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Overnight Market Update

SPDR S&P 500 and Nasdaq hit new all-time highs, US stock indexes rise for the fourth consecutive month, chip stocks and Nvidia reach new highs, Chinese concept stocks surge over 10% in February

The final significant PCE inflation report before the Federal Reserve's monetary policy meeting next month temporarily eased market concerns. The three major indexes collectively closed higher this week. Nasdaq rose by 0.9%, hitting a new all-time high. SPDR S&P 500 rose by 0.52%, reaching a record high close. Dow Jones Industrial Average increased by 0.12%.

Major indexes continued to rise in February, with SPDR S&P 500 and Dow Jones posting their best two-month performance in five years. SPDR S&P 500 rose by 5.17%, Dow Jones by 2.22%, Nasdaq by 6.12%, Nasdaq 100 by 5.29%, all rising for four consecutive months. SPDR S&P 500 and Dow Jones achieved their largest two-month gains since 2019, with Russell 2000 up by 5.52%. Chinese concept stocks saw a significant rebound in February, with double-digit increases in the indexes.

Tesla dropped by less than 0.1% but rose by 7.8% in February. Amazon rose by nearly 2%, up nearly 14% in February. Alphabet increased by over 1.5%, while Microsoft rose by over 1.4%, up around 4% in February. Meta rose by 1.3%, surging by 25.6% in February. Apple fell by nearly 0.4%, down almost 2% in February. Nvidia rose by nearly 1.9%, hitting a new all-time high, with a 28.6% increase in February, marking over 20% growth for the second consecutive month.

Snowflake fell by over 18%, reporting revenue of $775 million in Q4 of the fiscal year 2024, better than expected. However, the guidance for Q1 and full-year product revenue for the fiscal year 2025 fell short of expectations, and the CEO announced resignation.

After Binance executives were detained by the Nigerian government, Bitcoin, which had been rising continuously, briefly fell below $61,000 during the trading session. Bitcoin surged over 40% in February, marking the largest monthly gain in over three years. Overnight, C3.ai rose by 24.5%, SoundHound.ai by 17%, BigBear.ai by 7%, and Super Micro Computer (SMCI) by around 6%.

Most popular Chinese concept stocks continued to decline. NetEase fell by about 3.9%, Baidu by nearly 2%, Pinduoduo by almost 0.4%, JD.com by over 0.8%, Alibaba by more than 0.7%, Bilibili rose by 0.1%, XPeng closed 8% higher, Nio rose by 5.9%, and Li Auto surged by over 1%.

Dell rose by 20% in after-hours trading on the US stock market, driven by the increasing demand for AI servers, with net profits far exceeding market expectations.

Blue Chips and Hot Stocks

Tesla plans to issue $750 million in car lease-backed bonds

This is Tesla's first transaction in the asset-backed securities market this year and will be priced later this week.

Microsoft launches Copilot Finance Edition, significantly reducing financial reconciliation time

Microsoft has released the latest chatbot Copilot for Finance. Previously, a finance team of thousands would spend one to two hours reconciling accounts weekly, but with Copilot for Finance, it now only takes 10 to 20 minutes per week.Internal Control Deficiencies Found, New York Community Bank Impairs Huge Goodwill, CEO Change

New York Community Bank has identified significant internal control deficiencies related to internal loan reviews, caused by ineffective supervision, risk assessment, and monitoring activities, leading to a post-market drop in stock price of over 21%.

Intel Revives Altera Brand, Riding the AI Wave Towards IPO

Intel officially renamed its recently independent Field-Programmable Gate Array (FPGA) group as Altera. This also means that in the coming years, this semiconductor industry veteran riding the AI wave is expected to return to the US stock market.

Alibaba Cloud has across-the-board price reductions on its cloud products, with an average price cut of over 20%, and the highest reduction reaching 55%.

JD Cloud: Initiates price comparison activities targeting specific cloud service providers: "Keep lowering prices, compare to the end! We will continue to compare prices across the entire network! Beat the lowest price! Another 10% off," and promises "compensation if you buy at a higher price."

The US Securities and Exchange Commission is investigating whether OpenAI misled investors and issued a subpoena to OpenAI in December last year.

Boeing has secured a $3.4 billion contract for 17 P-8A aircraft.

Dingdong Maicai: Achieves Annual Profitability for the First Time under Non-GAAP Standards

In the fourth quarter, revenue reached 4.99 billion yuan, GMV was 5.53 billion yuan, and the net profit margin under Non-GAAP standards was 0.3%. As of that quarter, Dingdong Maicai has achieved profitability under Non-GAAP standards for five consecutive quarters and also achieved annual profitability under Non-GAAP standards for the first time.

Changan Automobile: Reports of "Changan Automobile acquiring 51% stake in Gaohu" and "Changan taking over Gaohu Automobile" are not true.

Media: Xiaomi's car stores are under construction, with at least sixty initial sales outlets, and the first model SU7 is expected to be launched by the end of March. Xiaomi responds to online rumors of "production of 2,000 vehicles and value of 400 million yuan in the first quarter": false information.

Startups

Humanoid robot startup Figure AI raises $675 million in financing at a valuation of $2.6 billion.

US electric vehicle company Fisker plans to lay off 15% of its workforce due to operational difficulties. Without additional funding, existing capital may not be sufficient to support the next 12 months of development. Currently in talks with another "major car manufacturer" for financing, hoping to finalize a capital agreement "as soon as possible."

Macro: Taking You Around the World

Fed's Daly: Interest rates can be lowered if necessary, but cutting rates too quickly may lead to inflation backlash.

Fed's Bostic: Wage growth exceeds inflation, and this trend is expected to continue.

Fed's Mester: At present, it feels appropriate to cut interest rates three times this year.

SPDR S&P 500: Do Not Make Strong Judgments on Fed Rate Cuts Before February Data is Released

Whether the acceleration of inflation in January is due to seasonal adjustment factors or the beginning of inflation that concerns the Fed.

US core PCE price index rose by 2.8% year-on-year in January, the smallest increase since March 2021; and by 0.4% month-on-month, the largest increase since February 2023.Bridgewater Dalio: The US stock market bubble seems "not that big." The "Big Seven" seems "a bit bubbly," but not a "complete bubble." No signs of excessive leverage or a large number of naive new buyers.

China and the US held a new round of diplomatic policy consultations, focusing on their respective foreign policies, international situations, regional hot issues, etc., engaging in candid, in-depth, and constructive communication.

The China-Thailand visa exemption agreement officially took effect, allowing a single stay of up to 30 days, with a cumulative stay not exceeding 90 days within 180 days.

The Central Political Bureau of the Communist Party of China held a meeting, emphasizing the vigorous promotion of the construction of a modern industrial system this year, accelerating the development of new productive forces.

Central Political Bureau meeting: Creating a stable, transparent, and predictable policy environment.

The Hengqin Guangdong-Macao Deep Cooperation Zone officially implemented border closure operations at midnight on March 1, marking a crucial step towards building a high-level open new system integrated with Macao, helping enrich the exploration of the "one country, two systems" practice, and better integrating Macao into the national development.

The Ministry of Housing and Urban-Rural Development of China and the China Banking and Insurance Regulatory Commission: Cities at the prefecture level and above must establish financing coordination mechanisms by March 15.

The Hong Kong property market is fully "cooling down," with creditors seizing the opportunity to sell Xu Jiayin's top luxury mansion, valued at about HKD 500 million, with a practical area of approximately 4,933 square feet (about 458 square meters).