GMT EIGHT

Overnight US stocks | Three major indexes fell this week, Chinese concept stocks rose against the market trend, and gold rose for eight consecutive weeks.

em3% On Friday, the three major indices experienced a sharp decline as U.S. consumer expectations for long-term inflation rates reached the highest level in 30 years. Respondents are worried that President Trump's tariff hikes will lead to price increases. According to the University of Michigan's Consumer Confidence Survey, consumers expect prices to rise at an annual rate of 3.5% over the next five to ten years, the highest level since 1995 in compiled data. This week, all three major U.S. stock indices recorded declines, with the Dow down 2.51%, the Nasdaq down 2.51%, and the S&P 500 down 1.66%. U.S. StocksAt the close, the Dow fell 748.63 points, or 1.69%, to 43,428.02; the Nasdaq fell 438.36 points, or 2.20%, to 19,524.01; the S&P 500 fell 104.39 points, or 1.71%, to 6,013.13. The China Golden Dragon Index rose against the market by 1.65%. NVIDIA Corporation (NVDA.US) fell 4.05%, Tesla, Inc. (TSLA.US) fell 4.68%, Alibaba Group Holding Limited Sponsored ADR (BABA.US) rose 5.72%, and PDD Holdings Inc. Sponsored ADR Class A (PDD.US) rose 5.57%. European StocksGermany's DAX30 index fell 54.05 points, or 0.24%, to 22,286.50; the UK's FTSE 100 index fell 0.34 points, or 0.00%, to 8,662.63; France's CAC40 index rose 31.93 points, or 0.39%, to 8,154.51; the Europe STOXX50 index rose 15.20 points, or 0.28%, to 5,473.85; Spain's IBEX35 index fell 23.63 points, or 0.18%, to 12,951.27; Italy's FTSE MIB index rose 200.97 points, or 0.53%, to 38,450.00. Asia-Pacific Stock MarketThe Nikkei 225 index rose 0.26%, the Korean KOSPI index rose slightly, and the Indonesia Composite Index rose 0.22%. CryptocurrencyBitcoin fell more than 3% to $95,296.44 per coin. GoldSpot gold fell 0.1% on Friday, closing at $2,936.25 per troy ounce, but still recorded its eighth consecutive weekly gain, the longest streak since 2020. Gold prices rose over 1.5% this week as the size of gold ETFs expanded, benefiting from strong safe-haven demand driven by political and trade tensions involving GEO Group Inc. Crude OilInternational crude oil prices fell sharply on Friday. Oil traders are monitoring risks of interruptions in Russian oil supply and the uncertainty of a peace agreement in Ukraine. The West Texas Intermediate (WTI) crude oil futures for April delivery on the New York Mercantile Exchange fell $2.08, or 2.87%, to close at $70.4 per barrel. Brent crude oil futures for April delivery on the Intercontinental Exchange, Inc. fell $2.05, or 2.68%, to close at $74.43 per barrel. Macro News The U.S. S&P Global, Inc. Composite Purchasing Managers' Index fell to 50.4 in February. The latest data shows that the U.S. S&P Global, Inc. Composite Purchasing Managers' Index (PMI) fell to 50.4 in February, down from 52.7 in January, indicating a slowdown in the overall economic activity of the U.S. private sector. Meanwhile, the Manufacturing PMI rose slightly from 51.2 to 51.6, still indicating expansion in manufacturing. However, the Services PMI fell from 52.9 to 49.7, reflecting a weakening momentum in the industry that entered a contraction phase. Chris Williamson, Chief Business Economist at S&P Global, Inc., said after the data release that market optimism for the year ahead has rapidly declined from near three-year highs at the beginning of the year to one of the most pessimistic expectations since the COVID-19 pandemic. He noted that businesses are generally concerned about the impact of federal government policies, including fiscal spending cuts, tariff adjustments, and political factors like GEO Group Inc. Trump plans to retaliate with tariffs against digital taxes imposed on U.S. tech giants by certain countries. Sources revealed that Trump is expected to sign a memorandum on Friday to open the door to imposing tariffs on countries that impose digital service taxes on U.S. tech giants, as his latest move to expand the tariff war to address "global trade imbalances." The sources said that Trump's action on Friday will instruct the U.S. Trade Representative's office to develop remedial measures to counter the taxes imposed by foreign governments on U.S. tech companies. It is expected that the memorandum will not immediately implement tariffs and there is no timeline for when the tariffs will take effect. In 2019, the U.S. Trade Representative's office conducted separate investigations into tax systems in countries such as France, Italy, and Spain and concluded that "these taxes are discriminatory and cause disproportionate harm to U.S. companies." Subsequently, some countries withdrew their plans for digital service taxes and joined global negotiations to impose the lowest taxes on tech companies, but the negotiations have repeatedly stalled. The Governor of the Bank of Canada expects that a trade war with the U.S. will lead to a nearly 3% drop in output. While Bank of Canada Governor Tiff Macklem insists that the monetary policy response to a trade war is limited, he has a clear view of the damage that a trade war could cause to the economy. "Intensifying trade frictions with the U.S. are the new reality," he said in a speech in the Toronto area on Friday. Although the timing, extent, and duration of the tariffs are uncertain, the Governor said it seems inevitably to "lead to structural adjustments." The Governor outlined the chain reaction that would occur if the U.S. imposed a 10% tariff on Canadian energy products and a 25% tariff on all other products. If the U.S. imposes tariffs, Canada will take retaliatory measures on certain products. Macklem predicts that this trade issue could lead to a drop of approximately 3% in Canada's Gross Domestic Product.Em said, overall, the trade war between the US and Canada will lead to a drop in Canadian output by nearly 3% over the next two years, and during this period, "wipe out growth." Although the economy may expand again after the initial shock, the long-term growth path will be 2.5% lower than it would be without tariffs.Stock News Trump: Cook agrees to move Apple Inc. (AAPL.US) production facilities from Mexico to the United States. US President Trump stated at a governor's meeting that Apple Inc. CEO Cook has promised to move manufacturing from Mexico to the United States this week. Trump said Cook closed two factories in Mexico and will produce products in the United States. The company also promised to invest billions of dollars in the United States, as they do not want to be involved in tariffs. US regulators agree to drop lawsuit against Coinbase (COIN.US). US regulators have agreed to drop the lawsuit against Coinbase, marking the end of years of tough enforcement in the crypto market. Coinbase stated on Friday that SEC enforcement staff will recommend dropping the two-year-old lawsuit, as part of the agency's strategy to put cryptocurrencies under investor protection rules. Coinbase opposed the lawsuit during the Biden administration, arguing that the law does not support equating cryptocurrencies with securities. The dismissal of the lawsuit against Coinbase still needs a committee vote. Coinbase Chief Legal Officer Griwald said the company expects to achieve this goal next week. Major Banks Rating Bank of America Corp: Raises target price for Alibaba Group Holding Limited Sponsored ADR (BABA.US) to $150, up from $117.

