Preview of US Stock Market | All three major stock index futures rise together; Democrats regaining control of Congress boosts risk appetite; quarterly refunding announcement is about to be released.

Pre-market Market Moves 1. On Wednesday, November 4, before the U.S. market opened, all three major U.S. stock index futures rose together. As of press time, Dow futures were up 1.55%, S&P 500 futures were up 1.13%, and Nasdaq futures were up 0.97%. 2. As of press time, Germany's DAX index was up 1.36%, the UK's FTSE 100 was up 1.16%, France's CAC 40 was up 1.49%, and the Euro Stoxx 50 was up 1.85%. 3. As of press time, WTI crude oil was down 0.78% at $95.34 per barrel; Brent crude oil was down 1.18% at $102.38 per barrel. Market News Democrats Expected to Retake Congress in Midterms; "Blue Wave" Boosts Risk Appetite, U.S. Stock Futures Stage Deep V Reversal to Turn Positive. According to reports, Democrats are overpowering Republicans in the U.S. midterm elections and are expected to retake control of both the Senate and the House. Multiple media outlets described the situation as a "blue wave" or even a "blue tsunami." Driven by the clarity of the election outcome and expectations that "divided Congress" will end, the three major U.S. stock index futures staged a deep V reversal during the session, turning from losses to gains. Analysts believe that a reshaped congressional power structure could weaken the Trump administration's policy room, and reduced post-election uncertainty is conducive to sidelined capital flowing back into risk assets, but expectations of tax increases and tighter regulation are also weighing on some sectors. The U.S. Treasury will release its quarterly refunding announcement at 21:30. The key focus of this quarterly refunding announcement is the issuance size and future guidance for medium- and long-term Treasury bonds. The market widely expects coupon-bearing debt auction sizes to remain unchanged in the near term, but investors are watching whether the Treasury signals a reduction in 20-year and 30-year Treasury issuance in 2027. If long-term bond supply decreases, it could help ease upward pressure on long-end yields; if financing continues to rely on short-term debt, it could push up short-end yields and increase volatility in the U.S. Treasury yield curve structure. The related impact also depends on fiscal financing needs and investors' capacity to absorb supply. Spot gold returns above $4,000, silver surges over 4%, as safe-haven buying and dollar volatility resonate. On Wednesday, London spot gold rose 2.62% and London spot silver rose 4.22%, with spot gold reclaiming the $4,000 mark lost in the previous trading day. Gold prices fell in the previous session due to optimistic expectations for U.S.-Iran talks and fading safe-haven demand, but today staged a strong rebound amid election uncertainty, dollar volatility, and the aftermath of the Middle East GEO Group Inc situation; silver showed greater elasticity, rising more than 4% in a single day. The market is focused on upcoming U.S. employment and services data to judge the subsequent direction of real interest rates and precious metals. Trump: Democrats will submit crazy bills, and I will veto them. According to reports, U.S. President Trump has begun warning Democrats with a bright red hat bearing a single word: "VETO." As Democrats seek to regain control of Congress, Trump is signaling that he intends to use one of the president's most powerful powersvetoing legislation he opposes. Trump said in an interview with Fox News: "They'll submit some absurd bills, and I'll veto them." He expects that repeatedly exercising the veto could eventually force Democrats back to the negotiating table. However, Trump said contact between the two sides may have already begun. He disclosed that since the election ended, several Democrats have reached out to him. Funds bet on a rebound in Clean Energy Fuels Corp. shares on Democratic victory expectations; options trading volume surges. As prediction markets bet that Democrats will score a major victory in Tuesday's U.S. midterm elections, traders are directing funds into a group of stocks typically categorized by investors as beneficiaries of a left-leaning governing environment, including Clean Energy Fuels Corp. shares. According to Cboe LiveVol data, options trading volume in the Invesco CECEP Solar Energy ETF (TAN) surged on Tuesday to 40 times its usual level. The fund typically traded fewer than 500 options contracts per day over the past month, but by midday Tuesday volume had exceeded 20,000 contracts, 99% of which were call options. U.S.-Iran situation eases marginally but Hormuz risk persists: Trump says no strike plan for now, Iran says 4 tankers hit mines. On November 3 local time, Trump said the United States currently has no immediate plan to launch military strikes against Iran but is prepared if necessary; Iran's Revolutionary Guard said four "non-compliant" tankers triggered mines and caught fire while crossing the southern no-sail zone of the Strait of Hormuz. U.S.-Iran diplomatic channels remain in contact, and Qatari mediators said both sides are reviewing the latest proposal. As a result, international oil prices fluctuated slightly. October DRAM prices hit another record high; institutions: price increases will continue in Q4. In October this year, the global average DRAM contract price once again hit a record high, while the average NAND flash price continued at last month's highest level. Institutions expect DRAM prices to rise quarter-on-quarter in Q4 this year, while in NAND flash, MLC flash and SLC flash prices will diverge. Individual Stock News AMD (AMD.US) Q3 revenue hits record with 45% growth, data center nearly doubles, pre-market up over 6%. AMD reported fiscal 2026 Q3 results after the close on November 3: revenue of $13.38 billion, up 45% year-over-year and a record quarterly high, above the expected $13.09 billion; adjusted EPS of $2.09, above the expected $1.95. By segment, data center revenue was $8.55 billion, up 97% year-over-year, accounting for 64% of total revenue (47% a year earlier), with an operating margin of 34%; client and gaming revenue was $3.7 billion, down 8% year-over-year (gaming down 40%), while embedded rose 29%. The company expects