Overnight US stocks | Wall Street CEOs collectively issue a warning! The three major indices all dropped, with NVIDIA Corporation (NVDA.US) falling by 4%.

On Tuesday, the three major U.S. stock indexes collectively plummeted, with the Nasdaq technology index falling by over 2.5% and the semiconductor index dropping by 4%. Several Wall Street CEOs publicly warned that the U.S. stock market may see a pullback, directly sparking anxiety among investors. As of the close of trading, the Dow Jones Industrial Average fell by 251.44 points, or 0.53%, to 47,085.24 points; the Nasdaq fell by 486.09 points, or 2.04%, to 23,348.64 points; and the S&P 500 index fell by 80.34 points, or 1.17%, to 6,771.63 points. Six out of seven tech giants fell, with the Philadelphia Semiconductor index plummeting by 4%. Microsoft Corporation (MSFT.US) fell by 0.52%, Meta (META.US) fell by 1.63%, Amazon.com, Inc. (AMZN.US) fell by 1.84%, Alphabet Inc. Class C (GOOGL.US) fell by 2.18%, NVIDIA Corporation (NVDA.US) fell by 3.96%, and Tesla, Inc. (TSLA.US) fell by 5.15%. In Europe, the STOXX 600 index fell by 0.30% to 570.58 points; the German DAX 30 index fell by 0.76% to 23,949.11 points; the French CAC 40 index fell by 0.52% to 8,067.53 points; and the UK FTSE 100 index rose by 0.14% to 9,714.96 points. Oil prices fell due to a strengthening dollar and expectations of oversupply, ending a four-day upward trend. December WTI crude oil futures prices fell by 0.8% to settle at $60.56 per barrel, while January Brent crude oil fell by 0.7% to $64.44 per barrel. Bitcoin fell below the $100,000 integer mark for the first time since June, with a daily decline of over 6%, dragging down related concept stocks collectively. Ethereum fell by nearly 10% to $3,296. The ICE Dollar Index rose by 0.38% to a daily high of 100.255 points, while the Bloomberg Dollar Index also rose by 0.38% to a daily high of 1,226.13 points. COMEX gold futures fell by 1.84% to $3,940.30 per ounce, while spot silver fell by 1.88% to $47.1735 per ounce. In macro news, the U.S. government shutdown has reached a record duration, currently in its sixth week. The results of elections held on Tuesday in New York City, New Jersey, Virginia, and other states are seen as a possible key factor to change the dynamics of Washington politics and break the budget deadlock. However, uncertainty remains as to whether the election results will push both parties to compromise or deepen partisan divides. The Senate has voted more than ten times against temporary funding bills passed by the House, with no member changing their stance. The Republican-led Senate, under Trump's leadership, has a majority of 53-47, but most bills require the support of at least seven Democratic members to reach the Senate's 60-vote threshold. Democrats are refusing to vote for, aiming to extend some healthcare subsidies. On Tuesday, the price of Bitcoin plummeted, falling below $100,000 for the first time in over four months. Investors have become increasingly worried about the sustainability of the continuous rise in valuations of AI stocks, leading to a sell-off of this risky asset. Bitcoin fell by 6% on the day, reaching $100,870, dropping to $99,966 at one point. This is the first time Bitcoin has fallen below $100,000 since June 23. Ethereum fell by nearly 10% to $3,296 on Tuesday. Mainstream cryptocurrencies and AI stocks attract many of the same investors, so when one trade runs into trouble, the other is often affected. The Canadian Kenny government has published its first budget, significantly raising its forecast for the fiscal deficit. The government led by Kenny released its first budget on Tuesday, pledging to invest billions of Canadian dollars in infrastructure, defense, housing, and trade diversification to counter the impact of U.S. tariffs on the Canadian economy. The key points include the fiscal deficit for this fiscal year expected to expand to $78.3 billion Canadian dollars ($55.5 billion), compared to the previous fiscal forecast of $42.2 billion in December 2024. The fiscal deficit is expected to decrease to $65.4 billion in the 2026-27 fiscal year, $63.5 billion in the 2027-28 fiscal year, $57.9 billion in the 2028-29 fiscal year, and $56.6 billion in the 2029-30 fiscal year. The debt-to-GDP ratio for this fiscal year is expected to be 42.4%, rising to a peak of 43.3% in the 2028-29 fiscal year, before slightly decreasing to 43.1% the following year. Goldman Sachs Group, Inc. and Morgan Stanley CEOs jointly warned: the U.S. stock market is "somewhere between fair and expensive," and a 10% healthy correction is unavoidable. Morgan Stanley CEO Ted Pick and Goldman Sachs Group, Inc. CEO David Solomon both believe that current U.S. stock market valuations are concerning, and a significant sell-off in the market may occur in the near future. Goldman Sachs Group, Inc. believes that the stock market may see a 10% to 20% correction in the next 12 to 24 months. Morgan Stanley, on the other hand, states that a 10% to 15% correction not