Overnight US stocks | 30-year U.S. Treasury yield rises for sixth straight day; three major indexes close lower; Meta (META.US) gains over 3%

Tuesday saw the three major indexes close lower, with the 30-year U.S. Treasury yield rising for a sixth consecutive trading day. Due to heavy corporate debt issuance and rising inflation pressures triggered by high energy prices, the 30-year Treasury yield broke through 5.61% to reach its highest level since 2002. US StocksAs of the close, the Dow Jones Industrial Average fell 347.11 points, or 0.67%, to 51,481.51; the S&P 500 fell 59.72 points, or 0.77%, to 7,683.69; the Nasdaq Composite fell 248.34 points, or 0.92%, to 26,820.38. Meta Platforms (META.US) gained over 3%, SK Hynix (SKHY.US) rose 2.6%, and Oracle Corporation (ORCL.US) rose 4%. The Nasdaq Golden Dragon China Index closed down 1.55%. European StocksGermany's DAX30 fell 14.81 points, or 0.06%, to 25,392.30; the UK's FTSE 100 fell 52.67 points, or 0.49%, to 10,632.21; France's CAC40 fell 42.61 points, or 0.53%, to 8,035.87; the Euro Stoxx 50 rose 20.07 points, or 0.32%, to 6,321.35; Spain's IBEX35 fell 85.49 points, or 0.44%, to 19,514.81; Italy's FTSE MIB rose 15.60 points, or 0.03%, to 51,775.50. Asia-Pacific StocksJapan's Nikkei 225 fell 0.6%, South Korea's KOSPI fell 0.27%, and Indonesia's Composite Index fell 0.43%. ForexThe U.S. dollar index, which measures the greenback against six major currencies, rose 0.17% on the day to close at 101.372 in late New York trading. As of late New York trading, 1 euro traded at 1.1341 dollars, down from 1.1368 dollars the previous trading day; 1 pound traded at 1.3229 dollars, down from 1.3261 dollars the previous trading day. 1 dollar traded at 157.22 yen, down from 157.40 yen the previous trading day; 1 dollar traded at 0.8336 Swiss francs, up from 0.8319 Swiss francs the previous trading day; 1 dollar traded at 1.4178 Canadian dollars, up from 1.4171 Canadian dollars the previous trading day; 1 dollar traded at 9.9892 Swedish kronor, up from 9.9537 Swedish kronor the previous trading day. CryptocurrenciesBitcoin hovered near 83,000 dollars, reported at 83,533 dollars as of press time; Ethereum fell 0.15% to 2,681 dollars. Precious MetalsSpot gold was reported at 4,181.86 dollars per ounce; spot silver was reported at 61.47 dollars per ounce. Crude OilInternational oil prices fell significantly on the 29th. As of the close, the November-delivery light crude futures on the New York Mercantile Exchange fell 3.22 dollars to settle at 89.38 dollars per barrel, a decline of 3.48%; the November-delivery London Brent crude futures fell 2.69 dollars to settle at 102.59 dollars per barrel, a decline of 2.56%. Macro News Trump Poised to Appoint AI Chief; Intelligence Director Clayton Emerges as Potential Candidate. According to reports, U.S. President Donald Trump said Tuesday that Director of National Intelligence Jay Clayton would be a good choice for "AI chief." When asked whom he wanted to serve as AI chief, Trump said, "I have someone in mind." When asked about Clayton, Trump added, "Clayton is a good man. He's right here. That's a good idea." The specific responsibilities of the position are not yet clear, though Trump has previously said he wants to establish a new government agency called the "AI Force." Clayton said at his confirmation hearing in July that, similar to Treasury Secretary Bessent's view, the notion that "AI is both an opportunity and a threat" also applies to the intelligence community. Trump told reporters outside the White House that he hopes to finalize the choice within the next three to four days. Fed's Goolsbee: Inflation Persistently Above Target Is "Playing with Fire." Chicago Fed President Austan Goolsbee said U.S. inflation has remained above the Fed's 2% target for more than five and a half years, and maintaining high inflation for an extended period is "playing with fire," and the Fed needs to pay attention to the effects of persistent supply shocks. Goolsbee said the current situation is "unpleasant," but if supply shocks have long-term effects, the Fed may need to reconsider its previous policy logic of "ignoring supply shocks." He said that before considering rate cuts, the Fed needs to see more evidence confirming that inflation is falling and that factors previously deemed temporary are fading. Goolsbee also warned that large fiscal deficits are themselves a form of stimulus and could lead to an overheating economy. He said market expectations for future AI productivity gains could also pose current economic overheating risks, and the Fed needs to closely monitor productivity changes. He noted that oil prices could fall quickly, but the deeper issue lies in the process of restoring refinery operations. Goolsbee said factors such as energy prices, AI investment, and fiscal stimulus could all affect the future path of inflation. Fed's Williams: Another Rate Hike Possible This Year, But No Need to Rush. New York Fed President John Williams said the Fed does not need to act again hastily after its September rate hike and can wait for more economic data to determine the next policy direction. Williams said that if the economy develops broadly in line with his expectations, further increases in the federal funds rate target range