Wallstreetcn Breakfast FM-Radio | February 5, 2026

Wallstreetcn Breakfast FM-Radio | February 5, 2026

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Huajian Morning Voice

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Market Overview

U.S. data is mixed, with strong Services PMI and weak ADP employment. The sell-off in software stocks has spread to semiconductors and AI. Capital is rotating into energy and materials sectors. The Nasdaq fell 1.51%, while the Dow rose 0.53%.

Large tech stocks again underperformed significantly. The semiconductor index fell 4.4%. AMD plummeted 17% post-earnings, its biggest single-day drop in eight years. Palantir fell 12%. SanDisk dropped nearly 16%. Google fell more than 2% after hours.

The U.S. Treasury's quarterly refinancing plan met expectations; 30-year Treasury yield rose 2 basis points to 4.92%, 2-year yield fell 1 basis point to 3.56%. The dollar strengthened 0.3%, recouping yesterday's losses.

Bitcoin plunged more than 5% during the day to near $72,000. Ethereum fell more than 5%, marking a nine-month low.

Spot gold briefly surged above $5,000 but failed to hold, ending up 0.3%. Spot silver rose 3%.

In Asia hours, the Shanghai Composite rebounded above 4100 points in the afternoon; solar stocks surged in a limit-up wave, tech stocks fell across the board, Hang Seng Tech Index fell more than 1%, Tencent dropped nearly 4%, Shanghai silver soared 11%.

Headlines

China

Xi Jinping held a phone call with U.S. President Trump.

Xi Jinping held a video meeting with Russian President Putin.

People's Bank of China: Focus on supporting expansion of domestic demand, tech innovation, and SMEs.

Musk's team surveyed the solar industry chain, with listed companies responding intensively.

China Photovoltaic Industry Association: Space PV technology is still in the early stages of exploration and verification.

Report: Zhongcai Futures shorted before the recent silver crash, profiting over $500 million.

International

Employment slowed sharply, U.S. January ADP jobs grew by 22,000, below the expected 45,000.

U.S. January ISM Services PMI hit a new high for 2024; little employment expansion, price index rose.

Besant’s hearing “fiery”: Denied tariffs cause inflation, reaffirmed strong USD, questioned the Fed, accused of being Trump’s lackey.

U.S. Treasury maintained debt issuance scale, will not raise medium/long-term bond issuance for several quarters.

The U.S. resumed scheduled U.S.-Iran talks for the 6th, after earlier plans neared collapse.

Google All in AI: Q4 cloud revenue jumped 48%, spending guidance nearly doubled and well above expectations; after-hours volatility.

Meta: Our new LLM “Avocado” is the most powerful to date.

Nasdaq plans “fast entry” rule to handle large IPOs like SpaceX.

Weight loss drug sales exploded, Eli Lilly Q4 revenue up 43% y/y, net profit up 50%, 2026 revenue guidance at $80–83B.

Novo Nordisk stock in Europe plunged 18%, CEO admitted: “Unprecedented pricing pressure” in 2026.

Market Close

U.S. & European Markets: S&P 500 down 0.51% to 6882.72. Dow up 0.53% to 49501.30. Nasdaq down 1.51% to 22904.579. European STOXX 600 up 0.03% to 618.12.

A-shares: Shanghai Composite at 4102.20, up 0.85%. Shenzhen Component at 14156.27, up 0.21%. ChiNext at 3311.51, down 0.40%.

Bonds: U.S. 10-year Treasury yield up 1.20bps to 4.2775%. 2-year yield down 0.82bps to 3.5614%.

Commodities: COMEX gold futures up 0.98% to $4984.20/oz. COMEX silver futures up 5.11% to $87.555/oz. WTI March crude up 3.05% to $65.14/barrel.

 

Headline Details

Global Major News

China

Xi Jinping holds phone call with U.S. President Trump. According to CCTV, Xi pointed out the U.S. has its concerns and China has its own; China keeps its word, does what it says. As long as both sides hold to equality, respect, and reciprocity, a solution is possible. He emphasized Taiwan is the most important issue in China-U.S. relations; Taiwan is Chinese territory and China must defend national sovereignty and territorial integrity, and will never allow Taiwan to be separated. He urged the U.S. to handle arms sales to Taiwan carefully.