Q4 revenue of about $17 billion (3%), above the expected $16.3 billion, with a gross margin guidance of about 55%. CEO Lisa Su said server revenue will double in 2027 and 80% of next year's sales will come from data center chips. The stock rose more than 9% after hours at one point and was up more than 6% as of press time. Super Micro Computer, Inc. (SMCI.US) Q1 revenue nearly triples to $19.9 billion, far exceeding expectations, pre-market up over 9%. Super Micro Computer, Inc. reported fiscal 2027 Q1 results after the close on November 3: revenue of $19.9 billion, up about 3x year-over-year, far exceeding the expected $16.4 billion; adjusted EPS of $1.81, well above the expected $1.23. Benefiting from explosive AI server demand, the company raised its Q2 revenue guidance to $19.5 billion$21.5 billion (above the expected $17.1 billion) and lifted its fiscal 2027 full-year revenue forecast from $65 billion$72 billion to $72 billion$82 billion. However, both GAAP and non-GAAP gross margins were only about 12.8%, and profitability remains a key focus going forward; the company had previously drawn attention over financial reporting and accounting issues and last month appointed former Western Digital Corporation executive Mark Long as CFO. The stock was up more than 9% pre-market. Qualcomm (QCOM.US) to report earnings after the close tonight; weak smartphones and Apple Inc. (AAPL.US) share loss weigh on expectations. Qualcomm will report fiscal 2026 Q4 results after the U.S. market close on November 4. Wall Street expects revenue of about $10.14 billion (down about 10% year-over-year) and EPS of about $2.16 (down about 28% year-over-year from $3.00 a year earlier). Pressure comes from weak smartphone demand, accelerating substitution by Apple Inc.'s in-house modem leading to related revenue loss, and rising wafer/memory/packaging costs squeezing gross margins; the company also recently announced global layoffs. Also reporting the same morning are Arm (ARM.US), AppLovin (APP.US), and Coherent (COHR.US). The divergence between AI and end-demand will be tested in focus, and the market is focused on management guidance for Q1 and fiscal 2027. Tesla, Inc. (TSLA.US) down more than 4% pre-market, pressured by Republican election losses and South Korea FSD complaint. Tesla, Inc. fell pre-market, significantly underperforming most large-cap tech stocks. There are two direct catalysts: first, multiple U.S. media outlets predict Democrats will retake Congress and Republicans will lose, raising market concerns that Musk (the largest individual donor in this election, having donated $445 million) could face political "retribution"; although Trump said he "will protect Musk," risk-aversion sentiment still weighed on his Tesla, Inc. and SpaceX (SPCX.US) (down more than 4% pre-market); second, reports said an advocacy group complained to regulators that FSD assisted driving cannot be legally used in South Korea and misled tens of thousands of consumers. Short-term political and regulatory variables have amplified stock price volatility. Meta (META.US) plans to issue $2025 billion in bonds, continuing the tech giant debt financing wave. According to reports, Meta has launched a new bond offering, planning to raise a total of $20 billion to $25 billion in the United States and Europe, including about $15 billion in dollar-denominated debt, its first dollar bond issuance in half a year. Against a backdrop of high interest rates and surging AI capital expenditures, large tech companies clearly intend to lock in long-term low-interest liabilities to support computing power and data center investment; several giants have previously replenished their coffers through bond issuance. Analysts believe that while this alleviates short-term funding pressure, it also increases future interest burdens, and the combination of high leverage and high valuation could amplify sector volatility. Alphabet Inc. Class C (GOOGL.US) plans to invest $15 billion to expand Malaysia data center business. Alphabet Inc. Class C said it plans to invest $15 billion to expand its data center and cloud computing business in Malaysia to meet digital infrastructure demand driven by the AI boom. According to a statement released by the company on Wednesday, Alphabet Inc. Class C will build new computing centers and invest in local water security, power generation, and skills training for Malaysian residents. The related investment plans will be implemented between 2027 and 2028. Texas governor election result raises data center risk; U.S. data center operators and cloud computing concept stocks fall pre-market. Applied Digital (APLD.US) fell 2.36% pre-market, Core Scientific (CORZ.US) fell 2.95%, IREN (IREN.US) fell 2.58%, TeraWulf (WULF.US) fell 0.37%, Coreweave (CRWV.US) fell 2.42%, and Oracle Corporation (ORCL.US) fell 1.74%. According to reports, Texas Democratic candidate Gina Hinojosa is expected to be elected Texas governor in the midterms. Texas is expected to account for about one-quarter of U.S. new data center capacity through 2030, and Hinojosa supports pausing data center project construction, which could put 13.3 gigawatts of already announced local projects at risk. Apple Inc. warns: AI agent behavior may be unpredictable, potentially triggering lawsuits and damaging the company's reputation. Apple Inc. said in its annual financial filing on Tuesday that artificial intelligence (AI) agents capable of acting in "unintended or unpredictable ways" may pose a threat to its business because it could expose the company to litigation or damage its reputation. The new risk factors listed in Apple Inc.'s filing indicate the disruptive potential of AI agents, which have rapidly become a matter of great concern among major Silicon Valley companies. Important Economic Data and Event Preview Beijing time 21:15: U.S. October ADP employment Beijing time 21:30: U.S. September trade balance, Canada September trade balance, U.S. Treasury releases quarterly refunding announcement Beijing time 23:00: U.S. October ISM non-manufacturing PMI Beijing time 23:30: U.S. EIA crude oil inventories for the week ending October 30 Earnings Preview Thursday morning: Arm, Qualcomm, AppLovin, Coherent Thursday pre-market: Toyota (TM.US), Sony (SONY.US), ConocoPhillips (COP.US)