Wall Street Morning Brief FM-Radio | February 7, 2026

Wall Street Morning Brief FM-Radio | February 7, 2026

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Market Summary

U.S. consumer confidence hits a six-month high, bargain buying drives a rebound in U.S. stocks, S&P up nearly 2%, marking the best single-day gain since May last year. Dow surpasses 50,000 points for the first time, Russell 2000 surges 3.6%. Jensen Huang says AI demand is extremely strong, NVIDIA jumps 7%, chip index rises 5.7%. Software ETF rebounds 3.5%. Amazon falls 5.6% after earnings, but recoups most of yesterday’s after-hours losses.

U.S. Treasury yields rise across the board, 10-year up nearly 3 bps, 2-year up 5.54 bps. The dollar falls 0.3% intraday, but finishes the week up 0.56% for a second consecutive weekly rise.

After Thursday’s collapse, cryptocurrencies violently rebound on Friday, recouping most of the previous day’s losses. Bitcoin price soars 11%, back above $70,000. Ethereum jumps 11%, standing above $2,000.
Gold and silver undergo a V-shaped reversal. After CME raised margins, silver plunged 10% before rebounding 20% from the intraday low. Spot gold ends up nearly 4%. Oil prices close slightly higher.

During the Asian session, the three major A-share indices closed down after volatility; chemicals collectively surged and triggered a wave of limit-up trading; Hang Seng, Hang Seng Tech indices both fell more than 1%; Alibaba fell nearly 3%; Shanghai silver crashed 15%.

Headlines

China

Central bank and eight departments: Without consent from relevant authorities, domestic entities and their controlled overseas entities are prohibited from issuing virtual currencies overseas. CSRC: Clarifies registration requirements, prohibits six types of businesses.

State Council: Increase efficiency and make good use of central budget investment, ultra-long special national bonds, local government special bonds, and new policy financial tools.

Li Qiang: Macroeconomic policies should be proactive; fiscal funds should be arranged as early as possible and tap into new growth points in domestic demand.

Milestone in domestic AI computing power: Sugon launches three scaleX ten-thousand-card superclusters, the largest domestic AI computing pool goes online.

CPU supply shortage escalates; Intel and AMD reportedly notify Chinese customers of delayed deliveries.

Silver LOF plunge questions product design logic; after four consecutive limit-downs, still has a 37% premium.

Overseas

Latest progress in U.S.-Iran nuclear talks: Both sides agree to "maintain dialogue," specific terms remain under negotiation. Iranian presidency issues statement, "delegation has fully completed its core mission".

Bessent and Trump express loyalty: clarify strong dollar policy, reaffirm lawsuit against Walsh was a joke, imply Powell’s incompetence.

Tech giants spending 650 billion intensifies concerns; Jensen Huang "puts out the fire": AI demand is booming, large expenditures are reasonable and sustainable.

CME "sixth margin increase in this round".

Culprit of Bitcoin's Thursday plunge: massive IBIT-related leveraged options forcibly liquidated. The crypto crash "center point": MSTR’s earnings show heavy losses, Saylor says open to "selling coins".

Musk’s 3-hour deep-dive interview: lowest-cost AI in space within three years, Optimus is the "infinite money printer".

Market Close

U.S. & European Stock Markets: S&P 500 up 1.97%, closes at 6932.30, down 0.10% for the week. Dow up 2.47%, closes at 50115.67, up 2.50% for the week. Nasdaq up 2.18%, closes at 23031.213, down 1.84% for the week. Europe’s STOXX 600 up 0.89%, closes at 617.12, up 1% for the week.

A-shares: Shanghai Composite closes at 4065.58, down 0.25%. Shenzhen Component closes at 13906.73, down 0.33%. ChiNext Index closes at 3236.46, down 0.73%.

Bond Markets: U.S. 10-year Treasury yield rises 2.59 bps to 4.2060%, down 2.95 bps for the week. 2-year Treasury yield rises 4.71 bps to 3.4976%, down 2.49 bps for the week.