Xi Jinping holds video meeting with Russian President Putin. According to Xinhua News Agency, Xi stressed that China will be even more proactive in opening up at a high level to share new development opportunities with the world, including Russia. Both sides should seize historical opportunities, intensify high-level exchanges, enhance practical cooperation, increase strategic collaboration, and take greater responsibility as major powers to ensure the continued correct development of China-Russia relations.

People's Bank of China: Focus on supporting expansion of domestic demand, tech innovation, and SMEs. The meeting calls for vigorous development of tech finance, green finance, inclusive finance, pension finance, and digital finance, strengthening financial support for consumption, building multi-layered financial service systems, and supporting expanded domestic demand, tech innovation, and SMEs. Continue resolving financing platform debt risks, support local governments in advancing market-based transformation, guide financial institutions to provide market-oriented, lawful services.

Musk’s team surveys solar supply chain, listed companies intensively respond. According to Shanghai Securities Journal, recently Musk's team conducted intensive surveys of China's solar supply chain, contacting GCL Group, JinkoSolar, TCL Zhonghuan, and others. Several companies subsequently clarified in announcements that no formal agreements/orders have been signed yet, and warned that “space PV” is still in a very early stage and carries uncertainty.

China PV Industry Association: Space PV tech still in the early stage of exploration and validation. Space PV has boomed on capital markets after Musk team’s survey, but the association says the technology is immature for industrialization. Currently, the dominant space application is proven gallium arsenide cells, while hyped heterojunction/perovskite tech is still lab-stage. Industry should focus on R&D and avoid speculation. If future aerospace payload capacity breaks through, China’s manufacturing advantages could create major opportunities.

Report: Zhongcai Futures shorted silver ahead of recent crash, earning over $500 million. Zhongcai Futures established large short positions before the silver price collapse, with estimated profits over $500 million. According to Shanghai Futures Exchange, as of Feb 2, Zhongcai held short positions equivalent to about 484 tonnes of silver, valued over $1.5 billion at current prices.

International

U.S. January ADP employment grew by 22,000, well below expectations. U.S. January ADP jobs data missed, with just 22,000 new jobs, showing weak labor market momentum early in the year. Growth was entirely driven by education and healthcare; key sectors like business services, manufacturing declined, showing structural weakness. Though wage growth stabilized at 4.5%, overall weakness may make the Fed cautious. Due to government shutdown, official nonfarm payrolls delayed again.

U.S. January ISM Services PMI hits 2024 high, little employment growth, price index rises. The ISM Services PMI was 53.8, the high since October 2024, beating expectations. Business activity rebounded, but new orders slowed, employment barely expanded, and prices hit a 3-month peak.

Besant hearing “fiery”: denied tariffs cause inflation, reaffirmed strong USD, challenged Fed, called Trump’s lackey. Besant said Democratic lawmakers don't understand the difference between inflation and one-off price rises; was told to “shut up” after saying tariffs don't cause inflation. He said the Fed should remain independent, but blamed the high inflation under the Biden administration. Also said the Treasury can't use tax money to buy Bitcoin, and isn't considering a central bank digital currency. Criticized the Biden administration's reflexive regulation; said small banks shouldn't be regulated as strictly as big banks.

U.S. Treasury maintains bond issuance scale, won't increase long-term bond issuance in coming quarters. Treasury's Wednesday refinancing statement decided to keep existing medium/long-term bond issuances unchanged, sticking to “regular and predictable” debt management. This quarter: $125B total bonds (three-year: $58B, ten-year: $42B, thirty-year: $25B). Statement eased market concerns that the government might change issuance to lower borrowing costs. Treasury closely watching Fed T-bill purchases and private sector demand; future policy may be influenced by new Fed chair nomination.

U.S. resumes scheduled U.S.-Iran talks for the 6th after near-breakdown. After urgent lobbying by Middle Eastern leaders, the planned Feb 6 U.S.-Iran nuclear talks in Oman are back on. The U.S. earlier rejected Iran's proposal to change venue from Istanbul, Turkey to Oman.

