Wall Street News Breakfast FM-Radio | October 2, 2025

Wall Street News Breakfast FM-Radio | October 2, 2025

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Huajian Morning Voice

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Market Overview

U.S. stocks turned higher intraday after the government shutdown, S&P and Dow both hit new highs. Pfizer rose nearly 7%, Eli Lilly up over 8%, Merck up over 7% leading the Dow; Tesla up over 3%, Nvidia reversed losses after dropping more than 1% at the open and closed at new highs, Intel rose over 7%. Pan-European index rose for four consecutive days, setting a new all-time high after seven months. UK stocks hit continuous new highs.

ADP strengthens rate cut expectations, U.S. Treasury yields hit near two-week lows, the U.S. dollar index hit a one-week low.

Gold hit intraday record highs for three consecutive days, silver rebounded nearly 3% intraday reaching a 14-year high, London copper rebounded more than 1%, approaching its highest level in over a year. Crude oil fell for three straight days to a five-month low, dropping more than 1% intraday.

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Top News

"Shanghai Six" New Housing Policy implemented for over a month: September transactions rose 8% MoM, up 24% YoY.

For the first time in seven years, U.S. government officially "shuts down". U.S. Senate again rejects bipartisan temporary funding bills, Vance warns layoffs if shutdown continues.

U.S. Supreme Court rejects Trump's request to immediately dismiss Fed Governor Cook; case will be tried January next year.

“Mini Nonfarm Payrolls” unexpectedly shrinks! U.S. September ADP jobs decreased by 32,000; expectation for two rate cuts this year increases.

U.S. September ISM Manufacturing PMI contracted for seven consecutive months, new orders fell, price index dropped three times in a row.

Sources say Hamas may conditionally accept the "20-point plan".

Altman secret visit to Foxconn, TSMC: discussed Stargate cooperation details, self-developed ASIC chip project. OpenAI reached preliminary agreements with Samsung, SK Hynix, to supply chips for the Stargate project.

Microsoft announced AI services integrated into Office, directly challenging ChatGPT. Microsoft CTO: hopes future chips for AI data centers will mainly be self-developed, designs data center systems independently.

Intel surged over 7%, reported negotiating to bring in AMD as new foundry customer.

According to Forbes billionaire list, Musk became the first person in history with personal wealth of $500 billion.

September EV report: Leapmotor delivered over 60,000 cars for the first time, XPeng and Xiaomi both broke 40,000 units, Li Auto and NIO deliveries hit new highs.

 

Market Closing Report

European and U.S. stocks: S&P 500 rose 0.34%, to 6,711.20 points. Dow Jones up 0.09%, to 46,441.10 points. Nasdaq up 0.42%, to 22,755.157 points. European STOXX 600 index closed up 1.15% at 564.62 points.

A Shares closed for holiday.

Bond Market: US 10-year Treasury yield down 5.22 basis points to 4.0981%. Two-year Treasury yield down 7.36 basis points to 3.5347%.

Commodities: WTI November crude futures closed down 0.95% at $61.78/barrel. Brent December crude futures down 1.03% at $65.35/barrel. COMEX gold futures up 0.46% at $3,891.00/oz.

 

Details of Key News

Global Highlights

"Shanghai Six" real estate new policy implemented for over a month: September transactions up 8% MoM, up 24% YoY. According to The Paper, after more than a month of implementation, expanded support has gradually been released, market activity increased. Data shows total new and second-hand home transactions in September reached 2.07 million sqm, up 8% MoM, up 24% YoY. New home transactions were 550,000 sqm, up 14% YoY; second-hand transactions were 18,000 units, up 27% YoY.

First time in seven years! U.S. government officially "shuts down". The U.S. Office of Management and Budget announced current federal funding "will expire (run out) at 11:59 PM on September 30," instructing agencies to implement "orderly shutdown" plans. This is the first federal shutdown in nearly seven years, resulting in tens of thousands of government workers furloughed, adding uncertainty to the economy and financial markets.

  • U.S. Senate again rejects bipartisan temporary funding bills, Vance warns layoffs if shutdown continues. Senate rejected two bills for the third time in a week; Democrat's bill got only 47 votes, six fewer than opposition, Republican's bill got ten more than opposition but did not reach 60-vote threshold. Both parties blame each other and stick to their stances. Republicans demand Democrats support the House-passed GOP bill; Democrat leaders insist any bill must contain healthcare provisions, claiming Republicans are "bullying."

U.S. Supreme Court rejects Trump's request to immediately dismiss Fed Governor Cook; case will be tried January next year. The Supreme Court says it will delay ruling on Trump’s request during the Justice Department’s appeal of lower court decision. No justice raised objections in the ruling. This is a setback for Trump's attempt to increase control over agencies outside the White House. Lower court previously believed Cook likely to win in dismissal lawsuit.

"Mini Nonfarm Payrolls" unexpectedly shrinks! U.S. September ADP jobs decreased by 32,000, expectation for two rate cuts this year increases. The unexpected drop partly comes from ADP's annual data benchmark adjustment, but with the U.S. government shutdown, this Friday’s official jobs report may not be released, making ADP data unusually important. After the weak data, traders quickly increased bets on Fed rate cuts, seeing two more cuts as increasingly likely this year.

