Overnight US stocks | The three major indices closed lower. AI giants collectively called for slowing down the pace of development, and concept stocks fell across the board.

Monday saw the three major indices close lower, with AI concept stocks falling across the board. U.S. AI giant OpenAI suddenly pressed the "IPO pause button." The company's CEO, Sam Altman, said OpenAI will not hold an initial public offering in 2026. He noted that given the many recent developments surrounding AI safety issues, now is not a suitable time to go public. At the same time, the three major U.S. AI giants Anthropic, OpenAI, and SpaceX AI rarely joined forces to collectively call for slowing the pace of AI development. [U.S. Stocks] At the close, the Dow Jones Industrial Average fell 152.01 points, or 0.29%, to 52,421.28; the S&P 500 fell 37.03 points, or 0.48%, to 7,619.95; the Nasdaq Composite fell 146.62 points, or 0.56%, to 26,186.41. SK Hynix (SKHY.US) fell 7.6%, Meta (META.US) rose 2.7%, ASML Holding NV ADR (ASML.US) fell 7.2%, and Intel Corporation (INTC.US) and Micron Technology, Inc. (MU.US) fell more than 5%. The Nasdaq Golden Dragon China Index closed up 0.36%, with NTES (NTES.US) up 2%. [European Stocks] Germany's DAX30 fell 110.75 points, or 0.43%, to 25,446.41; the UK's FTSE 100 rose 50.97 points, or 0.48%, to 10,701.41; France's CAC40 fell 61.99 points, or 0.76%, to 8,117.78; the Euro Stoxx 50 fell 59.88 points, or 0.95%, to 6,265.25; Spain's IBEX35 fell 265.19 points, or 1.34%, to 19,573.31; Italy's FTSE MIB fell 838.53 points, or 1.60%, to 51,673.50. [Asian Stocks] Japan's Nikkei 225 fell 0.81%, and South Korea's KOSPI fell 3.26%. [U.S. Dollar Index] The U.S. dollar index, which measures the greenback against six major currencies, rose 0.27% on the day and closed at 99.388 in late foreign exchange trading. As of late New York foreign exchange trading, 1 euro exchanged for 1.1557 dollars, lower than 1.1596 dollars the previous trading day; 1 pound exchanged for 1.3511 dollars, lower than 1.3525 dollars the previous trading day. 1 dollar exchanged for 154.05 yen, higher than 153.72 yen the previous trading day; 1 dollar exchanged for 0.8163 Swiss francs, lower than 0.8166 Swiss francs the previous trading day; 1 dollar exchanged for 1.3902 Canadian dollars, higher than 1.3865 Canadian dollars the previous trading day; 1 dollar exchanged for 9.7412 Swedish kronor, higher than 9.7044 Swedish kronor the previous trading day. [Cryptocurrencies] Bitcoin rose nearly 3%, at 78,955 as of press time; Ethereum rose more than 3%, at 2,558 dollars. [Crude Oil] Light crude oil futures for October delivery on the New York Mercantile Exchange rose 1.34 dollars to close at 101.39 dollars per barrel, an increase of 1.34%; London Brent crude oil futures for November delivery rose 1.07 dollars to close at 105.68 dollars per barrel, an increase of 1.02%. [Precious Metals] Spot gold fell more than 1% to 4,298.77 dollars per ounce; spot silver edged up 0.03% to 63.24 dollars per ounce. [Macro News] BofA strategist raises S&P 500 year-end target but still warns of rate risk. Bank of America Corp equity strategist Savita Subramanian raised her target for the S&P 500. As one of Wall Street's most bearish strategists, she had previously given the lowest target among market analysts, but she still warned that the index remains vulnerable to interest rate risk. Subramanian raised her year-end forecast for the S&P 500 from 7,100 to 7,400. The new forecast level implies a 3.4% decline from the index's close last Friday. According to data compiled by institutions from more than 20 strategists' forecasts for the S&P 500 at the end of 2026, her forecast remains one of the most pessimistic views on Wall Street. She expects the S&P 500 to rise to 7,800 over the next 12 months, only about 2% above the most recent closing level. Subramanian said on Monday: "We are entering a seasonally weak period, and in our view, a market pullback has been delayed for too long." Ahead of the Fed decision, the 10-year U.S. Treasury yield topped the key 5% level. On the eve of this week's Federal Reserve meeting, the benchmark 10-year U.S. Treasury yield rose on Monday to the key psychological level of 5%, the first time in nearly three years, with the market widely expecting the Fed to raise rates to curb inflation. Data last Friday showed that U.S. consumer prices accelerated in August, intensifying market expectations that the Fed will raise rates to curb inflation. Tom di Galoma, managing director at Mischler Financial Group, said this "may be the last straw." Over the past month, yields have continued to climb amid rising rate hike expectations, increased supply of corporate and government debt, optimistic economic growth prospects, and concerns about the long-term U.S. fiscal path. Galoma said: "Our budget, deficit, and overall debt structure continue to expand." Going forward, whether the 10-year Treasury yield can hold the 5% threshold will become a key test of whether the economy and stock market can support higher interest rate levels. Fed pauses Treasury purchases for reserve management for a second consecutive month. The Federal Reserve said on Monday that it will not conduct U.S. Treasury purchases for reserve management purposes for a second consecutive month in the next cycle, indicating that policymakers believe the level of bank reserves in the current financial system is appropriate. The Open Market Operations desk of the New York Fed plans no reserve management purchases in the monthly cycle ending October 14. However, the desk still plans about 15.6 billion dollars in reinvestment purchases over the same period. The Fed's decision to pause reserve management purchases indicates it remains confident in the functioning of funding markets. This is also reflected in the Secured Overnight Financing Rate (SOFR), which has been at or below the interest rate on reserve balances (IORB) for most of the past month. At the same time, the U.S. Treasury has also reduced Treasury bill supply ahead of the quarterly tax deadline. This change does not mean a shift in the Fed's monetary policy or balance sheet strategy. U.S. media: Trump once met privately with Altman, AI safety divisions emerge. According to