Wall Street News Breakfast FM-Radio | April 4, 2026

Wall Street News Breakfast FM-Radio | April 4, 2026

```

Huajian Morning Voice

All listeners are requested to upgrade to the latest version of the Jianwen app to successfully listen to the audio below.

Market Overview

On Friday, strong U.S. nonfarm payroll data suppressed rate cut expectations, U.S. Treasuries came under pressure, U.S. stock futures fell. U.S. stock spot markets were closed.

S&P 500 futures down 0.3%, Nasdaq 100 futures down 0.4%.

The 2-year U.S. Treasury yield, sensitive to interest rates, rose 6 basis points to 3.86% at one point, the 10-year yield rose over 5 basis points.

The dollar surged above the 100 mark. Bitcoin traded sideways below $67,000. Ethereum edged down 0.7%.

Commodity markets were closed for the holiday. CFTC position report shows speculators' net long U.S. oil positions fell by 18,000 contracts to 130,000 contracts for the week ending March 31, a four-week low.

During the Asian session, Shanghai Index fell 1% and dropped below 3900 again, micro-cap index plunged 3.5%, computing hardware broke out, CPO surged across the board, power and coal sectors underwent collective adjustment.

Top News

China

China's March Services PMI fell to 52.1, domestic demand supported ongoing expansion.

Lei Jun launched Xiaomi's "Lobster Farming" package! Maximum monthly fee of 659 yuan, netizens: too expensive.

Seedance 2.0 officially open, with 120 trillion tokens underlying.

Overseas

U.S. March nonfarm payrolls exceeded expectations, 178,000, the highest in over a year, unemployment unexpectedly dropped to 4.3%. "New Fed News Agency": Temporarily solves Fed dilemma, market lowers rate cut bets.

U.S. March Services PMI final value fell to 49.8, first contraction since 2023.

Largest annual increase in military spending since WWII! Trump administration seeks $1.5 trillion defense budget for FY2027, non-defense spending cut by 10%.

Ceasefire mediation stalemated, Iran refused to meet U.S. in Islamabad, U.S. may have lost two jets Friday. Iran warned it will destroy all U.S. and Israeli assets in the Middle East. More insurers including Berkshire enter the market, U.S. doubles Hormuz shipping insurance to $40 billion. Iran began charging escort fees in Hormuz, graded into five tiers by "friendliness".

Kuwait’s key refinery, a power and desalination plant attacked. Abu Dhabi gas hub suddenly stopped, Iranian attacks caused fire, UAE 60% gas supply disrupted. Israel’s largest gas field resumed production. Abu Dhabi's largest aluminum producer may need a year to fully recover capacity.

Sold 118 tonnes of gold in two weeks, worth $20 billion! Turkey sold nearly 70 tonnes last week, the most since 2013.

Report: U.S. judge dismissed Trump administration's appeal to resume subpoenas against Powell. "New Fed News Agency": clears the way for appeal to a higher court, but appeal may delay Warsh’s confirmation. U.S. Senate's hearing on Warsh’s Fed chair nomination will be held April 16.

Report: Apple is stockpiling "all" mobile DRAM at high prices.

Wall Street wants a SpaceX IPO big deal, Musk requires Grok purchase.

Market Closing Report

U.S. and European stock markets: Closed.

A-shares: Shanghai Composite closed at 3880.10, down 1.00%. Shenzhen Component closed at 13352.90, down 0.99%. ChiNext closed at 3149.60, down 0.73%.

Bond Market: 2-year treasury yield rose 6 basis points to 3.86% at one point, 10-year treasury yield rose over 5 basis points.

Commodities: Closed.

Top News Details

Global Highlights

China

China's March Services PMI fell to 52.1, domestic demand supports continued expansion. Data shows China's services PMI has remained expansionary for 39 consecutive months. Solid domestic demand is the major driving force, mild cost pressure prompts companies to lower prices to stimulate demand. Companies remain optimistic about the market outlook for the next year. The March composite output index simultaneously dropped from 55.4 to 51.5, expansion slowed but is still near the average of the past two years.

