Zhitong Finance learned that on Wednesday, the three major indices rose, and the NASDAQ rose more than 2%. The US core CPI unexpectedly rebounded in August, and the market lowered its bet on the Federal Reserve's aggressive interest rate cut by 50 basis points.

[US Stocks] As of press release, the Dow rose 124.75 points, or 0.31%, to 40861.71 points; the NASDAQ rose 369.65 points, or 2.17%, to 17395.53 points; and the S&P 500 rose 58.61 points, or 1.07%, to 5554.13 points. Micron Technology (MU.US) rose more than 4%, Nvidia (NVDA.US) rose more than 8%, and Apple (AAPL.US) rose 1%. The Nasdaq China Golden Dragon Index rose 1%, Xiaopeng Motors (XPEV.US) rose more than 4%, and Alibaba (BABA.US) rose 1%.

[European stocks] The German DAX30 index rose 74.87 points, or 0.41%, to 18353.65 points; the British FTSE 100 index fell 10.51 points, or 0.13%, to 8195.47 points; the French CAC40 index fell 10.72 points, or 0.14%, to 7396.83 points; the European Stoxx 50 index rose 15.45 points, or 0.33%, to 4762.65 points; Spain's IBEX35 index rose 71.50 points, or 0.64%, to 11275.00 points; Italian FTSE The MIB index fell 49.29 points, or 0.15%, to 33164.00 points.

[Asia Pacific Stock Market] The Nikkei 225 Index fell 1.49%, while Indonesia's Jakarta Composite Index and Vietnam's VN30 Index fell slightly.

[Gold] COMEX gold futures fell 0.09% to $2540.9 per ounce. COMEX silver futures rose 0.94% to $28.995 per ounce.

[Cryptocurrency] Bitcoin fell slightly to $57548.17; Ethereum fell more than 1.5% to $2,351.

[Crude Oil] West Texas Intermediate (WTI) futures for October delivery on the New York Mercantile Exchange rose $1.56, or 2.4%, to close at $67.31 a barrel. Brent crude oil futures for November delivery on the European Intercontinental Exchange rose $1.42, or 2.1%, to close at $70.61 a barrel.

[Metals] London Metals rose. London nickel rose 2.39%, Lunzinc rose more than 3%, Lunan aluminum rose 1.73%, and Lun copper rose 1.27%.

[Macro News]

The US core CPI unexpectedly rebounded in August. According to data released by the US Bureau of Labor Statistics, the US CPI rose 2.5% year on year in August, falling for the fifth month in a row, in line with market expectations and lower than the previous value of 2.9%; in August, CPI rose 0.2% month-on-month, in line with market expectations and previous values. According to the US Bureau of Labor Statistics, housing is a “major factor” in overall economic growth. Basic US inflation unexpectedly rose in August due to rising housing and travel prices, weakening the possibility that the Federal Reserve will cut interest rates sharply next week. The market notes that the US core CPI rose 0.3% month-on-month in August, estimated at 0.2%, compared to the previous value of 0.2%. Economists believe that the core inflation rate is a better reflection of potential inflation than the overall CPI. Core CPI rose 3.2% year on year in August, estimated at 3.2%, compared with the previous value of 3.2%.

Citi lowered the Fed's interest rate cut and is expected to cut interest rates by 25 basis points in September. Citigroup economists abandoned their prediction that the Federal Reserve will cut interest rates by 50 basis points at next week's meeting and instead expect to cut interest rates by 25 basis points at the meeting, while maintaining the expectation that interest rates will be cut by a total of 125 basis points this year. Economist Andrew Hollenhorst wrote in the report that the August CPI data released on Wednesday “may only be enough to convince the FOMC to cut interest rates by 25 basis points instead of 50 basis points at next week's meeting.” However, the labor market “will still be the biggest concern of policy makers”. We still expect interest rate cuts of 125 basis points this year, and 50 basis points for November and December, respectively. Citi previously predicted that the September and November meetings would cut interest rates by 50 basis points, respectively, and 25 basis points in December.

US White House: Housing inflation continues, and affordable housing policies will ease the pressure on the housing market. The US White House issued an article stating that, as the Bureau of Labor Statistics pointed out, housing inflation etc. in August were the “main factors” of this month's inflation. Although we don't pay too much attention to interpreting any one month's data points, housing pressure on overall inflation has continued, apparently related to the very tight housing market and the shortage of affordable housing that has developed over the past ten years. The trend in housing prices shows a structural shortage of supply in the US real estate market. This shortage has been going on for at least 10 years, and the Economic Advisory Committee has analyzed the issue in great detail, focusing on the factors behind the shortage. More importantly, we explained the policies proposed by the Biden/Harris administration to significantly improve this gap. We believe these measures, which require congressional approval, can quickly begin adding 2 million to 3 million affordable housing units. This will significantly reduce the shortage of affordable housing and have a corresponding impact on prices. The sooner we start implementing this agenda, the better it will be for American families.