1 h ago

Tesla, Inc. (TSLA.US) is recalling over 370,000 vehicles in the United States due to a steering system malfunction.

Records released on the website of the National Highway Traffic Safety Administration (NHTSA) show that Tesla, Inc. (TSLA.US) is voluntarily recalling 376,241 vehicles in the United States to address an issue that could result in the power steering system failing. According to the safety recall report on the NHTSA website, the recall involves Model 3 and Model Y vehicles produced and sold in the US market between February 28, 2023, and October 11, 2023, equipped with a specific version of old software. The documents show that the printed circuit board in the steering system of the affected vehicles may be damaged due to overload, causing the power steering assist to fail when Tesla, Inc. vehicles accelerate from a standstill. Once the electronic power steering assist system fails, drivers will need to exert more force to control the steering wheel, increasing the risk of a collision. Tesla, Inc. has stated to regulators that they have not received any reports of collisions or injuries related to this issue. To address the problem, Tesla, Inc. will perform repairs through OTA (Over-the-Air) remote software updates, without the need for owners to visit service centers. It is worth noting that President Trump appointed Tesla, Inc. CEO Musk to lead a team that aims to reduce federal government staffing and regulatory agencies, with some cases even dismantling entire regulatory agencies. These cutbacks have affected NHTSA, an agency that Musk has long seen as a barrier to some of Tesla, Inc.'s technological advancements. Currently, NHTSA is still conducting ongoing safety investigations into Tesla, Inc.'s Autopilot assisted driving system and FSD. According to reports from foreign media, Musk's team has implemented significant layoffs at NHTSA, reducing the agency's workforce by around 10%, impacting its ability to investigate companies including Tesla, Inc. At the close of trading on Friday, Tesla, Inc. (TSLA.US) fell by 4.68%, to $337.8.

