Overnight US stocks | Trump cancels plans to crack down on Iran, oil prices fall, Dow tech stocks generally rise

The Zhitong Finance App learned that on Monday, the three major indices closed higher, and the Dow set the highest closing record in history. Trump said over the weekend that he cancelled the planned attack plan against Iran, adding that negotiations between the two countries resumed on Monday.

[US stocks] At the close, the Dow rose 693.14 points, or 1.32%, to 53178.17 points; the NASDAQ rose 540.04 points, or 2.13%, to 25913.90 points; and the S&P 500 rose 110.76 points, or 1.48%, to 7600.48 points. Microsoft (MSFT.US) and Google (GOOG.US) rose nearly 5%, Tesla (TSLA.US) and Nvidia (NVDA.US) rose 3% to the first tier, and Meta (META.US) rose 6%. SanDisk (SNDK.US) rose 6%, while SK Hynix (SKHY.US) fell 0.7%. The Nasdaq China Golden Dragon Index closed up 0.75%, while Alibaba (BABA.US) rose 4%.

[European stocks] The German DAX30 index rose 386.44 points, or 1.51%, to 26017.22 points; the UK FTSE 100 index fell 13.15 points, or 0.12%, to 10854.90 points; the French CAC40 index rose 104.18 points, or 1.22%, to 8613.82 points; the European Stoxx 50 index rose 72.34 points, or 1.14%, to 6430.35 points; Spain's IBEX35 index rose 186.21 points, or 0.94%, It was reported at 19969.11 points; Italy's FTSE MIB index rose 684.47 points, or 1.31%, to 52857.00 points.

[Asian Stock Market] The Nikkei 225 Index fell 0.94%, and the Korea Composite Stock Price Index fell 5.12%.

[US Dollar Index] The US dollar index, which measures the US dollar against the six major currencies, fell 0.02% on the same day and closed at 99.894 at the end of the foreign exchange market. As of the end of the exchange market in New York, 1 euro was worth 1.1514 US dollars, lower than 1.1531 US dollars on the previous trading day; 1 pound was worth 1.3431 US dollars, lower than 1.3482 US dollars on the previous trading day. 1 US dollar was worth 156.74 yen, lower than 158.90 yen on the previous trading day; 1 US dollar was worth 0.8101 Swiss franc, higher than 0.8082 Swiss franc on the previous trading day; 1 US dollar was worth 1.4045 Canadian dollars, higher than 1.4019 Canadian dollars on the previous trading day; 1 US dollar was worth 9.5557 SEK, up from 9.5193 SEK on the previous trading day.

[Cryptocurrency] Bitcoin hovered around $63,000, breaking through $64,000; Ethereum fell 1.26% to $1858.47.

[Crude oil] Light crude oil futures for September delivery on the New York Mercantile Exchange fell $4.33, or 5.11%, to close at $80.34 a barrel; London Brent crude oil futures for October delivery fell $4.16, or 4.73%, to close at $83.77 a barrel.

[Precious Metals] Spot gold is reported at $4055.09; spot silver is reported at $58.16.

[Macro News]

25 states across the US have filed lawsuits against the US government's latest tariff measures. Court documents show that 25 US states have filed lawsuits against the US government's latest tariff measures. The Attorney General of New York State of the United States announced that 25 US states led by Democrats filed lawsuits on the same day to sue the US government. These states claim that the president's move to levy the latest round of tariffs on goods from 60 trading partners exceeds their legal authority to tax imported goods. The Attorney General said that the latest tariffs are only intended to replace those tariff measures that have been rejected by the US Supreme Court. The scope of the new tariffs is unlawfully broad and bypasses country-specific investigation procedures stipulated by law.

The US Treasury raised the July-September loan estimate to $739 billion. The US Treasury Department predicts that in the July to September 2026 quarter, net privately held market-based debt financing will reach $739 billion, assuming a cash balance of $950 billion at the end of September. The estimate is $68 billion higher than the data released in May, mainly due to a decrease in projected net cash inflows. The US Treasury Department expects to raise $628 billion in the October-December 2026 quarter, assuming a cash balance of $850 billion at the end of December. For the April to June 2026 quarter, the Ministry of Finance raised 190 billion US dollars, which is basically in line with the $189 billion estimate announced in May. More details on the Treasury's quarterly refinancing will be announced on August 5 at 8:30 a.m. EST (20:30 Beijing time).

