Elon Musk Announces Major Merger!
Elon Musk has made a significant announcement regarding a major corporate merger. This development is expected to have a profound impact on the industry and could reshape the future landscape of technology and business. Stay tuned for more updates on this groundbreaking event.

【Introduction】Elon Musk’s Space Exploration Technologies Corp. SpaceX officially confirms merger with AI startup xAI

On February 2nd, Eastern Time, optimistic economic data was released, and the three major U.S. stock indices opened lower and then rose, closing collectively higher, with the S&P 500 approaching a record high.

At the close, the Dow rose 1.05%, to 49,407.66 points; the Nasdaq increased 0.56%, to 23,592.11 points; the S&P 500 gained 0.54%, to 6,976.44 points.

Large tech stocks showed mixed performance, with the Wind U.S. Tech 7 Giants Index up 0.11%. Among individual stocks, Apple rose over 4%, Google and Amazon increased over 1%, Nvidia fell nearly 3%, Tesla declined nearly 2%, Microsoft and META dropped over 1%.

On the macroeconomic front, the U.S. January ISM Manufacturing PMI was 52.6, hitting a new high since August 2022, significantly above the expected 48.5, and the previous value was 47.9. This indicates a substantial expansion in U.S. manufacturing.

Federal Reserve official Bostic stated that interest rate cuts are not expected until 2026, and it is premature to assert that inflation targets have been achieved now. Policy rates need to be maintained at a moderately restrictive level; patience is required, and adjusting policies in any direction at this stage is unwise.

Additionally, investors are focusing on earnings reports from major U.S. companies. This week will be the busiest of the earnings season, with several important economic indicators to be released, including reports from Alphabet (Google’s parent company), Amazon, and Super Micro Computer, among 128 S&P 500 companies.

Trump: Modi Agrees Not to Buy Russian Oil

U.S. to Lower Tariffs on India

According to CCTV News, on February 2nd, U.S. President Trump posted on the social media platform “Real Social” that he had a phone call with Indian Prime Minister Modi that morning.

Trump stated that the two sides reached a U.S.-India trade agreement, with the so-called “reciprocal tariffs” on Indian goods reduced from 25% to 18%, effective immediately. India will also correspondingly lower tariffs and non-tariff barriers on U.S. goods until they reach zero. Trump also said Modi promised to significantly increase purchases of U.S. products, including over $500 billion worth of American energy, technology, agricultural products, coal, and many other items.

Trump claimed that Modi agreed to stop buying Russian oil and to buy more oil from the U.S., and India might also purchase oil from Venezuela.

As of now, the White House has not issued an official statement. Modi posted on social media that day, confirming that the U.S. agreed to reduce India’s import tariffs on U.S. goods to 18%.

The U.S. government announced on July 31 last year that it would impose a 25% “reciprocal tariff” on Indian imports, which took effect on August 7. On August 6, Trump signed an executive order imposing an additional 25% tariff on Indian imports, citing India’s “direct or indirect” import of Russian oil.

India and the U.S. had promised to negotiate a bilateral trade agreement as early as February last year, but differences in stance, especially regarding crude oil procurement, have delayed the agreement.

Official Announcement! SpaceX and xAI Merge! Valued at $1.25 Trillion

On February 2nd, local time, Elon Musk’s Space Exploration Technologies Corp. SpaceX officially confirmed the merger with AI startup xAI. The deal was announced via an internal memo to employees, and a related statement personally signed by Musk was also published on the company’s official website, marking a deep integration of its core space and AI businesses.

The new entity after the merger is reportedly valued at $1.25 trillion, with an expected IPO share price of approximately $526.59. If the IPO proceeds smoothly, the company could raise up to $50 billion in a single round, potentially setting a new record for the largest tech IPO in recent years.

Crude Oil Plummets 5%

Due to easing geopolitical tensions, crude oil prices plunged by 5 during trading, with the decline easing slightly at the close. WTI March crude futures fell $3.07, nearly 4.71%, to $62.14 per barrel.

As of press time, WTI March futures are around $62.01 per barrel.

(Source: China Fund News)