Preview of US Stock Market | The three major stock index futures have seen a significant narrowing of declines, as Trump spends $120 billion to launch the "Gold Treasury Plan".

1. On February 2nd (Monday) before the US stock market, the decline in the futures of the three major US stock indexes is significantly narrowing. As of the time of reporting, Dow Jones futures fell by 0.09%, S&P 500 index futures fell by 0.38%, and Nasdaq futures fell by 0.66%. 2. As of the time of reporting, the German DAX index rose by 0.91%, the UK FTSE 100 index rose by 0.64%, the French CAC40 index rose by 0.60%, and the European Stoxx 50 index rose by 0.47%. 3. As of the time of reporting, WTI crude oil fell by 4.75% to $62.11 per barrel. Brent crude oil fell by 4.52% to $66.19 per barrel. Market News The US launches a crucial mineral strategic reserve battle, with Trump investing $120 billion to launch the "Fort Knox Plan." US President Trump plans to launch a strategic critical mineral reserve, providing $120 billion in seed funding to help manufacturers avoid supply shocks as the US works to reduce its dependence on China Rare Earth Resources And Technology and other metals. This joint project, called the "Fort Knox Project," plans to combine $1.67 billion in private capital with a $100 billion loan from the US Export-Import Bank for automakers, tech companies, and other manufacturers to purchase and store minerals. A senior government official revealing details of the plan stated that this would be the first such reserve for critical minerals in the US private sector, representing a significant commitment to accumulate critical minerals needed for industrial economy (including automotive, aerospace, and energy sectors). After a tumultuous week, the January non-farm payrolls and financial reports of Alphabet Inc. Class C and Amazon.com, Inc. become the focus of the market. Following tech stock sell-offs, dramatic fluctuations in precious metals, and news of US President Trump nominating Kevin Warsh as the next Fed chair, all three major US stock indexes closed lower last Friday. In the coming week, investors' focus will be on the US January non-farm payroll report to be released on Friday. Data related to manufacturing and services industries, as well as the Consumer Confidence Index released by the University of Michigan, will also be in focus. In terms of corporate earnings, another busy reporting week is coming up. Two members of the "Big Seven" Alphabet Inc. Class C and Amazon.com, Inc. will report earnings on Wednesday and Thursday, while other tech giants like Palantir and AMD will also release earnings this week. Outside of the tech industry, Walt Disney Company, PepsiCo, Inc., Eli Lilly, Novo Nordisk A/S Sponsored ADR Class B, Toyota, and Philip Morris International Inc. will also report earnings. The wildest volatility since 2008! Gold price volatility surpasses Bitcoin, but Wall Street remains firm in the "faith of $6000 gold price." Data shows that the financial markets have witnessed a milestone in volatility the volatility of gold, traditionally known as the "king of safe havens," has surpassed that of the largest cryptocurrency, Bitcoin, known for its "dramatic fluctuations." This highlights that after experiencing extremely intense price increases, the volatility of gold prices has become even more pronounced, reaching levels of the most tumultuous moments in the past twenty years. Meanwhile, despite gold's plunge into a downward trajectory and dramatic fluctuations, Wall Street remains optimistic about the long-term investment prospects of gold amid a background of a depreciating dollar, disorderly expansion of debt in developed markets, and continued political turmoil at GEO Group Inc, with JP Morgan and U.S. Bank maintaining that gold is expected to rise to $6000 by the end of 2026. Warsh's nomination sparks a dollar rally, but fund managers continue to bearish even after "falling." Just days before Kevin Warsh was nominated by Trump as the Fed chair, which sparked the dollar's largest rally since May, asset management firms increased their bearish positions on the dollar. According to data from the Commodity Futures Trading Commission (CFTC), as of the week ending January 27, fund managers increased their short positions on the dollar by $8.3 billion, the largest increase since April 2025. At the same time, hedge funds reduced their net long positions on the dollar by $5.1 billion during the same period, the largest decline since July 2024. The dollar rose on Friday after news that President Trump had selected Warsh to succeed the current chair, Powell, who is due to step down in May. Warsh is considered by some to be hawkish on policy. Additionally, the decline in precious metal prices also boosted the dollar. Farewell to bearish Fed options! Wedbush warns: Warsh's leadership will end the liquidity dividend, and US stocks may face turmoil in the coming months. The investment bank Wedbush stated in a strategy report that as investors prepare for potential policy reforms under Kevin Warsh's leadership at the Fed, the US stock market may face a period of volatility in the coming months. In a report titled "Farewell to Bearish Fed Options" released on February 1, Wedbush analyst Sam Basham pointed out that President Trump's choice of Warsh as the next Fed chair may unsettle the market in the short term until policy prospects become clearer later this year. The institution expects market volatility to continue until Warsh officially takes office in May, as investors begin to factor in what they see as a decisive break from Powell's policy framework. Individual