Overnight US stocks | US inflation slowed in August, and the three major indices rose and fell, Google (GOOG.US, GOOGL.US) released the Gemini 4 Argon model

The Zhitong Finance App learned that on Wednesday, the three major indices had mixed ups and downs. The latest economic data showed that US inflation slowed last month. The personal consumption expenditure price index rose 3.4% year on year in August, down from 3.7% the previous month. Core PCE, which excludes food and energy, rose 3% year over year, down from 3.3% the previous month.

Wednesday is both the last day of September and the end of the third quarter. In September, the S&P 500 index and the Dow Jones index closed down, and the NASDAQ rose more than 1%. In the third quarter, the S&P 500 index and Nasdaq index rose 2%, while the Dow Jones index fell nearly 2%.

[US Stocks] At the close, the Dow Jones index fell 441.25 points, or 0.86%, to 50908.67 points; the S&P 500 index fell 18.90 points, or 0.25%, to 7651.94 points; the Nasdaq Composite Index rose 63.52 points, or 0.24%, to 26861.06 points. Intel (INTC.US) rose 3.71%, Apple (AAPL.US) rose 1.1%, Nvidia (NVDA.US) rose 0.51%, Google (GOOG.US) rose 0.93%; Modena (MRNA.US) fell 5.35%, and Ford Motor (F.US) fell 1.95%. The Nasdaq China Golden Dragon Index rose 0.6%, Baidu (BIDU.US) rose 0.18%, and Alibaba (BABA.US) fell 0.17%.

[European stocks] The German DAX30 index fell 177.55 points, or 0.70%, to 25197.74 points; the British FTSE 100 index fell 30.80 points, or 0.29%, to 10605.91 points; the French CAC40 index fell 71.36 points, or 0.89%, to 7964.51 points; the Eurostock 50 index fell 52.31 points, or 0.83%, to 6267.95 points; Spain's IBEX35 index fell 90.82 points, or 0.47%, to report 19426.68 points; Italy's FTSE MIB index fell 462.44 points, or 0.89%, to 51342.50 points.

[Asia Pacific Stock Market] The Nikkei 225 Index rose 1.94%, South Korea's KOSPI Index fell 0.48%, and the Indonesian Composite Index fell 0.83%.

[Foreign Exchange] The US dollar index, which measures the US dollar against the six major currencies, rose 0.08% on the same day and closed at 101.451 at the end of the foreign exchange market. As of the end of the exchange market in New York, 1 euro was worth 1.1332 US dollars, lower than 1.1341 US dollars on the previous trading day; 1 pound was worth 1.3262 US dollars, up from 1.3229 US dollars on the previous trading day. 1 US dollar was worth 157.34 yen, up from 157.22 yen on the previous trading day; 1 US dollar was worth 0.8354 Swiss franc, up from 0.8336 Swiss franc on the previous trading day; 1 US dollar was worth 1.4229 Canadian dollars, higher than 1.4178 Canadian dollars on the previous trading day; 1 US dollar was worth 10.0103 SEK, up from 9.9892 on the previous trading day.

The US dollar index accumulated a cumulative increase of nearly 2% in September, the best monthly performance since March. The Federal Reserve has refocused its policy on curbing inflation, driving market expectations of interest rate hikes and higher US bond yields, and providing support for the US dollar. Although the latest PCE inflation fell short of expectations, causing traders to lower their expectations for the October rate hike, the market has fully calculated the December rate hike, and the Federal Reserve is expected to tighten by about 90 basis points over the next 12 months. Federal Reserve officials have also continued to send hawkish signals recently. New York Federal Reserve Chairman Williams said it “might be appropriate” to raise interest rates again later this year. Meanwhile, US economic data remained strong. The war with Iran boosted energy prices and increased the risk of inflation. This week, the yield on 30-year US Treasury bonds rose to the highest level since 2002. With the exception of the yen, all other G10 currencies fell against the US dollar in September. However, some technical indicators indicate that the dollar's rally may have begun to extend excessively, and momentum indicators have already entered the overbought region.

[Cryptocurrency] Bitcoin hovered around $83,000, at $8,3,560 at press time; Ethereum fell 0.1% to $2,678.

[Precious Metals] Spot gold reported US $4156.92 per ounce; spot silver reported US $60.42 per ounce.

[Crude oil] Light crude oil futures for November delivery on the New York Mercantile Exchange rose $1.04, or 1.16%, to close at $90.42 a barrel; London Brent crude oil futures for November delivery rose 94 cents, or 0.92%, to close at $103.53 a barrel.