Lei Jun launches Xiaomi "Lobster Farming" package! Maximum monthly fee of 659 yuan, netizens: too expensive. Lei Jun released Xiaomi MiMo Token Plan subscription API packages, monthly fees range from 39 to 659 yuan in four tiers, 12% discount on first purchase. No 5-hour token usage cap in the packages, tokens can be consumed intensively to "farm lobsters" or program heavily. Netizens said too expensive, even the second tier 99 yuan package isn’t enough to "farm lobsters".

Seedance 2.0 officially open, 120 trillion tokens underpin, what does Volcano Engine want? Volcano Engine opened Seedance 2.0 API, canceled minimum 10 million tokens but set 1 million deposit and other thresholds, aiming to filter high-value enterprise clients. Dubao LLM daily token usage reaches 120 trillion, still mostly internal use but firmly ranks among market leaders. With enterprise knowledge management platform released, Volcano Engine accelerates building of full-stack AI capabilities from model to data, inference to application, focusing on enterprise markets.

Overseas

Unexpected bounce! U.S. March nonfarm payrolls added 178,000, highest in over a year, unemployment surprisingly drops to 4.3%! March report has limited reference value for assessing Iran war impact. Rising energy prices from Middle East turmoil is heightening Fed vigilance about inflation risk.

U.S. March Services PMI final value falls to 49.8, first contraction since 2023. The U.S. March services PMI final value dropped to 49.8, first contraction in three years. Middle East conflicts push up energy prices, combined with tariff disruptions, drag the U.S. into stagnation and inflation: input costs surged to new highs, consumer price inflation may reach 4%, first employment drop in over a year. Consumer services hit hardest, composite PMI barely stays above 50, overall economic annualized growth has slowed to about 0.5%.

Largest annual increase in military spending since WWII! Trump administration seeks $1.5 trillion defense budget for FY2027, non-defense spending cut 10%. The Trump plan, including defense, sets discretionary spending at $2.2 trillion for FY2027; shipbuilding budget $65.8 billion for 41 ships, $350 billion mandatory for ammunition stockpile and defense industry base; non-defense down $73 billion, including $15 billion for renewable energy projects. The budget claims the defense spending is near historical pre-WWII growth rates, addressing global security threats and improving readiness. No ten-year deficit forecast given; energy and AI infrastructure are new priorities, anti-fraud a "balanced budget" focus.

Ceasefire mediation stalemated, Iran refused U.S. Islamabad meeting, U.S. may have two jets crashed Friday, Trump says lost jets don’t affect negotiations. For the first time since the latest conflict, the U.S. confirmed military jets were shot down inside Iran. It was reported that one F-15 crew member was rescued, another under search; two U.S. rescue helicopters were hit, no casualties; Israel postponed some attacks to avoid interfering with search; Turkey and Egypt still pushing for U.S.-Iran talks, considering new locations and plans; Qatar refused to mediate. Iran says it hit a U.S. A-10 attack jet near Hormuz airspace, U.S. media reports jet crashed, but some claim it didn’t and pilot escaped. Iranian officials encourage people to capture U.S. pilots; Iran’s parliament speaker mocked that the war has downgraded from “regime change” to “finding the pilot”.

Iran warns it will destroy all U.S. and Israeli assets in the Middle East. Iranian military declared, if the U.S. attacks Iran’s infrastructure, Iran will destroy all U.S. and Israeli assets and infrastructure in the region; scope may expand to important assets of U.S. followers in the area.

Berkshire and more insurers join, U.S. doubles Hormuz shipping insurance to $40 billion. U.S. International Development Finance Corp (DFC) announced, on the $20 billion rolling coverage offered in March, Chubb and newly added partners Berkshire Hathaway, AIG, etc. will provide another $20 billion. Chubb is lead insurer and handles claims. Applicants must pass sanctions screening and KYC checks.