Google All in AI: Q4 cloud revenue surged 48%, 2026 spending guidance median $180B, over 50% above expectations; after-hours stock swings. Q4 Alphabet total revenue up 18% y/y, record high; R&D spending surged 42% due to AI; $2.1B one-off Waymo comp expense. Operating margin still >30%. Google Cloud income beat analyst expectations by 9%, search revenue beat forecast at +17%. Waymo and other “bets” revenue down 7.5%, worse than expected. CEO said spending is to meet customer demand and grasp growth opportunities. Stock fell 7.5% post-market, then rebounded over 4%, then fell again.

Nvidia CEO Jensen Huang counters “AI will replace software”: extremely illogical. Huang rebuffed claims that AI will replace software tools, calling them “most illogical.” He stressed that both humans and AI use tools, not reinvent them; called on businesses to focus on core processes and actively deploy AI. Fears of disruption to software business model triggered panic sell-off after Anthropic launched an AI-powered legal tool.

Tech stock sell-off continues, SanDisk plummets nearly 16%. Storage chip stocks corrected Wednesday without any single “black swan”; SanDisk's fundamentals suddenly weakened. As tech stocks sold off, SanDisk and other winners from the AI-driven storage demand narrative fell sharply. SanDisk's shares have surged at least 1100% in six months, and after last week’s earnings, surged nearly 29% in three days through Tuesday.

Meta: Our new LLM “Avocado” is the most powerful to date.

Nasdaq plans “fast entry” rule to handle large IPOs like SpaceX. The proposed “fast entry” revision would allow new listings to join the Nasdaq 100 only 15 trading days after IPO, much shorter than current three month wait. Timed for upcoming tech giant IPOs, including SpaceX ($1.3T valuation).

Weight loss drug sales boom, Eli Lilly Q4 revenue up 43%, net profit up 50%, 2026 guidance $80-83B. Thanks to explosive GLP-1 weight loss drug sales, Eli Lilly’s Q4 revenue, profit, and annual guidance all beat market expectations. In the weight-loss drug showdown, Eli Lilly seems to have the edge over Novo Nordisk, which warned of 13% sales drop due to price war, while Lilly expects up to 27% sales growth.

Novo Nordisk stock in Europe down 18%, CEO: 2026 faces “unprecedented pricing pressure”. Facing fierce competition and expected 2026 sales drop, Novo Nordisk’s CEO admitted Wegovy price cuts will pain finances, but aimed for volume gains. To stabilize confidence, company will do up to DKK 3.8B stock buybacks and pay a dividend, hoping new oral Wegovy pills spur future growth.

Selected Research Reports

Dalio warns: “Capital wars” at the brink. Dalio warns of “capital wars” using trade embargoes and capital market restrictions. Geopolitical tension raises mutual suspicion and capital control risks. Central banks and sovereign funds are preparing responses. Dalio recommends holding gold as the best safe asset, and keeping diversified portfolios.

Is the gold bull still on? Analyst: Previous gold bull runs saw several major pullbacks; declines are buying opportunities. Analyst notes last week’s historic single-day gold plunge is typical technical correction; every major gold bull since 1971 saw big downturns. Current drop is a chance to add. Drivers for long-term gold strength—geopolitical uncertainty, central banks buying gold, expected dollar weakness—remain intact.

Bernstein: Only one reason to be bearish oil, ten to be bullish. While Wall Street is deeply pessimistic, Bernstein sees now as prime time for contrarian bets: oil price below long-run marginal cost, capital exodus signals cycle bottom; as U.S. shale oil myth ends and China supports strategic reserves, market has over-discounted pessimism. For patient investors, oil now offers the best odds in three years.

Big short Burry: Already down 40%, if Bitcoin drops another 10%, “disastrous consequences”. Burry warns if Bitcoin drops another 10% after a 40% plunge, treasury-holding firms may see lasting damage, and the storm could spread to wider markets, causing “collateral death spiral” in tokenized metals futures; speculators may need to sell profitable tokenized gold/silver futures to reduce risk.

Nvidia reassesses OpenAI; why should Microsoft be the most concerned? Bloomberg op-ed says Nvidia's softened investment in OpenAI and private criticism of its “business discipline” is actually harsh judgment of Microsoft's execution. Microsoft holds top models but is beaten at the application layer. If it can’t quickly turn this into product strength, it risks lagging behind.

