Overnight US stocks | The three major indices had mixed ups and downs, Bitcoin and gold continued last week's gains, and Nvidia (NVDA.US) fell nearly 3%

The Zhitong Finance App learned that on Monday, the three major indices had mixed ups and downs, and technology stocks collectively declined. US bond yields declined after media reports that the US Treasury might use ordinary accounts to fund repurchase operations. The 10-year Treasury yield fell more than 3 basis points to 4.704%. The yield on 30-year treasury bonds, which broke through 5.3% and hit a nearly 20-year high, fell 4 basis points to 5.234% last week.

[US stocks] At the close, the Dow rose 140.14 points, or 0.26%, to 53417.16 points; the S&P 500 index fell 21.51 points, or 0.28%, to 7652.86 points; the NASDAQ fell 200.26 points, or 0.76%, to 25980.19 points. SK Hynix (SKHY.US) fell 4.9%, Micron Technology (MU.US) fell 5.8%, SanDisk (SNDK.US) fell 6.4%, and Nvidia (NVDA.US) fell nearly 3%. The Nasdaq China Golden Dragon Index closed down 1.67%, while Alibaba (BABA.US) fell 0.7%.

[European stocks] The German DAX30 index fell 24.26 points, or 0.09%, to 26104.29 points; the UK FTSE 100 index rose 35.27 points, or 0.33%, to 10851.83 points; the French CAC40 index fell 31.42 points, or 0.37%, to 8453.01 points; the European Stoxx 50 index fell 16.50 points, or 0.26%, to 6449.15 points; Spain's IBEX35 index rose 138.97 points, or 0.70%, to report 2010 0.47 points; Italy's FTSE MIB index fell 123.04 points, or 0.23%, to 52545.00 points.

[Asian stock market] The Nikkei 225 index fell 0.74%, and Korea's KOSPI index fell 3.12%.

[US Dollar Index] The US dollar index, which measures the US dollar against the six major currencies, rose 0.2% on the same day and closed at 99.003 at the end of the foreign exchange market. As of the end of the exchange market in New York, 1 euro was worth 1.1663 US dollars, lower than 1.1683 US dollars on the previous trading day; 1 pound was worth 1.3631 US dollars, lower than 1.3652 US dollars on the previous trading day. 1 US dollar was worth 159.19 yen, up from 159.02 yen on the previous trading day; 1 US dollar was worth 0.8026 Swiss franc, higher than 0.8008 Swiss franc on the previous trading day; 1 US dollar was worth 1.3850 Canadian dollars, higher than 1.3761 Canadian dollars on the previous trading day; 1 US dollar was worth 9.4973 SEK, up from 9.4626 on the previous trading day.

[Cryptocurrency] Bitcoin rose 1.82% to $79,009.88 as of press release; Ethereum rose more than 1% to $2482.55.

[Crude oil] Light crude oil futures for October delivery on the New York Mercantile Exchange fell $2.05, or 2.35%, to close at $85.01 a barrel by the close of the day; London Brent crude oil futures for October delivery fell $2.22, or 2.35%, to close at $92.17 a barrel by the close of the day.

[Precious Metals] Spot gold rose 1.07% to $4652.5; spot silver reported $68.94.

[Macro News]

The American public's approval rating for the Iraq war was only 31%, and Trump's approval rating is still at an all-time low. According to the latest media poll results, the American public's approval rating for the Iran war fell to its lowest level since the conflict, reaching 31%, leaving Trump's approval rating at an all-time low of 33%. Recently, only 31% of Americans support military action against Iran, down from 37% in March and 34% at the beginning of this month. The main reason for the decline in approval ratings was the decline in support for the war among self-proclaimed Republicans. Trump's popularity was clearly dragged down by popular dissatisfaction with the war against Iran. For the second time in a row, the polls were at an all-time low. Only 33% of respondents acknowledged the president's performance. The survey also showed that about 83% of Americans think the war will “continue for a long time,” up from 80% of the survey at the beginning of this month.

The US is putting both hard and soft pressure on Canada to return to the negotiation table. After the tariff negotiations between the US and Canada broke down, Trump announced tariff increases one after another, warning that Canada would face serious consequences if it did not comply, while officials under his command tried to ease the situation. US Treasury Secretary Bezent said at the press conference announcing sanctions against Iran that Trump wants Canada to return to the negotiating table and negotiate in good faith. Canadian Prime Minister Carney said that it is possible to reach a mutually beneficial agreement with the US, and Canada will only return to the negotiation table when the US can adopt a correct attitude towards the Canadian industry. Earlier, while attending an event in Maine, US Vice President Vance said that trade negotiations with Canada are still ongoing and that he believes the two sides should reach an agreement. However, he also asked the Canadian Prime Minister to make it clear that America will no longer take advantage and that trade policies should be fair and just.