may be needed before year-end to help inflation return to the 2% target more promptly. But he stressed that this is only his personal forecast and that the final decision will depend on future data. Williams said that with economic growth remaining solid and the job market performing well, inflation pressures will continue to be the focus of monetary policy. He said the Fed must ensure that inflation does not remain elevated due to shocks and avoid the formation of second-round inflation effects. He noted that this year's inflation pressures have been affected by Trump's tariff policies and energy price increases caused by Middle East conflicts, while AI investment has also pushed up some price pressures. Williams expects U.S. inflation to reach about 3.5% by the end of this year, then gradually decline and return to target in 2028. Williams expects U.S. economic growth of about 2.25% this year and an unemployment rate of about 4% next year. He said immigration factors, population aging, and limited productivity growth constrain long-term economic growth potential. OPEC Delegates: OPEC+ May Keep November Output Quota Unchanged. Two OPEC+ delegates said major OPEC+ members may keep November crude oil production quotas unchanged at this weekend's meeting, continuing the existing supply plan. Member countries led by Saudi Arabia and Russia have largely completed the nominal rollback of the 2023 production cuts and are expected to confirm at a video conference on Sunday that November output targets remain stable. According to reports, although OPEC+ previously agreed to gradually increase production, some capacity in the Middle East has still not recovered due to the impact of the Iran conflict, leaving the previously announced increase plan largely on paper. OPEC+ previously said that restoring part of the capacity suspended in 2022 would not be considered until at least after the end of this year. However, restoring previous production levels still faces difficulties because some member countries are affected by underinvestment, sanctions, and other supply disruptions. OPEC+'s supply policy for next year will also depend on the results of an assessment of member countries' crude oil capacity, which is expected to be completed this week and discussed at the formal ministerial meeting on November 29. US Plans to Release 40 Million Barrels from Strategic Petroleum Reserve to Ease Fuel Price Pressure. According to reports, the U.S. Energy Corp. Department said Tuesday that the Trump administration plans to provide energy companies with 40 million barrels of Strategic Petroleum Reserve (SPR) crude to address fuel price increases caused by the escalation of the Iran conflict and the Russia-Ukraine war. The U.S. Energy Corp. Department said the measure will take the form of a "loan," with companies borrowing SPR crude and returning it in the future. Previously, the United States reached an agreement in March with the International Energy Agency (IEA) and about 30 countries, pledging to provide 172 million barrels of strategic reserves as part of a plan to release about 400 million barrels of crude globally. The Trump administration proposed in June releasing the remaining 40 million barrels under that agreement, but data at the end of that month showed that energy companies actually agreed to borrow only about 500,000 barrels. Individual Stock News Tesla, Inc. Signs $30 Billion Financing Arrangements, Including Revolving Credit and Delayed Draw Loans. According to U.S. Securities and Exchange Commission (SEC) filings, Tesla, Inc. (TSLA.US) has entered into multiple financing arrangements, including a $20 billion three-year delayed draw term loan facility, an $8 billion five-year revolving credit facility, and a $2 billion 364-day revolving credit facility. The filings show that Tesla, Inc. also terminated its original revolving credit agreement. The new five-year revolving credit facility allows for letters of credit of up to $500 million, and the three-year delayed draw term loan facility will mature on September 29, 2029. In addition, Tesla, Inc.'s revolving credit facility can be increased by up to $4 billion, reaching $14 billion. OpenAI Seeks $30 Billion in New Funding, Targeting $1.4 Trillion Valuation. According to people familiar with the matter, OpenAI plans to raise at least $30 billion from investors in a new funding round. The company is seeking new capital support after postponing its initial public offering plans. The people said OpenAI's funding target valuation is about $1.4 trillion (excluding the new funding amount). If achieved, that valuation could again surpass the private-market valuation previously reached by long-time competitor Anthropic. The people said financing negotiations are still at an early stage and arrangements may change. OpenAI declined to comment. OpenAI CEO Sam Altman previously said the company will not go public this year and will instead focus on addressing AI safety issues, calling the current IPO timing "unwise." This funding round is seen as a bridge round replacing an IPO, providing OpenAI with additional capital. OpenAI's most recent funding occurred in March this year, when the company raised $122 billion at an $852 billion valuation including the funding amount.