Wall Street News Breakfast FM-Radio | February 6, 2026

Wall Street News Breakfast FM-Radio | February 6, 2026

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Market Overview

Weak US employment data combined with AI panic, US stocks slumped, cryptocurrencies and silver plunged, investors flocking to US bonds for safety.

All three major US stock indexes fell more than 1%, with small-cap stocks leading the decline; the Russell 2000 dropped 1.8%. Of the S&P's 11 major sectors, 9 fell; software ETF tumbled 5%. Oracle dropped nearly 7%, Microsoft nearly 5%. Amazon plunged 10% after its earnings report. The Chinese concept stock index closed higher against the trend, Baidu rose 0.73%, Meituan climbed over 2%, Dingdong Maicai fell 15%.

Risk-off sentiment drove US Treasury yields down sharply. The 10-year US Treasury yield dropped 9 basis points to 4.19%, and the 2-year yield dropped 9 basis points to 3.46%, a near one-month low.

Risk aversion drove the dollar up 0.3%. Bank of England's dovish rate decision sent the pound tumbling 0.9%.

Spot gold dropped 4%, silver plunged 19%, approaching the $70 mark.

Cryptocurrencies faced a bloodbath; Bitcoin crashed 12%, falling below $63,000, almost halved since October last year, posting its biggest one-day drop since the FTX collapse. Ethereum crashed 11% below $1,900. Crude oil fell about 2%, Iran confirmed it will negotiate with the US on Friday.

In Asia, the three major A-share indexes all fell, space photovoltaic and precious metals crashed, Kweichow Moutai rose for the fourth day, the Hang Seng Tech Index turned positive at the close, Internet stocks generally rebounded, Shanghai silver fell over 10%.

Top News

China

Will Chinese leaders visit the US by the end of this year? Foreign Ministry responded.

Strong AI demand, Foxconn January sales NT$730.04 billion, up 35.5% year-on-year.

Meituan acquired Dingdong Maicai.

International

US December JOLTS job openings hit lowest in over five years, far below expectations. Challenger US companies announced 108,000 layoffs in January, the highest for the period since 2009, surging 205% month-on-month.

Amid election uncertainty, Japan's 30-year bond auction "stabilized the market."

If Waller fails to cut rates, could he be sued? Bessent hearing raises suspense: prosecution depends on Trump.

ECB President Lagarde: Inflation harder to predict than usual; with euro strengthening and tariff shadow, ECB stands pat for fifth consecutive time.

Bank of England stands pat, maintains rate at 3.75%, 5–4 vote sends strong dovish/ rate-cut signal.

Bitcoin bloodbath! Plunges 12% to $63,000, over 400,000 accounts liquidated, market in "crisis of confidence."

Spending on AI outpaces Google, Amazon’s annual spending guidance surges to $200 billion, stock drops over 10% post-market.

Nvidia to delay new gaming chip launch due to memory chip shortages.

Anthropic releases financial research AI model, Reuters falls over 8.5%, FactSet plunges 10%. OpenAI launches GPT-5.3-Codex, claims it is the strongest coding agent yet. OpenAI launches Frontier, targeting enterprise agent automation.

Market Close

US and European Stocks: S&P 500 fell 1.23% to 6,798.40. Dow Jones fell 1.20% to 48,908.72. Nasdaq fell 1.59% to 22,540.586. Europe's STOXX 600 ended down 1.05% at 611.65.

A Shares: Shanghai Composite closed at 4,075.92, down 0.64%. Shenzhen Component closed at 13,952.71, down 1.44%. ChiNext closed at 3,260.28, down 1.55%.

Bond Market: US 10-year Treasury yield fell 7.56 basis points, hitting a daily low of 4.1979%. US 2-year yield fell 8.43 basis points, daily low at 3.4669%.

Commodities: Spot gold dropped 4% intraday to $4,763.2/oz. Spot silver plunged 19.5% to $70.84/oz. WTI March crude futures dropped $1.85, down 2.84%, to $63.29/barrel.