Domestic Macro

China Ministry of Commerce: EU wind power probe is a trade barrier; urges correction, measures to protect Chinese companies. China insists on resolving disputes via dialogue, opposes politicizing economic issues, urges EU to stop wrong practices and use FSR investigations with caution, to create a fair and predictable market for EU-China cooperation; will monitor developments and take necessary steps to protect company rights.

Domestic Companies

CATL chairman Zeng Yuqun: 2030 will be Year One of the sustainable energy era. Zeng said 2030 marks the beginning of the sustainable energy era, with basic science as the frontier but engineering and manufacturing determining realization speed. The future energy core is distributed, intelligent, and recyclable. Currently technology meets less than 30% of zero-carbon demand; more breakthroughs needed.

International Macro

Eurozone January CPI dips further to 1.7%, lowest since Sep 2024; market expects ECB “wait and see”. January inflation fell to 1.7%, continuing decline and undercutting ECB’s 2% goal. Markets expect rates to be held steady at upcoming ECB meeting. Despite low inflation, economists warn underlying pressures remain, so policy adjustments probably unlikely soon, may even raise rates if the economy changes.

Japan Composite PMI at 53.1, highest in 32 months. Japan’s January services PMI at 53.7, 11-month high; composite PMI 53.1, 32-month high. Manufacturing and services demand improved together for the first time in 2.5 years; exports fastest growth in over 4 years. Prices and profits show trend of “lower costs, higher selling prices.” Still, firms are concerned about labor shortages and global outlook, so optimism is declining.

International Companies

Wall Street reviews AMD earnings: operating costs restrict profitability; focus shifts to AI server ramp-up in H2. Most reports say AMD’s Q4 revenue beat, but focus is on higher-than-expected operating expenses which are restricting profit release. Key to watch: whether new MI455 AI rack-scale products can drive breakthroughs and higher efficiency in H2. Most banks maintain neutral rating; despite data center growth, until profits from new products materialize, valuation expansion will be restrained.

Intel enters GPU! Intel targets Nvidia, announcing entry into GPU and AI datacenter business, hiring Qualcomm exec as chief architect. 14A node foundry in deep cooperation with clients, mass production ramp later this year. Market is watching Intel’s progress on GPU products and foundry ramp-up.

Samsung foundry plans to raise 4nm and 8nm process prices by 10%! Samsung Electronics to raise 4nm and 8nm wafer foundry prices by around 10%. Both processes are mature, yields stable, capacity near limit. Analysts say price hike aims to boost advanced process R&D and long-term profit. TSMC also raising prices, some process up 20% due to AI demand and rising costs.

U.S. AI chatbot war: ChatGPT share falls from 69.1% to 45.3%, Gemini rises from 14.7% to 25.1%, Grok from 1.6% to 15.2%. Data shows in past year, while ChatGPT absolute user count rose 50%, Gemini’s growth hit 647%. Three trends: competition now multi-sided; 20% users use several apps; products like Claude achieve differentiation via high user stickiness, daily average time per user rising from 10 to 30 minutes.

Morgan Stanley on Lumentum earnings: profit margin explodes, more important, CPO order confirmed! Lumentum disclosed a hundred-million-dollar CPO order, will ship in H2 2027; OCS backlog over $400M, could hit $100M/Q two quarters ahead of schedule. MS raised target price to $420, kept market-perform rating. Analysts say fundamentals strong, but current stock price reflects optimistic $20 EPS for 2027, and 25x P/E is full.

Investors feel Tether valuation too rich: fundraising target cut from $20B to $5B. As crypto slumped, investors worried about Tether’s $500B valuation; advisors now consider minimum $5B fundraising. Tether’s profit structure highly dependent on crypto markets and asset returns; 2025 profit seen down 23% to $10B.

Uber dropped over 10% pre-market, closed down over 5%! Q4 bookings surge, but profit worries loom; new CFO signals push into Robotaxi. Uber Q4 net profit $296M, down 96% y/y. For this quarter, adjusted EPS expected at $0.65–0.72 (below Bloomberg average $0.77); adjusted EBITDA midpoint missed. Bookings guidance stronger: expected $52–$53.5B for the quarter, above market expectations.

