Overnight US stocks | Inflation remained high in September, and the three major indices fell, Coreweave (CRWV.US) fell more than 15%

The Zhitong Finance App learned that on Wednesday, the three major indices fell. In September, the consumer price index rose 0.6% month-on-month and 3.7% year-on-year. Although it was in line with expectations from month to month, it was higher than expected. Economists surveyed by Dow Jones had expected a 3.6% increase year over year. Excluding food and energy prices, core CPI rose 0.3% month-on-month and 2.6% year-over-year, respectively. Both are also slightly higher than economists' expectations of 0.2% and 2.5%. Oil prices remained high at the time of publication of the report, and West Texas Intermediate crude oil futures closed up 1.01% to $95.09 a barrel.

[US Stocks] At the close, the Dow Jones index fell 47.96 points, or 0.09%, to 51622.14 points; the S&P 500 index fell 85.95 points, or 1.10%, to 7719.50 points; the Nasdaq Composite Index fell 511.51 points, or 1.88%, to 26692.87 points. Micron Technology (MU.US) fell 4%, SK Hynix (SKHY.US) fell 6%, Nvidia (NVDA.US) fell 3%, Coreweave (CRWV.US) fell more than 15%, and Dell (DELL.US) fell more than 11%. The Nasdaq China Golden Dragon Index closed down 1.39%, and Bili.US (BILI.US) fell more than 4%.

[European stocks] The German DAX30 index rose 36.21 points, or 0.14%, to 25296.11 points; the UK FTSE 100 index rose 76.11 points, or 0.71%, to 10726.44 points; the French CAC40 index rose 45.48 points, or 0.58%, to 7873.11 points; the European Stoxx 50 index rose 20.54 points, or 0.33%, to 6187.55 points; Spain's IBEX35 index rose 18.96 points, or 0.10%. 19229.66 points; Italy's FTSE MIB index fell 271.68 points, or 0.54%, to 49785.50 points.

[Foreign Exchange] The US dollar index, which measures the US dollar against the six major currencies, rose 0.37% on the same day and closed at 102.554 at the end of the foreign exchange market. As of the end of the exchange market in New York, 1 euro was worth 1.1153 US dollars, lower than 1.201 US dollars on the previous trading day; 1 pound was worth 1.3181 US dollars, lower than 1.3257 US dollars on the previous trading day. 1 US dollar was worth 158.20 yen, lower than 158.30 yen on the previous trading day; 1 US dollar was worth 0.8345 Swiss franc, higher than 0.8325 Swiss franc on the previous trading day; 1 US dollar was worth 1.4247 Canadian dollars, higher than 1.4215 Canadian dollars on the previous trading day; 1 US dollar was worth 10.0321 SEK, up from 9.9618 on the previous trading day.

[Cryptocurrency] Bitcoin fell more than 2% to $81,617 as of press release. Ethereum fell more than 3.7% to $2,415.

[Precious Metals] Spot gold reported $4104.28 per ounce; spot silver reported $55.639 per ounce.

[Crude oil] Light crude oil futures for November delivery on the New York Mercantile Exchange rose 95 cents, or 1.01%, to close at $95.09 a barrel; London Brent crude oil futures for December delivery rose 37 cents, or 0.35%, to close at $106.06 a barrel.

[Macro News]

Federal Reserve Daly: Rate hikes may be necessary but not imminent. San Francisco Federal Reserve Chairman Mary Daly said on Wednesday that the Federal Reserve may need to raise short-term interest rates further to curb excessive inflation, but she also pointed out that there is no need to take this action at the Federal Reserve's October 27-28 meeting. “We probably need to make further adjustments, but I think we're still considering the timing of the adjustments,” Daly said. “I don't think it's necessary to rush into a decision with limited information. I think we have plenty of time.”

Federal Reserve Goulsby: September inflation is disappointing, but more data is needed before interest rates are raised. Chicago Federal Reserve Chairman Goulsby said that the US inflation data for September was disappointing. In particular, inflation in the service sector was still above 5%, and the increase in core commodity prices did not fall as expected, indicating that inflationary pressure may be more stubborn than previously judged. He pointed out that if core inflation continues to maintain a monthly increase of about 4% annualized, it will be completely unacceptable, and the Federal Reserve must take policy action. Goulsby said that it is currently unclear whether current interest rates are sufficient to return inflation to the 2% target, and they prefer to wait for more data before deciding whether to raise interest rates further. But if inflation data continues at current levels in the next few months, the Federal Reserve cannot sit idly by and ignore it. He stressed that the latest data further shows that inflation is not a temporary phenomenon, and the decline is slower than previously anticipated. Goulsby also pointed out that the US job market is very stable, economic growth is strong, consumer spending is strong, and AI investment may further overheat the economy. He said that enterprises in the district hardly reflect the risk of economic recession; instead, they are generally concerned about rising costs and prices, so compared to supply shocks, he is more concerned about overheating demand. Goulsby stressed that if employment remains stable and inflation continues to rise above target and move in the wrong direction, the Federal Reserve must take steps to prevent the economy from overheating further.

