Overnight US stocks | The US and Iran may reach an agreement to ignite the enthusiasm of the bulls, the S&P 500 index hit a new high for the first time in June, SanDisk (SNDK.US) rose more than 10%
The Zhitong Finance App learned that on Tuesday, the hopes of the US and Iran reaching an agreement to resume navigation in the Strait of Hormuz raised the stock market to record highs. The three major indices closed sharply higher, and the S&P 500 index hit a new high for the first time since June.
[US Stocks] At the close, the S&P 500 rose 1.79% to close at 7736.52 points, the first high since June; the Nasdaq Composite Index rose 2.59% to close at 26584.99 points; the Dow Jones Industrial Average rose 907.47 points, or 1.71%, to close at 54085.88 points. Both the S&P 500 and the Dow hit record closing highs. The Philadelphia Semiconductor Index rose 6.55%. SK Hynix (SKHY.US) rose 8%, Micron Technology (MU.US) rose 7.6%, SanDisk (SNDK.US) rose 10.8%, Nvidia (NVDA.US) rose more than 2%, and SpaceX (SPCX.US) rose 9.4%. The Nasdaq China Golden Dragon Index closed down 0.35%, while Alibaba (BABA.US) rose 1%.
[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 rose 0.32%, and the Korea Composite Stock Price Index rose 1.62%.
[US Dollar Index] The US dollar index, which measures the US dollar against the six major currencies, fell 0.04% on the same day and closed at 99.858 at the end of the foreign exchange market. As of the end of the exchange market in New York, 1 euro was worth $1.1533, up from $1.1514 on the previous trading day; 1 pound was worth $1.3452, up from $1.3431 on the previous trading day. 1 US dollar was worth 157.66 yen, up from 156.74 yen on the previous trading day; 1 US dollar was worth 0.8092 Swiss franc, lower than 0.8101 Swiss franc on the previous trading day; 1 US dollar was worth 1.4066 Canadian dollars, higher than 1.4045 Canadian dollars on the previous trading day; 1 US dollar was worth 9.5192 SEK, lower than 9.5557 on the previous trading day.
[Cryptocurrency] Bitcoin surpassed 64,000 US dollars; Ethereum did not fluctuate much and was reported at $1870.19.
[Crude oil] WTI for September delivery fell 5.7%, and the settlement price was $75.77 per barrel; Brent for October delivery fell 5.3%, and the settlement price was $79.36 per barrel. US Treasury Secretary Bezent said on Tuesday that an agreement on opening the Strait of Hormuz could be reached today or tomorrow.
[Precious Metals] Spot gold reported $4077.91; spot silver reported $59.541.
[Macro News]
US job vacancies declined slightly in June, and labor demand remained stable. The number of job vacancies in the US declined slightly in June, indicating that after entering summer, the overall demand for labor by US companies remained relatively stable. According to data released by the US on Tuesday, the number of JoLTS job vacancies in June dropped from 7.54 million after the May revision to 7.36 million. Previously, the median market forecast was about 7.4 million job vacancies. The reduction in job vacancies was mainly due to contractions in the health care, leisure and hospitality industry, wholesale trade, and commercial services, while the layoffs remained largely unchanged. The report released on Tuesday confirmed the stable labor market and limited layoffs. Although some employers are still cautious about increasing the number of employees, resilient consumer spending continues to underpin employers' recruitment plans. Recruiting activities have been sped up, driven by the healthcare and construction industries. Recruitment in the leisure and hospitality industry declined for the third month in a row, to its lowest level since the beginning of 2025, contrary to previous expectations that the World Cup would stimulate labor demand.
Media: The White House does not plan to disclose the details of the advanced AI model evaluation framework. According to reports, three sources familiar with related discussions said that the White House does not plan to publicly release its new framework for evaluating advanced artificial intelligence models; relevant details will only be provided to companies participating in the process. Businesses, policymakers, researchers, and US allies that aren't involved in this process will be unable to understand how the government plans to implement one of its key AI policies. The White House held a staff-level meeting with industry representatives on Tuesday to discuss the recently completed framework. Companies not invited to the conference are still unaware of the content of the framework, and it is currently unclear which “trusted partners” will receive early access to advanced models under the framework, including whether foreign governments are eligible. People familiar with the matter revealed that the open source model was discussed at the conference, but no further details were revealed. The source added that Nvidia (NVDA.O) employees participated in related meetings.
“Federal Reserve microphone”: Bezent's policy response function is shifting to less dovish. “Federal Reserve microphone” Nick Timiraos wrote that US Treasury Secretary Bezent's policy response function has changed to less dovish. His remarks this year suggest that the Federal Reserve should keep interest rates unchanged. Earlier this year, Bezent quoted models saying that the Federal Reserve's interest rate level may range from more than 25 basis points to more than 100 basis points higher than the neutral interest rate. Today (August 4) he made two points. He first defended Walsh's decision not to explain any policy response function last week: “I think every meeting should be open, and market participants should judge for themselves... I think Walsh wants to preserve the space for choice to achieve the best results.” Second, he did suggest a set of policy response functions that can be viewed as dovish, and argues that recent shocks should be ignored: “What impact will rising short-term interest rates have? We'll wait and see.” He raised the issue, but then responded by stating that underlying inflation was “very moderate... very stable.” “The rest of core inflation, after excluding fluctuations which are more affected by energy, has remained very stable. I think this will continue.”