Industries / Concepts

1. Brain-Computer Interface | On Feb 4, the Brain-Computer Interaction and Human-Machine Integration Haihe Lab announced that its team led the development of China’s first brain-controlled acupuncture neurorehab platform “Shengong-Huatuo”, collaborating with Tianjin University of Traditional Chinese Medicine and others. The team innovated the “brain-computer interface + smart wearable acupuncture” technology, with support from national manned space project and other grants.

Comment: Analysts say brain-computer interface tech is rapidly moving from lab to commercial use, with medical/healthcare being a growth engine. China has made BCI a future industry priority; the Fifteenth Five-Year Plan calls for promoting BCI as a new growth driver. MIIT and six other ministries issued opinions calling for a secure, reliable BCI industrial system by 2030. As tech progresses, policy support grows, and application scenarios expand, BCI may see explosive growth in 5–10 years, becoming an important bridge between human thought and the external world, reshaping interactions and creating huge value.

2. Measurement Equipment | SAMR released 32 new national metrology tech specifications, covering smart connected vehicles, life/health, smart meters, physical chemistry, etc. Also released principles/rules for instrument calibration cycle, performance evaluation of multifunction meters, and guidance for calibration intervals, laying foundations for upgrades.

Comment: Analysts point out China’s new-energy, new-materials, aerospace, IC, high-end equipment sectors are world-leading and need ever more precision metering. Policy encourages low-energy/low-emission meters and carbon metering. Also pushes networked/digital metering, in line with green/transitional manufacturing. China’s industrial metering market to exceed RMB 150B in 2025 with >10% CAGR.

3. Emergency Equipment | Ministry of Emergency Management and MIIT issued opinions to spur equipment innovation: aims to shore up R&D, strengthen key technologies, run new equipment field tests, promote standard main equipment, update safety gear, etc.

Comment: By 2027, over 20 key core technologies, 20+ major new products, 30+ advanced equipment will be promoted; emergency equipment innovation framework further improved, scale and quality up, intelligence/lightweight/standardization advances, and real-world support boosted.

4. Semiconductors | According to Guancha.cn, at Yangtze Memory’s phase-3 project site in Wuhan, heavy machinery is busy installing clean room equipment. This is Wuhan IC industry’s third RMB 100B project, scheduled for completion/production this year, leading to clustering of 200 upstream/downstream firms. The phase-3 project was to mass-produce in 2027 but may start in H2 2026, a whole year ahead of schedule.

Comment: Yangtze Memory is China’s NAND leader, ranking among top global 3D NAND makers. Core products include 3D NAND wafers, embedded storage chips, SSDs for consumer and enterprise, used in mobile, consumer electronics, computing, datacenter, etc. As of Q3 2025, YMTC global market share hit 13%; after phase-3 mass production, may hit 15% by end-2026 and approach world top 4. Under U.S. export controls, YMTC pushes “de-Americanization”, using 45% Chinese-made equipment/materials, highest domestically. Boosted by AI servers, datacenter, and consumer electronics recovery, NAND flash is in shortage. YMTC’s execution captured production vacuums left by global giants, building global status and share.

5. AI Comics | Sina Finance reports Tencent launched its first standalone comic drama app “Fire Dragon Comic” across app stores, developed by a young internal Tencent Video team and quickly brought online after planning. The app combines comic paneling, AI, dynamic effects, and short video format; content is free for now, uses a vertical feed UI similar to short video apps; episodes mostly 1–3 mins.

Comment: AI comic drama is a booming short-form segment with great commercial potential, attracting big players like Tencent. Emerging startups also differentiate in vertical content. This multi-party competition drives tech progress and commercialization. AI comic dramas’ core is lowering cost and boosting efficiency; 2025 market size >RMB 20B, 2026 may reach RMB 22B, about 40% of the micro-drama market. In the long run, cross-cultural potential and “content + e-commerce” fusion could make it a major digital entertainment growth area.

Today's News Preview

U.S. initial jobless claims last week.

U.S. December trade balance.

ECB announces rate decision, President Lagarde holds press conference

Bank of England rate decision, Governor Bailey holds press conference

Atlanta Fed President Bostic delivers speech.

Amazon reports earnings

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Risk Disclosure and DisclaimerThe market has risks, investment must be cautious. This article does not constitute personal investment advice and has not considered specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions herein are suitable for their particular situation. Invest accordingly at your own risk. ```