Overnight U.S. Stocks | U.S. Weekly Initial Jobless Claims Unexpectedly Decline, Three Major Indexes Close Higher, Intel (INTC.US) Surges Over 7.6%

According to Zhitong Finance APP, on Thursday, the three major indices collectively rallied following the Fed's rate hike. Unexpectedly, the U.S. weekly initial jobless claims fell, with the Department of Labor stating on Thursday that, for the week ending September 12, initial jobless claims across the states decreased by 10,000 to a seasonally adjusted 196,000. Economists had widely expected 208,000 claims. This unexpected drop likely reflects data volatility during last week's Labor Day holiday.

[U.S. Stocks] At the close, the Dow Jones Index rose 316.14 points, or 0.61%, to 51,778.04 points; the S&P 500 Index gained 85.91 points, or 1.14%, to 7,637.72 points; and the Nasdaq Composite Index was up 439.87 points, or 1.69%, closing at 26,418.30 points. SK Hynix (SKHY.US) rose 4.6%, Nvidia (NVDA.US) gained 2.5%, AMD (AMD.US) was up 6%, and Intel (INTC.US) surged more than 7.6%. The Nasdaq Golden Dragon China Index rose 0.16%. Alibaba (BABA.US) was up 1%, while Bilibili (BILI.US) fell by 3%.

[European Stocks] The German DAX30 Index rose 165.47 points, or 0.65%, to 25,724.35; the UK FTSE 100 Index added 131.67 points, or 1.23%, to 10,820.14; the French CAC40 gained 46.34 points, or 0.57%, to 8,186.93; the Euro Stoxx 50 Index was up 57.75 points, or 0.92%, to 6,324.25; the Spanish IBEX35 rose 200.51 points, or 1.02%, to 19,836.31; and Italy's FTSE MIB Index increased by 422.38 points, or 0.81%, to 52,391.50.

[Asian Markets] The Nikkei 225 Index rose 0.33%, while the South Korean Composite Index edged down slightly.

[U.S. Dollar Index] The U.S. Dollar Index, which measures the dollar against six major currencies, closed at 100.248 in late forex trading. By the close in New York, 1 euro was exchanged for $1.1475, up from $1.1470 the previous trading day; 1 pound sterling traded at $1.3353, down from $1.3382; $1 exchanged for 156.04 yen, up from 155.92 yen; $1 exchanged for 0.8248 Swiss francs, down from 0.8250; $1 traded for 1.3992 Canadian dollars, slightly less than the previous 1.3994; and $1 traded for 9.8256 Swedish kronor, down from 9.8598.

[Cryptocurrency] Bitcoin rose more than 1% to 76,509 yuan as of publication; Ethereum gained over 2.4% to $2,450.

[Crude Oil] New York Mercantile Exchange light sweet crude for October delivery fell 52 cents to $101.91 per barrel, down 0.51%; November delivery Brent crude in London dropped $1.01 to $104.82 per barrel, down 0.95%.

[Precious Metals] Spot gold rose 1.8% to $4,341.79 per ounce; spot silver was reported at $65.207 per ounce.

[Macroeconomic News]

U.S. 30-year mortgage rates rose for a fourth consecutive week, approaching 7%. On Thursday, Fannie Mae stated in a release that the average 30-year fixed mortgage rate in the U.S. climbed to 6.95%, up from 6.76% a week earlier. This is the first time since January 2025 that the rate has risen to this level. A year earlier, the rate was 6.26%. For prospective homebuyers who hoped mortgage pressure would ease by 2026, rates near 7% are a renewed blow. After the Fed raised rates by 25 basis points on Wednesday, the market also began to realize that borrowing costs may not decline significantly in the short term. The escalating cost of homeownership is becoming a central issue in the upcoming November midterm elections. Meanwhile, although the Trump administration is trying to boost the housing market through bond purchases and deregulation, a quick recovery in the real estate market is becoming increasingly unlikely. Intercontinental Exchange estimates show that for a home averaging $440,000, with current loan costs, a typical family's mortgage payments would consume 31% of median income—the highest level since July 2025. At the same time, the homebuilder confidence index fell sharply this month to the lowest level in a year.

OpenAI reported to be close to solving another "Millennium Prize Problem". Earlier this month, OpenAI found itself in the spotlight after mathematicians accused it of trying to claim credit for solving a highly difficult math problem. However, a person familiar with the solution revealed that OpenAI is close to solving another "Millennium Prize Problem." The source stated employees expect the next challenge, the Hodge Conjecture, to be solved soon. The company, however, may take a while to announce the solution, as it is seeking cooperation with the mathematics community to avoid sparking another PR crisis when making the results public. Though solving these problems is not cheap, some OpenAI researchers believe mathematics is the natural next field for their models to explore after software engineering. Both areas share similar traits: they require step-by-step logical reasoning and their answers can often be automatically verified. Some researchers even believe the automation wave seen in software engineering over the past year will sweep through mathematics in the next six to nine months. Moreover, solving deep mathematical problems could help AI researchers advance automation in machine learning, a field heavily reliant on mathematics.

Bank of England Governor Bailey: The outlook is uncertain, can't judge market pricing for four rate hikes. When asked whether market pricing for nearly four rate hikes over the next year was reasonable, Bank of England Governor Bailey said on Thursday that the outlook is too unpredictable, adding that officials have not discussed this. "We had extensive discussions this time, but did not discuss the prospect of four rate hikes," Bailey told the press after the Bank of England held rates unchanged but warned of mounting inflation pressures. "The market must make its own judgment, but I must point out: the current situation... is simply too unpredictable." Bailey stated that the condition of the UK government bond market—with the 30-year yield hitting its highest level since 1998 this week—did not affect the central bank's announcement. "We had planned this long before the outbreak of the Middle East conflict, so it is in no way a response to market conditions," said Bailey.

U.S. initial jobless claims drop to 196,000 during Labor Day week. Last week, the number of initial jobless claims in the U.S. fell to the lowest level since July, underscoring continued labor market stability. According to Department of Labor data released Thursday, for the week ended September 12, new claims fell by 10,000 to 196,000. The week included Labor Day, so some volatility around the holiday is possible. The four-week moving average—a measure that smooths volatility—fell to 203,250, a five-week low. The decline may reflect seasonal swings related to Labor Day and the start of the new school year. Nevertheless, the overall trend highlights that, apart from a few high-profile layoff announcements, overall job cuts remain mild across the economy. Continued claims fell last week to 1.73 million, the lowest since 2024. Although layoffs remain limited, Americans remain cautious about quitting amid uneven hiring, further solidifying a "low-hiring, low-layoff" labor market pattern.

U.S. August housing starts unexpectedly decline. New housing starts in the U.S. unexpectedly slowed in August, dropping to one of the weakest levels since the pandemic, reflecting a sharp fall in the initiation of multifamily projects. According to federal data released Thursday, housing starts fell 2.6% to a seasonally adjusted annual rate of 1.28 million. Multifamily project starts fell nearly 22%, with an annual rate of 357,000. Single-family housing starts rose 7.6% to an annualized 918,000, the fastest pace since March, driven mainly by gains in the West and Midwest. Despite last month's growth in single-family starts, the residential real estate market still faces challenges from rising mortgage rates and limited housing affordability. Given that inventories of homes remain far above pre-pandemic levels, builders may also be unwilling to speed up the pace of new construction.