Overnight U.S. Stocks | Three Major Indices Closed Higher, Nasdaq Recorded Gains for the 7th Consecutive Month

According to the Zhitong Finance APP, on Friday, the three major indices closed higher. The S&P 500 index has risen for six consecutive months, with a cumulative increase of 2.27% this month, marking the longest monthly winning streak since August 2021; the Dow Jones Industrial Average has also risen for six consecutive months, with a cumulative increase of 2.51% this month, while the Nasdaq index has risen for seven consecutive months, with a cumulative increase of 4.7%, both setting the longest winning streak since January 2018.

[U.S. Stocks] As of the close, the Dow rose 40.75 points, an increase of 0.09%, closing at 47,562.87 points; the Nasdaq rose 143.81 points, an increase of 0.61%, closing at 23,724.96 points; the S&P 500 index rose 17.86 points, an increase of 0.26%, closing at 6,840.20 points. Amazon (AMZN.US) rose 9.58%, Tesla (TSLA.US) rose 3.74%, Nvidia (NVDA.US) fell 0.2%, and Meta Platforms (META.US) fell 2.72%. The Nasdaq China Golden Dragon Index closed up 0.53%, Nio (NIO.US) rose 3.46%, and Alibaba (BABA.US) fell over 2%.

This week, the Dow has risen a total of 0.75%, the Nasdaq has risen 2.24%, and the S&P 500 index has risen 0.71%.

[European Stocks] The German DAX 30 index fell 158.07 points, a decrease of 0.65%, closing at 23,981.36 points; the UK FTSE 100 index fell 39.56 points, a decrease of 0.41%, closing at 9,720.50 points; the French CAC 40 index fell 36.22 points, a decrease of 0.44%, closing at 8,121.07 points; the Euro Stoxx 50 index fell 37.93 points, a decrease of 0.67%, closing at 5,661.25 points; the Spanish IBEX 35 index rose 12.35 points, an increase of 0.08%, closing at 16,046.65 points; the Italian FTSE MIB index rose 4.60 points, an increase of 0.01%, closing at 43,207.00 points.

[Crude Oil] The WTI crude oil futures for December delivery rose 0.7%, settling at $60.98 per barrel; January Brent crude oil futures rose 0.6%, to $64.77 per barrel. Three informed sources indicated that OPEC+ is expected to agree on a slight increase in oil production targets for December on Sunday. In the context of a potential supply surplus next year, the organization is slowing down the pace of production increases previously taken to regain market share. Since April, OPEC+ has raised its production targets by more than 2.7 million barrels per day, equivalent to about 2.5% of global supply. However, due to market concerns about oversupply, the increase in October and November has slowed to 137,000 barrels per day. New Western sanctions on Russia have also posed challenges for negotiations, as Moscow may find it difficult to further increase production. According to three sources, eight OPEC+ member countries, including Saudi Arabia, Russia, the UAE, Iraq, Kuwait, Oman, Kazakhstan, and Algeria, are expected to agree on an additional increase of 137,000 barrels per day for December on Sunday. Another source indicated that a pause in production increases is also possible[Cryptocurrency] Bitcoin rose over 1%, reported at $10.9; Ethereum surpassed $3,900 per coin, up 2.54% for the day.

[Dollar Index] The dollar index, which measures the dollar against six major currencies, rose 0.31% that day, closing at 99.526 in the foreign exchange market. As of the close of the New York foreign exchange market, 1 euro exchanged for 1.1568 dollars, down from 1.1594 dollars the previous trading day; 1 pound exchanged for 1.3148 dollars, down from 1.3162 dollars the previous trading day. 1 dollar exchanged for 154.09 yen, up from 152.84 yen the previous trading day; 1 dollar exchanged for 0.8021 Swiss francs, up from 0.8009 Swiss francs the previous trading day; 1 dollar exchanged for 1.3984 Canadian dollars, up from 1.3934 Canadian dollars the previous trading day; 1 dollar exchanged for 9.4373 Swedish kronor, up from 9.4227 Swedish kronor the previous trading day.

[Precious Metals] Spot gold closed down 0.55%, reported at $4,002.62. Morgan Stanley stated on Friday that due to strong physical demand from ETFs and central banks, as well as continued economic uncertainty, gold prices are expected to rise to $4,500 per ounce by mid-2026 (previously expected to reach $4,500 in the second half of 2026). Morgan Stanley noted in a report: "Recent gold price movements have pushed it into the 'overbought' range on the Relative Strength Index (RSI), but the recent pullback has brought it back to healthier levels, potentially clearing market positions." The bank expects that as interest rates decline, buying by gold ETFs will continue, while central banks will also continue to buy gold, although at a slower pace, and jewelry demand will stabilize. However, Morgan Stanley also warned that downside risks remain, including potential price volatility that could prompt investors to shift to other asset classes, or central banks deciding to reduce gold reserves.