reports, three people familiar with the matter said that U.S. President Trump held a private meeting with OpenAI CEO Altman backstage at the Republican National Convention last Thursday. Just days before the meeting, a former OpenAI researcher publicly accused the company and rival Anthropic of acting irresponsibly and said they were "gambling with human safety." One of the people familiar with the matter said the meeting was initiated by Altman. Only the general content of the discussions is known so far, mainly centered on artificial intelligence and its growing influence. In the days that followed, the two expressed clearly different positions on whether the pace of frontier AI development should be slowed. Altman posted on Sunday night that slowing AI development is "worth the cost"; "No matter how much competitive pressure the United States faces, that cannot be a reason for recklessness, nor can it allow AI capabilities to run ahead of alignment and monitoring capabilities." Trump opposes AI regulation, has rejected the need for AI guardrails, and also said that regulating the AI industry would cause it to "die and go bankrupt," calling AI "the greatest economic development engine in history." [Individual Stock News] Tempus AI founder supports Anthropic's call to hit the AI brakes. Eric Lefkofsky, CEO of U.S. medical technology company Tempus AI (TEM.US), said in a media interview on Monday: "Given that current models can self-train and self-improve, it is not hard for me to imagine a moment when one cannot help but ask: 'Could this get out of control and beyond our grasp?'" He said he agrees with slowing the pace of AI development, citing both safety considerations and capital efficiency. He praised the efforts of Anthropic, OpenAI, and SpaceX in healthcare and played down concerns that "the United States could fall behind if its largest companies slow investment." "I don't think there is any real risk in reducing speed from 100 miles per hour to 70 miles per hour," "I don't think the rest of the world will overtake us because of that." Apple Inc. officially launches Siri AI. Apple Inc. (AAPL.US) said that Siri AI, powered by the next generation of Apple Intelligence, has officially launched, becoming a "more capable and more personalized" intelligent assistant. Apple Inc. also released the next generation of Apple Intelligence on the same day to support Siri AI. Apple Inc.'s iOS 27 version began providing related feature updates today. Siri AI began rolling out in beta to English-speaking users today and will expand to French, Japanese, Korean, Portuguese, and Spanish next month. Siri AI will initially not be available on iOS, iPadOS, and watchOS systems in the EU region. Apple Inc. said Siri AI is a significantly more capable intelligent assistant with more natural conversation, featuring personal context understanding, broad knowledge, screen awareness, and more system-level app operation capabilities. Siri AI can help users instantly obtain the information they need, including answering questions on almost any topic and extracting relevant information from users' messages, mail, photos, and other content. Trump calls while Jensen Huang is at forum, says on speaker that AI concerns are a hoax. NVIDIA Corporation (NVDA.US) CEO Jensen Huang took a phone call from U.S. President Trump on Monday local time at the All-In Summit forum event. This was not the first time Huang received a call from Trump during work, but this time he put it on speaker in front of a large audience. During the call, Trump discussed recent concerns surrounding AI development, calling them a "hoax," and said: "Siasun Robot&Automation will not take over the world." Trump also discussed data centers on the call. He claimed that some communities would decline without data centers, but that these communities are now very wealthy, though he did not provide specific examples. Huang did not rebut this, instead saying: "We will make sure everyone in the U.S. AI race benefits." Huang also expressed support for Trump by telling him he was facing thousands of people in the audience. Waymo's paid robotaxi service covers its 15th city. Alphabet (GOOG.US)-owned Waymo announced the launch of paid robotaxi service in Las Vegas, making it the 15th U.S. city where it offers ride-hailing services. The company said service will begin on Monday and will be rolled out in phases, initially with dozens of vehicles and plans to expand to hundreds in the future. Waymo said Las Vegas robotaxis will initially not have highway access, and airport pickups and highway service will be added in later phases. The operating fleet will be managed by Moove, which also manages Waymo's vehicle operations in Phoenix and Miami. Waymo currently has more than 4,000 robotaxis in the United States and provides more than 500,000 paid rides per week. The company previously said it hopes to achieve a goal of 20 cities globally and 1 million paid rides per week this year, and is preparing tests in markets such as London and Tokyo. Oracle Corporation starts a new round of layoffs, with some teams cut by double-digit percentages. According to reports, Oracle Corporation (ORCL.US) has started a new round of layoffs, and people familiar with the matter said the cuts are expected to begin on Monday. The media outlet reported last month that Oracle Corporation had drawn up a new round of layoffs aimed at reducing salary costs because the company is accumulating billions of dollars in debt to fund AI infrastructure construction. According to internal documents, some teams are being cut by double-digit percentages. According to recent company filings, in fiscal 2026 ended May 31, Oracle Corporation's headcount fell by 21,000, or 13%. Oracle Corporation said it had about 141,000 employees before this round of layoffs began. Oracle Corporation has accumulated tens of billions of dollars in debt to build data centers, betting on growing AI demand. Oracle Corporation reported first-quarter capital expenditure of 28.5 billion dollars, up from 8.5 billion dollars a year earlier, and maintained its fiscal 2027 capital expenditure forecast at between 90 billion and 95 billion dollars. 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