Market Overview

Before the market opened on Friday, the U.S. reported non-farm payroll data for October, which far exceeded expectations. The seasonally adjusted non-farm employment figure reached 165,000, a new high since March, significantly higher than the market's forecast of 65,000. The U.S. unemployment rate in October was 4.1%, compared to the market expectation of 4.2%.

U.S. short-term interest rate futures fell after the release of non-farm employment data, with traders increasing their bets on a Fed interest rate hike in December.

As of press time, the three major stock index futures showed mixed movements: the Dow Jones futures fell by 0.87%, the S&P 500 index futures rose by 0.25%, and the Nasdaq futures increased by 1.59%.

The following is the market situation before the release of non-farm data.

WTI Crude oil futures rose 0.38% to $90.86 per barrel, and Brent crude oil futures rose 0.34% to $98.62 per barrel.

The yield on 10-year U.S. Treasury bonds is about 4.86%. COMEX Gold futures fell 1.48% to $4,054.5 per ounce, silver futures fell 0.86%; Bitcoin was trading at around $76,200.

Star tech stocks showed divergence before the market opened: NVIDIA rose by about 4%, AMD rose by over 8%, and Micron rose by about 8%; Apple and Microsoft fell by about 1%.

Storage concept stocks strengthened, with Sandisk rising by about 11%, Western Data rising by about 9%, and Micron rising by about 9%.

The optical communication sector rebounded, with Lumentum rising by about 10%, and Marvell Technology rising by about 9%.

Individual Stock News

The Democratic Party plans to investigate Apple, Meta, and companies related to Musk

According to The Washington Post, after winning both chambers of Congress, the Democratic Party has begun to determine the priorities for investigations. The report states that Apple has come under attention for hosting applications used to track personnel from the United States Immigration and Customs Enforcement (ICE); meanwhile, Meta has been named due to demands for local governments to sign confidentiality agreements regarding data center development; the House of Representatives is also preparing to investigate Trump's use of SpaceX Grok under Musk for related military operations. Robert Garcia, who will soon become the chairman of the House Oversight Committee, has warned relevant companies to "hire lawyers." Apple, Meta, X, and Musk have not immediately responded to requests for comments. As of press time, Apple's stock price has fallen by about 1%, while Meta's stock price is nearly unchanged.

Tesla: Announces Gradual Suspension of Production of Cybertruck, Shifting Resources to Robots and Cybercab

Elon Musk stated on the X platform that Tesla plans to gradually phase out production of the Model 3 at its Gigafactory in Texas around the middle of next year, and instead focus on expanding the production capacity for autonomous taxis. The chief engineer of Tesla mentioned that the technology for this model will be continued through future models. According to estimates, only about 11,600 units were sold in the first three quarters of this year, a decrease of 28% compared to the same period last year. Musk made it clear that the company will focus on humanoid robots, electric trucks, and other products. After the mid-term elections, Tesla's stock price has seen a significant decline. As of press time, Tesla's stock is up more than 1% before trading begins.

SpaceX: The five-year CDS reaches a new historical high again

According to Markit data, the five-year credit default swap (CDS) CDS widened by 24.5 basis points on Thursday to 286.56 basis points, setting a new historical high. Bloomberg's industry research credit analyst Robert Schiffman pointed out that stricter licensing approvals, rules related to power grid costs, and local opposition may pose constraints on the next phase of infrastructure expansion SpaceX. After the Democrats won key positions such as governor in Texas, there are concerns in the market that environmental permits and tax incentives SpaceX in Texas will face more stringent scrutiny. Meanwhile, the spreads of major technology companies CDS have generally narrowed, showing a divergence from the trend of SpaceX. As of press time, SpaceX was up 4.5% at the opening of trading.

Microsoft: Tightens review of new cloud partners, withdraws from some data center projects

According to Bloomberg, which cited people familiar with the matter, Microsoft is strengthening its supervision of data center projects involving NEBIUS, IREN Ltd, and Nscale. It is withdrawing from projects it considers to be higher-risk and is discussing whether to continue signing new cloud deals. Previously, Microsoft committed up to approximately $43.8 billion for Nscale, about $19.4 billion for Nebius, over $10 billion for CoreWeave, and around $9.7 billion for IREN. CFO Amy Hood mentioned multiple times at recent financial reports that delays in third-party computing power delivery disrupted spending plans. The report states that Microsoft has withdrawn from several projects related to Nscale and has retracted its letter of intent to lease about 1.35 gigawatts of computing power in West Virginia. As of press time, Microsoft's shares were slightly down before the market opened.

Cloudflare: Third-quarter revenue growth rate is the fastest in nearly four years, exceeding expectations

Cloudflare announced third-quarter revenue of $782.5 million, a year-on-year increase of 39%, representing the fastest growth rate in nearly four years and exceeding Wall Street's forecast of around $737 million; adjusted earnings per share were $0.38, higher than the expected $0.34. The company stated that it added 308 new large customers this quarter, with annualized revenue surpassing $3 billion, and operating expenses as a percentage of revenue dropping to about 55%. For the fourth quarter, revenue is projected to be between $845 million and $846 million, with adjusted earnings per share at $0.43, both of which are higher than Wall Street's previous forecasts. CEO Matthew Prince indicated that since early July, the company has incorporated approximately 5% of global internet traffic into its network. As of press time, Cloudflare shares have risen by about 20%.