[Macroeconomic News]

Federal Reserve Governor Waller: Data fog does not mean we should stop acting; all data indicate we should lower interest rates in December. Federal Reserve Governor Waller spoke: The labor market is weak, and tariffs have little impact on inflation. Inflation expectations are anchored. Policy should be advanced based on the information conveyed by the data. Despite the government shutdown, we can still obtain a lot of data. Tariff-driven inflation should be ignored. Excluding tariff factors, the inflation rate of personal consumption expenditures (PCE) is about 2.5%. All our forecasts indicate that inflation will return to target levels. The data fog does not mean we should stop acting. All data indicate we should lower interest rates in December. Inflation is returning to 2%, and the biggest concern now is the labor market. The correct policy approach is to continue lowering interest rates. If the president asked me to serve as the chair of the Federal Reserve, I would agree.

Federal Reserve officials express cautious stance on excessive rate cuts. According to reports, on Friday local time, four Federal Reserve officials expressed concerns in different forms about the possibility of rate cuts this week and again in December, explaining why Federal Reserve Chairman Powell stated at the press conference after the decision that a rate cut in December is not "set in stone." At Wednesday's meeting, only Kansas City Fed President George voted against the decision to cut rates by 25 basis points, explaining in a statement on Friday that this move stemmed from concerns about inflation stickinessOn the same day, two other officials without voting rights this year—Cleveland Federal Reserve President Loretta Mester and Dallas Federal Reserve President Lorie Logan—also hinted that they would oppose interest rate cuts if they had voting rights. Mester explicitly expressed concerns that the current rate cut deviates too much from the tightening stance needed to curb inflation: "We must maintain a certain degree of restrictive policy to bring inflation back to target." Although Atlanta Federal Reserve President Raphael Bostic, who also does not have voting rights this year, supports the 25 basis point rate cut, he emphasized that this is contingent on ensuring that the policy stance remains tight. Bostic specifically pointed out that as stubborn inflation continues to appear across various sectors of the economy, each rate cut makes the rationale for further easing less clear, as interest rates are gradually approaching a neutral level that is difficult to effectively suppress price increases.

U.S. Energy Secretary: The goal of the U.S. and Canada is to return to the negotiating table. U.S. Energy Secretary Jennifer Granholm stated that after last week's breakdown in negotiations, the goal of the U.S. and Canada is to return to the negotiating table, and the two countries should strengthen cooperation in oil, natural gas, and critical minerals. Granholm said at the G7 Energy and Environment Ministers' meeting in Toronto that negotiations between the U.S. and Canada have encountered friction "for some important reasons." Last week, President Trump halted negotiations due to an anti-tariff advertisement aired in Ontario that quoted a 1987 radio address by former President Reagan. Trump also threatened to impose an additional 10% tariff on Canada. Before the negotiations broke down, Canadian Prime Minister Justin Trudeau had stated that progress had been made on steel and aluminum tariffs as well as energy agreements. Trudeau also proposed to Trump to restart the Keystone XL pipeline project. Granholm said, "Unfortunately, we have encountered some bumps along the way. I think the goal is to bring both sides back together and see cooperation between the U.S. and Canada in critical minerals, oil, and natural gas."

【Individual Stock News】

Musk reveals plans to launch flying cars within the year, claiming they will surpass "all James Bond vehicles." According to reports, Musk stated that Tesla (TSLA.US) may launch flying cars this year. In an interview released on Friday, Tesla CEO Elon Musk indicated that the company might unveil flying cars by the end of 2025. When asked about the progress of the repeatedly delayed new Roadster sports car, Musk revealed that the prototype demonstration is nearing completion. "My friend Peter Thiel once lamented that the future should be filled with flying cars, but we have yet to achieve that," Musk candidly stated in the podcast. When pressed for details, he added, "Since Peter wants flying cars, we should make sure he can buy one." Musk described the upcoming (flying) car as equipped with "disruptive technology" and promised that its debut would be "unforgettable." He likened the car's characteristics: "Even if you combine all the creative ideas of James Bond vehicles, this car will still be crazier."

Coinbase (COIN.US) plans to acquire stablecoin infrastructure company BVNK for $2 billion to boost its new stablecoin business. Reports indicate that cryptocurrency exchange Coinbase is in the late stages of negotiations to acquire stablecoin infrastructure startup BVNK for approximately $2 billion, pending due diligence. Coinbase expects to complete the transaction later this year or early next yearHowever, the transaction terms may still be adjusted, and there is a risk that the deal could fall through.

【Major Bank Ratings】

HSBC: Raised the target price for Apple (AAPL.US) from $220 to $250

UBS Group: Raised the target price for Amazon (AMZN.US) from $279 to $310, maintaining a buy rating