U.S. stocks continue their rebound trend, with the Dow reaching new highs. OpenAI will launch an upgraded chat model this week.

On Monday, Eastern Time (February 9), U.S. stocks continued their rebound from last Friday, led by technology stocks, with the three major indices all closing higher. The Dow hit a new high, and the S&P 500 is just one step away from its all-time high. Tech giants are actively advancing AI initiatives: OpenAI will launch an upgraded chat model this week, Google is issuing $20 billion in bonds to boost AI investments, and SeeDance 2.0 video model is trending across the internet.

【U.S. Stock Indices】

At the close, the S&P 500 rose 0.47%, to 6,964.82; the Dow Jones increased 0.04%, to 50,135.87; and the Nasdaq gained 0.90%, to 23,238.67.

Last week, the tech sector experienced heavy selling, especially in AI software. However, since last Friday, investors seem to have reconsidered whether the sell-off was excessive, and continuous bottom-fishing inflows have pushed the market higher. Analysts believe that after a sharp rotation last week where value stocks outperformed growth stocks, funds are flowing back into the tech sector.

The “most shorted stocks” have risen over 11% from last Friday’s lows, erasing all of last week’s declines. Analysts interpret this as hedge funds closing out their short positions accumulated earlier.

Morgan Stanley strategists believe U.S. tech stocks still have room to rise, supported by the AI boom and strong sales outlook. Michael Wilson’s team notes that revenue growth expectations for large tech firms have reached “decades-high levels,” while valuations have declined after recent market volatility. The decline in software stocks offers “attractive entry points” for some individual stocks.

CFRA’s Sam Stovall states that the tech sector’s correction is a necessary digestion of previous gains. The industry is expected to see EPS grow 32% in 2026 and another 20% in 2027, compared to 13% and 16% respectively for the S&P 500.

Although the rebound in tech stocks alleviates concerns about AI potentially disrupting business models, some analysts warn that recent volatility may persist, and investors should monitor whether tech fundamentals can continue supporting valuations.

Chris Senyek of Wolfe Research predicts continued volatility in the coming days. He points out that sectors like consumer staples, which performed well this year, are now heavily overbought, and non-software tech stocks remain “very crowded” among institutional and retail investors. Several popular software stocks will report earnings this week, which may help investors assess whether last week’s sell-off was a “misjudgment.”

Additionally, markets are awaiting a busy week of macroeconomic data, including the delayed January non-farm payroll report and the latest CPI figures. This has led traders to maintain risk exposure ahead of the data releases.

On the corporate front, OpenAI CEO Sam Altman told employees last Friday that the company’s popular AI chatbot ChatGPT’s “monthly growth rate has returned to over 10%.” He also announced that OpenAI will launch an “upgraded chat model” this week. ChatGPT’s weekly active users have surpassed 800 million, but market share for Google and Anthropic continues to grow.

【U.S. Treasury Bonds】

U.S. Treasury yields mostly declined, with the benchmark 10-year yield ending at 4.199%, and the 2-year yield, sensitive to Federal Reserve policy, at 3.487%.

【Popular U.S. Stocks】

Among popular stocks, Nvidia rose 2.50%, Apple fell 1.17%, Google C increased 0.40%, Google A up 0.45%, Microsoft gained 3.14%, Amazon declined 0.76%, TSMC rose 1.83%, Meta increased 2.41%, Tesla up 1.51%, Ouster Semiconductor rose 3.63%, and Intel fell 0.69%.

In major news, Google’s parent company Alphabet plans to raise $20 billion through dollar-denominated bonds, exceeding the initial estimate of $15 billion.

Elon Musk stated that SpaceX will prioritize lunar projects over Mars, citing shorter timelines and strategic urgency, while reaffirming the long-term vision of landing on Mars.

【Global Indices】

In Europe, the FTSE 100 rose slightly by 0.16%, closing at 10,386 points. France’s CAC 40 gained 0.60%, to 8,323. Germany’s DAX increased 1.19%, to 25,015.

In Asia, the Hang Seng Index rose 1.76%, to 27,027 points. The China State-owned Enterprise Index increased 1.52%, to 9,168. The Nikkei 225 surged 3.89%, to 56,363.94.

【China Indices】

On February 9, overnight, the Hang Seng Tech Index futures rose 1.38%, the Nasdaq China Golden Dragon Index increased 0.12%, and the FTSE China A50 Index gained 1.24%.

【Chinese Concept Stocks】

Popular Chinese stocks: Tencent Holdings (HK) up 2.28%, Alibaba up 0.26%, Pinduoduo up 0.32%, NetEase up 0.50%, Baidu up 0.71%, Ctrip down 1.38%, Li Auto down 3.27%, Xpeng down 1.13%, NIO down 2.98%.

