Overnight U.S. Stocks | The three major indexes closed higher for the fourth consecutive week, with the Nasdaq China Golden Dragon Index breaking through 8,000 points

Zhitong Finance and Economics learned that on Friday, the three major indexes rose in unison, the Dow hit a record closing high, and the three major U.S. stock indexes have recorded gains for the fourth consecutive week. United States non-farm payrolls data for September far exceeded expectations, and financial markets' expectations for a Fed rate cut by the end of the year have cooled sharply, and the possibility of a 50 basis point rate cut by November has been largely ruled out. The Nasdaq Golden Dragon China Index closed up 3.05% and rose 11.85% for the week, closing above the 8,000-point integer psychological mark for the first time since February 1, 2023.

As of the close, the Dow rose 341.16 points, or 0.81%, to 42,352.75; The Nasdaq rose 216.19 points, or 1.21%, to 18,134.67; The S&P 500 rose 51.13 points, or 0.90%, to 5,751.07. The Nasdaq Golden Dragon China Index closed up 3.05% at 8,093.70 points, closing above the 8,000-point integer psychological mark for the first time since February 1, 2023, up 11.85% this week, and up 36.77% since the close on September 23. Star technology stocks and popular Chinese concept stocks rose, and AMD (AMD. US) rose about 5%, and Tesla (TSLA. US) rose nearly 4%, and MINISO (MNSO. US) rose 8.65%, and JD.com (JD. US) rose more than 5%.

Germany's DAX 30 index rose 105.52 points, or 0.55%, to 19,120.93; United Kingdom's FTSE 100 fell 1.89 points, or 0.02%, to 8,280.63; France's CAC 40 index rose 63.58 points, or 0.85%, to 7,541.36; The Euro Stoxx 50 index rose 33.62 points, or 0.68%, to 4,954.95; Spain's IBEX 35 index rose 41.20 points, or 0.35%, to 11,659.20; Italy's FTSE MIB index rose 424.09 points, or 1.28%, to 33,594.12.

【Asia-Pacific stock market】Nikkei 225 index rose 0.16%, Indonesia's Jakarta Composite Index fell 0.63%, and Viet Nam's VN30 index rose 0.76%.

COMEX gold futures closed down 0.22% at $2,673.35 an ounce; COMEX silver futures closed down 0.06% at $32.445 an ounce.

Bitcoin rose 0.48% to $62,132.23 per coin; Ethereum rose 0.03% to $2,417.93 per coin.

WTI crude oil futures rose 0.91% to $74.38 per barrel; Brent crude futures rose 0.55% to $78.05.

【Metal】London metal rose together, London nickel rose 2.3%, up more than 5.8% this week, London zinc rose 1.34%, London copper closed up $78 at $9944 / ton, London aluminum closed up $24 at $2653 / ton.

【Macro News】

Former United States Treasury Secretary Summers: The Fed's 50 basis point rate cut in September was a "mistake", but it would not have "serious consequences". "United States High Inflation Whistleblower", former Treasury Secretary Summers: In hindsight, the Fed's 50 basis point rate cut in September was a mistake. But this does not have "serious consequences". The latest United States non-farm payrolls report for September confirms that we are in a "high-to-high interest rate environment", a period when monetary policy needs to be cautious in cutting interest rates. "No landing" and "hard landing" are risks that the Fed has to face.

Chicago Fed President Goolsbee: Non-farm payrolls report is "excellent", but still believes that there will be a rate cut in the future. Chicago Fed President Goolsbee said on Friday that the latest United States nonfarm payrolls report was "excellent" and said more similar job market data would boost his confidence that the economy is in a state of full employment and low inflation. "You really can't pray for a better economic report anymore, plus the port strikes aren't going to last, which is two very good news for the economy," Goolsbee said. "If we get more reports like that, I'll be more confident that we're actually in full employment." However, Goolsbee said the job market is cooling across a broad range of indicators, and there are even signs that inflation could be below the Fed's 2% target. "Some data is strong, some data is weak," he said. He said that since the Fed's policy rate is well above what most policymakers believe is the ultimate "stability point", it is appropriate for the Fed to cut rates "substantially" over the next 12 to 18 months, which is what most policymakers currently expect.

