The Zhitong Finance App learned that on Tuesday, the three major indices had mixed ups and downs. US President Trump said that the war with Iran will soon end. Oil prices have retreated from earlier gains, helping to improve investor sentiment.
[US Stocks] At the close, the Dow Jones index rose 530.08 points, or 1.02%, to 52496.11 points; the S&P 500 index rose 21.92 points, or 0.29%, to 7712.65 points; the Nasdaq Composite Index fell 6.07 points, or 0.02%, to 26424.82 points. SK Hynix (SKHY.US) fell 2%, General Motors (GM.US) fell 6.8%, Western Digital (WDC.US) rose 3%, and Apple (AAPL.US) fell 1%. The Nasdaq China Golden Dragon Index rose 0.69%, and Xiaopeng Motors (XPEV.US) rose more than 7%.
[European stocks] The German DAX30 index fell 3.91 points, or 0.02%, to 25315.86 points; the British FTSE 100 index fell 34.98 points, or 0.32%, to 10729.71 points; the French CAC40 index fell 29.56 points, or 0.38%, to 7838.49 points; the European Stoxx 50 index fell 20.06 points, or 0.33%, to 6124.75 points; the Spanish IBEX35 index rose 58.90 points, or 0.31%, to report 19098.20 points; Italy's FTSE MIB index fell 16.77 points, or 0.03%, to 49069.50 points.
[Foreign Exchange] The US dollar index, which measures the US dollar against the six major currencies, fell 0.27% on the same day and closed at 101.701 at the end of the foreign exchange market. As of the end of the exchange market in New York, 1 euro was worth $1.1237, up from $1.1212 on the previous trading day; 1 pound was worth $1.3383, up from $1.3305 on the previous trading day. 1 US dollar was worth 158.20 yen, lower than 158.52 yen on the previous trading day; 1 US dollar was worth 0.8248 Swiss franc, lower than 0.8265 Swiss franc on the previous trading day; 1 US dollar was worth 1.4057 Canadian dollars, lower than 1.4106 Canadian dollars on the previous trading day; 1 US dollar was worth 9.8979 SEK, lower than 9.9200 on the previous trading day.
[Cryptocurrency] Bitcoin rose more than 1% and once returned above the $83,000 mark. As of press time, it was $82,997. Ethereum rose more than 2.3% to $2,459.
[Precious Metals] Spot gold reported $4124.96 per ounce; spot silver reported $57.984 per ounce.
[Crude oil] Light crude oil futures for November delivery on the New York Mercantile Exchange fell $1.87, or 1.8%, to close at $101.79 a barrel; London Brent crude oil futures for December delivery fell 76 cents, or 0.69%, to close at $108.79 a barrel.
[Macro News]
Iran's foreign minister said negotiations with the US continued through the mediating party and refused to disclose additional US conditions. Iranian Foreign Minister Alagzi said in an exclusive interview with a Middle East TV station that Iran and the US continue to conduct indirect negotiations through mediators such as Pakistan and Qatar. Iran previously proposed a “seven-day plan” to the US and clearly set out Iran's conditions; according to the plan, the Strait of Hormuz was originally scheduled to be fully opened on the 6th day. Alagzi said that the US side had told Iran that it agreed to these conditions, but hoped to add several clauses. As to whether the US side's new conditions relate to security or economic issues, he declined to disclose, saying “We will not conduct negotiations through your Taiwan.” Alagzi stressed that Iran demands that the US fulfill all of its commitments in the Islamabad Memorandum of Understanding signed earlier, and only after the US has fulfilled the agreement can the two sides begin negotiations on other issues. He said that at the final stage of negotiations, the two sides can discuss any topic or issue raised by either party and reach a final agreement on this.
US Treasury Secretary Bezent: The turmoil in the French bond market is not expected to have spillover effects. US Treasury Secretary Bezent said he did not expect any spillover effects in the French bond market. Earlier, French bond yields soared, sparking broader discussions about the European nation's fiscal position. “I don't expect the situation in France to have a spillover effect on other markets,” Bezent said on Tuesday. “France is in a difficult situation, but I know French President Emmanuel Macron's economic team very well.” In recent weeks, France has been mired in a wave of protests, and weekend riots have escalated, putting unexpected pressure on the government. This has further exacerbated the country's debt problem, which is underperforming compared to other peers, and the government is trying to control the budget deficit. Bessent said, “This is not what we expected, but we do see that capital is flowing from some worrying countries to US Treasury bonds to seek safe haven.”
[Individual Stock News]
SpaceX and Tesla set up a special committee to explore the possibility of a merger. SpaceX (SPCX.US) and Tesla (TSLA.US) have formed a special committee to explore a potential merger deal. Musk revealed during SpaceX's earnings call that the two companies have set up separate committees composed of independent directors to explore the possibility of a potential deal. Musk said, “Since I am a party with a conflict of interest, I can't actually participate in related discussions.” However, he also added, “I think this would be a great idea.” Musk pointed out that strengthening cooperation between the two sides in technical fields such as artificial intelligence, chips, robots, and communication connections will have great potential benefits. But at the same time, he stressed that the merger deal was not a foregone conclusion. Musk said, “If this matter has already been decided, then it's a bit exaggerated.” He also pointed out that the deal requires approval from 50% of Tesla's shareholders, adding that this is a fairly high threshold.
Soaring fuel costs are eroding profits, and United Airlines' fourth-quarter profit guidance fell short of expectations. United Airlines (UAL.US) expects its profit for the fourth quarter of this year to fall short of market expectations. This highlights that while demand for air travel remains strong, soaring aviation fuel prices continue to erode airline profits. The company expects adjusted earnings per share for the fourth quarter to be between $0.50 and $1.50, below analysts' average expectations of $1.88. The company's fuel spending surged 61.6% to $4.84 billion in the previous quarter. The above performance guidance assumes that the price of aviation fuel will rise to $4.80 per gallon from an average of $3.90 per gallon in the third quarter. This is certainly another blow to the aviation industry, which is still struggling to absorb the additional billions of dollars caused by the Middle East war. High fuel costs may offset the benefits of rising fares and strong spending by wealthy travelers to American Airlines. In order to cope with increasing costs, airlines are increasingly taking measures such as raising ticket prices and cutting flight plans, but there is currently little indication that this cost pressure will ease in the short term.
Qualcomm is reported to be making performance-oriented layoffs around the world. Qualcomm (QCOM.US) CEO Cristiano Amon told employees in a memorandum on Monday that the company will carry out “performance-oriented layoffs” after the annual employee review. Amon said the layoffs are aimed at building a “stronger performance culture” and solving the company's “continuing failure to meet expectations.” The memorandum did not state how many jobs would be affected. Amon said in the memorandum that factors such as business priorities, organizational needs, skills and expertise will be comprehensively considered during the layoff process. “As the business expands, so do the capabilities and skills we need,” he wrote. “We must have the right people in the right positions so they can perform at their best and the company can continue to be successful.”