<h3>Market Overview</h3><p>Before the Federal Reserve's decision, tech giants dragged down U.S. stocks, halting the two-day winning streak of the three major U.S. stock indices. The Nasdaq fell nearly 2%, and the S&amp;P dropped over 1%. Tesla fell over 5%, and despite NVIDIA launching new products, it still dropped over 3%.</p><p>The China concept index retreated. Xiaomi's earnings report was impressive, and its ADR reached a new high. XPeng's earnings report was positive but fell nearly 8%, while Nio rose over 3%. Alibaba dropped over 3%. The offshore yuan fell more than 100 points during the day, breaking below 7.23.</p><p>The German parliament passed a large-scale fiscal spending bill, leading to a nearly 1% rise in German stocks, with defense stock Thyssenkrupp rising nearly 13%; the euro reached a five-month high, pushing the dollar index to a five-month low.</p><p>U.S. and European government bond yields rose and then fell back. Bitcoin once dropped over $3,000, falling below the $82,000 mark. Gold rose over 1% during the day, with futures gold closing at a new high for four consecutive days. Oil rose over 1% during the day before turning down, with Brent crude falling from a two-week high.</p><p>During the Asian session, A-shares collectively closed higher, with gold and high-pressure fast charging leading the gains. Hong Kong stocks expanded their gains, with the Hang Seng Index rising nearly 4%, and BYD shares rising nearly 4%.</p><h3><strong>NVIDIA fell over 3.3%, Tesla dropped over 5.3%, and Meta fell over 3.7%</strong></h3><p>On Tuesday (March 18), the Magnificent 7 index of U.S. tech stocks fell about 2.1%, with Tesla closing down 5.34%, Meta Platforms down 3.73%, and NVIDIA dropping 3.35% on the first day of the GTC 2025 event. Google A fell 2.2%, Amazon dropped 1.47%, Microsoft fell 1.33%, and Apple dropped 0.61%. Additionally, TSMC's ADR fell 1.38%, AMD dropped 1.03%, Eli Lilly fell 0.27%, while Berkshire Hathaway's Class B shares, owned by Warren Buffett, closed up 0.02%.</p><h3><strong>Jensen Huang's Passionate Speech at GTC: AI computing power needs to increase by 100 times, with data center capital expenditures expected to exceed $1 trillion by 2028</strong></h3><p>We are moving towards the era of agent-based AI, followed by the era of physical AI, or robotics, with the law of AI expansion, meaning that computing demand is accelerating at an unprecedented pace.</p><p>Last year, the four major U.S. cloud service providers purchased 1.3 million Hopper architecture chips, and this year they have already purchased 3.6 million Blackwell chips, with data center capital expenditures expected to exceed $1 trillion by 2028.</p><p>General Motors will use NVIDIA technology to help develop autonomous vehicles, and NVIDIA has launched the automotive safety AI solution Halos; NVIDIA will collaborate with telecom companies like T-Mobile to develop AI networks for 6G.</p><p>The Blackwell architecture is now fully in production, with customer demand being &#34;incredible.&#34;</p><p>NVIDIA launched the &#34;AI Factory Operating System&#34; Dynamo, with the inference performance of the Blackwell NVLink72 chip equipped with Dynamo being 40 times that of Hopper; the new Blackwell architecture product Ultra NVL72, also known as GB300, is expected to ship in the second half of this year, while the next-generation Rubin architecture's Vera Rubin NVLink 144 will ship after the second half of next year, followed by the next-generation Rubin Ultra NVL576, which will ship in the second half of 2027AI computer DGX Spark and DGX Station use Blackwell chips.</p><p>NVIDIA launched the world's first humanoid robot functional model GR00T N1, developed in collaboration with DeepMind and Disney, using the open-source physics engine Newton for robot simulation. The robot Blue, powered by GR00T N1, appeared alongside Jensen Huang, who stated, &#34;The era of general-purpose robots has arrived.&#34;</p><h3><strong>Tesla falls another 5%, concerns grow over declining sales, intensified competition, and Musk's political controversies</strong></h3><p>Tesla's stock price fell by as much as 6.6% on Tuesday, while BYD reached an all-time high after the company launched electric vehicles that charge as quickly as gasoline cars.</p><p>In just a few months, Tesla has transformed from Wall Street darling to pariah. This week, a company took the lead in the area of electric vehicle innovation, a stronghold of Elon Musk, further complicating matters for the stock.</p><p>This is the latest blow for Tesla, as its extremely high valuation is based on the ability to continuously innovate and stay ahead of competitors. Reports over the past month regarding significant declines in electric vehicle sales in key markets have gradually worsened investor sentiment. Additionally, Musk's rising political influence, which was widely believed to drive Tesla's business growth last year, has now become a burden on the stock price.