Breakfast | "Triple Witching Day" is coming, and the three major indices continue to decline

Market Overview U.S. stocks initially continued the overnight decline in early trading, but positive remarks from Israel regarding the Strait of Hormuz and the U.S. easing oil supply policies triggered a drop in oil prices. In the last hour before the market closed, U.S. stocks recovered most of the day's losses. The market is awaiting "Triple Witching Day" on Friday. The Dow Jones fell 0.44%, and the Nasdaq dropped 0.28%. The Russell small-cap index outperformed the broader market, rising 0.65%, primarily driven by large-scale short covering. Tesla fell over 3%, leading the decline among the seven major tech companies. Most chip stocks rose, but Nvidia dropped over 1%, and Micron fell about 3.7% after earnings. Alibaba's U.S. shares closed down over 7%. The bond market stabilized, with the yield on the U.S. 10-year Treasury bond slightly down by 1.7 basis points, while the 2-year remained roughly flat at 3.784%. The dollar fell 0.7%. The European Central Bank and the Bank of England simultaneously released hawkish signals, causing the euro to rise 1.2%, the pound to increase 1.3%, and the yen to gain over 1.3%. Bitcoin fell 1.1%, briefly dipping below $70,000 before rebounding, while Ethereum dropped 2%. Despite the weakening dollar, metals faced heavy selling amid hawkish expectations from central banks. Gold plummeted by 6% at one point, falling to around $4,500, and silver saw a mid-session drop of 12%, later narrowing its losses to a 3.3% decline at the New York close. London aluminum experienced its largest drop since 2018. WTI crude oil briefly surpassed $100 before plunging, dropping over 8% from its daily high. Brent crude fell more than 3%. During the Asian session, all three major A-share indices fell over 1%, while CPO strengthened against the trend. Non-ferrous metals suffered heavy losses, and the Hang Seng Index saw a significant drop of 2%, with Tencent falling nearly 7% and Xiaomi rising over 3%. Key News China Ministry of Commerce: Continue to play a good role in the China-U.S. economic and trade consultation mechanism to strengthen dialogue and communication. People's Bank of China: Firmly maintain the stable operation of financial markets such as stocks, bonds, and foreign exchange. Alibaba's Q4 revenue grew 2% year-on-year, with AI-related revenue experiencing triple-digit growth for ten consecutive quarters; on the conference call: In the next five years, cloud and AI annual revenue will exceed $100 billion, and MaaS will be Alibaba Cloud's largest revenue product. Xiaomi's New Year launch event: New SU7 starts at 219,900 yuan with full series equipped with laser radar, and the first mobile phone lobster is officially in closed testing. Xiaomi launched the trillion-parameter large model MiMo-V2-Pro. Overseas Bessent: Iran's oil is allowed to continue flowing from the Gulf region, possibly lifting sanctions on Iranian oil at sea. Iran stated that if infrastructure is attacked again, it will no longer restrain itself and will target a U.S. F-35 fighter jet; the U.S. military may seize islands to force Iran to open the Strait of Hormuz. The Israeli Prime Minister stated that airstrikes on Iranian energy facilities will be suspended, and Qatar reported that Iran's attacks have disrupted 17% of LNG production capacity. Reports indicate that Iran plans to impose a "security toll" on vessels in the Strait of Hormuz, causing Brent crude to retreat. Reports also state that officials say the White House is currently not considering banning oil and gas exports. The Bank of Japan remained on hold as expected but stated, "We must be vigilant about the impact of rising oil prices on inflation!" The Bank of Japan Governor noted that soaring oil prices make policy judgments more difficult, and if the economic outlook is realized, interest rates will continue to rise. The European Central Bank remained on hold for the sixth time, with the Middle East conflict creating high uncertainty for the Eurozone outlook. Lagarde warned that the Iranian conflict poses a substantial impact on inflation and urged the government not to overreact in addressing the energy crisis The Bank of England maintains interest rates unchanged, removes the wording of "rate cuts," and is "ready to take action at any time" regarding inflation, leading to a surge in government bond yields! The number of initial jobless claims in the U.S. unexpectedly dropped to 205,000 last week, the lowest this year. From rate cuts to rate hikes! The bond market has undergone a historic shift in expectations regarding the Federal Reserve's policy path. The nomination path for Walsh as Federal Reserve Chair is complicated! Reports: Trump suggests that the U.S. Department of Justice should continue investigating Powell. U.S. Senator Warren questions Walsh regarding the Epstein files and demands a response from him. Jensen Huang: AI leaders should avoid spreading panic and are optimistic that Anthropic's revenue will exceed one trillion by 2030. Market