Overnight U.S. Stocks | Three major indexes mixed, Chinese concept stocks generally rise, Nvidia fluctuates after earnings report

According to the Zhitong Finance APP, on Wednesday, the three major U.S. stock indexes showed mixed results. The "seven giants" of U.S. stocks had mixed performances, with most chip stocks and popular Chinese concept stocks rising. U.S. President Trump held his first cabinet meeting of his second term, discussing tariffs on Mexico and Canada, and is expected to soon announce tariffs on goods imported from the European Union. Crude oil hit a new low for the year. Gold turned up after approaching a one-week low.

[U.S. Stocks] As of the close, the Dow Jones Industrial Average fell 188.04 points, a decrease of 0.43%, closing at 43,433.12 points; the Nasdaq rose 48.88 points, an increase of 0.26%, closing at 19,075.26 points; the S&P 500 index rose 0.81 points, an increase of 0.01%, closing at 5,956.06 points. Super Micro Computer (SMCI.US) rose over 12%, Apple (AAPL.US) fell nearly 3%, and AppLovin (APP.US) fell over 12%. Most chip stocks rose, with Broadcom (AVGO.US) up 5.13%, Micron Technology (MU.US) up 4.82%, and NVIDIA (NVDA.US) up 3.67%. Popular Chinese concept stocks generally rose, with XPeng (XPEV.US) up nearly 15%, Nio (NIO.US) and Li Auto (LI.US) up over 10%, Beike (BEKE.US) up over 7%, JD.com (JD.US) up over 6%, and Alibaba (BABA.US) up nearly 4%.

[European Stocks] Major European stock indexes rose. The German DAX 30 index rose 1.71%, the UK FTSE 100 index rose 0.72%, the French CAC 40 index rose 1.15%, and the Euro Stoxx 50 index rose 1.43%.

[Asia-Pacific Stock Markets] The Nikkei 225 index fell 0.20%, the South Korean KOSPI index rose 0.41%, the Indian BSE SENSEX rose 0.20%, and the Indonesian Composite Index rose 0.29%.

[Foreign Exchange] The U.S. dollar index (DXY), which measures the dollar against a basket of six major currencies, rose 0.15%, closing at 106.47.

[Cryptocurrency] Cryptocurrencies fell. Bitcoin dropped nearly 5%, trading at $84,396; Ethereum fell nearly 6%, trading at $2,348.66.

[Gold] COMEX gold futures rose 0.51%, trading at $2,933.60 per ounce. Spot gold rose 0.08%, trading at $2,917.40 per ounce.

[Crude Oil] WTI April crude oil futures closed down 0.45%, trading at $68.62 per barrel. Brent April crude oil futures closed down 0.67%, trading at $72.53 per barrel.

[Metals] London copper closed up $58, trading at $9,460 per ton; COMEX copper futures rose 1.15%, trading at $4.5330 per pound. London aluminum closed down $6, trading at $2,632 per ton. London zinc closed flat, trading at $2,812 per ton. London lead closed up $18, trading at $2,010 per ton. London nickel closed up $244, trading at $15,580 per ton. London tin closed down $371, trading at $32,404 per ton. London cobalt closed up $600, an increase of over 2.69%, rising for the second consecutive trading day, trading at $22,880 per ton [Macroeconomic News]

Trump: The U.S. will impose a 25% tariff on goods imported from Mexico and non-energy goods imported from Canada starting April 2. On February 26 local time, U.S. President Trump stated at a cabinet meeting that the U.S. will impose a 25% tariff on goods imported from Mexico and non-energy goods imported from Canada starting April 2. Trump also mentioned that the U.S. has decided to impose a 25% tariff on the European Union and will announce it "soon." Trump told the media that, overall, the tariff rate on the EU will be set at 25%, applicable to automobiles and various other goods.

U.S. Treasury market bets that the Federal Reserve will soon change its mind! Morgan Stanley: 10-year yields may fall below 4%. U.S. Treasury investors are beginning to bet that the Federal Reserve will soon shift from worrying about stubborn inflation to worrying about slowing economic growth. This sentiment has pushed U.S. Treasury yields lower recently. Morgan Stanley strategists stated that if the market generally predicts a change in the Fed's stance, the 10-year Treasury yield could potentially fall below 4%. Traders have resumed bets this week that the Fed will cut rates twice this year and once next year to around 3.65%. Morgan Stanley indicated that if the market expects rates to drop to 3.25%, then the 10-year yield could fall below 4%. The firm expects that if the January PCE inflation rate, favored by the Fed, declines when announced on Friday, its impact could be decisive. Morgan Stanley strategists, including Matthew Hornbach, stated: "If the Fed makes a dovish statement due to a slowdown in core PCE growth, investors will buy more long-term bonds, and yields will fall further."