Commodities: COMEX gold futures up 1.96%, at $4985.10/oz, up 5.05% for the week. COMEX silver futures up 10.19% from Thursday’s close, at $77.790/oz, down 1.12% for the week. WTI March crude oil futures close at $63.55/barrel.

Headline Details

Global Highlights

China

Central bank and eight departments: Without consent from relevant authorities, domestic entities and their controlled overseas entities are prohibited from issuing virtual currencies overseas. Virtual currency-related business activities are illegal financial activities. Without approval, domestic entities and their controlled overseas entities cannot issue virtual currencies overseas, nor stablecoins pegged to the RMB. The National Development and Reform Commission and related departments strictly control virtual currency mining activities and continue remediation work.

  • CSRC: Clarifies registration requirements; six types of business prohibited. Domestic assets issuing asset-backed security tokens overseas must strictly adhere to cross-border investment, forex management, network, and data security regulations, fulfill approval, registration, or security review procedures as required by regulatory departments, and must not harm national interests or public interest.
  • Policy is consistent! Regulatory stance towards virtual currency business remains prohibitive. According to Financial Times, the central bank and eight departments jointly issued a notice to further prevent and address risks related to virtual currency. It reiterates and strengthens China’s comprehensive prohibition position. The document continues and improves the 2021 "Document 237", clarifying that all virtual currencies and stablecoins lack legal tender status, and related activities are illegal financial activities. Since 2013, China has tightened regulations, multiple departments collaborated to crack down on speculation and crimes, to maintain financial stability and asset security.

State Council: Increase efficiency and make good use of central budget investment, ultra-long special national bonds, local government special bonds, and new policy financial tools. Xinhua reports: policies must be upgraded and improved, efficiently use central budget investment, ultra-long special national bonds, local government special bonds, and new policy financial tools. With the "15th Five-Year Plan" in mind, focusing on long-term development and future competitiveness, major projects in infrastructure, urban renewal, public services, and emerging/future industries must be strategically promoted. Central state-owned enterprises must expand investments; private investment support should also be increased.

Li Qiang: Macroeconomic policy must be proactive, fiscal funds arranged as early as possible, tap new domestic demand growth points. Xinhua reports: Li Qiang says macroeconomic policy must be proactive, fiscal funds must be arranged early, strengthen coordination between fund allocation and project construction for swift policy impact. Policies and reform innovations should go hand in hand, stimulate market vitality, tap new growth points in domestic demand. Closely monitor changes, focus on securing jobs, businesses, market, expectations. Prepare policies ahead and launch them as needed to ensure annual targets are met.

Milestone for domestic AI computing power: Sugon scaleX clusters with 30,000 cards deployed, largest domestic AI computing pool operational. Shanghai Securities News reports: the national super-computing internet core node went online in Zhengzhou on February 5, deploying Sugon scaleX supercluster with over 30,000 cards, becoming the largest operational domestic AI computing pool. The node uses the world’s first single cabinet high-density architecture with 640 cards, supports trillion-parameter large models, high-throughput inference, AI for Science scenarios; marks domestic large-scale clusters entering actual combat stage.

CPU supply shortage escalates; Intel and AMD notify Chinese customers of delivery delay. The Paper reports Intel and AMD have notified Chinese customers of server CPU supply shortages. Intel warns future delivery times could be up to six months. Supply tension has led to Intel server products rising over 10% in price in China market; exact prices vary based on contract terms.

Silver LOF plunge questions product design logic; after four consecutive limit-downs, still has 37% premium. Can it withstand pressure under another extreme scenario? Daily Economic News reports: Fund companies use limited measures to address unlimited market conditions, post-event optimizations usually partial, cannot fully satisfy investors’ hopes for no losses. Most improvements under discussion are process optimizations.

Playing with "Gold, Silver, Copper": "Beijing Big Short" emerges. Precisely shorted silver before the plunge, gained 3.6 billion yuan in just days? Whether it’s client positions or personal returns remains unclear, but Bian Ximing (from Zhujia pipe king to media-dubbed "Beijing Big Short") amassed hundreds of billions through commodities games over three years, using industrial logic to strike against global financial bubbles, not only a wealth miracle but possibly a shift in global commodities pricing power towards Asia.

