On Tuesday (the 3rd), the three major U.S. stock indices showed mixed movements. After tech stocks faced pressure recently, investors resumed buying into leading tech companies, while the market also awaited the results of the mid-term elections in the United States.
As of the close, the Dow Jones fell 197.26 points, a decrease of 0.38%, to 51,786.72 points; the Nasdaq rose 207.65 points, an increase of 0.83%, to 25,372.01 points; the S&P 500 index rose 27.52 points, a gain of 0.36%, ending a three-day decline, at 7,568.92 points.
Hot Stock Performance
Leading technology stocks generally rose. SpaceX gained 3.62%, Microsoft rose 2.74%, Meta rose 2.36%, NVIDIA rose 2.29%, Amazon rose 2.06%, Netflix rose 1.73%, Google rose 0.37%; Tesla, however, fell 1.32% against the trend.
Apple's stock price fell by 1.90%. The company's profit margin guidance fell short of expectations, and sales in the fourth fiscal quarter iPad were lower than Wall Street's forecasts.
Chip stocks rebounded strongly, with the Philadelphia Semiconductor Index closing up 2.63%. SanDisk rose 4.78%, AMD rose 3.65%, TeraData rose 3.20%, Micron Technology rose 2.58%, SK Hynix rose 2.09%, KLA Corporation rose 2.02%, and Applied Materials rose 1.97%.
Hot Chinese concept stocks showed mixed performances, with the NASDAQ Golden Dragon China Index closing up 0.21%. iQiyi rose 2.70%, JD.com increased by 2.32%, New Oriental gained 1.93%, Xpeng Motors rose 0.99%, NetEase increased by 0.64%, Tencent Holdings rose 0.32%, Li Auto rose 0.18%, and Baidu rose 0.09%.
In the down camp, Zhihu fell by 4.14%, Bilibili by 2.37%, Pinduoduo by 1.85%, Tiger Securities by 1.53%, Alibaba by 1.14%, Weibo by 0.79%, Futu Holdings by 0.52%, and NIO by 0.16%.
Market Overview
Despite signs of recovery in chip stocks and other artificial intelligence-related stocks on Tuesday, Sean Snyder, an economic strategist at Potomac Fund Management Company ( Potomac Fund Management ), believes that the market has not yet emerged from its difficulties.
In his view, “the market’s concerns about the cost of capital and the scale of debt financing required will continue for a considerable period of time.” However, he also noted that transactions related to investing in artificial intelligence infrastructure construction may already be approaching an over-sold zone. “There might be another 4% to 5% decline, but if this round of adjustment is not accompanied by an economic recession, then a drop to this level would generally be sufficient.”
Bill Ackman, the founder of Pantheon Capital Management Company ( Pershing Square ), expressed his concern that the current stock market has become dysfunctional. He pointed out that speculative trading is on the rise, and coupled with the large scale of leverage in the market system, this is leading to severe fluctuations in stock prices.
Ackerman said, "I feel that the market malfunctions every few days. The trading prices of stocks are completely beyond my understanding. Indeed, if you are a long-term investor and can buy stocks at extremely low prices, that is certainly a good thing. But from the perspective of the entire country, I don't think that's a positive outcome."
He also stated, "We have returned to that kind of casino-style market, where the leverage ratio was as high as 95% at the time. I believe that this is not beneficial to the economy or society itself, and it is causing significant fluctuations in the stock market."
Investors are still paying attention to the mid-term elections in the United States. JPMorgan Chase stated this week that if the Democrats win control of both the Senate and the House of Representatives, and investors have not made prior arrangements for this outcome, the overall U.S. stock market could come under pressure, with artificial intelligence-related stocks being particularly susceptible to selling off. If the Republicans manage to retain control of the Senate or both chambers, the U.S. stock market could see an upward trend in the short term.
Some market analysts believe that even if Trump remains in office at the White House, as long as the Democratic Party wins either the House of Representatives or the Senate, it could influence the direction of congressional investigations and oversight of the government, which is crucial for industries such as national defense, artificial intelligence, and healthcare.
Regarding the situation in the Middle East, according to Xinhua News Agency, Mohammad Javad Rezaee, secretary of Iran's Supreme National Security Council, stated on social media on the 3rd that the United States' response to Iran's rights and demands was not convincing. The US side must fully and clearly respond to the seven conditions put forward by Iran, and implement them, before the Strait of Hormuz will be opened. In October, Rezaee mentioned that over the past two months, the US has requested Iran to make proposals through Pakistan, Qatar, and Iraq. Iran has presented seven conditions to the US side and made it clear that unless these conditions are met, the Strait of Hormuz will not be opened, nor will any negotiations take place. Iran has not yet made public the specific content of these seven conditions.
According to CCTV News, on November 3 local time, the UK Maritime Trade Operations Office ( UKMTO ) issued a statement reporting that at 19:00 on that day (Greenwich Time), an attack on a vessel occurred about 14 nautical miles (approximately 26 kilometers) northeast of Lima, Oman. The statement mentioned that the safety officer from the company owning the oil tanker reported that the tanker was hit by two unidentified projectiles. The UK Maritime Trade Operations Office stated that as of yet, there have been no reports of casualties or environmental pollution.
Large-cap performance
International oil prices have fallen. WTI December crude oil futures closed down $0.40, a decrease of 0.41%, at $96.09 per barrel. Brent January crude oil futures fell $1.17, a decrease of 1.12%, at $103.60 per barrel.
The precious metals market has declined. COMEX Gold futures fell by 0.74%, to $3,940.20 per ounce; COMEX Silver futures fell by 2.12%, to $49.81 per ounce.