Xiaomo and BofA no longer expect the Fed to cut interest rates by 50bp in November. JPMorgan Chase and Bank of United States now expect a 25 basis point rate cut when the Fed meets again in November, after calling for more cuts, but labor market data showed the United States economy is resilient, so they dropped their previous calls. JPMorgan Chase Chief United States Economist Michael Feroli and Bank of United States Economist Aditya Bhave both pointed to Friday's jobs report as prompting them to adjust their expectations for the Fed's easing path. Considering the Fed's 50 basis point rate cut in September, they see a robust job market as a reason for the Fed to take a more cautious approach.

Biden: Israel has not yet decided how to respond to Iran's attack. According to CCTV, on October 4, local time, United States President Biden said at a briefing on the same day that Israel has not yet decided how to respond to Iran's previous attacks. Biden said if he were from Israel's point of view, he would seek options other than attacking Iran's oil fields. The United States and Israel teams have been in touch. Israel will not make a decision immediately, so the American side will continue to wait. Biden also said that United States is currently considering sanctions against Iran.

Germany, France and Italy urge the EU to deregulate the banking sector and improve global competitiveness. Germany, France and Italy have urged the EU to show restraint in setting financial rules and instead focus on improving the competitiveness of their banking sector, the latest sign that global political entities are shifting to prioritizing economic growth over regulation. The EU's three largest economies want the EU to relax some of the rules already in place so that banks have a "level playing field" with other major jurisdictions.

【Stock News】

Meta(META. US) announced the creation of a new artificial intelligence model, Movie Gen. Meta Platforms announced Friday that it has built a new AI model called Movie Gen that can create photorealistic video and audio clips based on user prompts, claiming it can rival tools from leading media generation startups like OpenAI and ElevenLabs. Meta provided samples of Movie Gen productions showing videos of animals swimming and surfing, as well as using real photos of people to generate dynamic videos. According to Meta, Movie Gen can also generate background music and sound effects that are synced with video content, and use the tool to edit existing videos.

Rio Tinto (RIO. US) is in talks to acquire lithium miner Arcadium Lithium at a valuation of $4 billion to $6 billion. The media, citing three people with direct knowledge of the talks, reported that Rio Tinto has been in talks to acquire lithium miner Arcadium. One of the people said that negotiations have been going on and continued during this week's "London Metal Exchange (LME) Week" meeting. Offers are expected soon, talks are underway and a deal may not necessarily be reached, people familiar with the matter said. Arcadium could be valued at between $4 billion and $6 billion or more, according to reports, and Arcadium has selected two investment banks to handle negotiations with Rio Tinto. Arcadium shares rose more than 40% in after-hours trading.

Sources: Airbus Group (EADSY. US) deliveries fell 9% in September. Airbus delivered 50 aircraft in September, down 9% from 55 in the same period last year, meaning nine months of deliveries were only marginally ahead in the fourth-quarter sprint, according to industry sources. The European aircraft maker ramped up deliveries after slow deliveries at the beginning of the month. If the data is confirmed, deliveries of 50 aircraft in September would bring the total number of deliveries in nine months to 497. In nine months of 2023, Airbus delivered 488 aircraft, representing a 2% year-on-year increase so far this year. Airbus is targeting 770 aircraft deliveries this year, meaning it must pick up the pace in the fourth quarter to meet its key industrial targets.

"Tesla's arch-rival" Rivian (RIVN. US) lowered its full-year production guidance after the United States Department of Energy (DOE) said it applied for a United States federal loan. Due to the shortage of parts, Rivian updated its annual production outlook for 2024 and lowered its annual vehicle production to 47,000-49,000 units, down more than 8% at one point during the session. In addition, Rivian applied for a United States federal loan to (continue) the construction of an electric vehicle plant in Georgia, United States. The company will begin construction of the Georgia plant in the first half of 2025. The company expects the Georgia plant to be partially operational by the third quarter of 2027.

OpenAI investor Khosla Ventures LLC. :(OpenAI) is not suitable for an IPO with its current architecture. According to the investor, the team is "very strong and very strong in science and technology." It's "perfectly normal" not to invest in competitors. OpenAI's board of directors will decide whether CEO Altman should receive equity in the company. Altman applied AI technology to design his garden. The focus should be on the usefulness of AI.