Overnight US stocks | The three major indexes fell, with Bitcoin breaking below the $92,000 mark. Alphabet Inc. Class C (GOOG.US) rose against the market by more than 3%.

On Monday, the three major indices fell, and Bitcoin dropped below $92,000. Federal Reserve Board member Wall reiterated his belief that the central bank should cut interest rates again at the December meeting, citing weakness in the labor market and monetary policy harming low- and middle-income consumers. [US Stocks] At the close, the Dow fell 557.24 points, or 1.18%, to 46,590.24 points; the Nasdaq fell 192.51 points, or 0.84%, to 22,708.07 points; the S&P 500 fell 61.7 points, or 0.92%, to 6,672.41 points. Alphabet Inc. Class C (GOOG.US), a stock Warren Buffet took a position in, rose over 3%, Apple Inc. (AAPL.US) fell over 1.8%, NVIDIA Corporation (NVDA.US) fell 1.88%, and Coinbase (COIN.US) dropped over 7%. [European Stocks] The German DAX30 index fell 283.38 points, or 1.19%, to 23,603.69 points; the UK FTSE 100 index fell 22.72 points, or 0.23%, to 9,675.65 points; the French CAC40 index fell 51.07 points, or 0.63%, to 8,119.02 points; the Euro Stoxx 50 index fell 52.32 points, or 0.92%, to 5,641.45 points; the Spanish IBEX35 index fell 182.30 points, or 1.11%, to 16,169.40 points; the Italian FTSE MIB index fell 219.69 points, or 0.50%, to 43,775.00 points. [Crude Oil] Light crude oil futures for December delivery on the New York Mercantile Exchange fell 18 cents to $59.91 per barrel, a decrease of 0.3%; London Brent crude oil futures for January delivery fell 19 cents to $64.20 per barrel, a decrease of 0.3%. [Cryptocurrency] Bitcoin fell over 2.5%, dropping below $92,000; Ethereum fell over 3%, dropping below $3,000. [US Dollar Index] The US dollar index, measuring the dollar against six major currencies, rose 0.29% to close at 99.588 in the forex market. At the close of the New York forex market, 1 euro exchanged for $1.1583, lower than the previous trading day's $1.1618; 1 pound exchanged for $1.3146, lower than the previous trading day's $1.3165. 1 dollar exchanged for 155.25 yen, higher than the previous trading day's 154.56 yen; 1 dollar exchanged for 0.7965 Swiss francs, higher than the previous trading day's 0.7940 Swiss francs; 1 dollar exchanged for 1.4055 Canadian dollars, higher than the previous trading day's 1.4026 Canadian dollars; 1 dollar exchanged for 9.4877 Swedish kronor, higher than the previous trading day's 9.4584 Swedish kronor. [Precious Metals] Spot gold fell 0.97% to $4,045.87. Goldman Sachs Group, Inc. stated that central banks around the world may have bought a large amount of gold in November, a trend of diversifying reserves to hedge political and financial risks. Goldman Sachs Group, Inc. reiterated in a report its forecast that the price of gold will reach $4,900 by the end of 2026, and if private investors continue to diversify their portfolios, the price of gold may further rise. Gold prices have risen 55% so far this year, driven mainly by economic and political concerns, increased inflows into exchange-traded funds, and expectations of further rate cuts by the Federal Reserve. Goldman Sachs Group, Inc. estimates that central banks bought 64 tons of gold in September, higher than the 21 tons in August. [Macro News] Federal Reserve Board member Wall: Supports risk-management rate cut in December. Federal Reserve Board member Wall said he supports another rate cut in December's meeting because he is increasingly concerned about a sharp slowdown in the labor market and employment. Wall said, "I am not worried about accelerated inflation or significantly increased inflation expectations. My focus is on the labor market, which has been weak for several months, and this week's employment report late in the week or any other data in the coming weeks is unlikely to change my view. It is necessary to cut rates again." Wall specifically mentioned that he is inclined to cut rates by 25 basis points again. Wall said, "I worry that restrictive monetary policy is putting pressure on the economy, especially its impact on low- and middle-income consumers. A rate cut in December will provide additional protection against a rapid weakening of the labor market and move policy toward a more neutral direction." At the same time, he said that price data suggest that tariffs will not have a long-term impact on inflation. Another rate cut would be a risk management practice. Analyst: Momentum to buy on dips in US stocks wanes as market anxieties build ahead of NVIDIA Corporation earnings report. Analyst Adam Button said that since the "tariff day" low, the market has gradually stabilized every time there was a dip and started buying on dips. Once the rebound starts, momentum takes over. However, the recent situation is different. Since late October, the market trend has been intermittent. Momentum sometimes exists, while other times it disappears. I think this is entirely due to the anxiety caused by the earnings report of NVIDIA Corporation (NVDA.US) before Wednesday. But I am also concerned that this is due to the market's expectations of the Federal Reserve tightening monetary policy. What confuses me is that after Powell said that a rate cut in December is unlikely on October 30, the market did not start selling off, which should have been a signal. Instead, the market spent two weeks pricing in the possibility of a rate cut in December. It wasn't until last week that the market finally understood that the probability of a rate cut in December had fallen to 36%. All of this suggests that the current price trend does not look good, and it's worth noting that there are no news events driving today's decline. Federal Reserve Board member Cook denies fraud charges, lawyer calls it "political persecution". According to reports, Federal Reserve Board member Cook's lawyer first provided a detailed defense of her mortgage loan application on Monday, arguing that the apparent discrepancies in the loan documents were either accurate at the time or "inadvertent marks" that, given other information disclosed to the lender, did not constitute fraud. The Supreme Court has currently blocked Trump's attempt to dismiss her and will hear arguments in January. In a letter to the Attorney General, Cook's lawyer also accused the head of the Federal Housing Finance Agency (FHFA), Pool Corporation, of selectively