Moderna: Turned losses around in the third quarter, raised full-year revenue growth guidance to 15%–25%

Moderna announced third-quarter revenue of approximately $1.31 billion, a year-on-year increase of 29%; net profit was $162 million, with earnings per share at $0.38, far exceeding Wall Street's previous forecast of a loss of about $1.25 per share. The company raised its revenue growth guidance for 2026 from the previous high of about 10% to 15%–25%, attributing the improvement to a rebound in international COVID-19 vaccine sales. Research and development expenses decreased by 27% to $583 million year-on-year. The mRNA skin cancer vaccine, developed in collaboration with Merck, showed in the III phase of trials that when used in combination with Keytruda, it can reduce the risk of recurrence or death by 42%. As of press time, Moderna's stock price had risen by about 11% before the market opened.

IREN: First-quarter revenue exceeded expectations, AI cloud revenue increased by 182% month-on-month

IREN Ltd announced revenue of $228 million for the first quarter of fiscal year 2027 (as of September 30), a 66% quarter-on-quarter increase, exceeding the market's expectation of around $221 million; AI cloud business revenue reached $200 million, with a 182% quarter-on-quarter growth. The company reported a loss of $0.66 per share for the quarter, which fell short of the market's expectation of about $0.48 per share; net loss was $263 million. The company stated that it is postponing its annual recurring revenue target of $4 billion (ARR) to the beginning of 2027 due to Microsoft's requirements for changes to its data center in Texas and delays in equipment delivery. Bitcoin mining revenue decreased quarter-on-quarter, and the company plans to basically exit mining by the end of the year and shift to AI cloud services. As of press time, IREN shares have risen by about 17%.

Atlassian: First-quarter performance exceeded expectations, subscription growth expected to slow down, putting pressure on stock price

Atlassian announced revenue of $1.77 billion for the first quarter of fiscal year 2027, a year-on-year increase of 24%, exceeding the forecast of approximately $1.71 billion; adjusted earnings per share were $1.65, higher than the forecast of about $1.44. Cloud revenue increased by 31% year-on-year, and subscription ARR grew by 23% to $6.8 billion, with remaining performance obligations increasing by 44% to $4.7 billion. The company has raised its full-year revenue guidance to approximately $7.48 billion, but expects the full-year subscription ARR growth to be about 18.5%, lower than the 23% in the first quarter; it also expects data center revenue to decline by about 16%. The revenue guidance for the second quarter is $1.825 billion to $1.835 billion. As of press time, Atlassian shares have fallen by about 18%.

Global Macroeconomics

Anthropic: Under the impact of AI selling pressure, the listing plan for Anthropic may be postponed

According to people familiar with the matter, against the backdrop of a significant decline in tech stocks, potential investors are questioning whether Anthropic will be able to launch its roadshow for IPO as planned during the week of November 9th and complete its listing in November. The previous market valuation of around $1.5 trillion was considered too high, and some large investors believe that the valuation may need to be reduced to around $1 trillion; there have also been discussions about lowering the fundraising target from around $10 billion to around $8 billion. People familiar with the matter stated that if the assets related to AI continue to face pressure, the company may postpone its listing. Investors are also awaiting the updated revenue data for October, which is currently left blank in the S-1.

Goldman Sachs on Gold: Goldman Sachs大幅 cuts gold target price, stating the situation is similar to 2022

Goldman Sachs' commodities research team has lowered its target price for gold at the end of 2026 from $4,650 per ounce to $4,150 per ounce, and from $5,400 per ounce to $4,800 per ounce for the end of 2027. Goldman Sachs believes that under a baseline scenario, the Federal Reserve may raise interest rates again in December 2026, which will suppress the demand from Western investors for currency depreciation hedging; although it is expected that central banks will still purchase about 60 tons of gold per month between 2026 and 2027, the increase in gold prices in a high-interest-rate environment will be more modest, similar to the situation in 2022. On Thursday, spot gold briefly fell below $4,050 per ounce.

Democratic investigation: Silicon Valley allies face a wave of congressional inquiries

The Washington Post reports that after the Democrats regained control of Congress, they are quickly establishing priorities for investigations into corporations. Large tech companies, private prison operators, and natural gas companies have been identified by think tanks as “high-value” targets. Several law firms in Washington have held emergency meetings to provide corporate executives with advice on how to deal with congressional investigations; some venture capitalists advise startups in Silicon Valley to complete financing before the end of the year to prevent executives from being called to testify. Lawyers suggest that sending detailed inquiries to corporations may be more effective than sending letters to government departments.

Saudi Aramco cuts its official crude oil price for Asia in December; Arab light oil hits a six-year low

Saudi Aramco on Friday lowered the official selling price of its December Arab Light crude oil to Asian customers by $2 per barrel from November, to a discount of $6.50 per barrel compared to the average price of Oman/Dubai crude oil, the lowest level since May 2020. A pricing document shows that the company also reduced the selling price of all grades of crude oil to customers in northwestern Europe and the Mediterranean region by $1 per barrel for December, while keeping the prices for US customers unchanged. A Reuters survey last week indicated that due to relatively loose supply in the Middle East and weakening spot premiums, market participants expected Asian prices to remain flat or at most decrease by $2 per barrel. This week, as producers increased exports, the spot premium for the benchmark Middle Eastern crude oil variety has returned to levels before the US war with Iran.

Pre-market trading volume of U.S. stocks TOP20

US Stock Macro Calendar Reminder

(The following times are Beijing time)

22:10: In 2028, FOMC, Federal Reserve Chairman of St. Louis, Muhammad El-Eslam, delivers a speech.

23:00: Preliminary Michigan University Consumer Confidence Index for November in the United States

At 00:00 the next day, Haruhiko Kuroda, Governor of the Bank of Japan, delivered a speech at the International Monetary Fund ( IMF ), followed by a dialogue with Kristalina Georgieva, President of the IMF.

At 01:15 the next day, Federal Reserve Board member Bowman delivered a speech.

At 02:00 the next day: The total number of drilling rigs in the United States as of the week ending November 6th