 

Top News Details

Global Highlights

China

Will Chinese leaders visit the US by the end of the year? Foreign Ministry responds. "The heads of state of China and the US maintain communication and interaction. As for the specific matter you mentioned, I currently have no news to provide." said Foreign Ministry spokesman Lin Jian.

Strong AI demand, Foxconn January sales NT$730.04 billion, up 35.5% year-on-year. Foxconn's January revenue reached NT$730 billion, up 35.5% YoY, showing strong resilience in AI infrastructure demand. As Nvidia’s key partner, its performance growth directly reflects robust global data center server procurement, and Q1 sales are expected to grow 28%.

Meituan acquired Dingdong Maicai.

International

US December JOLTS job openings hit lowest in over five years, far below expectations. US job openings in December dropped to the lowest in over five years, much weaker than expected, previous month revised down, reflecting US labor market softening by the end of 2025. Other JOLTS indicators show, while the market has cooled, there has not been a collapse.

Challenger US firms announced 108,000 layoffs in January, the highest since 2009, surging 205% MoM. The toughest start for US employment since the financial crisis: January saw 108,435 layoffs announced by companies, up 118% YoY, the highest January level since 2009. Planned new positions: only 5,306, lowest January since the agency started tracking data in 2009.

Amid election uncertainty, Japan’s 30-year bond auction “stabilized the market”. Japan’s 30-year bond auction saw demand rebound; bid/cover at 3.64, yield declined 5 bp to 3.585%. Results eased worries about long-term debt for now, showing insurers and long-term investors are drawn in by higher rates, but long-term trend depends on post-election fiscal and central bank policy.

If Waller fails to cut rates, could he be sued? Bessent hearing suspense: prosecution depends on Trump. In Federal Reserve chair nomination review, Senator Warren asked Bessent to promise Waller wouldn't be sued/investigated for not following presidential direction on rates. Bessent refused, said Trump's previous remarks about suing were a "joke", Waller is “very qualified”. Bessent blamed inflation on Biden, media blames affordability crisis on Trump, but Bessent saw inflation during Biden's term.

ECB President Lagarde: Inflation harder to predict than usual; with euro strengthening and tariff shadow, ECB stands pat fifth consecutive time. ECB decided Thursday to keep deposit rate at 2%, its 5th pause since June. Officials keeping a close eye on euro appreciation’s impact on exports and inflation outlook. Mounting tariff risks add to external uncertainty, which could pressure growth and prices.

Bank of England stands pat, maintains rate at 3.75%, 5–4 vote sends strong dovish/rate-cut signal. BOE kept rates at 3.75%, but internal vote 5:4 suggests cuts are close; Governor Bailey indicated "room for further cuts this year", predicted inflation will fall to 2% by April. After decision, pound fell 0.8%, short-term gilt yields dropped. Though inflation remains high, focus shifts from fighting inflation to dealing with weak economy and soft demand, paving way for cuts this year.

Bitcoin bloodbath! Plunges 12% to $63,000, over 400kt accounts liquidated, market in "crisis of confidence". Bitcoin crashed 12% Thursday to a 16-month low as global risk asset selloff sent the largest crypto into a new downward channel. According to Coinglass, $1.703 billion long positions liquidated in 24 hours, over 400,000 accounts closed. Some analysts think that with $70,000 lost, more sell-offs could follow, possibly retreating to early 2024 rebound lows.

Spending on AI outpaces Google, Amazon’s annual spending surges to $200 billion, shares drop over 10% post-market. Amazon Q4 revenue rose 14% YoY, AWS cloud income up 24%, highest growth in over 3 years, free cash flow shrunk over 70% in a year; capex surged almost 59% YoY; Trainium/Graviton chip annualized revenue exceeded $1 billion; capex in 2026 projected up 50%, 40% higher than analysts’ estimates, 11% more than Google’s midpoint; reflects AI/chip/robotics/low earth orbit satellite expansion; Q1 revenue forecast max 15% growth, operating profit best up 17%, worst down 10%, partly due to $1bn higher low earth satellite cost.

