① SoftBank and OpenAI announce joint venture; ② IBM to lay off employees in Q4; ③ McDonald's Net income for the third quarter was $2.278 billion, up 1% year-over-year.
U.S. stock index futures traded in a narrow range on Wednesday as investors weighed on artificial intelligence . The sell-off triggered by concerns over the (AI) sector is showing signs of abating. Major European indices generally declined.
(Source: Investing.com)
Data released before the market opened showed that U.S. ADP employment increased by 42,000 in October, the largest increase since July 2025, exceeding the expected increase of 30,000 and the previous value of a decrease of 32,000.
On the previous trading day, the three major U.S. stock indexes recorded their biggest single-day drop in weeks, wiping out some of the gains accumulated during the year’s bull market.
The market has been driven by the AI boom this year, but investors have frequently questioned the rationality of high valuations and massive AI investments. Recently, the large-scale spending plans announced by some companies (such as Meta) have once again unsettled investors.
Seema Shah, chief global strategist at Principal Asset Management, said: “When you see the size and magnitude of these numbers, it’s right to maintain a healthy level of skepticism. But as long as these companies continue to deliver on their promises, the market as a whole will remain robust.”
SoFi's Head of Investment Strategy, Liz Young Thomas, said on Tuesday, "I don't think the current situation is worrying. While the market has been rising for a relatively long period, which is certainly something to be wary of, I still believe the market will continue its upward trend until the end of the year."
Investors will be focused on the Supreme Court hearing scheduled for 10 a.m. Eastern Time, where the core issue will be whether the president has the authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA).
U.S. Treasury Secretary Bessant has stated that even if the Supreme Court rules against the government, there are still "many other legal mandates available."
Company News
SoftBank and OpenAI announce joint venture
On November 5th, SoftBank Group and OpenAI announced the establishment of a joint venture, SB OAI Japan GK, which officially launched on the same day. The statement said that SB OAI Japan aims to provide "Crystal Intelligence" solutions, using artificial intelligence technology to revolutionize the management and operational models of Japanese companies. The product is planned to officially launch in 2026.
IBM to lay off employees in Q4
IBM announced on November 5th (local time) that it will lay off a "low single-digit percentage" of its workforce in the fourth quarter. As of the end of 2024, IBM has approximately 270,000 employees worldwide. The company did not specify the number of layoffs.
McDonald's third-quarter net profit was $2.278 billion, up 1% year-over-year.
On November 5, McDonald's released its third-quarter 2025 results: revenue of $7.078 billion, up 3% year-over-year; net profit of $2.278 billion, up 1% year-over-year.
Toyota Motor's operating profit for the second fiscal quarter was 839.55 billion yen, a 27% decrease year-on-year.
On November 5th, Toyota Motor Corporation released its second-quarter financial results. Operating profit for the second fiscal quarter was ¥839.55 billion, a 27% decrease year-on-year; net profit was ¥932.08 billion, a 62% increase year-on-year; and net sales were ¥12.38 trillion, an 8.2% increase year-on-year. Toyota expects full-year 2026 operating profit to be ¥3.40 trillion, up from its previous forecast of ¥3.20 trillion; net profit for full-year 2026 to be ¥2.93 trillion, up from its previous forecast of ¥2.66 trillion; and net sales for full-year 2026 to be ¥49.00 trillion, up from its previous forecast of ¥48.50 trillion.
Pony.ai The seventh generation of autonomous vehicles has officially entered operation.
On November 5th, Pony.ai's seventh-generation Robotaxi went into operation. Starting in November, the seventh-generation Gefox Alpha T5 and Aiumba will also be available. Wanglong Robotaxi will officially begin operations in Guangzhou, Shenzhen and other cities. Users can experience it by clicking "Call Xiaoma" on the " Xiaoma Zhixing " App or Mini Program.
According to reports, the seventh-generation Robotaxi uses 100% automotive-grade components and has a design life of 600,000 kilometers. The total cost of the autonomous driving kit has decreased by 70% compared to the previous generation, clearing key obstacles for the large-scale mass production and operation of autonomous driving. It is also the world's first Robotaxi model to achieve L4-level full-scenario autonomous driving based on an automotive-grade SoC chip.
Key events to watch in the US stock market (Beijing time)
November 5
21:30 US President Trump speaks at a breakfast meeting with Republican senators.
22:45 US October S&P Global Ratio Final Services PMI
23:00 US October ISM Non-Manufacturing PMI
23:30 US EIA Crude Oil Inventories for the week ending October 31
(Article source: CLS)