【Forex and Commodities】

On Monday, the US dollar index was weak, falling to a one-week low and closing down 0.84% at 96.816. As markets await a series of U.S. economic data, the dollar’s weakness makes dollar-denominated commodities more attractive to overseas buyers. Spot gold continued its rally, briefly surpassing $5,080 per ounce, and London gold closed up 1.19% at $5,021 per ounce. Spot silver touched $84 and closed up 5.26% at $831.7 per ounce.

International crude oil opened lower but rose later, as the U.S. warned ships flying the American flag to stay clear of Iranian waters in the Strait of Hormuz. WTI crude accelerated higher, ending up 1.54% at $64.53 per barrel; Brent crude rose 1.6%, to $69.14 per barrel.

【Key News Highlights】

Biden: The Fed May Not Shrink Its Balance Sheet Rapidly

U.S. Treasury Secretary Janet Yellen said that even if Jerome Powell remains Fed Chair, balance sheet reduction will not proceed quickly, possibly taking up to a year to evaluate. She emphasized that if the Fed shifts to a “ample reserves” mechanism, it would need to maintain a large-scale asset and liability profile. This suggests that under the Trump administration’s goal to lower mortgage rates, the Fed will remain cautious, prioritizing financial stability over aggressive tightening.

Google Plans to Issue $20 Billion in Bonds to Fund AI Expansion

Alphabet intends to raise $20 billion via dollar bonds, exceeding the initial $15 billion estimate. Sources say the bond issuance attracted over $100 billion in orders, with up to seven tranches. The longest tranche, maturing in 2066, has a spread 0.95 percentage points above U.S. Treasuries.

Additionally, Alphabet is pitching its debut bond offerings in Switzerland and the UK, with the UK issuance possibly including a rare 100-year bond—marking the first such long-term issuance by a tech company since the late 1990s internet bubble.

Seedance 2.0: What Does It Mean for AI Applications?

China Securities (601696) states that Seedance 2.0, focusing on multimodal referencing, lens consistency, audio-video synchronization, and automatic scene segmentation, significantly enhances controllability and stability in AI video generation. It moves video creation from “trial-and-error” to scalable production, with usability rates exceeding 90%, drastically reducing costs and production time, accelerating applications in short dramas, animation, and e-commerce. In a low-market sentiment environment, Seedance 2.0 could be a key catalyst for restoring confidence in AI multimodal applications and industry sentiment.

Microsoft’s Ratings Downgraded Twice in Less Than a Week; AI Risks Cited

Melius Research downgraded Microsoft, citing concerns over capital expenditure and its Copilot-branded products. Earlier, Stifel also downgraded, warning about potential slowdown in Azure cloud growth.

Altman: ChatGPT’s Monthly Growth Rate Re-Exceeds 10%

Internal Slack messages reveal that OpenAI CEO Sam Altman told staff last Friday that ChatGPT’s “monthly growth rate has again surpassed 10%.” He also said OpenAI is preparing to launch an “upgraded chat model” this week.

Elon Musk: SpaceX Shifting Focus to Lunar “Self-Growing City” Before Mars

Elon Musk announced that SpaceX will prioritize lunar projects over Mars, citing shorter timelines and strategic urgency. He emphasized the company’s long-term vision of landing on Mars. “For those unaware, SpaceX has shifted focus to building a self-growing city on the Moon because we could achieve this in under 10 years, whereas Mars will take over 20,” Musk wrote on X. “SpaceX’s mission remains: to extend consciousness and life beyond the stars,” he added.

EU Antitrust Sues Meta: Plans to Force WhatsApp to Open Up and Ban Blocking Third-Party AI Competitors

The EU accuses Meta of abusing its market dominance by restricting access to WhatsApp API to stifle AI competitors. Regulators plan to impose interim measures requiring Meta to keep the platform open during investigations, to prevent permanent market disruption. Meta denies the allegations. This move signals the EU’s tough stance on antitrust, setting boundaries for AI regulation and curbing tech giants’ platform advantages to suppress competition.

Novo Nordisk’s Weight Loss Drug Ads Deemed “Misleading” by FDA

The FDA sent a letter to Novo Nordisk stating that its advertising implied Wegovy oral tablets are superior to other GLP-1 weight-loss drugs and positioned the medication as a solution for broader lifestyle challenges rather than a treatment for specific conditions. These claims lack supporting data. Shares of Novo Nordisk, which had surged over 7%, rose less than 3% during the day.