</p><h3><strong>Xiaomi ADR rises 3.7% to a new high</strong></h3><p>Xiaomi Group released its 2024 financial report, with Chairman Lei Jun stating that this is the strongest annual report in Xiaomi's history.</p><p>Xiaomi's net profit for 2024 increased by 41.3% year-on-year, reaching a record high, with a gross margin of 20.4% in the automotive business for Q4, aiming for a delivery target of 350,000 units this year. During the conference call, it was mentioned that this year, 7-8 billion will be invested in AI, with mobile phone shipments targeted at 180 million units and a market share increase of 1%.</p><p>Xiaomi's delivery target for vehicles this year has been raised to 350,000 units, with the current main bottleneck being delivery capacity, and new production capacity covering the entire range of models, not just high-end models. AI, OS, and chips constitute Xiaomi's three core technologies, with AI being very important in Xiaomi's &#34;full ecosystem of people, vehicles, and homes&#34; strategy.</p><p>This year's R&amp;D budget of 30 billion yuan allocates about 1/4 to AI-related investments, with actual investments even exceeding this proportion. Xiaomi's mobile phone shipment target for this year is 180 million units, with a market share increase of 1%, aiming to exceed 200 million units by 2027. The &#34;ice washing&#34; major appliance market has huge potential, with no ceiling in sight.</p><h3><strong>US-Russia presidential call</strong></h3><p>The US and Russian presidents spoke for 90 minutes, reaching a partial ceasefire agreement, but a full ceasefire is still distant. Putin supports &#34;not striking energy targets within 30 days,&#34; while the US side stated that comprehensive ceasefire negotiations would begin immediately, partially easing tensions that had earlier arisen due to instability in the Middle East, leading to a drop in oil prices.</p><h3><strong>German parliament raises defense spending, military stocks surge</strong></h3><p>The German parliament broke through the traditional debt ceiling, passing a historic fiscal plan that unlocks higher defense spending and initiates a 500 billion euro infrastructure fund. ZEW data shows that fiscal stimulus has boosted economic confidence beyond expectations. Analysts predict that Germany's defense spending will increase GDP by 0.2%-0.3% annually over the next five years, with infrastructure investment further raising demand by 0.2%-0.3%. Military stocks rose, German bond yields increased, with Thyssenkrupp up 12.66% and Rheinmetall up 5.67%</p><h3><strong>The Federal Reserve will hold an FOMC meeting, and the market is most looking forward to the Fed taking action</strong></h3><p>Investors are most concerned about whether the Federal Reserve will commit to taking interest rate cuts when signs of economic weakness appear. However, analysts believe that Powell may avoid making this commitment unless accompanied by an important prerequisite: officials need to see inflation consistently moving towards the 2% target and maintain stable expectations for future price increases.</p><h3><strong>Goldman Sachs trader: Systematic deleveraging is nearing its end</strong></h3><p>Goldman Sachs trader Scott Rubner pointed out that CTAs have currently shorted $30 billion of U.S. stocks. Assuming the current short squeeze continues and the U.S. stock market experiences a +2 standard deviation increase in the next month, CTAs may need to buy over $45 billion of the S&amp;P 500.</p><h3><strong>U.S. Bitcoin ETF faces longest capital outflow, with $5.5 billion fleeing in five weeks!</strong></h3><p>The Bitcoin ETF is experiencing a sell-off, with outflows on February 25 reaching a record high since its launch, exceeding $1 billion. The price of Bitcoin has already fallen more than $20,000 from its historical peak</p>

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<p>The three major U.S. stock indices halted their two-day winning streak, with the Nasdaq closing down nearly 2%. Xiaomi's ADR rose 3.7% to a new high, Alibaba fell over 3%, and XPeng dropped nearly 8%. The German parliament passed a large-scale fiscal spending bill, and Thyssenkrupp rose nearly 13%. U.S. and European government bond yields surged and then retreated. Gold closed at a new high for four consecutive days</p>

- U.S. tech stocks fell ahead of the Federal Reserve's decision, with major indices halting a two-day rise; the Nasdaq dropped nearly 2% and Tesla fell over 5%.  
- Xiaomi reported strong earnings, with a 41.3% increase in net profit, while NIO gained over 3% despite Xpeng's nearly 8% drop.  
- The German parliament approved significant fiscal spending, boosting defense stocks, while Bitcoin faced a sell-off, dropping over $3,000.

Breakfast | Tesla falls another 5%, Jensen Huang: AI computing power needs to increase by 100 times!