targeting Trump's political opponents, ignoring similar allegations against Republican officials. Insiders: UK plans retaliatory measures against EU steel tariffs. According to reports, the UK is formulating retaliatory measures after Prime Minister Stammer failed to reach an agreement to mitigate the impact of proposed EU steel tariff increases. Insiders revealed that the UK domestic metal industry had warned that the EU's plans could trigger its biggest crisis in history, prompting the UK government to consider taking retaliatory action. The EU announced plans last month to reduce existing tariff-free quotas on foreign steel by nearly half and increase the tariff rate for excess quotas to 50%. Insiders said that the UK government is also studying how to expedite the replacement of its own steel protection measures and tighten import quotas. These existing measures will expire in June. The UK government stated in a statement, "This government has shown a commitment to the steel industry by ensuring exporters preferentially enter the US market. We will continue to explore stronger trade measures to protect our steel producers from the impact of unfair behaviors, while reiterating our desire to address the issue of excess capacity in the industry. Following the EU's recent announcement, we will continue to engage with them." US Treasuries reclaim some lost ground last week as the market bets on data recovery boosting rate cut expectations. With UK government bonds leading the way, US Treasuries recovered some of the ground lost last week. Despite an early setback in the corporate bond market this week Amazon.com, Inc. issued $12 billion in US-dollar-denominated bonds for the first time since 2022 the rebound in government bonds continued. Also on Monday, an index measuring factory activity in New York State unexpectedly increased to its highest level in a year. Nevertheless, most Treasury yields still fell by 1 to 3 basis points. Earlier predictions suggested that the final recovery of federal economic data following the six-week government shutdown would revive the prospect of another rate cut by the Federal Reserve next month. Morgan Stanley's rate strategist predicted that the yield on the 10-year US Treasury will fall to 3.75% by mid-2026 and could reach as low as 2.40% in the most bullish scenario. Although the fate of some US economic reports not released during the shutdown is still unclear, the Bureau of Labor Statistics said it will release the data originally scheduled for October 3 in September on November 20. The Federal Reserve cut rates by 0.25 percentage points in September and October to address signs of weakening labor demand, despite inflation still exceeding its 2% target. Jefferson: Risks of employment downturn rising but reiterates need for cautious policy adjustment. Federal Reserve Vice Chairman Jefferson said on Monday that he believes the risks of a downturn in employment have increased slightly, but at the same time reiterated that as interest rates approach a "neutral" level, policymakers need to proceed with policy adjustments more cautiously. Jefferson said in his prepared remarks, "Over the past few months, the risk balance in the economy has shifted, with the risks of a downturn in employment rising and the risks of an uptick in inflation possibly diminishing. His comments indicate that he remains open to December policy meeting and does not rule out the possibility of either continuing rate cuts or staying put. Jefferson said that although he expects the unemployment rate to rise slightly by the end of the year, current information suggests that the labor market is gradually cooling, both in terms of demand and supply. He also noted that progress towards the 2% inflation target seems to have stalled, mainly due to the impact of tariffs. Regarding future policy paths, Jefferson said he will continue to rely on data and make decisions "meeting by meeting." [Stock News] Amazon.com, Inc. issues high-rated bonds in the US for the first time in three years. Amazon.com, Inc. launched a US-dollar-denominated corporate bond issuance, reportedly to raise around $12 billion. This is the first time in about three years that the company has issued such bonds in the market. Insiders revealed that Amazon.com, Inc. will issue up to six tranches of bonds. The source said that the longest-term 40-year bonds have a preliminary price guidance of about 115 basis points over comparable US Treasury yields. The bond issuance is led by Goldman Sachs Group, Inc., JPMorgan, and Morgan Stanley. The source said that the funds raised will be used for general corporate purposes, including possibly repaying debts, mergers, and investments. EU evaluates bringing cloud services under regulation, AWS, Azure, Alphabet Inc. Class C cloud among tech giants under scrutiny. Amazon.com, Inc.'s (AMZN.US) cloud services, Microsoft Corporation's (MSFT.US) Azure, and Alphabet Inc. Class C's (GOOG.US, GOOGL.US) cloud face the risk of being included in the scope of enforcement by the EU's antitrust regulatory agency targeting "Big Tech" under the Digital Markets Act (DMA). Insiders revealed that the European Commission is considering whether these three companies should be subject to a range of new restrictions under the DMA framework. This investigation plan stems from recent major cloud service outages that disrupted global service systems and highlighted the risks of market dependence on a few cloud providers. So far, the largest global cloud service providers have not fallen under the scope of DMA enforcement, in part because their business is primarily based on enterprise contracts, making it difficult to define them based on DMA's key criteriathe number of users. According to the authorized scope of the investigation, regulators will assess whether cloud service providers should be subject to a series of new obligations, including: improving interoperability with competitor software, making it easier for users to achieve data portability, and limiting bundling and tying practices. [Big Bank Ratings] Jefferies Financial Group Inc.: Raised the target price of Sohu.com Limited Sponsored ADR (SOHU.US) from $18 to $20. Stifel analyst Stephen Gengaro: Raised the target price of Tesla, Inc. (TSLA.US) from $483 to $508, citing progress in the company's fully automated driving and autonomous taxi products.