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

【U.S. Stock Indices】

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

【U.S. Bonds】

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

【Popular U.S. Stocks】

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

【Global Indices】

【China Indices】

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

【Chinese Concept Stocks】

Popular Chinese concept stocks saw mixed movements: 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 fell 0.35%, NIO increased 4.14%.

【Forex and Commodities】

【Global News】

Apple’s Earnings Surpass Expectations, Strong Recovery in China Market

Apple’s latest earnings report shows that for the quarter ending December 27, revenue reached $143.8 billion, up 16% year-over-year, far exceeding Wall Street’s forecast of $138.4 billion. Strong demand for iPhone 17 drove a 23% increase in smartphone revenue, with sales in China 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 by 13% to 16%. (Sina Finance)

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

Apple CEO Tim Cook stated that memory prices will have a “bigger 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: Expect Operating Expenses for Q3 to Be Between $18.4 Billion and $18.7 Billion

Apple’s CFO forecasted that revenue for the second fiscal quarter will grow by 13% to 16%, with operating expenses for the quarter expected to be between $18.4 billion and $18.7 billion. (Cailian Press)

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

According to CME’s “FedWatch”: the probability of the Fed cutting rates by 25 basis points by March is 13.4%, and the probability of holding rates steady is 86.6%. The chance 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 in 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 company behind ChatGPT is seeking up to $100 billion in new funding, which could value it at $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 volume was $2.852 billion on Thursday (with 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)