Overnight US stocks | July CPI announced that the top three indices closed down, Coreweave (CRWV.US) surged more than 12% after the market
The Zhitong Finance App learned that on Tuesday, the three major indices closed down, and the market will focus on a batch of key inflation data next. The US Consumer Price Index (CPI) for July will be released on Wednesday, and the Producer Price Index (PPI) will be released on Thursday.
[US stocks] At the close, the Dow fell 184.13 points, or 0.34%, to 53791.85 points; the NASDAQ fell 159.91 points, or 0.60%, to 26445.45 points; the S&P 500 index fell 24.91 points, or 0.32%, to 7728.20 points. SK Hynix (SKHY.US) rose 4.7%, SpaceX (SPCX.US) fell 3.9%, and Apple (AAPL.US) fell 1%. The Nasdaq China Golden Dragon Index closed down 2.95%.
[European stocks] The German DAX30 index rose 44.25 points, or 0.17%, to 26399.32 points; the British FTSE 100 index fell 17.90 points, or 0.16%, to 10844.60 points; the French CAC40 index fell 11.09 points, or 0.13%, to 8714.94 points; the European Stoxx 50 index rose 16.23 points, or 0.25%, to 6551.85 points; the Spanish IBEX35 index rose 30.99 points, or 0.15%. 20213.89 points; Italy's FTSE MIB index rose 67.12 points, or 0.13%, to 5,3731.00 points.
[Asian Stock Market] The Nikkei 225 Index rose 2.08%, and the Korea Composite Stock Price Index rose 0.73%.
[US Dollar Index] The US dollar index, which measures the US dollar against the six major currencies, rose 0.02% on the same day and closed at 99.828 at the end of the foreign exchange market. As of the end of the exchange market in New York, 1 euro was worth 1.1540 US dollars, lower than 1.1542 US dollars on the previous trading day; 1 pound was worth 1.3503 US dollars, lower than 1.3509 US dollars on the previous trading day. 1 US dollar was worth 159.26 yen, up from 159.24 yen on the previous trading day; 1 US dollar was worth 0.8112 Swiss franc, higher than 0.8101 Swiss franc on the previous trading day; 1 US dollar was worth 1.3920 Canadian dollars, lower than 1.3942 Canadian dollars on the previous trading day; and 1 US dollar was worth 9.5244 SEK, up from 9.5016 on the previous trading day.
[Cryptocurrency] Bitcoin fell 0.52% to $636,80.54 as of press release; Ethereum rose 0.49% to $1885.32.
[Crude oil] Light crude oil futures for September delivery on the New York Mercantile Exchange rose $1.07, or 1.3%, to close at $83.20 a barrel; London Brent crude oil futures for October delivery rose $1.19, or 1.36%, to close at $88.91 a barrel.
[Precious Metals] Spot gold fell 0.48% to US$4,368; spot silver fell slightly to US$64.683.
[Macro News]
Existing home sales in the US fell to a three-month freezing point. High housing prices and high interest rates crushed the property market. Existing home sales in the US fell to a three-month low in July, and high housing prices and mortgage interest rates continued to suppress the property market. According to data released by the National Association of Realtors on Tuesday, contract turnover in July fell 1.7% month-on-month, equivalent to an annual rate of 4.06 million units, which is in line with the median estimate of the economists' survey. Weak sales data indicates that the property market is still sluggish, and this year's high listing prices and rising borrowing costs have discouraged many potential buyers. The second-hand housing market has been hovering at an annualized level of around 4 million units since the end of 2022, awaiting a catalyst for a continued rebound. Lawrence Yun, chief economist at the American Association of Realtors, said in a statement: “Housing sales have been very stable. Even if mortgage interest rates have continued to rise in the past few months, if the average mortgage interest rate can return to a level close to 6%, there is no doubt that the property market will flourish.”
Nick Timiraos: Walsh is not optimistic about “data dependency,” but the old system still dominates. Reporter Nick Timiraos said that the market will focus on the month-on-month changes in the July inflation data released on Wednesday because more and more FOMC members say that the inflation readings for the next few months will determine whether they believe that the forecast “inflation falls back to 2% in the next two years” can still be realized without further interest rate hikes. However, the new Federal Reserve Chairman Walsh recently disagreed with this framework, which links policy-sensitive forecast revisions to high-frequency data. He said earlier that he doesn't think the Federal Reserve's current policy of “relying on data” has much practical value. Additionally, Nick said that part of the purpose of the working group set up by Walsh seemed to be to help build a framework to replace the old one. But until the new framework is clear, it seems like the old framework is still running.
CME's 24-hour all-weather silver trading will commence on September 11. CME (CME) announced today that its 100 oz silver futures contract will be extended to all-day trading starting September 11, 2026, and is subject to regulatory review. Jin Hennig, managing director of the Chicago Mercantile Exchange Group and global head of the metals business, said, “Silver connects the two worlds of precious metals and industrial metals. For investors, it is both a diversified allocation tool and at the same time responding to macroeconomic news and physical needs. Our retail customers have shown strong demand for 1 oz gold futures to be traded whenever needed, so we are now extending the same 24/7 trading rights to Silver to help participants manage risk and seize opportunities.” Since the launch of all-weather trading of 1-ounce gold futures on July 24, the new weekend trading period has accumulated more than 53,000 contracts, with a nominal value of about US$219 million, making it the most liquid market for gold futures weekend trading.
[Individual Stock News]
CoreWeave's second-quarter revenue doubled, and stock prices surged 12% after the market. Coreweave (CRWV.US) rose 12% in after-market trading on Tuesday, after announcing second-quarter revenue of US$2.58 billion, up 112% year on year, exceeding Wall Street expectations, showing that the market's demand for AI computing power is still growing rapidly; net loss is US$626 million, up from US$290 million in the same period last year; currently, order reserves have reached US$104 billion, and the project capacity under construction is 1.5 gigawatts. CoreWeave is speeding up the expansion of its data center business, competing with cloud computing giants such as Amazon, Google, and Microsoft to compete for the data center market where chips are deployed and can run generative artificial intelligence models. However, CoreWeave is currently unprofitable. By the end of the quarter, the company's balance sheet debt reached $35 billion to cover Nvidia GPU and other equipment procurement costs. This quarter, Meta said it would invest an additional $21 billion into CoreWeave. Additionally, CoreWeave also announced a multi-year cooperation agreement with Anthropic and received $6 billion in committed funding from quantitative trading company Jane Street.
The SNB's US stock holdings reached record highs, and Nvidia, Apple, and Microsoft ranked in the top three. The value of US stock reserves held by the SNB increased by more than 10% in the second quarter, reaching the highest level on record. According to the 13F-HR document submitted by the Swiss central bank to the US Securities and Exchange Commission on Tuesday, as of June 30, the bank held shares in more than 2,300 US listed companies, with a total value of US$191.4 billion. The Swiss central bank allocates slightly more than a quarter of its foreign exchange reserves to stocks, some of which is invested in the US. The top three holdings are Nvidia (NVDA.US), Apple (AAPL.US), and Microsoft (MSFT.US). The bank also holds shares worth 716.6 million US dollars in defense software company Palantir. Although aggressive investors previously asked it to sell about $1.1 billion of Palantir holdings, the Swiss central bank refused.