Overnight US Stocks | Three Major Indices Rise for the Week; NVIDIA Drops 13% Weekly, Market Cap Falls Below $4 Trillion

According to Zhitong Finance APP, the three major indices declined on Friday, with NVIDIA's closing market cap falling below the $4 trillion mark. However, the three major indices still achieved cumulative gains for the week. The Dow Jones Industrial Average rose 2.07% for the week, the Nasdaq Composite gained 2.27%, and the S&P 500 Index increased by 2.51%.

【US Stocks】 At the close, the Dow Jones Industrial Average rose 50.46 points, or 0.10%, to 52,347.55; the S&P 500 Index fell 30.73 points, or 0.40%, to 7,561.67; and the Nasdaq Composite dropped 229.82 points, or 0.91%, to 25,136.27. AMD (AMD.US) fell 8.75%, Dell (DELL.US) dropped 7.24%, Coreweave (CRWV.US) declined 6.13%, SanDisk (SNDK.US) fell 5.59%, Broadcom (AVGO.US) dropped 4.76%, SK Hynix ADR (SKHY.US) fell 4.3%, and NVIDIA (NVDA.US) declined 2.01%; Meta Platforms (META.US) rose 2.9%, and Microsoft (MSFT.US) gained 0.17%. NVIDIA fell 13% for the week, recording its largest single-week decline since April 2025 and marking its sixth consecutive week of losses, the longest losing streak since 2012. Its market capitalization evaporated by over $573 billion this week. The Nasdaq Golden Dragon China Index rose 0.84%, Baidu (BIDU.US) gained 0.66%, and Alibaba (BABA.US) fell 0.02%.

【European Stocks】 The German DAX 30 Index fell 63.52 points, or 0.24%, to 26,752.54; the UK FTSE 100 Index rose 39.07 points, or 0.36%, to 10,902.16; the French CAC 40 Index gained 7.55 points, or 0.09%, to 8,368.91; the Euro Stoxx 50 Index dropped 10.43 points, or 0.16%, to 6,388.55; the Spanish IBEX 35 Index rose 52.55 points, or 0.26%, to 20,018.05; and the Italian FTSE MIB Index gained 53.83 points, or 0.10%, to 51,862.50.

【Foreign Exchange】 The US Dollar Index, which measures the greenback against six major currencies, rose 0.23% to close at 103.412 in late trading. At the close of New York foreign exchange trading, 1 euro exchanged for $1.1023, lower than the previous trading day's $1.1056; 1 British pound exchanged for $1.3210, lower than the previous trading day's $1.3236. 1 US dollar exchanged for 159.78 Japanese yen, lower than the previous trading day's 159.83 yen; 1 US dollar exchanged for 0.8395 Swiss francs, higher than the previous trading day's 0.8353 francs; 1 US dollar exchanged for 1.4267 Canadian dollars, higher than the previous trading day's 1.4260 Canadian dollars; and 1 US dollar exchanged for 10.0722 Swedish krona, higher than the previous trading day's 10.0226 krona.

【Cryptocurrencies】 Bitcoin fell more than 4.7%, trading at $68,001 at the time of reporting; Ethereum dropped more than 4.7% to $1,919.

【Precious Metals】 Spot gold rose 0.1% to $3,881.81; spot silver fell 2.71% to $48.704 per ounce.

【Crude Oil】 The price of light crude oil futures for December delivery on the New York Mercantile Exchange fell 18 cents to settle at $88.56 per barrel, a decline of 0.2%; January Brent crude oil futures on the London market rose 2 cents to settle at $95.84 per barrel, an increase of 0.02%.

【Macro News】

US October PPI Annual Rate Hits Four-Year High, Further Reinforcing Fed Rate Hike Expectations. US producer prices rose further in October, posting the largest annual gain in four years, supporting market expectations that the Federal Reserve may continue raising interest rates following the widely anticipated hike next month. The US Bureau of Labor Statistics stated on Friday that the US Producer Price Index (PPI) rose 0.3% month-on-month in October, below the expected 0.4%, with the previous value revised up to 1.4%. Last month, producer prices were boosted by a 0.5% rise in goods prices, primarily food and basic organic chemicals. Service sector prices rose 0.2%, marking the fifth consecutive monthly increase. The October PPI surged 6.5% year-on-year, the largest annual gain since November 2022, following a 6.3% rise in September. This report followed the release of the October Consumer Price Index (CPI) earlier this week, which exceeded expectations. Additionally, non-farm payrolls surged in October as released last week, with the unemployment rate falling to 4.1% from 4.2% in September. Coupled with comments from Federal Reserve Governor Waller, financial markets have oscillated between "pricing in a 25 basis point rate hike in December" and "leaving room for a 50 basis point hike."

US Treasury Considers Short-Term Loan to Help Venezuela Repay $2.3 Billion Debt. According to media reports, the US Treasury is considering providing a short-term bridge loan to help Venezuela repay approximately $2.3 billion in arrears to the Inter-American Development Bank (IDB) to restore financing eligibility. The IDB approved re-engaging with Venezuela on Friday. After clearing the arrears, Venezuela could receive up to $6 billion in loans from the bank over the next two years, and the World Bank may also provide up to $5 billion during the same period. The US plans to provide funds to the IDB through overnight financing arrangements rather than directly allocating funds to Venezuela. This plan may attract attention from the US Congress; Democratic Senator Warren previously opposed using the Exchange Stabilization Fund to guarantee financial institutions investing in Venezuela.