[Macro News]

Federal Reserve Cook: Committed to returning inflation to the target level of 2%. Federal Reserve Governor Lisa Cook said that overall US inflation is still higher than the Fed's 2% target for more than five years. She supports a 25 basis point rate hike at the September meeting and stressed that she will work to restore price stability while maintaining a strong job market. She said that rural communities in the US have about 20 million workers, accounting for about one-eighth of the US employed population. The overall unemployment rate is close to the national level, but the labor participation rate is low, and employment growth has been slower than in urban areas in recent years. Inflation in rural areas was once higher than in urban areas after the pandemic, mainly affected by rising energy prices and housing costs. Cook pointed out that rural household transportation expenses account for about a quarter of the total expenditure, which is higher than that of urban households, so the impact of rising energy prices on rural residents is more obvious. She also pointed out that small businesses play an important role in the rural economy. There are about 4.3 million small businesses in rural America, accounting for more than 96% of the number of local businesses, and providing 7.4 million jobs.

Trump again criticized the Federal Reserve's renovation project and called for an investigation into Powell. US President Trump issued an article saying that the Federal Reserve Inspector General's report showed that the Washington DC Federal Reserve headquarters renovation project had “project management flaws.” Trump criticized that the cost of the project was seriously overspent, saying that it had exceeded the budget by hundreds of millions of dollars. According to the report, the final cost would reach at least 2.5 billion US dollars, and asked Attorney General Todd Blanche to study the report and decide how to proceed. Trump quoted the report as saying that the Federal Reserve Board did not obtain project cost estimates from the construction management until January 2026. At that time, three and a half years had passed since construction began, and construction contracts of more than 2 billion US dollars had already been awarded. As of July 2026, more than 4 years after the start of the project, the Federal Reserve has still not determined the maximum guaranteed price, making it impossible to determine the final cost and not transferring related risks to the construction management. Trump said that the final cost of the project may rise to 3.5 billion US dollars or even 4 billion US dollars, and criticized that the architectural design and historical elements may not be restored after the renovation, saying “they have destroyed the beauty and glorious history of this building.” He once again asked then-Federal Reserve Chairman Powell to resign, and said that if he refuses, the US government should consider pursuing responsibility through legal channels.

The US oil industry warns that diesel prices may not return to normal within a year. According to reports, US oil and gas companies have warned that diesel prices may take more than a year to return to 2025 levels. According to the Dallas Federal Reserve's survey of 100 energy companies, nearly half of the companies surveyed expect diesel prices to fall back to normal levels after more than 4 quarters. Investigations show that the Iran war caused supply disruptions in the Middle East and Ukraine's attack on Russian refining facilities, which together exacerbated the tension in global diesel supply. An interviewee from an energy company said that diesel is an important fuel for the operation of the economy, and currently the market is only beginning to feel the impact of high prices on the overall economy. The Trump administration is currently discussing measures including restricting diesel exports and pushing allies to release stocks to reduce domestic fuel costs. Analysts warned that although the ban on diesel exports may increase domestic supply in the US in the short term, it may push up fuel prices in the long term and impact markets dependent on US diesel supply, such as Europe and Latin America.

The SEC plans to ease the private equity investment threshold to push retail investors to enter the private equity market. The US Securities and Exchange Commission (SEC) proposed a series of reforms on Wednesday aimed at expanding the channels for individual investors to participate in the private equity market and allow more retail investors to access private equity, early-stage startups, and other alternative assets. One of the proposals allows registered investment advisors to charge performance fees of up to 20% based on fund performance, making the fee model closer to the “2% management fee +20% performance commission” structure of some hedge funds to attract more private equity management institutions to serve individual investors. SEC Chairman Paul Atkins said the Commission hopes to explore ways to expand individual investors' participation in the private equity market while preventing fraud and misconduct. The SEC also proposed expanding the scope of “accredited investors” to allow more people with professional qualifications (including certified public accountants and chartered financial analysts) to qualify for investment.

The growth rate of electricity demand for electric vehicles in the US fell to its lowest level in three years. The US Energy Information Administration (EIA) said that with the slowdown in demand for electric vehicles, the growth rate of electric vehicle electricity consumption in the US has fallen to its lowest level in at least three years, which is another sign that the electric vehicle market is cooling down. According to data released by the EIA on Wednesday, the electricity consumption of light electric vehicles, including passenger cars, increased 8% year-on-year in the first half of 2026, which is significantly lower than the 13% to 24% growth rate in recent years. Previously, the growth rate peaked at 24% in the second half of 2023. At a time when the growth rate of electric vehicle electricity consumption is slowing down, market demand is also weakening. The federal tax credit policy that previously reduced the cost of buying and leasing cars expired in September 2025. According to EIA data, sales of new electric vehicles in the US fell 19% in the first half of 2026 compared to the previous six months. Meanwhile, automakers, including Ford Motor Company and Honda Motor Company, have cut electric vehicle models that have not sold well since the end of last year. However, even though sales growth has slowed, the electricity consumption of light electric vehicles has more than doubled since 2023. According to EIA data, the electricity consumption of light electric vehicles in the US in the first half of this year was close to 14 billion kilowatt-hours.

