Overnight US stocks | The market waits for the Fed's interest rate decision, the three major indices rise, Tesla (TSLA.US) stock price returns above $400

The Zhitong Finance App learned that on Tuesday, the three major indices rose. Oil prices have declined, and the market is concerned about the latest Federal Reserve interest rate decision to be announced and the third-quarter results of Alphabet (GOOG.US, GOOGL.US) and Microsoft (MSFT.US).

[US Stocks] At the close, the Dow Jones index rose 15.99 points, or 0.03%, to 52377.57 points; the S&P 500 rose 45.85 points, or 0.60%, to 7722.62 points; and the Nasdaq Composite rose 308.43 points, or 1.18%, to 26477.81 points. Boeing (BA.US) fell 10.7%, SK Hynix (SKHY.US) rose 1.9%, Tesla (TSLA.US) rose 4% to $407.46; Dell (DELL.US) rose 7%. The Nasdaq China Golden Dragon Index fell 0.11%.

[European stocks] The German DAX30 index rose 186.03 points, or 0.73%, to 25596.87 points; the UK FTSE 100 index fell 79.41 points, or 0.74%, to 10687.92 points; the French CAC40 index rose 39.82 points, or 0.51%, to 7887.14 points; the European Stoxx 50 index rose 48.42 points, or 0.79%, to 6164.65 points; Spain's IBEX35 index rose 131.99 points, or 0.69%, to report 19165.29 points; Italy's FTSE MIB index rose 431.69 points, or 0.88%, to 49618.50 points.

[Foreign Exchange] The US dollar index, which measures the US dollar against the six major currencies, rose 0.35% on the same day and closed at 102.319 at the end of the foreign exchange market. As of the end of the exchange market in New York, 1 euro was worth 1.1135 US dollars, lower than 1.1183 US dollars on the previous trading day; 1 pound was worth 1.3313 US dollars, lower than 1.3350 US dollars on the previous trading day. 1 US dollar was worth 157.95 yen, up from 157.43 yen on the previous trading day; 1 US dollar was worth 0.8287 Swiss franc, higher than 0.8273 Swiss franc on the previous trading day; 1 US dollar was worth 1.4052 Canadian dollars, higher than 1.4020 Canadian dollars on the previous trading day; 1 US dollar was worth 9.9489 SEK, lower than 9.9510 on the previous trading day.

[Cryptocurrency] Bitcoin rose more than 1% to $80,806 as of press release; Ethereum rose more than 1.6% to $2,347.

[Precious Metals] Spot gold rose 1.1% to the $4060.74 mark; spot silver rose 0.81% to $54.42 per ounce.

[Crude oil] Light crude oil futures for December delivery on the New York Mercantile Exchange fell $1.86, or 1.83%, to close at $99.90 a barrel; London Brent crude oil futures for December delivery fell $1.93, or 1.67%, to close at $113.88 a barrel.

[Macro News]

Orders for US core capital goods increased in September, and shipments surged. New orders for core manufacturing capital goods in the US increased in September, and shipments of related products rose sharply, indicating that corporate equipment spending continued to grow strongly in the third quarter. The US Department of Commerce's Census Bureau said on Tuesday that orders for non-defense capital goods excluding aircraft increased by 0.5% in September, and the indicator increased by 1.6% in August (data not revised). Economists had previously expected a 0.7% increase. Shipments of core capital goods used to calculate the equipment expenditure portion of GDP increased sharply by 1.2% in September, higher than the 0.6% increase in August. Driven by massive investment in the AI sector, enterprise equipment spending has achieved double-digit growth for two consecutive quarters, providing important support for the manufacturing industry and the overall economy. Economists expect that the preliminary GDP value for the third quarter announced by the US government on Thursday will show an annualized economic growth rate of more than 3.0%. However, investors are increasingly concerned about the rising costs of long-term projects, as the returns of these projects remain uncertain. Over the past year, tech companies raised huge loans to spend in the AI sector.

Iran's Supreme Leader emphasized implementing Iran's conditions to push for an end to the war. Iran's Revolutionary Guard Corps published an article stating that Major General Rezai, secretary of Iran's Supreme National Security Council, met with Iran's Supreme Leader Mujtaba Khamenei. During the talks, discussions were held on maintaining national and regional security through the administration of the Strait of Hormuz, as well as strengthening bilateral relations with neighboring countries based on lasting mutual benefit. Khamenei said that the enemy is in trouble is the result of Iran's insistence on national resistance. He stressed that information should be actively and promptly released to maintain people's continued participation in actions to defend the country and system; at the same time, efforts should be made to protect the rights and interests of the Iranian people and the Resistance Front by implementing the relevant conditions put forward by Iranian officials in order to end the war and the “neither war nor peace.” Rezai said that the Supreme National Security Council Secretariat is promoting Iran's strategic policies, which include “establishing a regional arrangement and order led by the region itself.”

