Overnight U.S. stocks full review (11.12)｜ Tesla rises nearly 9%, cryptocurrency concepts soar, BTC ready to hit $90,000: How three-way payments work in India

The major US stock indices rose on volatility yesterday, with Tesla shares soaring nearly 9% and the cryptocurrency space seeing significant growth. At the end of the trading day, the Dow Jones Industrial Average was up 0.69%, the Nasdaq was up 0.06%, and the S&P 500 climbed 0.1%.The yield on the 10-year U.S. Treasury note added 0.79% to close at 4.339%, which is 8.9 bps higher than the yield on the 2-year Treasury note. The panic index VIX rose 0.2% to 14.97, while the price of Brent crude oil fell 2.84%. spot gold prices fell 2.42% to $2,619.61 an ounce. The dollar index rose 0.52% to 105.5.

Japanese Prime Minister Fumio Kishida is successful in his re-election. Bank of Iran payment system will be officially connected to Bank of Russia payment system. The Israeli cabinet agrees to the framework of a ceasefire agreement with Lebanon.

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In terms of industry sectors, with the exception of financials, industrials, energy, communications and utilities, which rose 1.42%, 0.77%, 0.57%, 0.56%, 0.28%, respectively, the other six major sectors of the S&P 500 ended the day with declines: semiconductors, real estate, healthcare, technology, materials and consumer discretionary were each down 2.5%, 0.87%, 0.59%, 0.55%, 0.43% and 0.35%.

In the Concepts sector, the Airlines ETF gained 2.29%, Travel Services added 2.25%, Luxury Hotels Marriott added 1.82%, Airbnb gained 2.07%, and Norwegian Cruise Line added 1.83%.The Solar sector fell 0.74%.In the FinTech sector, the PayPal closed up 4.73% and NU gained 4.33%.The cybersecurity sector added 1.9% and SQ jumped 11.86%.

Chinese stocks were mixed, with KWEB up 0.34%, TSMC down 3.55%, BABA up 1.31%, PDD down 0.56%, JD.com up 1.75%, Ideal Motors adding 2.88%, Xiaopeng Motors up 5.59%, and Futurama Securities jumping 7.83%, Azure Auto fell 0.59%, Snowball dropped 0.51%, LKCO fell 0.16%, and Famous Fortune dropped 1.45%.

Most large tech stocks ended the day lower. nVIDIA fell 1.61%, Apple lost 1.2%, and Kuo predicted Apple's 5G chip shipments will reach 35 million to 40 million by 2025 and will rapidly increase to 90 million to 11 million and 16 million to 18 million in 2026 and 2027. Microsoft fell 1.071 TP3T, Google gained 1.171 TP3T, Amazon fell 0.641 TP3T and is developing smart glasses that will advise couriers on navigation at each stopping point to get orders to customers' homes faster. India's financial-crimes agency will summon senior executives of Flipkart and Amazon, the country's biggest e-commerce retailers, to step up investigations into alleged violations of foreign-investment laws, a senior Indian government official said.Meta was down 1.05%, Tesla was up 8.96%, Eli Lilly and Co. was up 0.11%, and Walmart was down 0.73%.

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1. Hedge funds shorting Tesla have lost more than $5bn since Trump won the election. Hedge funds shorting Tesla have lost tens of billions of dollars since Trump won the U.S. election, with Musk's special relationship with the incoming president weighing on them. Hedge funds with short positions in Tesla have incurred at least $5.2bn in book losses between election day and Friday's close, according to calculations based on data compiled by S3 Partners.

By the end of 2023, closed-end fund company Destiny Tech100 (DXYZ) held SpaceX shares worth about $18.46 million. This holding is insignificant compared to SpaceX's $150 billion valuation. However, DXYZ's investment in SpaceX represents 34.6% of its portfolio.

Musk plays key role in Trump's future team

Billionaire Elon Musk has become a key player in the formation of Trump's future administration, ABC said, citing anonymous sources. Musk has reportedly made almost daily appearances at Mar-a-Lago since the last election, directly influencing Trump's hiring decisions and strategy for his second term. He participated in two of Trump's phone calls with foreign leaders, sources said. In a call with Ukrainian leader Zelensky, Trump even gave the phone to Musk to discuss the situation directly with the Ukrainian leader. Musk also participated in a call with Turkish President Recep Tayyip Erdogan.