Closing Report U.S. and European stock markets: The S&P 500 fell by 0.27%, closing at 6,606.49 points. The Dow Jones Industrial Average fell by 0.44%, closing at 46,021.43 points. The Nasdaq fell by 0.28%, closing at 22,090.69 points. The European STOXX 600 index closed down 2.39%, at 583.64 points. A-shares: The Shanghai Composite Index closed at 4,006.55 points, down 1.39%. The Shenzhen Component Index closed at 13,901.57 points, down 2.02%. The ChiNext Index closed at 3,309.10 points, down 1.11%. Bond market: The yield on the U.S. 10-year benchmark Treasury bond fell by 1.57 basis points, at 4.2493%. The yield on the 2-year U.S. Treasury bond rose by 1.74 basis points, at 3.7924%. Commodities: WTI April crude oil futures fell by 0.18%, at $96.14 per barrel. Brent May crude oil futures rose by 1.18%, at $108.65 per barrel. Spot gold fell by 3.42%, at $4,653.01 per ounce. Spot silver fell by 3.33%, at $72.85 per ounce. News Details Global Highlights China Ministry of Commerce: Continue to play a good role in the China-U.S. economic and trade consultation mechanism to strengthen dialogue and communication. Both sides agreed to study the establishment of a working mechanism to expand economic and trade cooperation, continue to play a good role in the China-U.S. economic and trade consultation mechanism, strengthen dialogue and communication, properly manage differences, expand practical cooperation, and promote the continuous and stable improvement of bilateral economic and trade relations. People's Bank of China: Firmly maintain the stable operation of financial markets such as stocks, bonds, and foreign exchange. On March 18, the expanded meeting of the Party Committee of the People's Bank of China clarified the continued implementation of a moderately loose monetary policy, comprehensively using tools such as reserve requirement ratio cuts and buying and selling government bonds to maintain ample liquidity and guide financing costs to operate at low levels. In addition, the meeting first proposed studying the establishment of a liquidity support mechanism for non-bank institutions to fully safeguard the stable operation of the economy and financial markets Alibaba Q4 revenue grew 2% year-on-year, AI-related revenue has seen triple-digit growth for ten consecutive quarters; Conference call: In the next five years, cloud and AI annual revenue will exceed $100 billion, MaaS will be Alibaba Cloud's largest revenue product In this performance report, the most notable growth came from cloud and AI. Alibaba Cloud's revenue for the quarter increased by 36% year-on-year to 43.284 billion yuan, with AI-related product revenue maintaining triple-digit year-on-year growth for the tenth consecutive quarter. Due to the impact of timely retail investments, the group's operating profit fell sharply by 74% year-on-year to 10.645 billion yuan, and non-GAAP net profit declined by 67% year-on-year to 16.710 billion yuan, while the market expected 31.6 billion yuan. Pingtouge has cumulatively shipped over 470,000 AI chips for actual business deployment, with an annualized revenue scale reaching the hundred billion level, and an IPO in the future cannot be ruled out. The goal for instant retail is to exceed one trillion in transaction volume by the fiscal year 2028, with overall profitability expected in the fiscal year 2029. Alibaba and Baidu both raise prices, is the Chinese cloud market entering a "price increase cycle"? Driven by the explosive demand for AI and rising hardware costs, the "price increase wave" in the Chinese cloud service market has spread from small and medium-sized vendors to leading players. Morgan Stanley believes that China's cloud infrastructure services have officially transitioned from a price reduction phase to a price increase inflection point, and leading cloud vendors with pricing power are expected to benefit first, with expectations for profit margin recovery also increasing. Xiaomi's Spring Launch Conference: New SU7 starts at 219,900 yuan with full series equipped with laser radar, first mobile phone lobster officially in testing. The new generation SU7 comes standard with laser radar, 700 TOPS of assisted driving computing power, and Xiaomi HAD end-to-end assisted driving system, with a pre-sale price range of 229,900 to 309,900 yuan. Lei Jun emphasized that in the next three years, Xiaomi plans to invest over 60 billion yuan in the AI field, striving to achieve a leading position in this cutting-edge track. Lei Jun officially announces the "mysterious model" that has sparked global developer discussions, Xiaomi's "AI roadmap" is gradually becoming clear. Xiaomi has launched the trillion-parameter large model MiMo-V2-Pro, which ranks eighth globally and has significant cost advantages. Goldman Sachs released a report supporting this, stating that Xiaomi has officially entered the period of realizing AI results, solidifying its position as a "physical AI leader." Although the hundred billion-level R&D investment may pressure short-term profits, the ecological implementation will drive