Macro News
Trump stated that strikes against Iran would not last long, reaffirmed U.S. control over the Strait of Hormuz, and proposed renaming it the "Trump Strait."
U.S. President Trump indicated that renewed military strikes against Iran might not be prolonged, reiterating that the United States controls the critical Strait of Hormuz. Prior to this, the latest escalation in tensions between the U.S. and Iran had driven up energy prices and reignited market concerns over a protracted conflict. When asked on Wednesday about the potential duration of the bombing campaign, Trump told reporters, "I don't think it will be for long."
Trump stated, "We destroyed all the new equipment they were attempting to deploy along the Strait of Hormuz—some for defense, some for offense," adding, "Last night's strike was very powerful, and we are ready to launch another attack at any time." Trump also posted on Truth Social, proposing to rename the Strait of Hormuz after himself.
United States and Venezuela Sign Oil Project Agreement
On September 2 local time, Venezuelan Acting President Rodriguez met with U.S. Energy Secretary Wright. Following the meeting, the two countries formally signed several cooperation agreements. Reports indicate that the Venezuelan government signed agreements with multiple enterprises, including Chevron, regarding oil expansion projects.
Recently, U.S. President Trump announced on social media that the United States had reached an agreement with Venezuela to obtain "majority control" over more than 65 billion barrels of Venezuela's proven oil reserves.
Venezuelan Acting President Delcy Rodriguez stated that the oil cooperation agreement with the United States would last for 25 years, aiming to increase crude oil production to 1.5 million barrels per day while safeguarding Venezuela's sovereignty over its natural resources.
Fed Beige Book: Economic Outlook Generally Positive but Uncertainty Rising
The Federal Reserve's Beige Book showed that U.S. economic activity grew modestly since early July. Among the 12 Federal Reserve districts, ten reported slight to moderate growth, while two reported no change. Consumer spending increased slightly, but consumer price sensitivity rose; high-end consumption remained strong. Auto sales were sluggish, affected by weak confidence, high oil prices, and rising financing costs.
Manufacturing activity rebounded in most regions, with some areas reporting strong demand for orders related to defense and data centers. Job market growth slowed, with only a slight overall increase. Labor demand was relatively strong in sectors such as manufacturing and construction, but declined in retail and hospitality.
Regarding prices, most regions reported moderate increases, with cost pressures from energy, transportation, raw materials, and tariffs persisting. Businesses generally maintain a positive outlook on the future economic prospects but remain attentive to uncertainties stemming from energy prices, policy changes, and international conflicts.
G20 member states adopted the "Carolina Principles," supporting the U.S. principle of "light-touch regulation" for AI.
Representatives of major global economies unanimously agreed to adopt governance principles for artificial intelligence and emerging technologies proposed by the United States. U.S. Commerce Secretary Lutnick stated that G20 member states unanimously passed the framework, known as the "Carolina Principles," on Wednesday, marking a significant victory for the Trump administration and Silicon Valley.
The principles call on G20 countries to adopt differentiated regulatory approaches for various industries, consider the potential costs of delaying technology application when testing new technologies such as AI, and strengthen cooperation between governments and the private sector in testing emerging technologies.
Michael Kratsios, White House technology policy advisor, stated that the message conveyed by the United States to all participating parties is straightforward: to promote global economic growth and innovation. The relevant principles will be submitted for formal adoption by national leaders at the G20 Summit hosted by Trump in Doral, Florida, this December.
CITIC Securities: How to interpret the surge in sovereign bond yields in developed markets?
A research report from CITIC Securities indicates that since late July, sovereign bond yields in overseas developed markets have generally surged. This trend is attributed primarily to three factors: 1) rising inflation expectations; 2) heightened concerns over sovereign creditworthiness; and 3) market repricing of monetary policy paths by central banks in developed markets. Before the central bank decisions in Europe, the US, and Japan are finalized this month, risk-free rates in global developed markets still face upward pressure, posing challenges to high-valuation and long-duration equity assets.
Regarding US equities, although credit spreads on junk bonds have narrowed in the short term, currently elevated debt financing costs may further exacerbate market concerns about the return on invested capital (ROIC) for Hyperscaler CAPEX. In the medium to long term, if a lame-duck government emerges after the US midterm elections and the US pursues fiscal consolidation similar to Clinton's first term, the combination of 'fiscal contraction + low inflation + stable growth' is expected to lower long-end interest rates, driving US stocks back into a 'valuation + earnings' double-expansion rally.
For Hong Kong stocks, the widening interest rate differential between China and the US in the short term may ease the continuous appreciation trend of the renminbi and boost the willingness of southbound capital to allocate to high-dividend assets. It is advisable to focus on dividend-oriented sectors with high fundamental certainty and deep southbound participation, including banking, utilities, telecommunications, and property management.