Bezent said that the repurchase of US bonds has not yet started, and the market is questioning policy signals repeatedly. US Treasury Secretary Bezent did not give any further signals about the US debt operation at the “Economic D-Day” press conference. Earlier, as 30-year US Treasury yields hit their highest point since 2007, Bezent unexpectedly announced an increase in the scale of long-term treasury bond repurchases. According to the plan, from September 9 to November 4, the minimum amount for each repurchase will be raised from $2 billion to $4 billion. When asked if the buyback would be further expanded, Bezent responded: “We haven't even bought a single bond, and the next operation will have to wait until September 9.” Not long ago, he hinted that the scale of the repurchase might exceed the newly set lower limit; this statement has clearly subsided. Analysts pointed out that treasury bond repurchases are essentially a conventional and predictable method of debt management, and are not an emergency tool for dealing with market pressure. Earlier, Bezent claimed that he had “a complete set of tools” to stabilize the bond market, triggering speculation that the Ministry of Finance might reduce the issuance of long-term treasury bonds. As to whether the scale of long-term bond auctions will be reduced, Bessent said that the Ministry of Finance will “proceed according to the regular issuance plan,” and hinted that the specific arrangements will not be revealed until next quarter's quarterly refinancing announcement.

The AI fund that was taken over at a discount by Citadel was investigated by the SEC. According to reports, the US Securities and Exchange Commission is investigating the recent collapse of the AI hedge fund Situational Awareness and issuing subpoenas to major Wall Street banks involved in the fund's transactions and providing leveraged funds. According to people familiar with the matter, the SEC requested the bank to provide the fund's transaction time points and information relating to its communication with lenders about the borrowed funds, and required the preservation of all data relating to the fund. Situational awareness was founded by Leopold Ashenbrenner, a former OpenAI researcher, and has used the AI boom to obtain high returns. At its peak, the fund managed more than $30 billion in assets and borrowed tens of billions of dollars to expand investments. However, at the end of last month, as the stock prices of popular AI companies fell and their shorted traditional technology stocks rose, fund losses expanded rapidly, and eventually forced to carry out a “sell-off liquidation” and sell most of the stock portfolio to Citadel at a discount. The SEC said the investigation is still in its early stages, which doesn't mean there will necessarily be penalties. Situational Awareness has also not been charged with a violation. According to the fund, it will “fully cooperate with any regulatory requirements.”

The US Treasury Department set up a quantum security task force to accelerate the anti-quantum transformation of the financial system. The US Treasury recently announced the establishment of the “Quantum Security Preparation Task Force” to take the lead in promoting the financial industry's transition to anti-quantum cryptography technology to strengthen the security protection of sensitive data, critical infrastructure, and the digital economy. Treasury Secretary Bessent said that the US must be at the forefront of technological security guarantees, and the working group will ensure that the financial system remains safe, stable, and competitive under the impact of new technology. The working group brought together government agencies, financial institutions and technology vendors to focus on three major tasks: promoting post-financial quantum cryptography migration, improving third-party supply chain security preparations, and evaluating the risks posed by digital assets and emerging technologies. The Ministry of Finance pointed out that once quantum computing matures in the future, it will have the ability to crack the current encryption system. At that time, financial data, payment systems, digital identity, and market infrastructure will all face long-term threats. Therefore, early deployment of post-quantum cryptography technology is a key step in maintaining economic security and financial system resilience.

[Individual Stock News]

Boeing (BA.US) received a US Air Force contract worth up to $131.2 billion. Boeing received a contract for the US Air Force, with a maximum amount of 131.2 billion US dollars. The project code is F‑15 Eagle Crest and serves the F‑15 project office. The contract covers aircraft production, system integration, modernization, upgrades, modifications, maintenance support, and self-built base maintenance capacity building to deliver and guarantee the core combat capabilities of the F-15 “Eagle” weapon system for the US Air Force, Air Force National Guard, and other Department of Defense customers.

[Major Bank Ratings]

Wells Fargo raised its target price for Maywell. Wells Fargo said that Maywell Technology (MRVL.US) has performed strongly this year, and its stock price is expected to continue to rise as the company prepares to release its latest quarterly earnings report. The investment bank gave the chipmaker an “overrated” rating and raised the target price from $240 to $310, meaning there is still room for an increase of nearly 31% from last Friday's closing price. “We think Maywell is more like a chip company with an independent growth logic. Whether the overall chip industry is in a good cycle or a bad cycle, its performance may exceed the overall growth rate of the industry.” Wells Fargo analyst Aaron Lax said in a report to clients.