U.S. September ISM Manufacturing PMI shrank for seven consecutive months, new orders fell, price index down three straight times. U.S. September ISM Manufacturing PMI was 49.1 (expected 49, August previous 48.7). After brief expansion in August, new orders contracted again, first time since January. Factory employment improved in September but remains historically low. Price paid index 61.9, lowest level this year.

Sources say Hamas may conditionally accept "20-point plan". On the 1st, sources told Xinhua News Agency that Hamas may conditionally accept President Trump's "20-point plan" to end the Gaza Strip conflict, possibly requiring modifications to certain clauses, clarification of Israeli withdrawal timetable and Hamas-related guarantees.

Altman secret visits Foxconn, TSMC: discuss cooperation for Stargate project, proprietary ASIC chip development. OpenAI CEO Altman’s two core topics: ensuring Foxconn provides stable AI servers for Stargate; finalizing TSMC partnership for custom AI chip foundry, targeting mass production in 2026, in order to reduce reliance on Nvidia.

Microsoft announces AI services will be integrated into Office, directly challenging ChatGPT. On Wednesday, Microsoft announced the personal AI chat service Copilot Pro will be integrated into Microsoft 365, and launched a new $19.99/month subscription tier "365 Premium", including image generation, research assistant and other AI features, priced slightly lower than ChatGPT Plus. Existing Copilot Pro users will be migrated to the new plan.

Intel surges over 7%, reportedly negotiating AMD as new foundry customer. Getting AMD as a foundry client would give Intel more confidence to invest in manufacturing technology. AMD currently relies on TSMC, but in the context of the Trump administration pushing for U.S. manufacturing and easing chip export restrictions, choosing Intel as a foundry carries symbolic significance.

According to Forbes billionaire list, Musk became the first person in history with $500 billion personal wealth. Oracle founder Larry Ellison is second at about $350.7 billion net worth.

September EV report: Leapmotor delivered over 60,000 for first time, XPeng and Xiaomi broke 40,000, Li Auto and NIO hit new highs. The new carmakers collectively broke out in the "Golden September" sales season: XPeng and Xiaomi both delivered over 40,000 cars, strong momentum; NIO and Li Auto also performed well, monthly deliveries exceeded 30,000, both hitting new highs. Li Auto released the new i6 and signed Yiyang Qianxi as spokesperson. Leapmotor deliveries broke 60,000 for the first time; Lantu and Zeekr also performed well.

Overseas Macro

U.S. government reaches "landmark agreement" with Pfizer, launches direct sales site "TrumpRx", U.S. price cuts in exchange for European price hikes! Pfizer obtained a three-year tariff exemption via price reduction agreement. Trump said Pfizer agreed to sell some top drugs at deep discounts of 50% to even 100%. To offset the impact of price cuts in the U.S., the White House is negotiating with Europe for drug price hikes: "We will see overseas drug prices go up."

"Tech investing master" warns: AI valuation surge "disturbing", Nvidia’s $100 billion bet on OpenAI reminiscent of dot-com bubble. James Anderson warns that the surging valuations in AI are “disturbing". Nvidia's plan to invest $100 billion in OpenAI reminds him of supply-chain financing typical of the internet bubble. His fund Lingotto has reduced Nvidia holdings, previously its top position.

Every six months comes a wave of "AI bubble talk", when will the "wolf really come"? Every half year, bubble claims arrive, causing market panic and corrections, then mania resumes. How long can the feast last? Dangerous signals may have emerged—AI capital expenditure is shifting from "internal funding" to "debt-driven." Morgan Stanley estimates by 2028 global data center capex will reach $2.9 trillion, of which $1.5 trillion is unfunded and will need debt.

EU plans to raise steel import tariffs, European steel stocks rise.

German government aims to build world’s first nuclear fusion power plant. On October 1, German cabinet in Berlin passed "Germany towards nuclear fusion power plant" action plan. By 2029, Germany will invest over €2 billion in the field, supporting research infrastructure and tech demonstration plant constructions.

South Korea to target "chaebol interests" with reforms: next step is "cancelling" treasury shares, eliminating "kimchi discount". Korea will force listed companies to cancel treasury shares, most of which are held by conglomerates. Currently treasury shares represent about 3.1% of Kospi's total market value; if all canceled, per-share earnings could rise by 3.2% on average.

Overseas Companies

AI business strong, Google parent Alphabet stock had best quarter in 20 years. Alphabet stock rose 38% in Q3, its best single quarter since 2005, year-to-date up over 28%, second only to Nvidia among the “Seven Giants”. Main catalysts are AI product Gemini’s rapid growth and better-than-expected antitrust case ruling.

Testing Sora 2, reality truly disappears this time. OpenAI's video app Sora 2 outperforms all peers. It generates videos with new levels of physical logic, coherence, and narrative—simply put, it has “human quality". To ordinary people, at first glance, it’s very hard to tell if the video is real or fake.

Today's News Preview

U.S. initial jobless claims last week.

U.S. August factory orders, durable goods orders.

Dallas Fed President Logan speaks.

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Risk Warning and DisclaimerThe market bears risks, investment needs caution. This article does not constitute personal investment advice, nor does it take into account individual users’ specific investment objectives, financial situations, or needs. Users should consider whether any opinions, views, or conclusions in this article suit their own specific circumstances. Investment according to this article is at your own risk. ```