US Stock Market Overview
The three major indices closed higher collectively, with most star technology stocks and cryptocurrency-related concepts rising.
The yield on the US 10-year Treasury note retreated from its highs, while the labor market continued to cool. ADP reported only 37,000 new private jobs in August, marking the lowest level since January this year. The three major indices rose together. At the close, the Dow Jones Industrial Average rose 0.56% to 53,061.95 points; the Nasdaq Composite Index rose 0.45% to 26,217.83 points; and the S&P 500 Index rose 0.46% to 7,666.60 points.
$Star Tech Stocks (LIST2518.US)$Most stocks rose, with NVIDIA up more than 3%, Micron Technology and Meta Platforms up more than 2%, and Google Class A shares up nearly 1%. SpaceX fell more than 1%, while Microsoft and Broadcom declined by nearly 1%.
$Popular Chinese ADRs (LIST2517.US)$Most stocks fell. The Nasdaq Golden Dragon China Index closed down 0.05%. Nio dropped nearly 5%, Amer Sports fell more than 3%, PDD Holdings declined more than 1%, and Alibaba dropped nearly 1%.
$AI Application Software Stocks (LIST23492.US)$Most stocks declined sharply. MongoDB fell more than 13%, Datadog dropped more than 6%, Palantir fell nearly 6%, and Snowflake declined more than 4%. Gitlab rose nearly 10%, and Applovin gained more than 2%.
$Cryptocurrency-related stocks (LIST20010.US)$Most stocks rose, with IREN up over 7%, SoFi up nearly 5%, Robinhood up over 3%, and MARA Holdings up over 2%, while MicroStrategy and Coinbase fell more than 1%.
$Gold (LIST2110.US)$、 $Silver (LIST2093.US)$Silver stocks performed strongly, with Endeavour Silver up nearly 9%, First Majestic Silver up nearly 7%, Coeur Mining up over 6%, and Newmont and Barrick Mining up over 2%.
$Rare Earth Concept (LIST23700.US)$Rare earth and critical material stocks broadly rose, with United States Antimony up over 13%, Critical Metals and American Resources up over 5%, and USA Rare Earth and NioCorp Developments up over 3%.
Stock News
JPMorgan reaffirms its "Overweight" rating on NVIDIA and maintains a $320 price target.
After completing a virtual non-deal roadshow with NVIDIA's investor relations team, JPMorgan reaffirmed itsNVIDIA (NVDA.US)"Overweight" rating and $320 price target for the stock.
Analyst Harlan Sur met with Toshiya Hari, Vice President of Investor Relations and Strategic Finance at NVIDIA, to discuss the company's outlook in depth. Hari stated that the framework for achieving 70% year-over-year growth in fiscal year 2028 is primarily driven by sustained strong demand from hyperscale cloud providers, emerging cloud service providers, AI labs, sovereign AI initiatives, and enterprise customers, noting that the 70% growth framework does not represent the upper limit of demand.
NVIDIA explained that it provided multi-year guidance because it has greater visibility into next year's business and there is a significant gap between market expectations and internal forecasts. This confidence is corroborated by NVIDIA's recent performance—revenue grew by 83% over the past 12 months, and 35 analysts have raised their earnings forecasts for the company's future performance. Hari pointed out that without supply constraints, the business scale could have more than doubled year-over-year, reiterating that the current bottleneck lies on the supply side rather than the demand side.
Related Reading:Is the 70% growth target still conservative? NVIDIA investors meeting reveals: If unconstrained by supply in FY28, business scale could double!
Microsoft revamps its financial reporting structure for the first time in over a decade: Cloud computing becomes a standalone segment.
$Microsoft (MSFT.US)$The company announced after hours on Wednesday that it would adjust its financial reporting structure starting this quarter, reducing its operating segments from three to two. This marks the first major overhaul of its reporting structure since 2015.
Going forward, Microsoft will divide its business into two segments: Agents and Infrastructure, and Devices and Consumer.
The "Intelligent Cloud and Infrastructure" segment will include Azure cloud and Microsoft 365 cloud products, as well as productivity software and server licensing, industry solutions, emerging businesses, and support services. Revenue from core businesses such as Azure Cloud and Microsoft 365 Cloud will be disclosed separately. The "Devices and Consumer" segment will encompass search and advertising, Xbox, device sales revenue, and income from licensing the Windows operating system to device manufacturers.
Google released the Gemini 3.8 Flash reasoning model, entering the government-focused AI sector where Palantir is heavily reliant. Palantir shares fell nearly 6% in the previous trading session.