1 h ago

US Stock Market Move | Chinese concept stocks continue their upward trend, with the Golden Dragon Index increasing by over 3%.

On Friday, Chinese concept stocks continued to rise. As of the time of writing, the Nasdaq Golden Dragon Index has expanded by more than 3%. Bilibili, Inc. Sponsored ADR Class Z (BILI.US) surged by over 10%, KINGSOFT CLOUD (KC.US) rose by over 8%, XPeng, Inc. ADR Sponsored Class A (XPEV.US) surged by over 8%, Tencent Music Entertainment Group Sponsored ADR Class A (TME.US) rose by over 7%, Li Auto, Inc. Sponsored ADR Class A (LI.US), Alibaba Group Holding Limited Sponsored ADR (BABA.US), and NIO Inc. Sponsored ADR Class A (NIO.US) all rose by over 6%, and Baidu Inc Sponsored ADR Class A (BIDU.US) rose by over 5%.

21/02/2025

US Stock Market Move | In March, the new car intensive listing period has begun. XPeng, Inc. ADR Sponsored Class A (XPEV.US) rose over 8%.

On Friday, XPeng, Inc. ADR Sponsored Class A (XPEV.US) rose over 8% to $19.19 USD. China International Capital Corporation pointed out that starting from March, XPeng, Inc. ADR Sponsored Class A will enter a new period of intensive new car listings. The bank believes that the company's proposed annual sales target doubling year-on-year will be easily achieved, and if the feedback from the new car market is positive, the sales target is expected to be further increased. Previously, He Xiaopeng announced on Weibo Corp. Sponsored ADR Class A that in January, Xiaopeng MONA M03 sales exceeded 15,000. In addition, XPeng, Inc. ADR Sponsored Class A successfully held a listing launch event in the UK and announced the official start of pre-sales for the Xiaopeng G6 model. This is the first right-hand drive model for XPeng, Inc. ADR Sponsored Class A in the UK market, with a starting price for the new car pre-sale of 39,990, with deliveries expected to begin in March 2025.

21/02/2025

US Stock Market Move | The AI-related businesses in the fourth quarter showed significant growth, Five9 (FIVN.US) rose more than 4.7%.

On Friday, Five9 (FIVN.US) rose more than 4.7%, closing at $43.67. The company's fourth quarter 2024 financial report exceeded market expectations, with significant growth in AI-related businesses. The company reported fourth quarter revenue of $2.787 billion, higher than analyst expectations of $2.679 billion. During the earnings conference call on Thursday evening, Five9 CEO Mike Burkland revealed that the growth rate of the company's AI business is accelerating, with enterprise AI business revenue growing 46% year-over-year in the fourth quarter, accounting for 9% of enterprise subscription revenue. He emphasized that the momentum of the company's AI business is expected to continue to strengthen, especially with new enterprise customers seeing a nearly 50% year-over-year growth in AI bookings, and a 100% binding rate in transactions with annual recurring revenue (ARR) exceeding $1 million. Furthermore, Five9 is deepening AI penetration within its existing enterprise customer base, with AI business bookings in this segment growing 50% year-over-year in the fourth quarter, further solidifying its competitive advantage in the AI field.

21/02/2025

US Stock Market Move | Agora, Inc. Sponsored ADR Class A (API.US) surged over 8% in cooperation with OpenAI to develop real-time API.

On Friday, Agora, Inc. Sponsored ADR Class A (API.US) rose more than 8%, reaching $6.15. Data shows that Agora, Inc. Sponsored ADR Class A is a real-time interactive cloud service provider, focusing on providing high-quality, low-latency real-time audio and video communication solutions for developers. Agora, Inc. Sponsored ADR Class A has collaborated with several well-known companies, including Xiaomi, Momo, TikTok, New Oriental Education & Technology Group, Inc. Sponsored ADR, VIPKID, etc. In the era of artificial intelligence, Agora, Inc. Sponsored ADR Class A has also collaborated with OpenAI and others to explore how to enhance the voice and video communication experience using AI technology, improve service quality, and create new application scenarios.