long-term value reconstruction, and Goldman Sachs maintains a "buy" rating with a bullish target of HKD 41. Overseas Beisenet: Iran's oil has been allowed to continue flowing from the Gulf region, sanctions on Iranian oil at sea may be lifted Baysent stated on the 19th that the United States has not attacked Iran's energy infrastructure, and the U.S. has allowed Iranian oil to continue being transported through the Gulf region. The U.S. may lift sanctions on Iranian oil at sea in the coming days. Additionally, the U.S. may release strategic oil reserves again to curb oil prices. Iran claims it will no longer restrain itself if infrastructure is attacked again, hitting an American F-35 fighter jet; the U.S. military may seize islands to force Iran to open the Strait of Hormuz. Iran stated that the target of the 64th wave of offensives includes oil refineries and troop assembly areas in Haifa, Israel, and its missiles have accurately struck the U.S. Navy's Fifth Fleet; so far, only "a small portion of strength" has been used in response to Israeli attacks on Iranian infrastructure. Reports indicate that a 2,200-strong U.S. Marine Corps expeditionary force is heading to the Middle East, possibly to seize Hark Island and islands near the Strait of Hormuz. The U.S. military stated that an F-35 fighter jet on a mission over Iran made an emergency landing. The Israeli military launched airstrikes on Bandar Anzali, a port city on Iran's Caspian Sea coast, destroying several naval vessels. The Israeli Prime Minister stated that military operations against Iran will continue as long as necessary, and the speed of ending the war will far exceed expectations. The Chief of Staff of the Israeli military stated that military operations against Iran "are not yet halfway through." The U.S. Secretary of Defense stated that he has requested the White House to approve over $200 billion in funding for actions against Iran. In response to calls from Trump, the Israeli Prime Minister stated that airstrikes on Iranian energy facilities will be suspended; Qatar claims that Israeli attacks have disrupted 17% of LNG production capacity. After Netanyahu's speech, Brent crude oil, which had risen more than 10% during the session, fell more than 3%. Trump stated on Wednesday that he was unaware of Israel's attacks on Iranian gas fields, and Qatar was absolutely not involved. On Thursday, he stated that he would not deploy troops anywhere, and the U.S. would take all necessary measures to maintain stable oil prices. The CEO of Qatar Energy stated that in the next three to five years, they will lose 12.8 million tons of LNG production capacity each year; they may have to declare force majeure on LNG supply contracts with customers in Italy, Belgium, South Korea, and others for up to five years. Haifa, Israel, was attacked by Iranian missiles, damaging an oil refinery. Qatar LNG halted, Iranian gas fields bombed, European natural gas prices soar 35%. Iran has severely impacted Qatar's LNG export facilities, which account for one-fifth of global supply, and recovery may take years. European gas prices surged 35% during the session! Trump warned that if Qatar's LNG facilities are attacked again, the U.S. will retaliate. Global supply tightening, combined with European winter consumption depleting inventories, makes upward pressure on gas prices difficult to alleviate. Reports: Iran plans to impose a "security toll" on ships passing through the Strait of Hormuz; Brent crude oil falls back. Reports indicate that the Iranian parliament is drafting a bill requiring ships passing through the Strait of Hormuz to pay Iran a "security toll." International Maritime Organization warns: Even with naval escorts, tanker safety cannot be guaranteed 100%. The blockade of the Strait of Hormuz has caused the most severe disruption of oil flows in history, with daily transit volumes plummeting by 97%. The International Maritime Organization warns that while naval escorts can reduce risk exposure to some extent, they cannot provide reliable safety guarantees for transit tankers—merchant ships and crew will still be exposed to real threats. "USS Tripoli" warship heads to the Middle East, concerns arise over the U.S. sending ground troops to Iran. On the 17th local time, the U.S. Navy's USS Tripoli amphibious assault ship was spotted near Singapore. U.S. sources indicate that this warship is carrying U.S. personnel to the Middle East. Analysts suggest that these Marines may carry out raid missions near the Iranian coast and establish bases along the Strait of Hormuz, raising concerns about the U.S. sending ground troops to Iran. Report: Officials say the White House is currently not considering banning oil and gas exports. Experts warn that a ban on exports could backfire, not only failing to lower gas prices at the pump but also triggering panic buying and further price surges in global markets. An export ban would damage the U.S.'s reputation as a reliable "energy arsenal" and undermine long-term energy investment willingness. Bank of Japan holds steady