Iran begins "charged escort" in Hormuz, five tiers by "friendliness". The IRGC has begun charging “transit fees” in Hormuz, prioritizing ships from "friendly" countries; five-tier mechanism, friendlier countries get better terms. Generally, tanker fee starts at about $1 per barrel, paid in RMB or stablecoin.

Hormuz Strait shows "new signs": 4 million barrels of crude, first LNG ship "apparently" passed, sailing along Oman coast "south line". Three Omani ships appeared to take the “south line” near Oman coast through Hormuz, avoiding Iran-controlled north channel, including first LNG ship attempting offshore. Energy journalists say about 4 million barrels of crude flowed out, recent highest daily volume—yet still far below pre-war average 20 million barrels. Iran’s deputy foreign minister says drafting "co-management agreement" with Oman to collect transit fees.

French container ship leaves Hormuz, may be first Western European ship since Iran war. A French container ship "CMA CGM Kribi" exited Hormuz, possibly first Western European-linked ship known to pass since Middle East crisis. The ship broadcasted position publicly and sailed close to Iranian coast.

Key Kuwaiti refinery attacked, several facilities caught fire. Ahmadi port, one of Kuwait's largest refineries, again attacked by drones, multiple units caught fire. Second attack in two weeks, daily capacity ranges 340,000-730,000 barrels. Since mid-March, Kuwait has suffered multiple drone strikes, targeting refineries, airport fuel depots, and oil tankers.

Kuwait power and desalination plant attacked, some facilities damaged. According to Kuwait's Ministry of Electricity, Water and Renewable Energy, a power and desalination plant was attacked early Friday, causing partial damage. Attacks on desalination plants threaten water supply in Gulf countries. Geneva conventions say targeting civilian infrastructure like desalination plants may constitute war crimes.

Abu Dhabi gas hub abruptly stopped: Iranian attack fragments caused fire, UAE 60% gas supply blocked. UAE’s gas core hub Habshan caught fire from air defense fragments, forced full shutdown; supplies 60% of UAE’s gas. Analysts say after conflict ends and supply reorganized, U.S. Gulf LNG exporters may benefit for years.

Israel’s largest gas field Leviathan resumes production, global gas supply pressure eased for now. Israel’s largest gas field Leviathan restarted after 33-day shutdown, expected to ease global natural gas market stress. But Middle East fighting persists, latest Iranian attack damaged multiple energy facilities. Market eyes when Israel’s other gas field Karish will resume.

Middle East's largest aluminum producer: Abu Dhabi smelter fully restored may take a year. Global aluminum supply alarm! EGA, region’s largest aluminum producer, heavily hit by Iranian missiles and drones, Abu Dhabi smelter forced to shut down, full recovery may take 12 months; Bahrain Aluminum also attacked same day. Middle East accounts for ~9% of global aluminum output, global inventory is already low, since conflict London aluminum price has soared over 10%.

Sold 118 tons of gold in two weeks, worth $20 billion! Turkey sold nearly 70 tons last week, biggest weekly drop since 2013. To cope with increased energy bills and lira devaluation after Iran war, Turkey’s central bank sold over 118 tons of gold in two weeks (worth ~$20 billion), analysts say this equals its reserve accumulation for six years. Nearly 70 tons sold just last week, largest weekly drop since at least 2013.

Report: U.S. judge dismissed Trump administration request to reinstate subpoenas against Powell. In a harsh six-page opinion, a U.S. federal judge rejected Trump administration arguments, denied DOJ's request to reconsider the ruling on Powell. Previously, the judge had vacated two Fed-issued subpoenas. "New Fed News Agency" says this clears Pirro's way to appeal to higher court, but appeal may delay ex-Fed Governor Kevin Warsh’s confirmation.

U.S. Senate scheduled Warsh's Fed chair nomination hearing for April 16. Politico reports Trump’s Fed chair nominee Kevin Warsh will attend Senate Banking Committee nomination hearing April 16. U.S. Treasury has listed Warsh’s confirmation as a top priority. Derek Theurer, deputy head of congressional affairs, is fully engaged in the nomination process.

