Overnight US Stocks | Three major indices mixed, Dow hits new high, Middle East tensions boost oil prices by over 3%

According to the Wise Finance APP, on Monday, the three major indices showed mixed movements, with the Dow hitting a new high. San Francisco Fed President Daly stated that the time to cut interest rates has come. Production halts in Libya and escalating tensions in the Middle East have driven oil prices up for the third consecutive day, with US oil rising over 3.7% at its peak and Brent crude up over 3.2%.

[US Stocks] At the close, the Dow rose 65.44 points, or 0.16%, to 41,240.52; the Nasdaq fell 152.03 points, or 0.85%, to 17,725.77; the S&P 500 fell 17.77 points, or 0.32%, to 5,616.84. Nvidia (NVDA.US) fell 2%.

[European Stocks] Major European indices closed with mixed results, with Germany's DAX30 down 0.11%, France's CAC40 up 0.23%, the Euro Stoxx 50 down 0.27%, and the UK stock market closed for a bank holiday.

[Asia-Pacific Stock Markets] The Nikkei 225 fell 0.66%, the Indonesia Jakarta Composite Index rose 0.82%, and the Vietnam VN30 Index fell 0.19%.

[Gold] COMEX gold futures rose 0.29% to $2,553.60 per ounce; COMEX silver futures rose 0.25% to $29.925 per ounce.

[Cryptocurrencies] Bitcoin fell nearly 2% to $63,182.2 per coin; Ethereum fell 2.4% to $2,686.88 per coin.

[Crude Oil] NYMEX October WTI crude oil futures rose $2.59, or over 3.46%, to close at $77.42 per barrel.

[Metals] London metals rose, with nickel up 0.81%, copper up 1.93%, zinc up 2.24%, and lead up 2.5%.

[Macro News]

US Manufacturing Data Slightly Slows in August. US manufacturing activity declined again in August, although the decline was smaller than the previous month. Production saw slight growth as businesses aimed to stabilize industrial recovery before a possible Fed rate cut. Data showed that the Dallas Fed's business activity index climbed from -17.5 in July to -9.7 in August, the highest level since January 2023. The index has been below zero since April 2022, indicating industrial contraction. The production index in the survey showed only slight growth, with new orders rising, shipments nearly flat, capacity utilization improving but still in contraction. Uncertainty decreased significantly compared to the previous month. However, mild upward pressure on prices and wages in August continues, which may prompt policymakers to remain cautious before a potential rate cut hinted by Fed Chair Powell last week.

US July Business Equipment Orders Decline, Prior Data Revised Downward. US business equipment orders fell in July, with the previous month's growth revised downward, indicating more cautious business investment. Data released on Monday showed that core capital goods orders excluding aircraft and military equipment fell by 0.1% in July, revised down from a 0.5% increase in June. The data was not adjusted for inflation. All durable goods orders increased by 9.9%, with durable goods orders excluding transportation equipment falling by 0.2% Despite many companies still focusing on long-term investments, uncertainty surrounding the presidential election and future demand has led to companies scaling back expansion plans. This indicates that factory production may struggle to gain momentum in the coming months. However, at the same time, the prospect of the Federal Reserve cutting interest rates to boost demand may encourage companies to make new investments.

Goldman Sachs trading department expects the S&P 500 index to hit a new high this week, causing investors to increasingly fear missing out on the uptrend. Scott Rubner, Managing Director and Tactical Expert of Goldman Sachs Global Markets, believes that strong fund flows from corporate buybacks and systematic investment strategies are expected to drive the S&P 500 index to a new all-time high this week, further reinforcing investors' fear of missing out (FOMO). "We estimate that non-emotional demand from machines and corporations is $17 billion per day this week," Rubner wrote in a report to clients on Monday, "The three-week stock trading window is very favorable up to September 16th." The S&P 500 index fell 0.3% on Monday, less than 1% away from the record closing high set on July 16th. Rubner reiterated the view of Goldman Sachs trading department that the Fed's shift to a dovish stance on interest rates is paving the way for leverage once again.

Fed's Daly: Time for rate cuts has come. Mary Daly, President of the Federal Reserve Bank of San Francisco, stated that she believes it is appropriate for the Fed to start cutting rates. Daly said in an interview on Monday, "The labor market is now at full employment. The time has come to adjust policies." This view is in line with the remarks of Fed Chairman Powell last week at the Jackson Hole Symposium, where he expressed confidence in inflation returning to the path towards 2%, also stating that "the time has come to adjust policies." Daly emphasized that the Fed must bring inflation back to the 2% target, but she and her colleagues will also work to prevent restrictive policies from harming the labor market.

[Stock News]

Delta Air Lines (DAL.US) COO to resign at the end of August. According to a filing with the U.S. Securities and Exchange Commission (SEC), Michael Spanos, Chief Operating Officer (COO) of Delta Air Lines, will leave the company on August 31 after just one year of work. A month before Spanos's departure, a virus software update failure from CrowdStrike (CRWD) caused global blue screen crashes on Microsoft Windows systems in multiple locations, leading Delta Air Lines to cancel thousands of flights in the following days, far exceeding its competitors United Airlines (UAL) and American Airlines (AAL). Delta Air Lines CEO Ed Bastian stated that this disaster cost the airline approximately $500 million, and the U.S. Department of Transportation (DOT) has launched an investigation into Delta Air Lines' handling of the aftermath. It was reported that Spanos had been looking for other job opportunities before this incident occurred. According to a memo from Delta Air Lines CEO quoted in news reports, the COO had informed Bastian that he might want to leave the company in "early summer" to join another company Exxon Mobil (XOM.US): No signs of long-term slowdown in global oil demand. U.S. energy giant Exxon Mobil updated its "Global Outlook" on its official website on Monday. Exxon Mobil now believes that by 2050, global oil demand will remain stable at current levels, or even slightly increase. The report indicates that demand for oil in areas such as power generation and passenger cars will weaken, but demand will be supported above 100 million barrels per day by chemicals and commercial transportation.

Apple (AAPL.US) announces Kevan Parekh to succeed Luca Maestri as CFO. Apple announced on Monday that Luca Maestri, who has been the Chief Financial Officer for ten years, will step down on January 1, 2025, and will be succeeded by current Vice President of Finance Planning and Analysis, Kevan Parekh. The stock price fell 0.6% after hours. Apple stated that Maestri will continue to lead the team focusing on IT, security, and real estate development