2. BTC 'whale' MicroStrategy buys 27,000 BTC, bringing its year-to-date return to 26.41 TP3T

MicroStrategy (MSTR.O), the largest corporate BTC holder, announced that it purchased approximately 27,200 BTC between 31 October 2024 and 10 November 2024 for approximately $2.03 billion in cash, which is the largest single purchase since December 2020 The average price, including fees and expenses, was approximately $74.463 million. As of 10 November 2024, the Company and its subsidiaries held approximately 279,420,000 BTC for a total purchase price of approximately $11.9 billion at an average price of approximately $42,692,000 including fees and expenses. The year-to-date return on the company's BTC position as at 10 November 2024 was 26.41 TP3T.

Trump seeks financial institution candidates who support cryptocurrencies

Incoming President Donald Trump is poised to take a more relaxed stance on the U.S. government's treatment of cryptocurrencies and is looking for pro-crypto industry candidates for key positions, according to the Washington Post. His senior advisers have sought the opinions of crypto executives on possible changes to federal policy. Initial discussions have centred on a range of financial regulators, including the SEC.Trump's advisers have considered current regulatory officials, former federal officials and financial industry executives for key leadership positions, according to five sources familiar with the matter, many of whom have publicly voiced support for bitcoin. They warned that the discussion process is still in its early stages and that the list of candidates is still evolving.

The dollar is changing its anchors: gold in the agricultural age, oil in the industrial age, and BTC in the digital age.

3. Anti-Trump protests erupt in many parts of the United States

Anti-Trump protests have erupted in major cities on the east and west coasts of the United States, with thousands of Americans taking to the streets to express their displeasure at the former president's re-election, The Guardian reported on 10 November. One organiser said that this latest "movement" was more "mature" than the 2016 protests and aimed to build a "political force" against Trump. Judging by media reports, the protests organised across the US on the 10th were among the larger rallies in recent times. In addition to anti-Trump protests in New York and Washington, the Women's March also plans to hold a large-scale "People's March" in Washington before Trump's inauguration in January next year. Trump has been controversial for his stance on abortion rights and his promise to "massively deport illegal immigrants".

4. Wall Street is optimistic about Bitcoin, but Terry Smith, the "British Warren Buffett", takes the opposite view

Shares of NVIDIA (NVDA.O) have nearly doubled this year, and Wall Street analysts have given it a strong recommendation. However, Terry Smith, a fund manager known as "Britain's Warren Buffett," believes NVIDIA lacks a predictable earnings stream and a proven track record of high capital returns. I'm not sure we understand the future of AI because almost no one is paying for any application," Smith said. Are they willing to pay at scale and pay a high enough price to justify it? If not, chip suppliers will have a problem." Smith's warning is one of the biggest concerns about the future of the AI industry: whether the revenues generated by the technology will ultimately justify the billions of dollars invested by companies. That scepticism has caused NVIDIA's market value to evaporate by about $90 billion. Strategists expect NVIDIA to reach a net profit margin of 56% in fiscal 2025, but Smith argues that such high margins may not be sustainable because high returns will attract competition. "Large customers that use NVIDIA microprocessors, such as Microsoft, Amazon and Oracle, have a history of developing their own microprocessors."

5. Taiwan law prohibits TSMC from producing 2nm chips overseas

Taiwan law restricts TSMC from producing advanced 2nm chips overseas to protect the island's technology. Minister of Economic Affairs Kuo Ching-Wen clarified, "TSMC is currently unable to produce 2nm chips overseas." Although TSMC plans to produce 2nm chips overseas in the future, the law requires that the technology used in overseas factories be at least one generation behind that used in Taiwan factories.

While TSMC plans to build a 2nm plant in Arizona by 2028, the first plant will begin producing 4nm chips starting next month.

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Key economic data to watch today:

1. 19:00 US NFIB Small Business Confidence Index for October

2. 23:00 Remarks by United States Federal Reserve Bank President Waller at the Bank Conference

3. 23:15 Speech by Barkin of the United States Federal Reserve Bank

4. The following day, at 03:00, Kashkari of the Federal Reserve Bank of the United States participated in a conference on financial investments.

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