Global News | US stocks fluctuate, Tesla plans to gradually cease Model S and Model X production

【U.S. Stock Indices】

On January 28th, Eastern Time (Wednesday), the three major U.S. stock indices closed mixed, with the S&P 500 down 0.01% to 6,978.03; the Dow Jones Industrial Average up 0.02% to 49,015.60; and the Nasdaq up 0.17% to 23,857.45.

【U.S. Bonds】

On January 28th, the benchmark 10-year U.S. Treasury yield was 4.26%, and the yield on the 2-year Treasury, most sensitive to Federal Reserve policy rates, was 3.56%.

【Popular U.S. Stocks】

Among popular U.S. stocks, Nvidia rose 1.59%, Google C increased 0.38%, Google A increased 0.44%, Apple fell 0.71%, Microsoft rose 0.22%, Amazon fell 0.68%, TSMC rose 1.14%, Meta fell 0.63%, Tesla fell 0.10%, Super Micro Semiconductor rose 0.28%, and Intel surged 11.04%.

【Global Indices】

【China Indices】

On January 28th, overnight Hang Seng Tech Index futures rose 2.69%, Nasdaq China Golden Dragon Index increased 0.32%, and FTSE China A50 Index declined 0.07%.

【Chinese Concept Stocks】

In popular Chinese concept stocks, Tencent Holdings (HK) rose 2.31%, Alibaba increased 1.70%, Pinduoduo fell 3.84%, NetEase rose 1.46%, Baidu increased 0.02%, Ctrip fell 0.06%, Li Auto rose 2.39%, Xpeng Motors increased 0.51%, and NIO declined 1.08%.

【Forex and Commodities】

【Global News】

Tesla to Halt Model S and Model X Projects

Tesla CEO Elon Musk said that capital expenditure in 2026 will be “very large”; it is expected that production of Model S and Model X will gradually cease starting next quarter, with the Fremont factory transforming into a production site for the Optimus humanoid robot. Tesla CFO stated that Tesla will fully shift to a FSD subscription model starting this quarter. Capital expenditure in 2026 is expected to exceed $20 billion. (Cailian Press)

The Probability of the Fed Holding Rates Steady in March is 86.5%

According to CME “FedWatch”: the probability of the Fed cutting rates by 25 basis points by March is 13.5%, and the probability of holding rates steady is 86.5%. The probability of a cumulative 25 basis point rate cut by April is 24.1%, with a 74% chance of no change, and a 2.0% chance of a 50 basis point cut. (Cailian Press)

Nasdaq China Golden Dragon Index Closes Up 0.32%

Popular Chinese concept stocks showed mixed performance, with Nasdaq China Golden Dragon Index up 0.32%, Bilibili up over 3%, Li Auto up over 2%, Alibaba up over 1%, while Bawang Tea and NIO fell over 1%.

Fed Chair Powell Proposes Next Chair “Draw a Line” with U.S. Politics

On January 28th, local time, Fed Chair Jerome Powell suggested that the next Fed Chair should “draw a line” with U.S. politics. Earlier that day, the Fed released the latest minutes of the monetary policy meeting, announcing that the federal funds rate target range would remain between 3.5% and 3.75%. Powell held a press conference on this decision and answered questions about the current U.S. economy and the next Fed Chair. Powell said that the impact of tariffs on consumer prices over the past year has basically been transmitted, “We expect the impact of tariffs on goods prices to peak and then begin to decline, provided no new major tariff increases are implemented, which is also what we expect to see this year.” He added that U.S. inflation this year is roughly in line with expectations, but no decisions have been made regarding the timing or pace of further easing. (CCTV News)

Fed Chair Powell Suggests Next Chair “Draw a Line” with U.S. Politics

Fed Chair Jerome Powell stated that he recommends the next Fed Chair “draw a line” with U.S. politics. (Cailian Press)

Trump Nominates Fed Chair Candidate to Be Announced in About a Week

U.S. Treasury Secretary Janet Yellen said that Trump’s nominee for Fed Chair might be announced in about a week. (Cailian Press)

Powell: Some Jobs May Be Replaced by AI in the Short Term

Fed Chair Jerome Powell said that in the short term, we might see some jobs replaced by AI, but the overall impact is still unclear. (People’s Financial News)

Powell: Does Not Believe the Fed Will Lose Its Independence

Powell refused to comment on TILLIS’s pledge to block the nomination. He stated that he does not believe the Fed will lose its independence. If the Fed loses independence, its credibility will be difficult to restore. (Cailian Press)

Powell: Most of the Inflation Surpassing Expectations Comes from Tariffs, Not Demand

Fed Chair Jerome Powell said that the impact of tariffs has been transmitted through the U.S. economy. Tariffs may cause one-time price increases. Most of the inflation exceeding expectations comes from tariffs rather than demand. Core PCE inflation, excluding tariffs, is slightly above 2%. He expects the impact of tariffs on goods to peak and then fall back this year. If this occurs, it would indicate that the Fed can ease policy. Attention should also be paid if downside risks to the labor market re-emerge. (Cailian Press)

Intel Shares Continue to Rise

Intel shares continued their upward trend, currently trading at $49.19, up 12%.