Federal Reserve Beige Book: High oil prices impact companies in 12 US jurisdictions expect prices to rise further. The Federal Reserve's latest Beige Book shows that the overall US economy continues to grow, but growth in most industries is weak. Of the 12 Federal Reserve jurisdictions, 2 reported moderate economic growth, 3 slight growth, 4 slight growth, and 3 were basically flat. Manufacturing performance was relatively strong, but consumer spending in most jurisdictions did not change much. More than half of the jurisdictions indicated that consumption was mainly driven by high-income households. In terms of inflation, three jurisdictions reported strong price increases, eight reported moderate increases, and four jurisdictions indicated that price increases were faster than in the previous period. All jurisdictions are affected by rising oil prices. High diesel prices and fuel surcharges are driving costs along the supply chain, and tariffs, insurance, and other commodity prices continue to be pressured. Some companies expect prices to rise further in the next few months as existing contracts expire and hedging and delivery contracts are renegotiated. In terms of employment, most jurisdictions reported little change in employment levels, but there is still a shortage of skilled and skilled workers. The five jurisdictions said that after investing in artificial intelligence to increase productivity, some enterprises have reduced the number of employees through natural staff reduction, delayed recruitment, or are expected to reduce new jobs. Meanwhile, inflation and rising welfare costs are driving employees to demand higher wages. According to the Beige Book, most companies are still positive about the economic outlook for the next few months, but growth is generally expected to be limited and continue to be affected by energy prices, tariffs and other uncertainties.

Gasoline prices in the US are one-third more expensive than they were a year ago. According to reports, energy prices in the US rose 5.2% in September compared to the previous month and 20.4% year on year. Consumers experienced the strongest increase at gas stations, where oil prices were 34% higher than a year ago. According to data from the American Automobile Association AAA, the average price of a gallon of regular gasoline on Wednesday was 4.33 US dollars, a slight increase from a month ago, and more than 40% higher than the same period last year. The average price of diesel is hovering near historic highs. The average price on Wednesday was $6.30, 72% higher than a year ago. Soaring fuel costs boosted ticket prices, which rose 1.2% in September, 22.4% higher than the same period last year.

[Individual Stock News]

Trump announced that GF and Alaska LNG investment plans will be funded by Japan and South Korea. US President Trump announced that GFS.US (GFS.US) will invest 21 billion US dollars to build two large-scale semiconductor manufacturing facilities in Malta, New York. The capital will be provided by Japan in accordance with a trade agreement previously reached. The project is expected to create 27,000 construction and supply chain jobs, as well as more than 1,000 highly skilled manufacturing jobs. Trump also announced that the US government will acquire GF shares, and that the Department of Commerce will invest an additional 955 million US dollars in silicon photonics, silicon-germanium, and advanced packaging, bringing the cumulative investment to 1.63 billion US dollars. Currently, the government's shareholding value is said to have exceeded 2 billion US dollars. On the energy side, Trump announced the launch of the Alaska LNG (AlaskAlng) project, calling it the largest energy infrastructure project in Alaska's history. According to a trade and investment agreement previously reached, South Korea will invest 50 billion US dollars in the project. Trump said the project has become a US federal government project, and all necessary licenses and authorizations have been obtained, and it can proceed immediately.

Netflix is cutting approximately 6% of its workforce globally. According to reports, Netflix (NFLX.US) is cutting about 6% of its employees worldwide, involving about 1,000 jobs. This is the company's biggest round of layoffs since 2022 due to slowing growth and declining user engagement. The company's co-CEOs Greg Peters and Ted Sarandos said in an email to employees that the layoffs mainly involved the company's product, technology, legal and human resources teams. According to data from Antenna, Netflix's user turnover rate in the US is only slightly above 2%, far lower than other companies in the industry. However, over the past 12 months, its stock price has dropped by more than 40%. Netflix is not the only company making layoffs; other companies in the tech and entertainment industry are also cutting their workforce size. Both Disney and Amazon have made drastic layoffs over the past few months.

[Major Bank Ratings]

Bank of America: Lowers Asmack's target price from 2,557 euros to 2507 euros