Overseas

Latest U.S.-Iran nuclear talks: consensus on “maintaining dialogue”, specific terms still being negotiated. Iranian presidency statement: "delegation has fully accomplished its core mission".

  • Through intense indirect talks, Iran and the U.S. made progress in the latest round of nuclear talks in Muscat, Oman. Delegations did not meet directly, but conveyed key proposals, strategic concerns, and policy positions via Oman’s foreign minister. The atmosphere was tense and efficient. Preliminary assessments suggest while specific terms are still under negotiation, there is consensus on “maintaining dialogue”.
  • Iran presidential office’s communications deputy issued a statement highly praising the delegation led by foreign minister Aragchi in Muscat. The statement says the core mission assigned by the president has been "successfully accomplished" in today’s communication.

Bessent and Trump "show loyalty": clarify strong dollar policy, reaffirm lawsuit against Walsh was a joke, imply Powell’s incompetence. Asked which of his and Trump’s recent dollar statements is correct, Bessent says it’s a "false dichotomy," saying strong dollar policy does not mean intervening in exchange rates but adopting correct economic policy for a strong foundation; Walsh will bring credibility and expertise to the Fed; Trump greatly respects Fed’s independence; “Trump Account” may be Trump’s greatest political legacy.

Tech giants' 650 billion spending intensifies concerns, Jensen Huang "puts out the fire": AI demand is tremendous, huge expenditure is reasonable and sustainable. Huang said Friday: this is the "largest infrastructure project in human history" driven by "extreme" computing demand, AI is "very useful and powerful," its adoption is "extremely high," as long as people keep paying for AI, NVIDIA surged nearly 9%. Companies can profit from this. After Tuesday’s software stock plummet, Huang said software sell-off is "most illogical thing in the world," AI will use software, not reinvent it.

CME "sixth margin increase in this round". On February 5th local time, CME Group announced initial margin for its COMEX 100 gold futures raised from 8% to 9%, and for its COMEX 5000 silver futures from 15% to 18%.

Culprit of Bitcoin Thursday's plunge: massive IBIT leveraged options forcibly liquidated? BlackRock IBIT Thursday transaction volume surpassed $10 billion, trading volume surged 169% from previous record, price plunged 13% to a 15-month low. Market analysis says the “capitulation selling” was likely triggered by forced liquidation of highly leveraged IBIT positions held by one or more non-crypto hedge funds. Put option premiums hit all-time highs, as U.S. Bitcoin ETF saw $434 million in net outflows in one day, showing institutional investors facing extreme deleveraging risks.

Crypto crash "center point": MSTR earnings show huge losses, Saylor open to "selling coins". MSTR’s wealth legend is becoming a "death spiral" crisis: With Bitcoin below cost line, company posts single-quarter loss of $12.4 billion, stock down 80% from peak. The once steadfast "only buy not sell" belief now shaken, founder Saylor says "selling coins" is now an option. Facing $8.2 billion debt and collapsing premium, the leveraged coin buying bet faces its toughest challenge.

Musk’s 3-hour deep interview: cheapest AI will be in space within three years, Optimus is "an infinite money printer". Musk: Earth’s electricity will be AI’s biggest bottleneck; within 36 months, cheapest place for AI deployment will be space, in 5 years 10,000 Starship launches per year, deployed space computing surpasses Earth's total; xAI unlocks digital humans, targets trillion-dollar income; mass-produces humanoid robot Optimus, robot self-manufacturing grows exponentially, drives economic scale up; aims to build own wafer plants and energy equipment for rapid supply chain expansion.

Selected Views

Bank of America Hartnett: Mid-cap stocks have the best odds before midterms, tech giants losing appeal. Hartnett believes Trump’s new policies curb industry giants and AI capex drains cash flow, sharply reducing tech stocks’ appeal. BofA bull-bear indicator reaches 9.6, highest since March 2006, showing market is in "extreme bullish" zone and triggers sell signals. Suggests “embrace small-cap value, abandon giants,” focus on mid-/small-caps and international markets benefitting from lower living costs.