Report: Apple is stockpiling "all" mobile DRAM at high price. Apple is spending heavily to hoard global mobile DRAM supply, even sacrificing profits to block competitors. This strategy is already having effects—MediaTek and Qualcomm reportedly cut 4nm chip production schedules, involving 20,000–30,000 wafers, about a loss of 15–20 million mobile chip units.

Microsoft says "no" to OpenAI? Three self-developed AI models launched, real-world tests come. Microsoft released three self-developed AI models to reduce dependence on OpenAI. Test results were mixed: speech generation so realistic it included saliva sounds, transcription model turned "police school undercover" into "Cambridge accounting," image model shows spatial depth but limited complex command compatibility, overall practical performance needs more refinement.

Wall Street wants SpaceX IPO big deal? Musk demands Grok purchase. After years of large IPO scarcity, Wall Street is hungry for deals like SpaceX. Reportedly Musk requires participating banks, law firms, auditors, and other advisors to subscribe to Grok AI chatbot. Some banks have agreed to invest tens of millions in Grok and begun integrating it into their IT systems. Wall Street banks could receive over $500 million in advisor fees.

Research Report Highlights

BofA: "4C" trades may be strongest theme in H2; commodities, China assets, consumer recovery! BofA bull-bear indicator "sell signal" lifted. Trump support falling, political logic favors "short war" instead of "long war", backing "4C" trade: Commodities, China assets, Consumer (U.S. stocks), yield Curve Steepeners; warns of AI bubble risks.

Is domestic USD getting tight? Recently, spot USDCNY swap points kept dropping, implied overnight USD rate hit 4.67%, nearly 100 bps above SOFR. Four main causes: outflows for buying bonds, central bank FX positions rising, USDCNH swaps dragged down, and war causing tighter global USD liquidity.

Who’s buying U.S. Treasuries? Hedge funds become biggest foreign holder of U.S. Treasuries! Since U.S.-Iran conflict, foreign central banks sold off $82 billion Treasuries, holdings at lowest since 2012. Hedge funds holdings hit $2.4 trillion, tripled in three years, economists argue real number is undercounted by $1.4 trillion.

Fifty years of oil crisis: How six rounds of Middle East conflicts reshaped oil prices, inflation, and market logic. Changjiang Securities review: oil price surges don't match war intensity, but depend on supply cutoff and replacement speed, whether inflation expectations can re-anchor. In six conflicts, supply shocks bottomed in 1–3 months, oil price peaks in 2–4 months, Fed’s actions depend whether inflation is already high and expectations unanchored.

Ignore Turkey's "gold selling" noise, liquidity disturbance nearly over, gold's safe-haven return imminent? Zheshang Securities: Gold's drop mainly from short-term liquidity disturbance, which is nearly over. Turkey’s gold selling is special: gold nearly half of reserves, very little Treasuries, forced to sell for energy imports; Europe has more gold but gold backs euro credibility, not motivated to sell. Gold benefits both ways: geopolitical escalation→high oil prices spur recession trades→rate cut expectations rise; geopolitical cooling→oil price falls→rate cut space opens. Both paths are bullish for gold.

After a missile hit Amazon data center. Missile hit Amazon Bahrain data center, AWS outages, payment and delivery platforms paralyzed, direct losses may reach billions. Super-large-scale data centers under attack show they’re highly attractive strategic targets—investment in 1GW data center exceeds $50 billion.

AI computing power revolution ends 20-year cloud pricing decline. In 2026, global cloud vendors break 20-year tradition of "only price cuts", launching AI computing and high-end storage price rises. AI agents explode, computing resources become rare strategic assets. Cloud vendors shift from "selling computing power" to "selling intelligence", reconstructing business ecosystem around tokens.

