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

【U.S. Stock Indices】

On January 28th, Wednesday, U.S. major stock indices showed mixed performance, with the S&P 500 down 0.01% to 6,978.03; the Dow Jones 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 stocks, Nvidia rose 1.59%, Google Class C increased 0.38%, Google Class A increased 0.44%, Apple fell 0.71%, Microsoft rose 0.22%, Amazon declined 0.68%, TSMC rose 1.14%, Meta fell 0.63%, Tesla declined 0.10%, Super Micro Semiconductor increased 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 declined 0.06%, Li Auto rose 2.39%, Xpeng Motors increased 0.51%, and NIO fell 1.08%.

【Forex and Commodities】

【Global News】

Tesla to Halt Model S and Model X Projects

Tesla CEO Elon Musk said that capital expenditures 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 the company will fully shift to a FSD subscription model starting this quarter. Capital expenditure in 2026 is expected to exceed $20 billion. (Cailian Press)

Federal Reserve Probabilities of Holding Rates Steady in March at 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 chance of a cumulative 25 basis point 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 Rises 0.32%

Popular Chinese concept stocks showed mixed performance; Nasdaq China Golden Dragon Index rose 0.32%, Bilibili increased over 3%, Li Auto rose over 2%, Alibaba increased 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, answering 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 start to decline, provided no new major tariff hikes are implemented, which is 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 Recommends Next Chair “Draw a Line” with U.S. Politics

Fed Chair 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 Powell said that in the short term, we may 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 Surpass Expectations Comes from Tariffs, Not Demand

Fed Chair 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, excluding tariffs’ impact on goods, is slightly above 2%. He expects tariffs’ impact on goods to peak and then decline 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%.