as expected, but warns "must be vigilant about the impact of rising oil prices on inflation"! Bank of Japan Governor: Rising oil prices make policy judgment difficult, will continue to raise rates if economic outlook materializes The Bank of Japan maintained its interest rate at 0.75% with an 8 to 1 vote, but hawkish member Takeda Sho rare proposed a direct rate hike to 1%, believing that the price target has been largely achieved. The statement for the first time lists the Middle East conflict and rising oil prices as core risks, with internal divisions intertwined with external variables, as the market holds its breath for Ueda Kazuo's press conference—if the wording leans dovish, USD/JPY could surge to 160. Ueda Kazuo stated that rising oil prices are expected to exert upward pressure on overall inflation, while potentially raising inflation expectations and core inflation; however, if oil prices remain high for an extended period, they will also exert downward pressure on economic activity through deteriorating trade conditions. If economic and price trends align with expectations and continue to improve, the central bank will continue to raise policy interest rates and emphasize that the timing of rate hikes will be assessed individually at each meeting. European Central Bank holds steady for the sixth consecutive time, Middle East conflict creates high uncertainty for Eurozone outlook. Lagarde warns that the Iran conflict poses a substantial impact on inflation, urging the government to avoid overreacting to the energy crisis The European Central Bank has maintained its interest rate at 2% for the sixth consecutive time, but due to the impact of the Middle East conflict, its policy stance has turned more hawkish. Despite the increased complexity of policy due to energy price shocks, the ECB remains committed to its 2% inflation target, emphasizing that future decisions will depend on core inflation data and refusing to preset a rate path. Traders have reduced bets on ECB rate hikes, expecting an increase of 61 basis points by the end of the year. On Thursday, ECB President Christine Lagarde issued one of the most direct warnings to date, pointing out the inflation consequences that may arise from the ongoing conflict in Iran. Lagarde urged governments not to "overdo it" in helping citizens cope with soaring energy prices, emphasizing the need for fiscal restraint. The Bank of England keeps interest rates unchanged, removes "rate cut" wording, and is "ready to act" on inflation, with government bond yields soaring! The Bank of England warns of inflation risks, with two-year government bond yields rising by 27 basis points! The Bank of England's rare unanimous decision to maintain rates signals a clear shift in stance by removing previous guidance that "rates may be lowered further," opening the door for rate hikes. Inflation expectations have been significantly raised, and the central bank is highly vigilant against a repeat of the 2022 crisis. The number of initial jobless claims in the U.S. unexpectedly plummeted to 205,000 last week, the lowest this year. Data indicates that companies still prefer to retain employees, and large-scale layoffs have not occurred. A slight increase in continuing claims suggests a slight slowdown in reemployment, with surveys showing "jobs are hard to find," and companies continue to maintain a "no hiring, no firing" stance. From rate cuts to rate hikes! The bond market has undergone a historic shift in expectations for the Federal Reserve's policy path. Following the unexpected hawkish turn by the Bank of England, the sell-off in UK government bonds has driven U.S. Treasury yields higher; combined with the unexpected decline in initial jobless claims announced on Thursday, this further weakened the basis for the Federal Reserve to maintain an accommodative stance. Expectations for Fed rate cuts have been completely erased, with market narratives quickly reversing from "when to cut rates" to "whether to raise rates." Metals fall across the board! Gold drops over 4%, briefly falling below 4600, silver plunges 12%, and London aluminum sees its largest drop since 2018! The escalation of the Middle East conflict has driven up energy prices and inflation expectations, reducing the space for rate cuts, leading to a simultaneous decline in gold, silver, and industrial metals. Gold has fallen for seven consecutive days, briefly dropping below $4,600, silver plummeted over 12%, and industrial metals like LME aluminum have also seen their largest declines in years; coupled with continued outflows from gold ETFs, market demand for safe-haven assets has weakened, putting overall pressure on commodities. The path to the nomination of Waller as Fed Chair is complicated! Reports: Trump suggests the U.S. Department of Justice should continue investigating Powell. U.S. President Trump stated on Thursday that he still supports the U.S. Department of Justice's investigation into Fed Chair Powell He also stated that Powell should cut interest rates immediately, but he won't do so because