High interest rates and severe weather drag down U.S. new home sales to a three-month low. The U.S. economy shows further signs of weakening consumer demand. New home sales in the U.S. fell to a three-month low in January, reflecting the dual impact of affordability challenges and severe winter weather. Official data released on Wednesday showed that sales of newly built single-family homes fell 10.5% in January to an annualized rate of 657,000 units, below the median forecast of 680,000 units by economists surveyed.

[Individual Stock News]

NVIDIA (NVDA.US) Q4 revenue slows but still hits a record high, Blackwell generates over $10 billion, Q1 revenue guidance better than expected. The financial report shows that NVIDIA's revenue for the fourth quarter of fiscal year 2025 grew 78% year-on-year to $39.3 billion, better than analysts' expectations of $38.25 billion; adjusted earnings per share were $0.89, exceeding analysts' expectations of $0.84; adjusted gross margin was 73.5%, down 3.2 percentage points year-on-year, in line with analysts' expectations. Among them, data center business revenue grew 93% year-on-year to $35.6 billion, better than analysts' expectations of $34.1 billion; gaming and AI PC business revenue fell 11% year-on-year to $2.5 billion, below analysts' expectations of $3 billion; professional visualization business revenue grew 10% year-on-year to $511 million, better than analysts' expectations of $507.6 million; automotive and robotics business revenue grew 27% year-on-year to $570 million, better than analysts' expectations of $461 million. NVIDIA's total revenue and data center business revenue growth rate in the fourth quarter were both the lowest in nearly two years, but stronger than analysts' expectations It is worth mentioning that NVIDIA CFO Kress revealed that in the fourth quarter, chips based on the Blackwell architecture brought in $11 billion in revenue for the company, exceeding NVIDIA's previous estimate by several billion dollars. NVIDIA expects revenue for the first quarter of fiscal year 2026 to be $43 billion, higher than analysts' expectations of $42.3 billion; it expects an adjusted gross margin of 70.6% to 71.0%, fluctuating by 50 basis points, lower than analysts' expectations of 72%.

Targeted by short-selling institutions! AppLovin once plunged over 23%, triggering a circuit breaker during trading. AppLovin, the champion of Nasdaq gains in 2024, faced a short-selling attack on Wednesday. The stock plummeted over 23% in a single day, reaching its lowest level since November last year, marking the largest single-day drop since 2022; it triggered a circuit breaker due to excessive volatility. Over the past five trading days, the stock price has cumulatively fallen over 36%. Several short-selling institutions have recently released intensive short reports targeting AppLovin. Culper and Fuzzy Panda both pointed out that AppLovin has been abusing app permissions to automatically install applications on users' phones in the background without their consent, a practice that is key to its revenue growth but violates Google and Apple App Store policies, posing risks of regulatory scrutiny and hefty fines.

Salesforce (CRM.US) Q4 performance mixed, Q1 guidance below expectations. The financial report shows that Salesforce's Q4 2024 revenue grew by 7.6% year-on-year to $9.99 billion, marking the company's third consecutive quarter of single-digit year-on-year revenue growth, falling short of analysts' expectations of $10.04 billion; net profit was $1.71 billion, up from $1.45 billion in the same period last year; adjusted earnings per share were $2.78, better than analysts' expectations of $2.61. Salesforce's guidance for Q1 2025 is below expectations, dampening investor optimism about its new AI products. The company expects Q1 revenue to be between $9.71 billion and $9.76 billion, lower than analysts' expectations of $9.91 billion; it expects full-year revenue for the new fiscal year to be between $40.5 billion and $40.9 billion, while the average analyst expectation is $41.5 billion. As of the time of publication, Salesforce's stock fell over 4% in after-hours trading on Wednesday.

eBay (EBAY.US) Q4 performance exceeded expectations, Q1 revenue guidance below expectations. The financial report shows that eBay's Q4 revenue grew by 1% year-on-year to $2.58 billion, slightly above analysts' expectations of $2.57 billion; adjusted earnings per share were $1.25, better than analysts' expectations of $1.20. GMV grew by 4% to $19.3 billion. The company expects Q1 2025 revenue to be between $2.52 billion and $2.56 billion, below analysts' expectations of $2.59 billion; it expects adjusted earnings per share to be between $1.32 and $1.36, while analysts expect $1.33. As of the time of publication, eBay's stock fell over 8% in after-hours trading on Wednesday Snowflake (SNOW.US) surged over 10% after hours. The latest earnings report shows that the company's fourth-quarter revenue was $986.8 million, better than analysts' expectations of $958 million; fourth-quarter product revenue was $943.3 million, exceeding analysts' expectations of $915.8 million. The company expects product revenue for fiscal year 2026 to be $4.28 billion, higher than analysts' expectations of $4.23 billion; it anticipates an adjusted operating margin of 8% for fiscal year 2026