21/02/2025

US Stock Market Move | RLX Technology, Inc. Sponsored ADR Class A (RLX.US) rose more than 15%, reaching a market value of $3.4 billion.

On Friday, RLX Technology, Inc. Sponsored ADR Class A (RLX.US) rose by over 15%, reaching $2.68 per share with a market value of $3.4 billion. Information shows that RLX Technology, Inc. Sponsored ADR Class A is a consumer-level electronic vaporizer brand company founded in China, with its main business being the research, design, and sales of RELX e-cigarette brand vaporizers. Financial data shows that as of September 30, 2024, RLX Technology, Inc. Sponsored ADR Class A had a total revenue of 1.935 billion RMB, an 81.54% increase over the previous year; net profit attributable to shareholders was 430 million RMB, a 33.98% increase compared to the previous year.

21/02/2025

US Stock Market Move | The board of directors voted to approve the establishment of a strategic acquisition fund. Trump Media & Technology Group (DJT.US) rose more than 1.7%.

On Friday, Trump Media and Technology Group (DJT.US) rose more than 1.7%, reaching $28.315. The company announced that the board of directors has voted to establish a strategic acquisition fund and will work with certain investors to help the company develop financing strategies to support potential future mergers and acquisitions. In a statement, Trump Media and Technology Group stated that the company is actively exploring opportunities for collaboration, mergers, or acquisitions with other companies related to the "America First Economy." These companies can not only benefit from the technology and brand of Trump Media and Technology Group but also maintain a high degree of autonomy after Trump Media and Technology Group transitions into a holding company, operating independently in multiple industries. Devin Nunes, the CEO of Trump Media and Technology Group, emphasized, "The 'America First Economy' is a market full of potential, and we want all participants to know that Trump Media and Technology Group plans to make this market even stronger."

21/02/2025

US Stock Market Move | For three consecutive years, iQIYI, Inc. Sponsored ADR Class A (IQ.US) achieved operating profit, with an increase of more than 7%.

On Friday, iQIYI, Inc. Sponsored ADR Class A (IQ.US) rose by more than 7%, reaching $2.34. In terms of news, iQIYI, Inc. Sponsored ADR Class A recently released its financial report for the fourth quarter of 2024 and the whole year. The annual revenue was 29.23 billion Chinese yuan, with a Non-GAAP operating profit of 2.36 billion yuan, and a Non-GAAP operating profit margin of 8%, achieving operational profit for three consecutive years. In the fourth quarter, iQIYI, Inc. Sponsored ADR Class A's total revenue was 6.61 billion yuan, with a Non-GAAP operating profit of 410 million yuan, and a Non-GAAP operating profit margin of 6%. The founder and CEO of iQIYI, Inc. Sponsored ADR Class A, Gong Yu, stated during the financial report conference call that high-quality long videos and continuous innovation in the micro-drama field will become the dual engines driving sustained growth in 2025. In 2025, they will continue to improve the quality of top content and market share to increase membership revenue, and expand advertising inventory through the development of micro-drama business to increase advertising revenue. The dual engines of "long + short" will help drive iQIYI, Inc. Sponsored ADR Class A's revenue to achieve sustainable growth.

21/02/2025

US Stock Market Move | Hims & Hers Health (HIMS.US) plunges over 18% as FDA announces Semaglutide is no longer in shortage.

On Friday, Hims & Hers Health (HIMS.US) plummeted over 18%, to $54.53, as the U.S. FDA announced that the active ingredient semaglutide in Novo Nordisk A/S Sponsored ADR Class B's weight loss drug Wegovy and type 2 diabetes drug Ozempic is no longer in shortage. Novo Nordisk A/S Sponsored ADR Class B rose nearly 4%, to $87.02. Hims & Hers Health produces semaglutide as a formulated drug, but U.S. regulations stipulate that the company can only legally produce it when the ingredient is in short supply. Therefore, with the FDA declaring the shortage over, Hims & Hers' business in this area may be impacted. It is worth noting that Hims & Hers Health recently announced the acquisition of a peptide production facility in California to strengthen its supply chain and meet the growing demand for its drugs in the market. This acquisition will further solidify the company's competitiveness in specific drug markets, especially in the field of hair loss treatment and weight loss drugs. With the acquisition of this peptide production facility, the company is still expected to continue innovating in the areas of metabolic health and weight loss in the future.

21/02/2025

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