$Google-A (GOOGL.US)$The latest Gemini 3.8 Flash model is now available to Pro and Ultra users starting today. With further enhanced performance, Gemini 3.8 Flash delivers more reliable and comprehensive responses, capable of providing actionable advice on everyday topics as well as handling deep tasks such as text analysis and complex programming. Partners in the Fairwind project include Accenture, McKinsey, and Palo Alto Networks. Participation in the Fairwind project is limited to government agencies and trusted partners.
Broadcom's revenue rose 86% last quarter, with AI chip income doubling; current guidance shows "flaws," but AI revenue is projected to grow significantly over the next three years.
In the third fiscal quarter,$Broadcom (AVGO.US)$Net revenue increased by 86% year-over-year to $29.591 billion, setting a new quarterly record and slightly exceeding market expectations of approximately $29.45 billion. This marks the highest quarterly growth rate in over nine years, surpassing the previous quarter's record. Adjusted earnings per share (EPS) rose 96% year-over-year to $3.32, nearly 3% higher than market expectations.
AI remains the core growth engine. In the third fiscal quarter, Broadcom's AI semiconductor revenue more than tripled year-over-year to $16.7 billion, up 54% quarter-over-quarter, exceeding analysts' expectations of $15.93 billion. During the earnings call, the CEO stated that the full-year AI revenue guidance has been raised to $58 billion, with potential to nearly double in the next fiscal year and reach $230 billion in fiscal year 2028.
Meta released a more powerful AI model, stating that it has further narrowed the gap with competitors.
$Meta Platforms (META.US)$The company unveiled its most powerful artificial intelligence model to date, with its Chief AI Officer noting that the new model's performance brings it closer to top-tier competitors. Meta stated that developers can access and pay to use Muse Spark 1.3 starting Wednesday. The company will also soon roll out this update to social media platforms such as Instagram and Facebook, as well as to users of Meta AI.
In an interview on Wednesday, Meta's Chief AI Officer Alexandr Wang stated, "This is our largest leap in model performance to date." He specifically highlighted progress in coding and agent capabilities. Wang noted that this upgrade places Meta on par with recent AI models released by OpenAI and Anthropic.
He said that Muse Spark 1.3 is "competitive" with Anthropic's Claude Fable 5.1 and "superior" to OpenAI's GPT-5.6 Sol, particularly in coding tasks. However, OpenAI is expected to soon release a more advanced new model, Astra.
Snowflake shares rose more than 23% in after-hours trading as the company raised its annual sales forecast.
Snowflake (SNOW.US)Following the release of its quarterly results, Snowflake raised its full-year sales guidance and indicated that adoption of its AI-assisted coding tool, CoCo, is accelerating. Snowflake projects product revenue of approximately $6.07 billion for the fiscal year ending next January, exceeding its May forecast and surpassing the consensus analyst estimate of $5.86 billion. Product sales account for roughly 95% of the company's total revenue. The company reported adding over 2,000 new customer accounts using CoCo during the quarter, bringing the total number of active accounts to 9,100.
Snowflake, a software company that helps enterprises organize and analyze data in the cloud, is integrating artificial intelligence capabilities into its platform. In the quarter ended July, Snowflake's product revenue grew 37% year-over-year to $1.49 billion, beating analysts' expectations of $1.42 billion. However, its remaining performance obligations (RPO), a metric indicating future order volume, stood at $9 billion, falling short of the consensus analyst estimate of $937 million.
Shares of energy storage concept stock Eos Energy rose nearly 19% in the previous trading session following the announcement of a partnership with Google.
$Eos Energy (EOSE.US)$Announced on Wednesday a collaboration with$Alphabet-C (GOOG.US)$and MN8 Energy to develop solar and energy storage projects in West Virginia, USA. The projects include an 86 MW utility-scale solar facility, a 10 MW/100 MWh Eos Z3 zinc-based long-duration energy storage system, and a 70 MW/280 MWh lithium-ion energy storage system. This marks Google's first adoption of aqueous zinc battery energy storage technology produced by Eos.
U.S. Commerce Secretary: Anthropic has "repaired relations" with the Trump administration
According to foreign media reports, U.S. Commerce Secretary Lutnick stated that AI company Anthropic has repaired its relationship with the Trump administration, seemingly resolving months of sharp disagreements over national security issues. Lutnick noted that while relations had previously been "tense," Anthropic has "come around."
He stated that Trump and other government officials helped bridge the divide and secured the company's support, saying, "We have straightened things out, and now everyone is on the same page." Previously, in June, the U.S. Department of Commerce briefly imposed export controls on two of Anthropic's top AI models. These restrictions were lifted two weeks later after Anthropic took measures to address the government's national security concerns.
