Overnight US Stocks | Three major indexes closed higher, with the Dow hitting a new intraday record high

According to Zhitong Finance, at the close on Friday, the three major indexes rose, with the Dow Jones reaching a high of 41585.21 points, setting a new intraday record. This week, the three major U.S. stock indexes showed divergent trends, with the Dow rising by 0.94%, the S&P 500 rising by 0.24%, and the Nasdaq falling by 0.92%.

[U.S. Stocks] As of the time of publication, the Dow Jones rose by 228.03 points, or 0.55%, to 41563.08 points; the Nasdaq rose by 197.19 points, or 1.13%, to 17713.62 points; the S&P 500 rose by 56.44 points, or 1.01%, to 5648.40 points. Most tech stocks closed higher, with Intel (INTC.US) up over 9%, Tesla (TSLA.US) up 3.8%, Nvidia (NVDA.US) up 1.5%, and Apple (AAPL.US) down 0.3%. The Nasdaq Golden Dragon Index rose by 1.2%, Alibaba (BABA.US) rose by 2.8%, and JD.com (JD.US) rose by 2.3%.

[European Stocks] At the close, the German DAX30 index fell by 3.95 points, or 0.02%, to 18898.75 points; the UK's FTSE 100 index fell by 3.61 points, or 0.04%, to 8376.03 points; the French CAC40 index fell by 10.00 points, or 0.13%, to 7630.95 points; the Euro Stoxx 50 index fell by 8.82 points, or 0.18%, to 4957.45 points; the Spanish IBEX35 index rose by 45.80 points, or 0.40%, to 11404.40 points; and the Italian FTSE MIB index rose by 159.94 points, or 0.47%, to 34352.00 points.

[Asia-Pacific Stock Markets] The Nikkei 225 index rose by 0.74%, the Indonesia Jakarta Composite Index rose by 0.57%, and the Vietnam VN30 index rose by 0.37%.

[Gold] COMEX December gold futures fell by 1.28% to $2527.6 per ounce, down 0.73% for the week and up 2.2% for August.

[Cryptocurrency] Bitcoin and Ethereum saw little fluctuation on Friday. Bitcoin's price has risen by over 30% year-to-date, despite experiencing multiple fluctuations, including a sharp pullback in early August.

[Crude Oil] U.S. WTI crude oil fell by over 3% on Friday. Expectations of increased oil supply from October by the Organization of the Petroleum Exporting Countries and its allies (OPEC+), strong consumer spending data, and fading hopes of a significant rate cut by the Federal Reserve next month have all weighed on oil prices. NYMEX October WTI crude oil futures fell by $2.36, or 3.11%, to $73.55 per barrel, down 1.71% for the week and 5.6% for August. Brent October crude oil futures fell by $1.14, or 1.43%, to $78.8 per barrel, down 0.28% for the week and 2.38% for August 【Metals】 London metals fluctuated, with nickel falling by 1.5%, lead falling by over 2%, aluminum falling by 0.18%; zinc rising by 0.76%, and copper rising by 0.18%.

【Macro News】

Fed-favored inflation indicators moderately rise, spending rebounds. The Fed's preferred measure of potential inflation in the U.S., the PCE data index, rose at a moderate pace in July, with household spending remaining stable. This indicates that policymakers have been able to restrain price pressures so far without causing too much pain to consumers. Published data shows that the core PCE price index rose by 0.2% from the previous month and by 2.6% year-on-year. Consumer spending, adjusted for inflation, increased by 0.4%, rebounding from the previous month.

Short-term and long-term economic outlook for U.S. consumers improves. Joanne Hsu, director of the University of Michigan's Consumer Survey, stated that the consumer confidence index confirmed earlier data, with market confidence rising by 1.5 points in July after four months of decline. The current index is 36% higher than the historic low point in June 2022. Both short-term and long-term economic outlook for consumers have improved, reaching the best levels since April 2024, with significant increases in long-term expectations for all age and income groups. This month's sentiment reflects a slight increase in independent individuals' sentiment, as Democrats and Republicans almost completely offset each other. Confidence among Democrats increased significantly by 10%, while confidence among Republicans saw a similar decrease. These changes are attributed to Harris becoming the Democratic presidential candidate this month, leading to significant changes in election expectations.

Chicago PMI data shows signs of improvement in business activity. A closely watched index shows that business activity in the Chicago area declined less this month. The PMI index for Chicago's business barometer rose from 45.3 in July to 46.1 in August. New orders and deliveries increased this month, indicating a stabilization in demand in the region. However, the index showed a decrease in order backlogs and a further decline in employment, consistent with the overall trend of weakness in the U.S. labor market.

OpenAI reportedly considering restructuring to be more investor-friendly. According to media reports, OpenAI is in talks to restructure its company to be more investor-friendly. The company is currently advancing a multi-billion dollar financing round and aims to maintain a leading edge over Google and other competitors. Three sources mentioned that OpenAI has communicated about the restructuring with investors. While a final agreement has not been reached on the form of the restructuring, they indicated that simplifying the company's current complex non-profit structure could make the adjustment more appealing to financial supporters. A decision has not been made yet on changing OpenAI's structure, and one option being considered is removing the existing profit cap for for-profit subsidiary investors.

Sources: OPEC+ may increase production as planned from October. Six sources stated that OPEC+ will continue to increase oil production as planned starting from October, as disruptions in Libyan oil supply and commitments from some member countries to cut production to offset oversupply have offset the impact of weak demand OPEC and 8 member countries plan to increase production by 180,000 barrels per day in October, as part of the beginning of the unwinding of the recent 2.2 million barrels per day production cut plan, while keeping other production cut plans in place until the end of 2025. The recent slowdown in demand growth has put pressure on oil prices, leading some analysts to doubt whether OPEC+ and its allies will increase production in October as planned. However, six OPEC+ sources have stated that with the production cuts in Libya tightening the market and hopes for a Fed rate cut in mid-September, the production increase plan is still on track. One source mentioned, "There is a lot of uncertainty on the demand side, but there is also hope that a Fed rate cut will boost economic growth."

[Stock News]

Goldman Sachs (GS.US) to lay off over 1,300 employees. According to reports, sources revealed that Goldman Sachs plans to lay off over 1,300 people globally as part of its annual review process to eliminate underperforming employees. The layoffs will account for 3%-4% of the total workforce. Given that Goldman had around 45,300 employees as of the end of last year, this will affect approximately 1,300-1,800 people. Sources mentioned that the layoffs have already begun and will continue throughout the fall. Goldman evaluates annual layoffs using various variables, with an increasingly important factor being office attendance. During the pandemic and its aftermath, Goldman and its peers relaxed requirements for employees to work outside the office, but banks have now started cracking down on employees who are not regularly present in the office.

Tesla (TSLA.US) China recalls some imported Model X electric vehicles. Tesla Motors Limited is recalling a total of 870 imported Model X electric vehicles produced between March 16, 2016, and July 31, 2016, in accordance with relevant regulations. These vehicles use adhesive to install the roof trim panel, and insufficient bottom coating on the panel surface may weaken adhesion, leading to potential detachment of the panel in extreme cases, posing a safety hazard. Tesla will conduct free inspections and reinstall the trim panel to eliminate the risk. Owners should drive cautiously and contact the service center for inspection as soon as possible. Tesla will notify owners through various channels and arrange for the recall.

[Major Bank Ratings]

Bank of America Global Research: Raises Best Buy (BBY.US) target price from $70 to $80