he is a stubborn and incompetent person, which is unfortunate. Trump's stance complicates the confirmation prospects for Waller's Federal Reserve nomination. According to informed sources, a previous court ruling originally provided the Trump administration with a "way out" to end the investigation into Powell and allow the controversy to gradually subside. However, if the legal battle continues, Trump may have to wait longer for his nominated Federal Reserve chair, Waller, to take office. U.S. Senator Warren questions Waller regarding Epstein files, demands a response from him. U.S. Senate Democrat Warren sent a letter to Trump's Federal Reserve chair nominee Kevin Waller: "Your name seems to appear in the Epstein documents." Warren requested Waller to respond regarding the Epstein documents by March 31. In the letter, Warren inquired whether Waller had ever attended any gatherings where Epstein was present. Jensen Huang: AI leaders should avoid spreading panic, optimistic about Anthropic's revenue exceeding $1 trillion by 2030. NVIDIA CEO Jensen Huang warned that AI industry leaders must be measured in expressing technological risks, stating, "Reminders are helpful, while intimidation is harmful." He believes that the greatest AI risk to U.S. national security lies in society slowing down technology adoption due to fear. Despite Anthropic being embroiled in a contract dispute with the U.S. Department of Defense, Huang still supports its business prospects, predicting that the company's annual revenue could exceed $1 trillion by 2030. Research Report Highlights Major Upgrade! Energy facilities have been drawn into the conflict, Wall Street "reassesses" the timeline for the Iran war, reiterating the "2022 scenario". Core energy facilities in the Middle East have been caught in the crossfire, and the likelihood of the conflict ending in April, the Strait reopening, and oil prices falling is decreasing. The escalation is changing Wall Street's assessment of the duration of the conflict, with analysts warning that if the conflict does not end before April, oil prices could surge to $150 per barrel, with some warning that the conflict could evolve into an energy shock similar to the 2022 Russia-Ukraine conflict, posing a risk of failure for Trump's strategy of an early exit. Could the Iran war be the trigger for a "U.S. financial crisis"? The blockade of the Strait of Hormuz cuts off the circulation of petrodollars, potentially leading to hundreds of billions in Middle Eastern capital withdrawing from the AI supply chain each year; meanwhile, the $1.8 trillion U.S. private credit powder keg has been ignited from within—BlackRock has frozen redemptions, and Apollo executives admit that "recovering 20 cents on the dollar would be good." As the war spreads from a "quick resolution" to its fifth month, a triple crisis is racing toward the same ignition point The Market-Recognized "New Chairman" of the Federal Reserve: Oil. Well-known investor Boockvar has issued a warning: the surge in oil prices is taking over the command of monetary policy, and expectations for interest rate cuts are dead. The S&P 500's price-to-earnings ratio has reached 21 times, and U.S. stocks have no safety margin. The world is sliding into the abyss of stagflation, and the super bull market for commodities has just begun. Carried by Carlyle's Jeff Currie: The Current Supply Shock is Almost Equivalent to the COVID-19 Pandemic. An epic energy supply crisis is upon us! Jeff Currie warns: Oman crude oil spot prices soared to $173 yesterday, with a severe disconnection between spot and futures. He pointed out that during the COVID period, oil needed to be priced at negative $37 per barrel to balance supply and demand, and now, once inventories are depleted, extremely high prices must be used to force demand down. "The scale of this supply shock is almost equal to the demand shock during COVID." Can "Lobster" Significantly Extend the Life of "Memory"? Morgan Stanley's report believes that AI represented by OpenClaw is shifting demand from "generating answers" to "completing tasks," with frequent tool calls and multi-step orchestration in workflows leading to a surge in CPU computation, contributing to major delays. At the same time, due to the need for frequent context sharing and unloading KV caches, DRAM has replaced HBM as the hard constraint bottleneck. This triggers a surge in memory prices in Q2 2026, with Morgan Stanley raising profit expectations for SK Hynix and Samsung. Domestic Macro In the first two months, national general public budget revenue increased by 0.7% year-on-year, with securities transaction stamp duty increasing by 1.1 times, and budget expenditure increasing by 3.6%. From January to February, national general public budget revenue was 44,154 billion yuan, a year-on-year increase of 0.7%; public budget expenditure was 46,706 billion yuan, a year-on-year increase of 3.6%. National government fund budget revenue was 5,363 billion yuan, a year-on-year decrease of 16%; budget expenditure was 13,174 billion yuan, a