Trump signs funding bill to end partial government shutdown; Anthropic tool launch; Nvidia denies OpenAI deal rumors.

Trump Confirms Ongoing Negotiations with Iran

On February 3, U.S. President Donald Trump announced that negotiations with Iran are continuing, expressing optimism about reaching an agreement. He refrained from disclosing the location of the talks but indicated that multiple meetings have occurred. Trump emphasized the importance of avoiding a repeat of last year's military actions against Iran.

U.S. Government Funding Bill Passed

The U.S. House of Representatives approved a funding bill negotiated by Trump and Senate Democrats, which is expected to end a partial government shutdown. However, a funding shortfall remains a concern, particularly for the Department of Homeland Security, which has funding only until February 13.

Economic Advisory Council Chair Resigns

Stephen Milan, a Federal Reserve governor, has resigned from his position as chair of the White House Economic Advisory Council. He will continue to serve as a Federal Reserve governor until a successor is confirmed.

Fed's Interest Rate Outlook

Milan indicated that there is currently no strong price pressure in the U.S. economy, suggesting that interest rates need to be lowered further this year. He anticipates a reduction of over 100 basis points. Richmond Fed President Tom Barkin reiterated the goal of returning inflation to 2%.

Ministry of Industry and Information Technology Initiatives

On February 3, the Ministry of Industry and Information Technology emphasized the need for breakthroughs in areas such as 6G, quantum technology, and hydrogen energy. The ministry aims to enhance technological foresight and promote the development of future industries.

Stock Market Overview

The three major U.S. indices closed lower, with the Nasdaq dropping over 1% amid a sell-off in software stocks. The S&P 500 fell by 0.84%, and the Dow Jones decreased by 0.34%.

Notable Stock Movements

• Tech Stocks: Nvidia fell 2.84%, Google-A down 1.16%, and Microsoft dropped 2.87%.
• Chinese Stocks: Alibaba decreased by 2.81%, while NIO rose by 0.66%.

Nvidia's Investment in OpenAI

Nvidia is reportedly close to finalizing a $20 billion investment in OpenAI, which would be its largest single investment in the company.

AMD Reports Strong Q4 Earnings

AMD reported record Q4 revenue exceeding $10 billion, with data center revenue reaching a record $5.4 billion. However, its Q1 revenue guidance fell short of expectations.

Walmart Joins the Trillion-Dollar Club

Walmart's market capitalization has surpassed $1 trillion, marking its entry into the exclusive "trillion-dollar club."

Novo Nordisk's Sales Forecast

Novo Nordisk expects a sales decline of 5% to 13% by 2026, despite a strong Q4 performance. The stock fell 14.6% following the announcement.

Pfizer's Q4 Earnings

Pfizer reported Q4 revenue of $17.56 billion, with a 9% growth in non-COVID business. The company reaffirmed its revenue guidance for 2026.

Intel's Supply Chain Challenges

Intel's CEO stated that supply chain issues for memory chips are expected to persist until at least 2028, driven by increased demand from AI technologies.

Lumentum's Strong Performance

Lumentum's stock rose over 7% after reporting a 65% year-over-year revenue increase, exceeding analyst expectations.

Market Movements in Hong Kong

On February 3, net buying in Hong Kong stocks reached HKD 9.52 billion, with Tencent receiving significant investment.

Upcoming Economic Data

China will release its January services PMI at 9:45 AM, while the U.S. will announce January ADP employment figures and ISM non-manufacturing PMI later in the day.

Earnings Reports

Earnings reports from Novo Nordisk, Eli Lilly, and Uber are expected before the U.S. market opens, with Google-A, Qualcomm, and Arm Holdings reporting after market close.