Market is increasingly “harsh” on AI: NVIDIA’s outperformance this year is not enough; key is visibility of 2027 revenue. Goldman expects NVIDIA’s Q4 revenue to beat expectations by $2 billion, but beating by $2 billion may only be "in line." The real driver for share price is guidance for the next 12-18 months. Any positive statements from NVIDIA about 2027 revenue visibility may be a catalyst. Whether increased demand from non-hyperscale cloud customers can offset traditional customer volatility is key uncertainty for 2027 forecasts.

SemiAnalysis deep dive: Claude Code will be a turning point for AI agents, comparable to "ChatGPT moment". SemiAnalysis analysis points out Claude Code already accounts for 4% of GitHub commits, expected to exceed 20% by end 2026, marking the commercial use inflection for AI agents. It’s restructuring the $15 trillion global information work market and driving Anthropic’s quarterly revenue growth past OpenAI. Traditional software business models face fundamental change, Microsoft and other giants now balancing cloud growth with core product protection. Agent competition has moved from generative responses to deliverables, the industry is entering a phase focused on efficiency and real-world scenarios.

Software stock plunge: hold patiently or buy the dip? UBS: Software sell-off reflects structural issues from AI disruption and slowing growth. Now is not the time for blind bottom-fishing; avoid general SaaS exposed directly to AI, shift focus to more stable demand and reasonably-valued infrastructure and cybersecurity sectors (like Microsoft, Snowflake), selective positioning advised.

JPMorgan: Technicals show precious metals will enter consolidation period in coming weeks. JPMorgan expects gold to oscillate in a wide range above support at $4264-$4381 and below resistance at $5100-$5150 for possibly several months. The long-term "currency devaluation" theme remains intact; as long as dollar index stays below 100, weak dollar supports the long-term bullish view for precious metals and commodities.

UBS: Third supercycle arrives, lithium price forecasts raised, global demand may double by 2030. UBS raises 2026 spodumene price forecast by 74% to $3131/ton, lithium carbonate to $26,000/ton. Driven by EVs achieving "triple parity" and surging storage demand, expects global demand to double to 3.4 million tons by 2030. UBS believes market has entered the third lithium price supercycle; persistent supply-demand gap will keep prices well above consensus.

Are layoff data really collapsing? JPMorgan: The numbers are not as severe as headlines suggest. JPMorgan: Recent U.S. jobless claims surge and high layoff numbers mainly due to seasonal effects, extreme weather, and repeated statistical counting, not fundamental deterioration. For example, Amazon layoffs counted multiple times; continued jobless claims four-week average remains low, showing labor market resilience. Investors should avoid over-interpreting short-term fluctuations.

Domestic Macro

First China-UK Financial Working Group: support for more RMB-denominated financial products by Chinese financial institutions in UK. Recently, the first China-UK Financial Working Group meeting held in Beijing. Both sides encouraged eligible companies to list and finance via stock market connect, to access diverse global investors and institutional funds. China supports Chinese financial institutions in the UK to develop more RMB-denominated products.

PBOC Shanghai: Enhance international monetary function for RMB in pricing, payments, investment, reserves. Shanghai cross-border RMB business continues to lead nationwide, payment amount reached 32.4 trillion yuan in 2025, up 9% year-on-year. Meeting emphasizes: prioritize local currency, serve the real economy, hold fast to reform innovation, prevent financial risks.

MIIT: Organize construction of national computing power interconnection nodes. MIIT releases "Computing Interconnection Action Plan" proposing unified regional platform for node construction, providing registration, interconnection scheduling, data monitoring. Each industry node to have its own platform, offering aggregation, identification, selection of resources, and connect with regional nodes.

MOFCOM: First batch of financial support of 8.6 billion yuan allocated to pilot cities for "Three News" of consumption. MOFCOM Vice Minister Yan Dong said at State Council policy briefing: Since September 2025, MOFCOM and Ministry of Finance launched pilot projects for new business, models, scenarios of consumption ("Three News" pilots), competitive evaluation determined 50 pilot cities, guidance for improving local implementation plans, selected projects, and allocated 8.6 billion yuan.

