Overnight US stocks | The sell-off in US bonds was difficult to stop, and the US stocks rose, and the three major indices collectively closed up, and the NASDAQ reached a record high

The Zhitong Finance App learned that on Monday, although 10-year US Treasury yields soared to the highest level in more than 20 years, driven by technology stocks, the three major indices rose, the NASDAQ reached record highs, and Nvidia's stock price hit a record high of 240.098.

[US Stocks] At the close, the Dow Jones index rose 91.30 points, or 0.18%, to 51268.26 points; the S&P 500 rose 51.27 points, or 0.66%, to 7773.99 points; and the Nasdaq Composite rose 286.45 points, or 1.05%, to 27477.31 points. Nvidia (NVDA.US) rose 2%, Novavax Pharmaceuticals (NVAX.US) rose 20%, Qualcomm (QCOM.US) fell 2%, and SpaceX (SPCX.US) rose more than 7%. The Nasdaq China Golden Dragon Index closed up 1.7%, while Alibaba (BABA.US) rose 4%.

[European stocks] The performance of the European stock market was divided. The pan-European Stock 600 index closed up about 0.4%, while the French CAC40 index fell 0.8%. Fiscal concerns continue to weigh on the French market

[Asia Pacific Stock Market] The Nikkei 225 Index rose 2.4%, and the Indonesian Composite Index rose 1.36%.

[Foreign Exchange] The US dollar index, which measures the US dollar against the six major currencies, rose 0.23% on the same day and closed at 102.167 at the end of the foreign exchange market. As of the end of the exchange market in New York, 1 euro was worth 1.1215 US dollars, lower than 1.1252 US dollars on the previous trading day; 1 pound was worth 1.3219 US dollars, lower than 1.3239 US dollars on the previous trading day. 1 US dollar was worth 158.00 yen, up from 157.80 yen on the previous trading day; 1 US dollar was worth 0.8307 Swiss franc, higher than 0.8287 Swiss franc on the previous trading day; 1 US dollar was worth 1.4256 Canadian dollars, lower than 1.4259 Canadian dollars on the previous trading day; and 1 US dollar was worth 10.0403 SEK, up from SEK 10.0366 on the previous trading day.

[Cryptocurrency] At one point, Bitcoin was close to 87,000 US dollars, and as of press time, it was $85,925; Ethereum fell 0.54% to 2,715 US dollars.

[Precious Metals] Spot gold reports 4141.17 US dollars/ounce; spot silver reports 61.1 US dollars/ounce.

[Crude oil] Light crude oil futures for November delivery on the New York Mercantile Exchange fell $1.68, or 1.84%, to close at $89.43 a barrel; London Brent crude oil futures for December delivery fell $1.93, or 1.89%, to close at $100.32 a barrel.

[Macro News]

The Trump administration is reportedly planning to ease restrictions on the use of duty-free diesel to reduce fuel costs. US President Trump is preparing to ease restrictions on the use of a type of duty-free diesel, his latest move to reduce the cost of this critical fuel ahead of the November midterm elections. People familiar with the matter revealed that the Trump administration is expected to announce plans for so-called “red-dyed diesel” on Monday, which will allow more widespread use of red-dyed diesel or dyed diesel. This type of diesel is commonly used for non-road purposes. As red-dyed diesel is exempt from federal excise duty of 24 cents per gallon, any measures to expand its use (including allowing it to be used in road vehicles) are expected to quickly translate into lower retail prices. Diesel prices have risen sharply as the war between Russia and the Middle East weakened refining capacity and led to a decline in global transportation of petroleum products. As of Sunday, the retail price of diesel in the US averaged $6.32 per gallon, according to data from the American Automobile Association (AAA). Although this price is below the all-time high set last month, farmers, truck drivers, and other users are still paying far more than before. When the US and Israel attacked Iran in February, the price of diesel was only $3.76 per gallon.

US business activity accelerated to its fastest and strongest growth in more than five years, coexisting with rising inflation. Chris Williamson, chief business economist at S&P Global Market Intelligence, said, “The growth rate of US business activity reached its highest level in more than five years in September. Increased demand and improved business confidence drove companies to expand output at the fastest rate in more than five years. Combined with the equally steady performance of the manufacturing PMI, the strong expansion of the service sector means that the US economic growth rate will reach about 4% in the third quarter. Economic growth will further accelerate in September, which also indicates that economic growth momentum is increasing in the early fourth quarter. Technology companies report that the growth rate is the fastest in nearly four years, indicating that the AI boom is boosting large tech companies. Other industries are also encouraged, with consumer-facing businesses and industries such as healthcare, alcohol, real estate, and financial services reporting increased growth. However, there are concerns that the signs of the economy overheating are becoming more and more obvious. Enterprise investment costs are rising at an accelerated pace, driven by rising service prices. The input cost inflation rate rose to its highest level in nearly four years in September. At the same time, rising fuel prices are driving up cost pressure, and the increase in corporate sales prices has further accelerated, indicating that the inflation rate may continue to exceed the Federal Reserve's 2% target.”