Energy storage sector-wide chain price hike, what’s the impact? Q1 saw price increases across the energy storage chain, lithium carbonate, copper, LiPF6, and 314Ah cells all up. Unlike before, this time the industry “quietly accepted” price hikes—backed by policy affirming value of storage capacity, demand-side calculations work out, and sector shifts from price war to value war. Profits diverged sharply, top miners and material firms benefit most. Supply-demand tightness likely to last until Q4 2026.

Domestic Macro

Tianlong-3 rocket launch failed! Performance matches SpaceX Falcon 9, can launch 36 satellites at once. Tianlong-3 large liquid rocket launched from Jiuquan Satellite Center, suffered flight anomaly, mission failed. Tianlong-3 is China’s first commercial heavy-lift liquid rocket with >20 ton LEO capacity, matches SpaceX Falcon 9, can launch up to 36 satellites per flight.

Domestic Companies

Xiaomi announces price hike for smartphones, memory price rise far exceeds expectations! Xiaomi China marketing GM Wei Siqi posted on Weibo: memory price surge far exceeds expectations, from April 11 REDMI K90 Pro Max price up 200 yuan, Turbo 5 and Turbo 5 Max cancel special offers, 512G large memory keeps 200 yuan subsidy.

Overseas Macro

Support rate drops to a record low of 33%: economic pains drag Trump, GOP sounds midterm alarm. Trump support down to 33%, record low, 77% surveyed think "economy is bad", blue-collar strongholds net support plunges to minus 22 points, 17% of 2024 supporters started regretting their vote. Tariff-driven inflation, soaring oil, welfare cuts stoke public anger, with less than 7 months to midterms, GOP alarm fully triggered.

Trump “reshuffles” cabinet: after replacing Homeland Security and Justice ministers, Commerce Minister Rutnik next? After dismissal of Attorney General Bondi, Commerce Minister Rutnik and Labor Minister Chavez-DeRemer are at risk, Trump hurries to complete personnel layout before midterms, partly fearing Senate confirmations will get harder if Democrats win more seats, and also to signal "economic revival" to voters.

Dovish SF Fed Daly turns hawkish: zero employment growth doesn’t mean weak labor market. Dovish SF Fed President Daly said, with U.S. labor force nearly stopped growing, if nonfarm payrolls show zero or negative growth, it doesn’t necessarily mean labor market is weak. The vibrant labor market long expected may be out of reach. Inflation data has consecutively exceeded targets, policymakers must clarify how to steer the economy to legal goals.

Famous analyst: Credit cycle reversed, cash is king, gold to $10,000! Ed Dowd says private credit funds set redemption gates, signaling credit cycle turning point, ripple effects to whole economy; Middle East conflict will accelerate the inevitable global recession. Dowd maintains long-term bullish on gold, forecasts $10,000/oz by 2030, also optimistic about silver.

Overseas Companies

OpenAI claims to focus on "core products", but bought tech talk show. OpenAI recently acquired tech talk show TBPN, incorporated into global affairs dept to boost brand. This follows announcement to shrink product line, shut down Sora video app, raising doubts about focus. Despite promising editorial independence, OpenAI’s foray into media after huge fundraising reflects oscillation between core tech R&D and public opinion expansion.

Meta's Superintelligence division is building its own hardware team, deepens AI hardware. Meta’s Superintelligence unit is building a dedicated hardware team, recruiting senior engineer Rui Xu as leader. Reality Labs is famous for smart glasses and VR, signaling new types of AI devices. Rui Xu previously led hardware at Dreamer, which was acquired by Meta last month.

Four people "fly" to the Moon! Understanding Artemis II mission. Artemis II launched successfully, humanity's first approach to Moon since 1972. No landing this time, but comprehensive flight test, as NASA's final dress rehearsal before next manned moon landing.

<End of the article>

 

Risk Warning & DisclaimerThe market has risks, investment must be cautious. This article does not constitute personal investment advice, nor does it take into account users' specific investment goals, financial condition, or needs. Users should consider if any opinions, views, or conclusions in this article are suitable for their specific situation. Investing based on this, responsibility lies with the investor. ```