Nvidia to delay new gaming chip launch due to memory chip shortages. Driven by the global AI boom, memory chip shortages led Nvidia to postpone new gaming GPU launch, the first time in nearly 30 years with no new launch in one year. Rare memory chip capacity is being allocated to higher margin AI products, sharply reducing gaming GPU output.

Anthropic releases financial research AI model, Reuters falls over 8.5%, FactSet plunges 10%. Anthropic Thursday released Claude Opus4.6, an AI model skilled at analyzing company data, regulatory filings, market info, with major upgrades in coding and multi-tasking. After release, financial info service stocks dropped, FactSet plunged up to 10%, Reuters down over 8.5%, the biggest drop since March 2020, market worries intensified about AI replacing traditional software.

OpenAI launches GPT-5.3-Codex, claims it is strongest programming agent yet, released almost simultaneously as Anthropic’s Claude Opus 4.6 upgrade. The new model beat benchmarks and works on self-training/deployment. Industry sees this as a sign the AI programming war for enterprise software has begun.

OpenAI launches Frontier, targeting enterprise agent automation. OpenAI Thursday launched the enterprise AI agent platform Frontier, letting companies more easily build, deploy, manage AI agents, integrate multi-source data to execute file handling, coding etc. The platform supports collaboration with competing agents from Anthropic, Microsoft etc., aiming to be infrastructure for AI agent distribution rather than replace existing software. OpenAI execs said by year end, much digital work at top companies will be human directed–AI executed. Meanwhile, Anthropic released an AI financial research model same day, renewing market worry about AI replacing traditional software.

No longer attractive because of OpenAI, Wall Street begins "liquidating" OpenAI-linked stocks, Google surges 36% as the winner. Wall Street’s attitude to OpenAI shifted from hype to concern, with loss-making and deliverability doubts tanking closely-tied stocks such as Microsoft and Oracle. Google, powered by Gemini 3 financial results and 48% cloud revenue growth, stands out with $4 trillion market cap, supporting index prosperity, may be the winner in the next round of AI competition.

  • Why do tech giants pour money into OpenAI? Nvidia, Amazon, etc., are involved in OpenAI's $100 billion fundraising. Analysis says OpenAI is key for tech giant valuations; failing to fund could crash AI logic, shrinking valuations by 50-80%. "If OpenAI cuts big cloud spend commitments, $1 trillion in market cap lost, so what's $10 billion between friends?"

Highlighted Research Reports

Panic spreads, selloffs trigger more selloffs. Tech stock anxiety triggers chain selling, market shifts from AI optimism to caution. Software and chip stocks plunge (AMD down 17%) and ripple to global assets, forming negative feedback. Key reason: AI seen as threat to business models, not just growth, costing software sector nearly $1tn market cap in a week; Alphabet capex plan doubled to $180bn, raising concerns about ROI.

Silver's historical tops are never because it was "expensive". Real tops are confirmed by rule changes: In 1980, silver peaked the day COMEX allowed liquidation only and banned new positions; in 2011, milder measures, peak at CME's second margin increase. Now history repeats: CME raised silver margin 5 times in a month.

Did the market misunderstand? Waller’s real benchmark: Greenspan. Waller sees the current AI wave as "the biggest productivity boost of our lifetimes, past, present, future," allowing for drastic rate cuts without stoking inflation, as Greenspan did. Bessent supports Waller, says "we’re at the early stage of a 1990s-like productivity boom, the economy can run in low rates."

Walmart’s comeback is not by becoming the second Amazon. Walmart integrates online/offline business to become a better version of itself.

Domestic Companies

Baidu announces $5 billion share buyback plan and first dividend policy. Baidu said the new repurchase plan allows up to $5 billion repurchases until December 31, 2028. The board approved the first dividend policy for its ordinary shares: it may include regular and special distributions, first expected in 2026.

