1. On October 10th (Thursday), before the U.S. stock market opened, the three major U.S. stock index futures all fell. Dow futures fell by 0.06%, S&P 500 index futures fell by 0.15%, and Nasdaq futures fell by 0.16%.

2. The German DAX index rose by 0.02%, the UK FTSE 100 index fell by 0.20%, the French CAC 40 index fell by 0.11%, and the Euro Stoxx 50 index fell by 0.04%.

3. WTI crude oil rose by 1.15%, reporting at $74.08 per barrel. Brent crude oil rose by 1.06%, reporting at $77.39 per barrel.

Market News

The U.S. September CPI data is coming! The financial market and interest rate cut expectations face a major test! Economists predict that the overall U.S. CPI inflation in September will rise slightly by 0.1% month-on-month, which is the smallest increase in three months; the year-on-year growth rate of the overall CPI is expected to decrease from 2.5% in August to 2.3%, continuing the downward trend of price pressure for six months. However, the core CPI, which excludes food and energy prices and is more closely watched, is expected to rise by 0.2% month-on-month and is expected to remain stable at a year-on-year rate of 3.2%. Tonight's CPI data is the most important inflation data before the Federal Reserve's November meeting and the last CPI report before the 2024 U.S. presidential election. It may consolidate or overturn the current predictions about the pace of the Federal Reserve's monetary easing, and it is also a major test for the economy and financial markets. Bank of America Global Research stated that, given the improvement in macroeconomic data, the market should be able to withstand the impact of a slight increase in inflation. However, if the CPI shows a "significant surprise," it may bring uncertainty to the Federal Reserve's interest rate cut cycle and bring greater volatility to the market.

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Barclays warns: The momentum of the U.S. stock rotation trading is declining, and it is advisable to maintain a wait-and-see attitude at present. Barclays strategists clearly pointed out in a report released on Thursday that although the current market is frequently volatile, the heat of rotation trading is gradually fading. The report pointed out that for several months, the market factor rotation has been intense, influenced by macroeconomic events such as the unwinding of yen carry trades and a general decline in risk levels. However, strategists have observed that the return on most factors has now stabilized, basically maintaining the level of two months ago. The strategists stated in the report: "We believe that the global interest rate cut cycle will stimulate and extend the economic cycle, creating conditions for a soft landing of the economy in 2025. However, before the uncertainty of the U.S. election is completely eliminated, we will avoid adding more cyclical exposure in order to observe the economic data for a few more months."

"Doctor Doom" Nouriel Roubini's latest view: Trump may trigger a stagflation shock, and AI is worth long-term investment. Roubini recently warned that Trump's return to the White House may trigger the risk of a stagflation shock. He said: "Compared with Harris being elected as the new President of the United States, the combination of Trump's trade, monetary, fiscal, immigration, and foreign policies brings a higher level of stagflation risk." In his view, Trump's package of policy plans - including imposing higher tariffs, seeking devaluation of the dollar, and taking a more hardline stance on illegal immigration - may slow down the pace of U.S. economic development while stimulating a rebound in inflation rates. He also pointed out that tensions in the Middle East are also a potential catalyst, and further escalation of geopolitical situations may lead to a surge in oil prices, thereby increasing price pressures and pushing the U.S. inflation rate, which is on a downward trajectory, to rebound. In addition, Roubini also stated that investing in technology and artificial intelligence-related targets is a good long-term investment strategy from a long-term perspective, but he said that during this period, it may have to endure significant fluctuations.

Do not believe that the Federal Reserve will aggressively cut interest rates! Fortress Securities: It is expected that there will only be one more interest rate cut of 25 basis points within the year. Fortress Securities stated that a strong U.S. economy and persistent inflation will drive the Federal Reserve to cut interest rates only once more for the rest of the year, totaling a 25 basis point cut. Michael de Pass, Global Head of Interest Rate Trading at Fortress Securities, said: "We believe that, looking at the current economic situation and inflation stickiness in the United States, the market's expected interest rate cut may be a bit too high. Although the market expects another interest rate cut of about 50 basis points this year, I dare to say that for the rest of the year, the Federal Reserve will only cut interest rates by 25 basis points."

Individual stock news

Much attention! Tesla (TSLA.US) Robotaxi is about to make its debut. At 19:00 local time on October 10th (10:00 AM Beijing time on the 11th), Tesla will hold an official themed "We, Robot" Robotaxi demonstration event. There are reports that Musk will showcase the Cybercab prototype at the event and share the latest progress of Tesla's FSD technology. Tesla has stated that they are developing a specially built, dedicated robot taxi. Musk hinted at a recent earnings call that this car may be called Cybercab. In June of this year, Musk proposed his vision for the Robotaxi network, calling it a "combination of Airbnb and Uber" because car owners can choose to join this service with their cars during their leisure time.Delta Air Lines (DAL.US) reported Q3 results and Q4 guidance that fell short of expectations. The financial report indicated that Delta Air Lines' adjusted revenue for Q3 was $14.6 billion, below the analysts' average forecast of $14.65 billion; the adjusted earnings per share were $1.50, lower than the analysts' average expectation of $1.52. The company stated that flight cancellations due to a global outage caused by a CrowdStrike software update error in the third quarter led to a revenue reduction of approximately $500 million and increased costs. Delta Air Lines anticipates that Q4 revenue will grow by 2% to 4% year-over-year, which is below the analysts' average expectation of a 4.3% year-over-year increase; the company expects Q4 adjusted earnings per share to be between $1.60 and $1.85, with the midpoint of the forecast range lower than the analysts' average expectation of $1.75. The company expects a decline in travel demand during the U.S. election period, with the industry's growth also gradually slowing down. As of press time, Delta Air Lines' shares fell by more than 3% in pre-market trading on Thursday.

Texas Instruments (TXN.US) and Infineon (IFNNY.US) join the supply chain of NVIDIA (NVDA.US), expanding the territory of the two major analog chip giants into AI. Ming-Chi Kuo, a renowned technology industry analyst and expert in tracking the supply chains of tech giants such as Apple, said on Wednesday that the two leaders in the analog chip sector, Texas Instruments and Infineon, have been added to the new supplier list of AI chip leader NVIDIA. Generally speaking, publicly traded companies that join NVIDIA's hardware product supply chain can expect a significant increase in their stock prices. According to the latest disclosure, Texas Instruments and Infineon now provide voltage regulator components, which were previously mainly supplied by Monolithic Power Systems (MPWR.US), a manufacturer focused on power solutions for analog and mixed-signal chips.

After issuing a disastrous earnings warning, it is rumored that Stellantis (STLA.US) CEO is seeking to drive a "major overhaul" of the management team. According to informed sources, Stellantis CEO Carlos Tavares is planning a comprehensive reshuffle of the management team in response to the previous disastrous earnings warning. The aforementioned sources indicated that Tavares may present his proposal at the board meeting in the United States this week. This reform could lead to changes in the management team, affecting various departments from finance to regional operations to individual brands. Informed sources said it is still unclear whether the board members will support the CEO's personnel adjustment plan, and several other outcomes are still possible. They stated that board members will also focus on the efforts to turn around losses in the United States, which is Stellantis' largest single source of profit.

Due to potential sale news, GXO Logistics (GXO.US) rose by more than 9% in pre-market trading. According to informed sources, the company is working with financial advisors to evaluate its options after receiving interest from potential buyers. The decision to sell has not been finalized, and the company may choose to remain independent.