SAMR announces five typical cases of unfair competition in AI. Cases include: several companies imitate DeepSeek, ChatGPT and other AI products by using similar names and icons to profit; AI speech software helps loan intermediaries with false advertising; employees steal algorithms and other trade secrets.

Domestic Companies

WeRide: Upgraded strategic cooperation with Uber, plan to deploy at least 1200 Robotaxis in the Middle East by 2027. WeRide and Uber announce strategic cooperation upgrade, plan to deploy at least 1200 Robotaxis in Abu Dhabi, Dubai, Riyadh by 2027, vehicles to be integrated into Uber App; already over 200 Robotaxis in Middle East, WeRide Middle East subsidiary achieved profitability in 2025.

Overseas Macro

U.S. February Michigan University 1-year inflation expectation hits 13-month low, consumer confidence rises. U.S. February U. Michigan consumer confidence index preliminary 57.3 (expected 55, previous 56.4). 1-year inflation expectation preliminary is 3.5% (expected/previous 4%); 5-year inflation expectation preliminary 3.4% (expected/previous 3.3%). U.S. consumer confidence unexpectedly rises to a six-month high, mainly driven by high-income groups benefiting from stock market gains.

Trump administration considers antitrust probe of home builders, residential construction index turns down. Trump administration steps up efforts to tackle U.S. housing affordability crisis, studying whether to launch antitrust probe of home builders. DOJ may initiate investigation in coming weeks. S&P composite 1500 homebuilding index turns from up to down, intraday down 1.4%. Lennar and Horton were worst-performing stocks in the index.

U.S. plans to legislate against "free riding" by data centers; whoever uses electricity must generate it, prohibiting increased costs for residential users. Senator Josh Hawley pushes new bill requiring new high-energy data centers to solve their own power supply, cannot pass costs to households. Bill proposes "off-book" power supply or grid upgrade subsidies to address surging data center power demand causing local shortages and price spikes, reflecting regulatory overhaul of tech infrastructure expansion and social cost allocation.

BOJ official sends hawkish signal, market expects 74% odds of rate hike before April. BOJ official explicitly supports further rate hikes for policy normalization, stresses timely action is vital to curb underlying inflation. Market highly focused on March 19 policy meeting, expects rate hike timing to be much earlier than previously forecast.

After U.S.-India tariff agreement, Indian central bank keeps key rate unchanged. Reserve Bank of India keeps benchmark rate unchanged Friday, after Trump announced U.S. tariff on Indian goods will drop to 18% from 50%, noticeably improving market sentiment. Indian government boosted spending in the budget, which helps support rupee and gives central bank more room for policy adjustment.

Overseas Companies

Amazon earnings call: $200 billion expenditure scares stock! Satellite project burns $1 billion in a quarter, CEO defends "capacity equals cash," AWS orders surge 40%. Despite AWS backlog rising 40% to $244 billion, market is scared off by Amazon's projected $200 billion capex in 2026, after-hours stock fell 11%. CFO warns LEO satellite project will bring $1 billion extra costs in Q1, severely dragging profit guidance down. CEO defends huge investment as not a "Don Quixote fantasy," emphasizes AI capacity "can monetize as soon as installed," bets on AI agents reshaping e-commerce experience.

"Software-PE" death spiral: U.S. PE giants keep dropping; KKR and Blue Owl earnings call admits financial challenges. AI’s disruption of software industry worries cause U.S. private equity giants to face slow fundraising, delayed exits, and redemption pressure. KKR warns delayed asset sales will affect 2026 earnings; Blue Owl cuts expected expense growth from 20% to "moderate." The root is the collapse of SaaS asset “bond-like” stability logic; bad loan risk rising.

Stellantis plunges 20%, announces “EV retreat,” takes 22 billion euro loss. Stellantis announces 22 billion euro write-down, 2025 expected loss of 21 billion euro and cancels dividends. Company fully shrinks electrification layout, exits battery JV, restarts high-displacement engines—marks end of aggressive transformation, aims to cope with cost pressure and weak demand.

Today's Headline Preview

China January Forex Reserves.

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