US Market Outlook: Government Shutdown Ends, Indices Dip; Alibaba Rises Over 4%

US Stock Market Overview

On Thursday morning, US stock index futures showed a downward trend. The Dow futures fell by 0.09%, the Nasdaq futures dropped by 0.23%, and the S&P 500 futures decreased by 0.17%.

Tech Stocks Performance

Star tech stocks exhibited mixed results. AMD fell over 1%, while Tesla (TSLA) and Oracle (ORCL) both declined nearly 1%.

Chinese Stocks

Most popular Chinese stocks saw gains, with Alibaba (BABA) rising over 4%, Bilibili (BILI) up more than 3%, and JD, NIO, Baidu, and Pinduoduo each increasing by over 1%.

Gold and Storage Stocks

Gold stocks mostly rose in pre-market trading, with Harmony Gold (HMY) up over 4%. However, storage concept stocks like SanDisk (SNDK), Western Digital (WDC), and Seagate Technology (STX) fell by more than 3%.

Tencent and Apple Agreement

Tencent has reached an agreement with Apple (AAPL) regarding revenue sharing from WeChat games, with Apple taking a 15% cut. This resolution, after over a year of negotiations, opens new revenue streams for Apple and alleviates pressure on Tencent.

Alibaba's AI Strategy

Alibaba is reportedly revamping its flagship AI application "Tongyi" to compete with ChatGPT, rebranding it as "Qwen". This shift marks a transition from B2B to B2C monetization, emphasizing AI as a core growth strategy.

Tencent's Q3 Earnings

Tencent reported Q3 revenue of 192.87 billion yuan, a 15% year-on-year increase, surpassing expectations. Adjusted net profit was 70.55 billion yuan, up 18%.

Bilibili's Strong Q3 Results

Bilibili's Q3 adjusted net profit surged 233% to 786 million yuan, with total revenue reaching 7.69 billion yuan, a 5% increase year-on-year.

Microsoft and OpenAI Collaboration

Microsoft's CEO Satya Nadella stated that the company has access to all research information from OpenAI, allowing them to leverage innovations in chip design.

JD's Q3 Performance

JD reported Q3 revenue of 299.06 billion yuan, a 14.9% increase, exceeding market expectations. Adjusted net profit was 5.796 billion yuan.

Baidu's New Chip Technology

Baidu unveiled its Kunlun chip at the World 2025 conference, aiming to enhance performance significantly. The company plans to release two new Kunlun chips in the next two years.

Cisco's Strong Earnings

Cisco's stock surged over 7% after reporting Q1 revenue growth of 8% to $14.88 billion, exceeding expectations.

Disney's Revenue Decline

Disney's stock fell nearly 4% after reporting Q1 revenue of $22.46 billion, below expectations.

Eli Lilly's Market Potential

Citi raised Eli Lilly's target price to $1500, predicting significant sales growth for its new GLP-1 drug due to expanded insurance coverage.

Market Insights

UBS warned that tariffs are effectively a massive tax increase, significantly impacting US economic growth and consumer income.

Economic Outlook

Moody's chief economist expressed concerns about the US economy's ability to avoid recession, despite AI's contribution to growth.