BlackRock: The energy shock will leave long-term trauma to the European economy. BlackRock strategists said that the sharp rise in energy prices caused by the conflict between the US and Iran will have a lasting negative impact on the European economy, but it may benefit energy infrastructure companies. The strategist pointed out that the buffer factors that absorbed the first round of energy shocks earlier this year are weakening, and Europe is particularly vulnerable to shocks. The rise in energy prices has reduced Europe's GDP by 0.5% from what it was when it was not affected by the increase in energy prices. They said that infrastructure that can withstand future energy shocks will be increasingly favored by the market, bringing more investment opportunities. Furthermore, after rising bond yields dragged down stock prices, US and European utility stocks are now also quite attractive.

[Individual Stock News]

Seagate's quarterly revenue growth of 61% and strong earnings reports failed to boost stock prices. Data storage equipment manufacturer Seagate Technology (STX.US) announced that revenue for the first quarter of fiscal year 2027 was higher than market expectations, increasing 61% year over year to US$4.23 billion. The company's median revenue guidance for the next quarter was US$4.8 billion, 6.7% higher than the market's consensus forecast. Seagate's revenue has been growing for 10 consecutive quarters, indicating that the current upward cycle continues. A typical industry upward cycle usually lasts 8 to 10 quarters. Management currently anticipates revenue growth of 69.9% year-on-year in the next quarter. Inventory turnover days (DIO) is an important indicator for chip manufacturers. It can reflect the capital-intensity level of enterprises and the cyclical characteristics of semiconductor supply and demand. This quarter, Seagate's inventory turnover was 86 days, 5 days higher than the average for the past five years, indicating that the company's inventory has risen above historical levels. After the results were announced, Seagate's share price fell by more than 8% after the market.

Oracle expands Nvidia chip collaboration to introduce suppliers such as Google and Cerebras. Oracle (ORCL.US) announced the expansion of cloud AI chip cooperation with Nvidia (NVDA.O), and plans to expand the AI server deployment scale to several gigawatts equipped with Nvidia's next-generation Vera Rubin chips, and introduce Google TPU chips, as well as AI inference chips from SambaNova Systems and Cerebras Systems to enrich the supply of computing power. Oracle also plans to use self-developed Acceleron network chips in some Nvidia servers to replace some of Nvidia's network products. The company said that different AI workloads require different computing power, and diversified chip supply helps customers choose the right infrastructure based on performance, throughput and cost. Nvidia dominates the AI training chip market, but competition in the AI inference market is more diverse. Cerebras CEO Andrew Feldman said the partnership with Oracle will significantly expand its large customer base, and the company is expanding into other companies' data centers on a large scale. Oracle has yet to disclose financing arrangements for this chip purchase. The company said last month that customers are increasingly bearing the cost of chip procurement and maintain the 2027 capital expenditure target of about 90 billion to 95 billion US dollars.

The US provided 5 billion US dollars in financing to Constellation to boost nuclear power generation. The Trump administration is considering providing up to $5 billion in financing to Constellation Energy (CEG.US) to upgrade and modernize the company's nuclear reactor facilities in Illinois, Maryland, and Pennsylvania. The US Department of Energy said that with the support of this conditional loan commitment, related projects are expected to increase electricity supply by nearly 1.1 gigawatts (GW), helping to strengthen the grid and reduce costs. US Secretary of Energy Wright plans to announce this financing arrangement for a nuclear power plant in Illinois late Tuesday. This nuclear power plant will power Google. Wright said in a statement: “The Department of Energy is speeding up the 'American Nuclear Revival' plan proposed by President Trump and fully unleashing the potential of our existing nuclear power facilities.”

Boeing's third-quarter losses exceeded expectations, and the stock price fell. After announcing its third-quarter earnings report, Boeing (BA.US) fell 10.69% to an 18-month low. Boeing's third-quarter losses beat expectations. Supply chain challenges and production delays in the commercial aircraft division have offset the positive impact of increased profit margins in the company's other business divisions. Boeing CEO Kelly Ortberg said that the monthly production of the 737 models reached the target of 47 aircraft, which will not be achieved until next year. Boeing's third-quarter adjusted loss of 34 cents per share was higher than analysts' average forecast of 21 cents per share. The company's revenue increased 4% year over year to US$24.19 billion, higher than analysts' expectations of US$23.84 billion. After accounting for the decline on this trading day, Boeing's stock price has fallen by nearly 20% year to date.

[Major Bank Ratings]

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