Stock News Walt Disney Company (DIS.US) exceeds Q1 revenue and profit expectations, strong performance in theme park business. Thanks to the strong performance of its theme park business and the box office success of the animated film "Zootopia 2," Walt Disney Company reported revenue and profit above expectations for the holiday season ending in December, with the company's stock price briefly rising more than 4% in pre-market trading on Monday. In the first quarter of the 2026 fiscal year ending on December 27, Walt Disney Company's overall revenue grew by 5% year-over-year to $26 billion, exceeding analysts' expectations of $25.7 billion; the company recorded a pre-tax profit of $3.7 billion, higher than Wall Street's forecast of $3.5 billion. Adjusted earnings per share were $1.63, a 7% decline from the same period last year but still above analysts' $1.57 expectations. Tyson Foods, Inc. Class A (TSN.US) Q1 strong demand for chicken boosts revenue above expectations. Tyson Foods, Inc. Class A announced its financial performance for the first quarter of the 2026 fiscal year on Monday, benefiting from the strong performance of its chicken business, with total revenue reaching $14.31 billion, up by approximately 5.1% year-on-year, successfully exceeding the previous market consensus of around $14.1 billion. In terms of profits, Tyson Foods, Inc. Class A's adjusted earnings per share (EPS) reached $0.97, surpassing analysts' expectations of $0.94. Despite one-off expenses such as legal provisions and the closure of old factories dragging down its GAAP net profit from $359 million in the same period last year to $85 million, the overall improvement in operational efficiency still supported the core profitability of the company. Tesla, Inc. (TSLA.US) will soon unveil its third-generation Siasun Robot & Automation, a concept stock with anticipated performance. On February 2, Tesla, Inc. announced that the third generation of its Siasun Robot & Automation will be unveiled, redesigned from first principles to be capable of learning new skills by observing human behavior and is expected to produce a million units per year. Musk positions it as the company's first mass-produced Siasun Robot & Automation, targeting an annual production capacity of 1 million units, and plans to start production at the end of 2026. Despite the positive news, the stock's pre-market performance was lackluster due to market influence, with the stock falling by 1.64% at the time of reporting. AI doubles down! Oracle Corporation (ORCL.US) plans to raise $50 billion to expand cloud infrastructure. Oracle Corporation stated last Sunday that it plans to raise $45 billion to $50 billion in 2026 through a combination of debt and equity issuance to expand its cloud infrastructure's additional capacity. The company said in a statement, "This financing aims to build more capacity to meet the signed demands of our largest Oracle Corporation Cloud Infrastructure (OCI) customers, including companies like AMD, Meta, NVIDIA Corporation, OpenAI, TikTok, and xAI." It is reported that Oracle Corporation plans to raise about half of the funds through the issuance of securities linked to equity, including mandatory convertible preferred securities, and through a $20 billion "at-market" (ATM) stock issuance program. AI's aggressive buying spree! Apple Inc. (AAPL.US) has long held dominance over the supply chain but is now being eroded. Apple Inc. has long been the dominant purchasing powerhouse in the consumer electronics sector, but this advantage is now being eroded. Currently, artificial intelligence (AI) companies are investing heavily in data centers and aggressively purchasing chips, storage chips, and other core components, often outbidding Apple Inc. in procurement bids. Suppliers who once went all-out for this iPhone manufacturer have now gained bargaining power, not only pushing up component prices but also continuously squeezing Apple Inc.'s traditionally hefty profit margins. Apple Inc.'s CEO Tim Cook recently acknowledged the company's related pressures during a recent earnings conference call, mentioning issues such as constrained chip supply and significantly rising storage chip costs. The long road to reform! FAA chief: Boeing Company (BA.US) needs to take more actions to lift regulatory restrictions. The head of the Federal Aviation Administration (FAA) stated on Monday that Boeing Company still needs to take more measures to regain aircraft certification authority and other related authorities that this aviation giant had lost due to a series of production lapses. FAA chief Bryan Bedford said at an industry conference on the eve of Asia's largest air show in Singapore, "Boeing Company still has more work to do, and we are working with the company to help achieve its reform goals." He also stated that Boeing Company has made "significant progress" so far. While Boeing Company has regained some permissions in recent months, this statement is enough to show that, years after a nearly disastrous accident exposed its factory's rough processes, the company continues to undergo strict scrutiny by US regulatory authorities. Upcoming Important Economic Data and Events 22:45 Beijing time: US January SPGI Manufacturing PMI final value. 23:00 Beijing time: US January ISM Manufacturing PMI. 01:00 the next day Beijing time: 2027 FOMC Voting member, Atlanta Fed President Bostic delivers a speech. Earnings Forecast Early Tuesday: Palantir (PLTR.US), NXP Semiconductors NV (NXPI.US), Teradyne, Inc. (TER.US) Pre-market Tuesday: PepsiCo, Inc. (PEP.US), Pfizer Inc. 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