“Federal Reserve microphone”: Powell may become the fourth official in decades to fully serve a 14-year term as a Federal Reserve governor. “Federal Reserve microphone” Nick Timiraos: The three most recent people who have completed their 14-year term as Federal Reserve directors are Alan Greenspan (1992 to 2006), George Mitchell (1962-1976), and William McChesney Martin Jr. (1956 to 1970). Moreover, all three of them had already filled unfinished terms (a board member who left office early) as members of the Federal Reserve Board of Governors before they began their respective 14-year terms. If Powell can stay in office until January 2028, he will join the ranks. (Powell has served on the Board for 14 years, but his official 14-year term began in 2014.)

The rate of expansion of manufacturing activity in the US reached a new high since 2022. In July, the growth rate of US manufacturing activity reached its highest level in more than four years, driven by factors such as continued strong demand, a surge in production, and the hiring of additional employees. According to data from the American Institute for Supply Management (ISM), the US ISM manufacturing PMI recorded 55.6 in July, the highest level since May 2022. An index above 50 indicates the growth of the industry, which has remained above this level for seven consecutive months. The production index rose to 58.5, the highest level since the end of 2021, while employment indicators showed that manufacturers increased the number of workers employed for the first time since September 2023. The increase in new orders — a sign of demand — has also picked up. The manufacturing industry is gaining momentum this year, with factories benefiting from steady consumer demand, solid commercial investment, and government spending on defense. With the exception of one manufacturing sector, all other industries reported growth in July, including the printing, clothing, and electrical equipment industries. The only industry that reported shrinkage was the chemical products industry.

[Individual Stock News]

Trump: ExxonMobil and Chevron “earned too much and I don't like it” because of the war with Iran. US President Trump said on Monday local time that ExxonMobil (XOM.US) and Chevron (CVX.US) have earned too much profit due to the rise in crude oil prices due to the war in Iran. “They're making too much money based on supply shortages,” Trump told reporters at the White House. “I don't like this.” ExxonMobil and Chevron reported strong profits for the second quarter on Friday. Chevron's profit surged nearly 400% from $2.5 billion in the same period last year to reach $12 billion. ExxonMobil's profit more than doubled from 7.1 billion US dollars in the same period last year to 14.5 billion US dollars. “Chevron makes too much money. ExxonMobil makes too much money.” Trump said, “They're going to return some of it to the public, and they'd better lower the retail price, that is, the price consumers pay.”

Head of Amazon Cloud Business: The potential scale of the artificial intelligence business is huge. The head of the Amazon (AMZN.US) cloud business said that customers are beginning to use the company's services to train AI models to integrate these models into their own business processes, which is driving the growth in demand for inference computation. Matt Garman, CEO of Amazon's cloud computing division, said on Monday: “We're still seeing some companies using large training clusters, but as these models become more popular and more powerful, more companies are incorporating this inference capability into their workloads.” He said the potential for the AI business is “huge” and the company will continue to increase capital expenditure to meet growing demand. As the world's largest leasing provider of computing power and data services, Amazon said last week that it expects capital expenditure to reach US$220 billion in 2026, higher than the previous forecast of US$200 billion. The increase in expenditure reflects a rise in the price of memory chips and other components required for data centers.

The Boeing (BA.US) 737 Max 7 was finally approved after almost a ten-year delay of certification by the FAA. The US Federal Aviation Administration (FAA) has approved certification for the Boeing 737 Max 7 aircraft, after nearly a decade of certification delays. This model is the smallest model in the 737 series. The airline originally expected to start operating this model before the COVID-19 pandemic, but the certification process was delayed due to factors such as increased regulatory scrutiny after the fatal crash of the 737 Max 8 in service in 2018 and 2019, other safety and manufacturing crises, and the redesign of the engine's anti-icing system. Once an aircraft is certified, airlines can begin operating with passengers soon, but it usually still takes months to include it in flight plans. Boeing is currently still awaiting FAA certification of another long-delayed 737 Max 10 model and the company's largest 777X aircraft.

[Major Bank Ratings]

BNP Paribas: Raise Western Digital (WDC.US) target price from $1,050 to $1,275

Bank of America Global Research: Best Buy (BBY.US) restarts coverage study and gives poor performance rating; target price is $80