year-on-year increase of 16%. Securities transaction stamp duty increased by 1.1 times year-on-year, while local land transfer revenue decreased by 25% year-on-year. The China Securities Regulatory Commission Holds a Symposium for Investment Institutions on the "14th Five-Year Plan" for the Capital Market. During the symposium, participants unanimously agreed that in recent years, facing a complex and severe situation, under the strong leadership of the Party Central Committee and the State Council, the CSRC, together with relevant parties, has made significant breakthroughs in building a stable market mechanism with Chinese characteristics, promoting long-term funds into the market, and enhancing investor returns, thereby strengthening the resilience and risk resistance of the capital market. At the meeting, specific opinions and suggestions were put forward on how to further deepen investment-side reforms, improve institutional inclusiveness and adaptability, and enhance the inherent stability of the capital market Domestic Companies Hong Kong Zheng Family Empire, Changing Surname? Hong Kong's old real estate giant New World Development is facing a severe debt crisis, with its first default since going public expected in 2025, and its net debt ratio far exceeding the safety line. The crisis stems from Zheng Zhigang's aggressive expansion into mainland land kings and K11 projects after taking over. Currently, the Zheng family is at an impasse with Blackstone Group over a $2.5 billion investment plan, with the core conflict revolving around the retention of family control. East Money's 2025 revenue increased by 38.5% year-on-year, net profit increased by 25.7%, and plans to distribute 1 yuan for every 10 shares. China Unicom's 2025 revenue and profit saw slight growth, with AI revenue surging by 140%, and free cash flow significantly improved.. Overseas Macro US January New Home Sales Unexpectedly Plummeted to Lowest Level Since 2022, Home Prices Dropped 6.8% Year-on-Year. US January new home sales fell to the lowest point since 2022, reflecting a decline in demand from homebuyers across the country. New home sales in January decreased by 17.6% compared to December, at an annualized rate of 587,000 units. The median sales price of new homes in January dropped by 6.8% year-on-year to $400,500. Sales in the Northeast region fell by nearly 45%, while the Midwest saw a decline of about 34%. Yen Approaches 160, Japan's Finance Minister Warns: Ready to Intervene at Any Time. The yen exchange rate is approaching the 160 mark, while the Bank of Japan maintains its interest rates. Market focus shifts to Governor Ueda Kazuo's policy statements. Against the backdrop of a hawkish Federal Reserve and rising oil prices due to the Middle East situation, the yen faces structural depreciation and stagflation risks. Although the Ministry of Finance has issued a strong warning of intervention to deter speculative forces, if the central bank's statements are not as hawkish as expected, the yen may struggle to maintain this critical psychological defense line. Overseas Companies All Eyes on NVIDIA's Chips, Jensen Huang Has Cultivated a "Second Pillar". NVIDIA's networking business has quietly become the company's second-largest source of revenue, second only to its computing business. In the last fiscal quarter, this business generated $11 billion in revenue, a year-on-year increase of 267%, with annual revenue exceeding $31 billion. Analysts point out that NVIDIA's quarterly networking business revenue has already surpassed the annual networking business estimates of the old networking giant Cisco. Micron Conference Call: AI Will Transform Storage into a "Strategic Asset"! To Address Shortages, Must Spend Money to Build Factories and Sign First 5-Year Long-Term Contracts, HBM4 Direct Supply to NVIDIA Micron Technology's latest financial report showed strong performance, but the massive capital expenditure plan exceeding $25 billion raised market concerns about costs, leading to a decline in stock price after hours. To address structural shortages and lock in demand, Micron broke the tradition of one-year agreements and signed its first five-year strategic agreement, confirming that HBM4 has begun mass production for NVIDIA. Driven by AI demand, the company expects gross margins to reach as high as 81% in the third fiscal quarter, emphasizing that memory chips have become a "decisive strategic asset in the AI era." The financial report "made a fortune," but why did Micron drop sharply. Analysts believe that the stock price adjustment following this financial report reflects a reassessment of the sustainability of profits under the combination of high valuations and high capital expenditures. Additionally, the extent to which NVIDIA will rely on Micron for HBM4 is also a future focus of the market. Today's News Preview China's March one-year and five-year loan market quoted interest rates. Germany's February PPI. U.S. stock market triple witching day. Huawei releases new data storage products. XPeng announces financial report