Artificial Intelligence has fallen.
At the opening of the U.S. stock market on October 7th, Oracle fell by over 7% at one point; Tesla fell by over 4%; the chip index fell by over 2%. The U.S. government is set to take a stake, Trilogy Metals surged by 211%. The China-concept index fell by over 2%, with Alibaba down over 3%. The three-year U.S. Treasury auction saw steady demand, pushing U.S. Treasury yields to a new daily low. The U.S. dollar index hit a one-month high, while the Japanese yen fell to a seven-month low. Bitcoin, at one point, fell over $5,000 from the intraday record set on Monday, breaking below the $121,000 mark. Gold futures rose nearly 1% intraday, while silver futures fell from a 14-year high.
On the news front, Oracle was reported to have inferior cloud profit margins, triggering a sell-off in large technology and consumer stocks, thereby dragging down the broader U.S. market. Additionally, rising inflation expectations and the ongoing U.S. government shutdown provided a macroeconomic backdrop for the market pullback. The S&P and Nasdaq fell after hitting record highs early in the session, ending the S&P's seven-day winning streak.
On the other hand, however, Morgan Stanley's latest report on the Chinese market showed that foreign capital inflows into Chinese stocks rebounded to $4.6 billion in September, the highest monthly level since November 2024. Among them, Alibaba, Contemporary Amperex Technology (300750), and JD.com saw the largest increases in holdings. In the monthly changes in holdings of the top 20 Chinese stocks by international and U.S. funds in September, Alibaba received the largest increase in holdings, with its comprehensive portfolio weight rising by 3.3%.
It is worth noting that Alibaba is making rapid progress in the field of artificial intelligence. According to an X account signed "QWEN," its large model QWEN3-VL ranked second on the visual leaderboard and became the first open-source model to simultaneously rank first on both the pure text and visual leaderboards. Recently, major financial institutions such as J.P. Morgan, CLSA, and Daiwa Securities have also raised their target prices for Alibaba.