Fed's Daly: Inflation Continues to Worsen, Further Rate Hikes Likely Necessary. San Francisco Fed President Mary Daly stated on Friday that given the worsening inflation situation, the Federal Reserve will likely need to raise interest rates further. She pointed out that core CPI has risen by about 0.3% month-on-month for three consecutive months, higher than the 0.2% or below level consistent with the Fed's 2% inflation target. She is particularly concerned about the poor performance of services inflation excluding housing, as these prices are typically sticky. Corporate input costs are rising, and more producers say profit margins can no longer absorb cost pressures and are considering passing costs on to consumers. Daly stated she would discuss rate hikes with colleagues at the December meeting and future meetings, making collective decisions based on economic conditions. The Fed raised rates in September and held them steady in October. The market currently expects a 25 basis point rate hike at both the December 8-9 meeting and the January 26-27 meeting next year. Daly also added that she would focus on consumer spending in the next one to three months, especially whether consumers will reduce spending due to rising prices during the holiday season. She noted that consumption remains resilient, but signs are emerging in some regions that consumers may gradually lose momentum.

Fed's Collins Hints at Need for Continued Policy Tightening, Says Fighting Inflation Takes Priority Over Housing Struggles. Boston Fed President Susan Collins hinted on Friday that monetary policy may need to be tightened further to cool prices. In a speech centered on the housing market, Collins stated that higher interest rates might limit housing affordability. However, she added that ensuring price stability would benefit the housing market and the overall economy in the long run. "In the short term, the higher interest rates sometimes needed to cool the economy and control inflation may make buying and building homes more expensive," Collins said in her remarks. "But in the long run, stable prices create a predictable economic environment, which is beneficial for the housing market."

ECB Governing Council Member Nagel: High Probability of Further Rate Hikes. European Central Bank Governing Council Member Joachim Nagel stated on Friday that if the current situation persists, the ECB will likely need to raise interest rates again. Nagel pointed out that the longer inflation remains high, the greater the risk of second-round effects. Compared to September forecasts, the inflation outlook has deteriorated, with energy prices significantly higher than previously expected, and natural gas and electricity prices accelerating in recent weeks. Meanwhile, core inflation remains high, and short-term inflation expectations have risen along with overall inflation. Nagel stated that the European economy is currently showing some resilience, making a recurrence of the 2022 inflation scenario unlikely, provided the ECB fulfills its duties.

US Treasury Secretary Expresses Optimism About Reaching Trade Agreements with Canada and Mexico. US Treasury Secretary Bessent stated on Friday that he believes the US will reach trade agreements with Mexico and Canada. Recently, US President Trump threatened to double tariffs on Mexico due to migrant caravan issues. "I am optimistic that we can reach trade agreements with Canada and Mexico," Bessent told reporters. However, he did not provide details nor mention Trump's warning to Mexico on Thursday. As Trump issued his latest tariff threat, trade negotiations between the US, Mexico, and Canada were at a sensitive stage. In July this year, Trump decided not to extend the US-Mexico-Canada Agreement (USMCA), but related negotiations continued. Trump won a second term in 2024, partly due to US voters' concerns about border issues. Since then, Trump has repeatedly emphasized certain migrant caravan issues, but in recent months he has also indicated that this issue's political influence has weakened for him and his Republican colleagues.

【Company News】

Microsoft Global Outage Disrupts Commodities Trading, Affecting Oil Price Data and Trading Communications. Microsoft (MSFT.US) experienced a massive service outage on Thursday, affecting government agencies, corporations, and traders globally, forcing some trading teams to switch to phones, faxes, and instant messaging tools. This glitch exacerbated trading complexities in the crude oil market amid tensions in the Middle East, delaying the release of some commodity price data. S&P Global's Platts Energy informed customers that updates for some refined products, natural gas, and biofuel prices might be delayed, with the publication of 22 biofuel prices suspended. Microsoft stated on Friday that progress had been made in restoring services, but errors might still occur in more than 20 products and services. The outage also prevented some traders from sending and receiving emails, sending fuel price reports, and viewing profit and risk exposure reports, forcing some trading orders to be handled via phone and fax. Platts subsequently stated that the relevant issues had been resolved.

Meta Platforms (META.US) Tests New Prediction Market APP with Employees. According to insiders, Meta Platforms employees have begun testing a prediction market application under development. The company typically takes this internal testing step before officially launching a product to the public. Insiders stated that on this app, currently named "Takes," employees can bet on the outcomes of questions or events using "cred" (short for "credibility"). Unlike other prediction markets operated by Kalshi and Polymarket, Meta's app does not allow users to bet with real money. Insiders said that if employees predict correctly, they win "cred" points; if they predict incorrectly, they lose corresponding points. The app is not currently open to the public.