C3.ai maintains its full-year revenue forecast at $210 million to $240 million.
$C3.ai (AI.US)$First-quarter revenue was $52.4 million, compared to analysts' expectation of $52.3 million. The company maintained its full-year revenue guidance of $210–$240 million, against analysts' expectation of $227.2 million. It projected second-quarter revenue of $51–$55 million, below the analyst consensus of $56.8 million.
Surging demand for AI servers and networking fails to alleviate supply chain bottlenecks; Hewlett Packard Enterprise's Q3 earnings beat expectations, but shares fell more than 5% in after-hours trading.
Benefiting from robust demand for AI-related servers and network equipment,$HPE Inc. (HPE.US)$Q3 revenue and profit both exceeded market expectations, and the company significantly raised its performance outlook for the current and next fiscal years. However, Hewlett Packard Enterprise shares fell more than 5% in after-hours trading as management warned that supply constraints continue to hinder growth.
The financial report showed that HPE generated $12.21 billion in revenue in the third quarter, a year-on-year increase of 33.7%, surpassing analysts' previous expectation of $11.9 billion. Adjusted earnings per share were $1.11, significantly higher than the market consensus of $0.93.
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Hong Kong Stock Market Preview
Southbound capital increased its holdings in Hong Kong stocks by nearly HK$4.1 billion, with net purchases of AIA exceeding HK$900 million and net sales of Alibaba surpassing HK$700 million.
On Wednesday, September 2, southbound capital recorded net purchases of Hong Kong stocks totaling HK$4.093 billion.
$AIA (01299.HK)$、$InnoLight Technology (03308.HK)$、$Tencent (00700.HK)$recording net purchases of HK$966 million, HK$452 million, and HK$336 million, respectively;
$Alibaba-W (09988.HK)$、$Huahong Hongli (01347.HK)$、$SMIC (00981.HK)$while facing net sales of HK$765 million, HK$404 million, and HK$262 million, respectively.
Moonshot AI has confidentially filed with the Hong Kong Stock Exchange, officially launching its IPO.
According to LatePost, Moonshot AI (Kimi) submitted its A1 application to the Hong Kong Stock Exchange on a confidential basis this week, officially initiating the IPO process for a Hong Kong listing. The A1 form is one of the formal applications required for companies seeking to list on the Hong Kong Stock Exchange.
In response to the above reports, Kimi stated: 'We do not comment on market rumors, and there is currently no information to disclose.' Meanwhile, it is understood that Kimi is advancing a new round of financing at a pre-money valuation of $50 billion. This is likely to be Kimi's final funding round before its IPO.
Shein will be included in the Hang Seng Composite Index starting September 15.
Hang Seng Indexes Company announced,$Shein-W (00625.HK)$it meets the requirements for fast-track inclusion and will be included after the market close on September 14,$Hang Seng Composite Index (800701.HK)$along with its sub-indices, effective from September 15 (Tuesday).
Stock Connect purchases of Minimax exceed those of Alibaba and Tencent
$MINIMAX-W(00100.HK)$It became the most favored Hong Kong-listed stock among mainland Chinese investors last month. In August, mainland investors purchased HKD 10.6 billion worth of Minimax shares through the Stock Connect, surpassing$Alibaba-W (09988.HK)$and$Tencent (00700.HK)$. Since its inclusion in the Stock Connect on August 6, southbound investors have accumulated a 9.7% stake in the company.
Today's Focus
Key Highlights: Federal Reserve Beige Book; Interview with Fed Governor Waller; Tesla Cybercab Launch Event
In terms of economic data, China's August Caixin Services PMI, U.S. initial jobless claims for the week ending August 29 (in thousands), U.S. August S&P Global Services PMI, and the final U.S. August ISM Non-Manufacturing PMI will be released.
09:45 China's August Caixin Services PMI
20:30 U.S. initial jobless claims for the week ending August 29 (in thousands)
21:45 Final U.S. August S&P Global Services PMI
22:00 U.S. August ISM Non-Manufacturing PMI
In terms of major events, Federal Reserve Governor Waller will give an interview at 20:30. Additionally, Tesla will hold its Cybercab launch event in Austin, Texas, on September 3 local time.
Regarding earnings reports, $Ciena(CIEN.US)$ Released earnings report before U.S. market open, $DocuSign (DOCU.US)$ 、 $Lululemon Athletica (LULU.US)$ 、 $Planet Labs PBC (PL.US)$ 、 $Zscaler (ZS.US)$ Released earnings report after U.S. market close.
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