Morgan Stanley Strategist: Investors are looking too much for the AI theme. Morgan Stanley's Mike Wilson said that the artificial intelligence boom that drove the S&P 500 index to new highs earlier this year is fading away, so the stock market needs a new catalyst if it wants to regain its gains. The bank's chief US stock strategist said in an interview with Bloomberg TV on Wednesday that although artificial intelligence is likely to change productivity over time, the practice of investors competing to raise stock prices in the short term due to its potential is somewhat ahead of schedule. He added that this is now reflected in chip stocks struggling, not just Nvidia's recent fluctuations. The Philadelphia Semiconductor Index has dropped 8.5% this month. “The dream of artificial intelligence has faded a bit,” he said. “We're just getting excited about the whole topic of artificial intelligence. It doesn't mean the end.”

Federal Reserve Supervisory Authority: No evidence was found that the Atlanta Federal Reserve Chairman used insider information to trade. The Federal Reserve's internal oversight body harshly criticized Atlanta Federal Reserve Bank Chairman Bostic for violating the Federal Reserve's investment restrictions previously disclosed, but said it found no evidence that he used confidential information to conduct transactions. The Federal Reserve Inspector General's Office confirmed in a report released on Wednesday and dated September 4 that Bostic's money manager carried out transactions on his behalf during the Federal Open Market Committee's quiet period, and he failed to disclose part of the transaction. The Inspector General also said that according to FOMC silence regulations, these transactions “appear to be acting on the basis of FOMC confidential information” and “appear to have a conflict of interest.” The inspector general said that he had completed almost two years of investigation and submitted the matter to the Federal Reserve Board of Governors “in order to take any further action they deem appropriate.”

[Individual Stock News]

Nvidia (NVDA.US) CEO: Blackwell's strong demand and short supply have strained customer relationships. Nvidia CEO Hwang In-hoon said that the limited supply of popular chip products annoyed some customers and strained relationships. He told the audience at the Goldman Sachs technical conference in San Francisco, “The demand is so strong. Everyone wants to get the first batch. Everyone wants to order the most. Our customers are excited. This is reasonable. They are really nervous. We are doing our best.” Hwang In-hoon told the audience that there is strong customer demand for the latest generation of Blackwell chips. Nvidia has outsourced physical hardware production, and the supplier is trying to catch up.

The quiet revival of IBM (IBM.US) is viewed as the preferred choice for investing in the technology sector to win steadily. IBM is quietly experiencing a revival, and its stock price is setting a record for the first time in more than 10 years. The company's stock price has risen 26% this year, beating tech giants such as Apple, Microsoft, Amazon, and Alphabet Inc. After a few years without much popularity in the market, this outstanding performance comes at a time when IBM is shifting its focus to the software sector, and is likely to benefit from artificial intelligence. In early trading on Wednesday, IBM's stock price rose 1.3%, hitting the highest intraday level in history. It was also the first time since 2013. Then it regained gains and fell 0.7% at one point. “This is a stock that 'slowly and steadily wins the game',” said Tim Pagliara, Chairman and Chief Investment Officer of Capwealth Advisors. Although IBM is still somewhat overlooked in the tech sector, “recent price trends prove that people have begun to wake up and recognize the long-term success it will achieve.”

Stellantis Group (STLA.US) invested more than $0.406 billion to renovate three Michigan plants. Automobile manufacturer Stellantis Group issued a statement saying it will invest more than $0.406 billion in three plants in Michigan, USA, including the Stirling Heights Assembly Plant, Warren Truck Assembly Plant, and Dundee Engine Plant. Stellantis confirmed that the Stirling Heights plant will be the company's first plant to produce an all-electric vehicle in the US, and the Warren Truck plant will produce the future electrified Jeep Wagoneer. Meanwhile, the Dundee plant will be remodeled to assemble, weld, and test the STLA platform's battery holders, and process the front and rear beams of the STLA Large. Production will begin in 2024 and 2026, respectively.

OpenAI is reportedly discussing raising capital at a valuation of 150 billion dollars. According to people familiar with the matter, OpenAI is reportedly discussing raising funds at a valuation of 150 billion US dollars. Previously, foreign media reported that the valuation was 100 billion US dollars at the end of August. The company hopes to raise around $6.5 billion from investors and is discussing financing $5 billion from bank debt. People familiar with the matter pointed out that negotiations are still ongoing, and the exact figures may change. Earlier, according to foreign media reports, this round of financing will be led by Thrive Capital. The company's biggest investor, Microsoft (MSFT.US), will also participate, and Apple (AAPL.US) and Nvidia have also been in negotiations on investment matters.

[Big Bank Ratings]

Wells Fargo: Overrated initial rating for Blackstone (BX.US), target price $163