Media: Private credit concerns push the Federal Reserve to scrutinize large banks. According to reports, the New York Federal Reserve has begun visiting large banks to review their loans to private credit companies and understand the risk exposure of these banks in the financial industry, which concerns investors and global policymakers. According to people familiar with the situation, since spring of this year, Federal Reserve officials have visited J.P. Morgan Chase, Wells Fargo, Barclays, and Morgan Stanley to ask questions about overall exposure, risk management, and collateral quality. According to people familiar with the matter, this review stems in part from J.P. Morgan Chase's March move to write down large loans in private credit portfolios, particularly those from software companies threatened by artificial intelligence. People familiar with the matter said that the Federal Reserve has completed a review of some banks, including J.P. Morgan Chase. It's not unusual for the Federal Reserve to scrutinize bank positions in depth, especially when the media frequently reports on their potential risks. The Federal Reserve will also conduct regular on-site assessments and continuously monitor the bank's risk situation.

Raw sugar futures hit a new high in nearly two years, and concerns about tightening global supply are heating up. Raw sugar futures continued to rise, weather and production concerns in the world's major sugar producers intensified, and market concerns about the tightening of global supply continued to heat up. New York's most active raw sugar futures once rose 2% to the highest level since December 17, 2024, continuing a rise of nearly 8% last week. Sugar futures also rose at the same time. The El Niño weather pattern is heating up supply concerns across the agricultural market, and sugar crops are expected to be among the earliest affected varieties. At the beginning of the year, the market generally anticipated an oversupply in the global sugar market, but weather risks are changing this expectation. Chris Beauchamp, chief market analyst at investment and trading platform IG, said, “Weather concerns are driving the recent rise in sugar prices, and sugar prices may further test the August high.” Too much rainfall in Brazil, the world's largest sugar producer, has led to a slowdown in sugar cane harvesting and pressing. India, the world's second-largest sugar producer, was affected by the weakest monsoon since 2015, and sugar production is expected to decline. On the European side, the European Union's agricultural resources monitoring department predicts that sweet menu production will be lower than the five-year average. Normally, a drop in production in one region can be compensated by an increase in production in other regions, but if several major sugar producers experience unfavorable weather at the same time, this supply buffer space may be weakened.

[Individual Stock News]

Nvidia's stock price hits record high for the first time in many months Analyst: There are still reasons to keep rising. As Nvidia (NVDA.US) shares hit a new high for the first time in four months, analysts are optimistic about the future. The company's stock closed at a record high of $237.58 on Monday, and the company's market capitalization is around $5.76 trillion. Wade Bush analyst Matt Bryson said that as Nvidia gets closer to meeting future financial expectations, “it is increasingly difficult for the market to ignore” the disconnect between its growth prospects and valuations. He pointed out that the company is expected to grow at a rate of 70%, but the stock trading price is less than 20 times the expected earnings per share for the next fiscal year, making it relatively cheap. Despite competition from peers and even its own customers, Nvidia is still “the cornerstone of AI infrastructure,” Bank France and Pakistan analyst Karl Ackerman wrote in a report last week. He raised his target price for the share to $345 per share, which means 45% room for growth compared to Monday's share price.

Wall Street syndicate launches record $60 billion AI financing deal. According to reports, Bank of America, Citibank, and Morgan Stanley have begun distributing debt financing totaling 60 billion US dollars to other banks to support Anthropic's leasing of Google (GOOG.US) AI chips, making it the largest chip financing transaction to date. Of this, about 42 billion US dollars are advanced guarantee loans supported by Broadcom (AVGO.US), which began syndicated distribution on Monday; another 18 billion US dollars of sub-debt not guaranteed by Broadcom are expected to be introduced later, and Blackstone has promised to fund about 9 billion US dollars of this. Proceeds from the financing will be used for Anthropic's 2027 chip order, and lease payments will begin once the chips are delivered. Broadcom is also likely to receive up to $42 billion in convertible notes from Anthropic to pay for related leases. This $60 billion financing is seen as an important transaction to test the market's demand for AI debt.

[Major Bank Ratings]

Melius Research: Upgraded the Microsoft (MSFT.US) rating to “buy” and raised the target price from $465 to $665.