Global Headlines | US stock three major indices fluctuate, Apple’s earnings surpass expectations, boosting market sentiment

【U.S. Stock Indices】

On Thursday, January 29th, Eastern Time, the three major U.S. stock indices fluctuated. The S&P 500 fell 0.13% to 6,969.01; the Dow Jones Industrial Average rose 0.11% to 49,071.56; the Nasdaq declined 0.72% to 23,685.12.

【U.S. Treasury Bonds】

On January 29th, the benchmark 10-year U.S. Treasury yield was 4.24%, and the yield on the 2-year Treasury, most sensitive to Federal Reserve policy rates, was 3.53%.

【Popular U.S. Stocks】

Among popular stocks, Nvidia rose 0.52%, Google Class C increased 0.71%, Google Class A up 0.67%, Apple gained 0.72%, Microsoft dropped 9.99%, Amazon declined 0.53%, Meta rose 10.41%, TSMC fell 1.01%, Tesla decreased 3.45%, Super Micro Semiconductor down 0.22%, and Intel fell 0.25%.

【Global Indices】

【China Indices】

On January 29th, overnight Hang Seng Tech Index futures fell 1.03%, Nasdaq China Golden Dragon Index rose 0.35%, and FTSE China A50 Index increased 1.41%.

【Chinese Concept Stocks】

Among popular Chinese concept stocks, Tencent Holdings (HK) rose 0.16%, Alibaba declined 0.77%, Pinduoduo fell 0.11%, NetEase dropped 1.26%, Baidu decreased 0.10%, Ctrip fell 0.61%, Li Auto rose 0.64%, Xpeng Motors declined 0.35%, NIO increased 4.14%.

【Forex and Commodities】

【Global News】

Apple’s Earnings Surpass Expectations, China Market Recovers Strongly

Apple’s latest earnings report shows that for the quarter ending December 27th, revenue reached $143.8 billion, up 16% year-over-year, far exceeding Wall Street’s forecast of $138.4 billion. Strong demand for the iPhone 17 drove a 23% increase in smartphone revenue, with China sales up 38% YoY. Net profit was $42 billion, also surpassing expectations. Apple CEO Tim Cook called it an “extraordinary, record-breaking quarter.” Revenue for the next quarter is expected to grow 13% to 16%. (Sina Finance)

Apple CEO Tim Cook: Memory Prices Will Have a Greater Impact on Profit Margins in Q2

Apple CEO Tim Cook stated that memory prices will have a “greater impact” on profit margins in the second fiscal quarter. The company will “consider a range of options” to address rising memory costs. (Cailian Press)

Apple CFO: Operating Expenses for March Quarter Expected to Be Between $18.4 Billion and $18.7 Billion

Apple’s CFO said that revenue for the second fiscal quarter is expected to grow 13% to 16%; operating expenses for the quarter are projected to be between $18.4 billion and $18.7 billion. (Cailian Press)

Federal Reserve Probability of Holding Rates Steady in March at 86.6%

According to CME’s “FedWatch”: the probability of the Fed cutting rates by 25 basis points by March is 13.4%, with an 86.6% chance of holding rates steady. The probability of a cumulative 25 basis point cut by April is 25.5%, with a 72.2% chance of no change, and a 2.2% chance of a 50 basis point cut.

Apple: Demand for iPhone Products Reached “Unprecedented Levels” This Quarter

Apple stated that demand for iPhone products this quarter has reached “unprecedented levels.”

Nasdaq China Golden Dragon Index Rises 0.35%

Popular Chinese concept stocks showed mixed performance; Nasdaq China Golden Dragon Index rose 0.35%, Futu fell over 2%, Bilibili and NetEase declined over 1%, NIO increased over 3%, and TAL Education surged over 18%.

Amazon Reportedly Negotiating Up to $50 Billion Investment in OpenAI

Sources say Amazon is in talks to invest up to $50 billion in OpenAI, making a huge bet on this hot AI startup. Previously, media reported that the ChatGPT developer was seeking up to $100 billion in new funding, with a valuation possibly reaching $830 billion. Some insiders say Amazon CEO Andy Jassy is leading negotiations with OpenAI CEO Sam Altman. It’s also possible that terms could be adjusted even if a deal is reached. (Sina Finance)

Elon Musk’s SpaceX Reportedly Negotiating Merger with xAI

SpaceX, owned by Elon Musk, is reportedly in merger talks with xAI. Under the agreement, xAI shares will be exchanged for SpaceX shares. (Cailian Press)

Federal Reserve Overnight Reverse Repurchase Agreement (RRP) Usage Reached $2.852 Billion on Thursday

The Fed’s overnight RRP used $2.852 billion on Thursday (4 counterparties), up from $1.103 billion the previous trading day.

Apple Reportedly Acquiring Israeli Startup Q.AI

Apple is reportedly acquiring Israeli startup Q.AI at an estimated valuation close to $2 billion. (Cailian Press)