google cheer for it
On Thursday (October 19th), the Federal Communications Commission (FCC) agreed to open a spectrum for certain devices, which may help pave the way for new applications of augmented reality (AR) and virtual reality (VR) wearable devices. The organization unanimously voted to open the 6GHz frequency band to a category of "new ultra-low power devices", such as wearable technology devices. According to a press release, the FCC expects this move to "stimulate an ecosystem of cutting-edge applications, including wearable technology, AR, and VR technology, which will help enhance business growth, increase learning opportunities, advance healthcare opportunities, and bring new entertainment experiences
Jianghuai plans to transfer the assets of NIO factory NIO response
The Daily Economic News reporter learned from insiders that the two factories involved in the asset transfer of JAC Automobile are actually the two factories that JAC and NIO cooperate with - the JAC NIO Advanced Manufacturing Base and NIO Second Advanced Manufacturing Base, namely NIO F1 Factory and NIO F2 Factory. The reporter also promptly sought confirmation from NIO regarding this matter. The company has understood the relevant information of its partners and confirmed that this action will not affect the company's future production and operation activities. The relevant person in charge of NIO responded that the company will communicate with them regarding the relevant matters at an appropriate time and will not comment on this matter until then.
Qiu Dongrong's new arrivals to Xiaopeng Automobile and Greenleaf Pharmaceutical in the third quarter claim to be able to buy some "stories" and "dreams"
Star fund manager Qiu Dongrong is managing the fund's third quarter report, which has been released. On the early morning of October 20th, Qiu Dongrong, Deputy General Manager and Chief Investment Officer of Zhonggeng Fund, announced all five fund products under his umbrella and released their 2023 third quarter reports. As of the end of the third quarter of this year, the total scale of funds managed by Qiu Dongrong was 26.229 billion yuan, a decrease of 6.67% compared to 28.103 billion yuan at the end of the second quarter. From the positions disclosed in the third quarter report, it can be seen that the representative fund of Qiu Dongrong, Zhonggeng Value Leader, has entered two new stocks, mainly increasing its holdings in the consumer, pharmaceutical, and industrial industries, while reducing its holdings in consumer, technology, and other fields.