[Individual Stock News]

AI giants such as Nvidia and Meta question Anthropic's “excessive warning.” According to reports, after the White House pushed major US AI companies to sign a statement of AI security principles, differences within the industry over AI risks and regulatory methods surfaced. According to people familiar with the matter, Nvidia (NVDA.US) CEO Hwang In-hoon and other tech executives asked AnthroPic CEO Dario Amodei during the White House event why he previously publicly emphasized the risks such as cyber attacks and extreme unemployment that AI models may bring, and that his public statement was too aggressive. Amodei responded that the industry needs to truthfully explain AI model capabilities and potential risks to the public rather than downplay the problems. The discussion took place during Trump's meeting with about two senior AI executives to push the industry to establish a self-regulatory mechanism. Anthropic has long advocated stricter security measures, and has criticized some companies and governments for underestimating AI risks; while business executives such as Nvidia and Meta Platforms (META.US) CEO Zuckerberg support a path that favors industry self-discipline and promotes the rapid development of AI. Previously, Anthropic, OpenAI, and Google had considered establishing an AI regulator similar to a self-regulatory organization in the financial industry, but the plan was eventually abandoned because Hwang In-hoon, Zuckerberg, and SpaceX (SPCX.US) CEO Musk feared that the mechanism might allow leading AI companies to concentrate more power.

Musk returned to the Trump campaign to participate in the Pentagon's Future War Research Project. US Secretary of Defense Hegseth announced that SpaceX (SPCX.US) CEO Musk, Anduril founder Palmer Rookie, and former House Speaker Gingrich will lead the Pentagon “Meridian Project” to study future warfare patterns and next-generation military capabilities. Hegseth said the project aims to use the experience of American innovators, technical experts and senior leaders to explore key areas, weapons and systems to be mastered in future conflicts, rather than formulating new policy documents. The project is expected to submit the final results and publish a public version and confidential report within 120 days. The project is also the first time Musk has officially assumed the role of an adviser to the Trump administration since his public dispute with Trump last year and left the administration's efficiency department. Musk's SpaceX has been undertaking US national security launch missions for a long time, while Anduril provides the US defense department with jamming equipment, interception systems, rocket engines, and unmanned combat systems.

Micron's revenue guidance for the first fiscal quarter exceeded expectations and demand for AI continued to be strong. Micron Technology (MU.US)'s Q4 revenue for the 2026 fiscal year was US$54.229 billion, compared to US$11.315 billion in the same period last year, and the market expected US$50.584 billion. Micron also gave sales forecasts for the current quarter that exceeded expectations, as rapid developments in artificial intelligence are driving unprecedented demand. The company said in a statement on Wednesday that it expects revenue for the first quarter of the next fiscal year to be around $60 billion to $63 billion, with analysts averaging $56.8 billion. The company expects the supply and demand for memory and storage in FY2027 and FY2028 to be much tighter than 2026. After deducting certain items, the profit would be approximately $38.15 per share compared to the forecast of $36.02. Shares rose less than 1% in after-hours trading after the report was released. Morgan Stanley analysts said, “We believe that the market conditions are still very good in the short term, and strong demand and price increases are evident. The focus of the discussion has clearly moved from being good to how long can the benefits last?”

Google released the Gemini 4 Argon model focusing on complex reasoning and AI programming capabilities. DeepMind, a subsidiary of Google (GOOG.US), released the next-generation cutting-edge model Gemini 4 Argon, stating that the model has cutting-edge performance in complex tasks such as software engineering, corporate knowledge work (including law and finance), and cybersecurity defense. Google said Gemini 4 Argon is currently being opened to some trusted cybersecurity defenders through the “Fairwind Program” and will gradually be rolled out to developers, businesses and consumers after further improving security measures. The model is initially priced at $2 per million input terms and $10 per million output terms, and the price of cached input terms is 95% lower than the input price. According to Google, Argon supports an output length of up to 1 million words, which is higher than the previous 64,000 words, and can be used to handle longer and more complex tasks. Google said Argon has been used for internal code development, research, and engineering optimization tasks, including helping quantum computing teams optimize algorithms, analyze data center operation data, and release more than 300 TiB of memory resources. In terms of software engineering, Google claims Gemini 4 Argon achieved 77.9% results in DeepSWE v1.1 real software engineering tests, and is leading the way in evaluations in the fields of financial research, legal research, and enterprise automation. In the field of cybersecurity, Google claims that Argon can independently discover, verify, and fix software vulnerabilities, and achieved 68% results in the CWE-Bench v1 bug fix test, ranking first with the highest level model. Google said that until it is fully opened, it will continue to strengthen measures such as anti-abuse, alert injection attack protection, model behavior monitoring, and security sandboxes. According to Google, Gemini 4 Argon will be open to paid API customers and Google AI Ultra users in the future.