Wells Fargo: The AI investment boom will drive spillover into traditional industrial stocks. Wells Fargo strategist Ohsung Kwon is optimistic that increasing data center construction will benefit the industrial sector. He said that capital goods companies that currently produce machines, equipment and tools used to build data centers are one of the stocks “closest to the concept of artificial intelligence.” According to Wells Fargo estimates, manufacturing activity expanded at the fastest rate in more than four years in July, while capital expenditure related to non-artificial intelligence increased 10% over the same period last year. In addition, commercial and industrial loan growth has also accelerated. In recent months, traders have begun to favor the so-called “traditional economy” sector, driving industrial sector stocks to rise 20% this year, only lagging behind the energy and information technology sectors. Kwon estimates that around 40 new hyperscale data centers are currently under construction, and more than 100 are in the planning stage, mainly in Texas, Georgia, Virginia, and Pennsylvania. “If economic benefits from regions with already operational data centers do become a new trend, then we are currently in the very, very early stages of this spillover.”
OPEC crude oil production resumed further in July, and the three major Persian Gulf countries contributed almost all of the increases. According to media surveys, OPEC's crude oil production further recovered some of the losses caused by the war last month, and increased production in Kuwait, Saudi Arabia, and Iraq boosted supply recovery. According to the survey, OPEC member countries' supply increased by 1.16 million b/d in July to an average of 19.44 million b/d. Among them, the three major Persian Gulf countries contributed almost all of the increase. The organization's output is still significantly below pre-war levels. Iraq led OPEC member countries' production growth in July, increasing production by 460,000 barrels to 2.3 million barrels per day. According to tanker tracking data, Iraq's crude oil load increased 37% in July. Kuwait's daily production increased by 360,000 barrels to 1.57 million barrels per day in July. Kuwaiti officials said this week that the country has recovered to the highest average production level since the conflict began. The situation in Saudi Arabia is more complicated. According to the survey, Saudi production increased by 390,000 b/d to 7.4 million b/d, but its production is still several million barrels below pre-conflict levels. Meanwhile, as the Houthis threatened oil tankers used by Saudi Arabia as an alternative route to the Red Sea, its export traffic declined.
The US trade deficit narrowed in June, and imports fell for the first time since the beginning of the year. As imports fell for the first time since the beginning of the year, the US trade deficit narrowed in June, and the decline in imports covered many fields. According to data released by the US Department of Commerce on Tuesday, the US goods and services trade deficit fell 5.6% from the previous month to US$73.3 billion in June. Among them, the import value decreased by 1.8% and the export value decreased by 0.9%. Trade data showed that net exports continued to drag down economic growth this quarter. US trade data has fluctuated greatly in recent months due to factors such as continuous changes in tariff policies, supply chain disruptions brought about by the Middle East War, and large-scale investment by companies in artificial intelligence. Although the US Supreme Court vetoed many of the import tariff measures imposed by the Trump administration in the first quarter, the administration is still seeking other ways to impose tariffs on imported goods. From 2025 to the beginning of this year, imports of computers, peripherals and related components increased dramatically as companies actively promoted investment in artificial intelligence. However, the latest trade report shows that imports of computers and semiconductors slowed in June. Imports of a wider range of capital goods, including related equipment, also declined for the first time since September last year.
[Individual Stock News]
Apple launched the September press conference to prepare an open lottery for retail employees to participate in on-site work. According to well-known tech journalist Mark Gurman, as Apple (AAPL.US)'s largest product launch this year approaches, the company is opening lottery registration for US retail employees who want to participate in the offline press conference. According to an internal memorandum, the lottery allows retail employees to apply to participate in on-site work at the event. Employees will assist in organizing queuing, registering visitors, welcoming participants, providing guidance, and supporting the security team. The company informed employees that the launch event will be held in the first half of September, but no more specific dates were provided. Historically, Apple's iPhone launch was usually scheduled to be held on the second Tuesday or Wednesday of the month. Since the US Labor Day holiday falls on Monday, September 7, the possibility of holding a press conference on Wednesday is slightly higher. The September launch will be the first major product launch event under CEO John Ternus. Ternus will succeed Tim Cook as Apple's CEO on September 1.
Novo Nordisk raised its performance guidelines for the second time this year. Novo Nordisk (NVO.US) raised its performance expectations for the second time this year due to the company's rising expectations for the sale of obesity and diabetes drugs. Novo Nordisk said that adjusted operating profit for the second quarter of 2026 was DKK 33.389 billion and raised its full-year performance forecast. The biggest drop in sales and profit is expected to be 6% this year. Previously, the company predicted that the decline in sales and profit could reach up to 12% based on a fixed exchange rate. Novo Nordisk is competing with competitor LLY.N (LLY.N) in the obesity market. According to forecasts, by 2030, this market will reach 120 billion US dollars per year.
[Major Bank Ratings]
Bank of America Global Research: Launched a coverage study on SK Hynix (SKHY.US) to give it a “buy” rating; target price of $250.