driven by a macro cliff effect is welcome. Both executives emphasized that corrections are a normal feature of market cycles and should be seen as a healthy development by investors. Monetary market pressures are high, with Wall Street betting on the Federal Reserve to temporarily increase liquidity injections. Wall Street analysts say that the liquidity tightness in the U.S. monetary market may continue in November, and with financing costs remaining high, the Fed may have to start increasing liquidity injections before next month's formal balance sheet reduction. Last Friday, the monetary market experienced a volatile end-of-month, with the Secured Overnight Financing Rate (SOFR) jumping 18 basis points in a day, the largest single-day increase since March 2020 excluding the rate hike cycle. While SOFR declined on Monday as month-end pressures eased, it remained higher than the Fed's key policy rate, including the federal funds rate. Other short-term overnight repo rates also remained above the Fed's policy tool rate. Stock News AMD's revenue greatly exceeds expectations but guidance fails to impress investors, stock price fluctuates downward after hours. After experiencing a new round of significant AI compute procurement driving AMD's stock price surge and constantly raising expectations for AMD's performance among Wall Street institutions, the latest official performance outlook data failed to impress institutional investors on Wall Street. AMD's fourth-quarter revenue outlook is estimated at around $9.6 billion - within a range of $9.3 billion to $9.9 billion; the fourth-quarter gross margin rate is expected to be around 54.5%, in line with the average analyst expectation on Wall Street. AMD's overall revenue for the third quarter grew by 36% year-on-year to $9.25 billion, exceeding the Wall Street average expectation of $8.7 billion, excluding certain items, AMD's Q3 adjusted earnings per share were $1.20, higher than the analysts' average expectation of $1.17. In comparison, the adjusted earnings per share in the same period last year were only $0.92. AI capital expenditure is strong, Arista Networks' Q3 revenue and profit both exceed expectations. Driven by the flourishing capital expenditure related to AI, Arista Networks announced better-than-expected financial performance for the third quarter. Despite this, the stock price plummeted by 10% in after-hours trading. In the quarter ending on September 30, the company's adjusted earnings per share were $0.75, higher than the market's general expectation of $0.71; GAAP earnings per share were $0.67, also exceeding the expected $0.66. The total revenue for the quarter reached $2.31 billion, a 27% year-on-year growth, better than the market expectation of $2.27 billion. The adjusted gross margin rate reached 65.2%, 1 percentage point higher than expected. Looking ahead, the company expects fourth-quarter revenue to be between $2.3 billion to $2.4 billion, with a midpoint of $2.35 billion slightly higher than the market's expectation of $2.33 billion. The adjusted gross margin rate is expected to be between 62% and 63%, while the market expectation is 63.2%; the adjusted operating profit margin rate is expected to be between 47% to 48%. Tempus AI's revenue in the third quarter reached $334.2 million, a significant increase of 84.7% year-on-year. Gross profit reached $209.9 million, a sharp increase of 98.4%. The company incurred a net loss of $80 million during the reporting period, slightly larger than the net loss of $75.8 million in the third quarter of 2024, but it is important to note that this quarter's loss includes $35 million in stock compensation expenses and employer payroll taxes, an increase in intangible asset amortization expenses related to the Ambry acquisition, and a one-time expense of $12 million for debt repayment loss. EPS attributable to common shareholders (basic and diluted) was $0.46, the same as in the same period last year; non-GAAP EPS was $0.11, better than the $0.24 in the same period last year. "The Big Short" Michael Burry warns of an AI bubble, his fund shorts NVIDIA Corporation. Michael Burry's Scion Asset Management revealed short positions in NVIDIA Corporation and Palantir Technologies Inc. Just days ago, the hedge fund manager posted a cryptic warning on social media, indicating that market sentiment is overly exuberant. According to 13F regulatory filings released on Monday, Burry bought put options on NVIDIA Corporation and Palantir, with Scion also disclosing call options positions on Halliburton Co. and Pfizer Inc. It is still unclear whether these positions were established separately or as part of a spread strategy (i.e., buying one option and selling another). Since 13F reports only require disclosure of long positions, if Burry used an options combination strategy, the selling part would not be reflected in the filing. Similarly, any short positions or over-the-counter derivative trades established for hedging purposes would not appear in the document.