NIO shares jumped over 11% pre-market, closed up 5.8%, company's first ever quarterly profit, Q4 2025 expected operation profit to reach 700-1,200 million yuan. NIO expects first quarterly operating profit in Q4 2025, adjusting for 200–700 million yuan even by stricter accounting, showing performance improvement from operational optimization. Compared to loss of over 5.5bn yuan same period last year, improvement of 6.2–6.7bn yuan quarter-on-quarter. Growth comes from higher sales, improved product mix, greater efficiency. Shares surged over 11% pre-market after announcement.

Musk’s team visits China’s solar enterprises in secret, what are they mainly interested in? Musk's team visited the full solar supply chain, including equipment, wafers, cells, modules, advanced tech, especially high interest in HJT and perovskite, the next-gen high efficiency technologies. These are seen as having advantages in theoretical efficiency and long-term cost reduction potential.

International Macro

Trump: India won’t buy Russian oil anymore, Russia: No, India didn't say that. Analysts say, considering the economic impact of stopping Russian oil, India is unlikely to reverse course completely. Though India has reduced Russian oil imports in recent months, it's unlikely to halt all purchases immediately, which could disrupt its economic growth.

International Companies

Apple plans "budget MacBook" using iPhone chip, priced under $799. Even with lower memory, the budget MacBook should run smoothly, supports Apple Intelligence, expected to stay competitive in entry markets. Industry sources predict 5–8 million units shipped yearly, about 20–30% of last year's Mac sales.

Google earnings call: $185bn capex "must be spent", confirms partnership with Apple, Gemini is not the "end" of SaaS. Google set 2026 capex at $175–185bn, mostly for servers/data centers, going all-in on AI race. Confirmed partnership with Apple to develop next-gen Gemini-based models. Facing market panic over "AI disrupting SaaS", CEO called Gemini an "engine" rather than an endpoint; 95% of leading SaaS firms have adopted it. Additionally, Gemini app monthly active users surpassed 750 million, Google is moving into the "agent commerce" era.

"Optical module giant" Coherent call: CPO gets huge orders, InP chip mass production breakthrough, 1.6T optical modules entering explosive growth. Coherent earned a record $1.69bn in Q2, up 17% YoY, driven by AI data center building boom, data center order shipment ratio over 4x, visibility to 2027. InP wafer throughput hit 80% of target. Despite strong results, shares dropped 2.36% after hours; analysts say expectations too high triggered profit taking.

Over $200bn mining giant merger "falls apart": Rio Tinto abandons acquisition talks, Glencore down over 10% intraday. Third failed merger attempt in a decade between the two, which would have created the largest miner and copper producer. Glencore said Rio’s terms "severely undervalue Glencore’s relative contribution," especially in copper and growth. Media said Glencore wanted 40% of the merged firm post-swap, Rio could not accept the premium.

European stocks' "Black Thursday": Maersk’s profit halved, Volvo plunged 14%, Vodafone revenue missed. Europe stocks faced "Black Thursday": Maersk warned profit may halve due to lower rates after Red Sea route resumes, shares dropped 7%; Volvo hit by tariffs/price war, profit margin tumbled 14%; Vodafone’s weak Germany growth also dragged shares. Clustered downbeat reports show geopolitical and industry pressures.

Industries/Concepts

1. Traditional Chinese Medicine (TCM) | Ministry of Industry/IT and 8 departments issued "TCM Industry High-Quality Development Implementation Plan (2026–2030)". By 2030, TCM industry chain collaboration system to take shape, major TCM ingredient supply to be further stabilized, digital/green level to improve, key tech breakthroughs, collaborative innovation to rise. Development quality notably up, nurturing leading TCM industrial companies, 60 high-standard ingredient bases. Collaboration system more robust, 5 innovation centers to be built. Innovative products to appear, push a batch of new innovative TCM drugs, cultivate 10 top TCM products, promote some hospital compounds into innovative TCM drugs.

Comment: Analysts say China’s TCM sector now exceeds 1.2 trillion yuan, has full industry chain covering farming, ingredients, ready-made formulas, health goods. The sector faces issues of raw medicine quality fluctuation, low R&D, international barriers. Now at a turning point from tradition-driven to science/evidence-based, policy tailwinds will speed up consolidation, modernization, internationalization, shifting toward innovation-driven growth and laying the foundation for high-quality TCM industry. Agencies think TCM sector valuation and institutional position are historically low; fundamentals are improving as base effect and inventory drag eases, some companies already showing improvement, plus policy boost, the sector may turn better overall.

2. Semiconductors | According to Sina Finance, on Feb 5, Infineon notified clients that AI data center deployment had sent power switch/integrated circuit demand soaring, causing shortages. To expand, huge wafer fab investment is needed, plus continued rise in raw materials and infrastructure, internal efficiency can't cover cost pressure. Thus, relevant product prices are rising, with increases kept to a minimum. New prices effective April 1 for new and pending orders at that date.

Comment: Analysts say surging AI data center demand directly boosts Infineon’s power switch (low-voltage MOSFET etc.) and integrated circuit orders, creating a strong upward industry cycle. In heavy-load AI servers, power semiconductors and relevant analog/power chips are seeing "nonlinear rise" in use/spec. The AI expansion in computing/storage now pushes demand to "power", with discrete power devices (MOSFET etc.) orders pouring in. Infineon’s capacity biases toward AI, further squeezing supply for telecom, autos. Globally, foundry prices up, labor, raw materials (inc. precious metals, packaging/test etc.), and energy costs rise, pushing costs higher. Power semiconductors (switches, MOSFET, IGBT) and ICs benefit directly as the "price-rise track", not just at Infineon but also spreading to top domestic peers.

3. Large AI Models | According to China Daily, on Feb 5, with the Milan Winter Olympics approaching, IOC President Kristy Coventry announced at the international broadcast center that the Olympic Committee had built the first official Olympic large model based on Alibaba’s Qianwen (Qwen) AI model.

Comment: Research agencies say Alibaba's Qianwen enters the "AI Service Era", expect domestic giants to build closed-loop AI ecosystem quickly. Recently, Alibaba’s Qianwen App launched 400+ AI service functions incl. shopping, food delivery, travel planning, fully integrating Taobao, Alipay, Taobao Flash Sale, Fliggy, AutoNavi. Marks the upgrade from chat tool to "AI Service Era" app. By deep integration with Taobao, Alipay etc., delivers closed-loop services without jumping apps. As giants accelerate AI ecosystem construction and domestic AI computing power keeps progressing, China’s AI infrastructure entered the "lead construction period".

4. Gas Turbines | According to Sina Finance, US data center boom triggered power shortage, gas seen as the best solution. Global energy monitoring’s data shows, as of Jan 2026, US natural gas generation under construction exceeds 29 GW, more than doubled in a year. However, many projects may not start for years, mainly due to lack of available gas turbines from manufacturers. GE Vernova CEO says 2025 contracts for turbines up about 80%, but most of past two years’ high-margin orders will not deliver until 2027 or later.

Comment: Southwest Securities says, looking at leading gas turbine makers, GE, Siemens Energy, Mitsubishi Heavy are seeing faster order growth, backlog now lines up for 4–5 years, expansion to continue. GEV planned turbine capacity of 20 GW by Q3 2026, now moved to H1 2026, raising expansion goal to 24 GW by 2028. To support capacity, GEV expects to invest $10bn capex from 2025–2028. Domestic OEMs, packagers, parts makers expected to benefit from the AI data center-driven power demand cycle.

Today's News Preview

US February University of Michigan consumer confidence and inflation expectations.

Federal Reserve Vice Chair Jefferson speaks.

The 2026 Winter Olympics to be held February 6–22.

Muyuan Foods Hong Kong IPO, stock expected to trade February 6.

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