Overnight US Stocks | The three major indexes closed mixed; Bitcoin and gold continued last week's uptrend; Nvidia (NVDA.US) fell nearly 3%

Zhitong Finance APP reports that on Monday, the three major indices were mixed, with technology stocks collectively declining. After media reports that the US Treasury might tap the general account to fund buyback operations, US Treasury yields fell. The 10-year Treasury yield dropped more than 3 basis points to 4.704%. The 30-year Treasury yield, which last week broke above 5.3% to a nearly 20-year high, fell 4 basis points to 5.234%.

[US Stocks] At the close, the Dow rose 140.14 points, or 0.26%, to 53,417.16 points; the S&P 500 fell 21.51 points, or 0.28%, to 7,652.86 points; the Nasdaq dropped 200.26 points, or 0.76%, to 25,980.19 points. SK Hynix (SKHY.US) fell 4.9%, Micron Technology (MU.US) lost 5.8%, SanDisk (SNDK.US) dropped 6.4%, and Nvidia (NVDA.US) slipped nearly 3%. The Nasdaq Golden Dragon China Index closed down 1.67%, with Alibaba (BABA.US) down 0.7%.

[European Stocks] The German DAX30 Index fell 24.26 points, or 0.09%, to 26,104.29; the UK FTSE 100 Index rose 35.27 points, or 0.33%, to 10,851.83; the French CAC40 Index fell 31.42 points, or 0.37%, to 8,453.01; the Euro Stoxx 50 Index lost 16.50 points, or 0.26%, at 6,449.15; Spain's IBEX35 Index rose 138.97 points, or 0.70%, to 20,100.47; Italy's FTSE MIB Index dropped 123.04 points, or 0.23%, to 52,545.00.

[Asian Markets] Nikkei 225 Index fell 0.74%, South Korea's Kospi Index declined 3.12%.

[US Dollar Index] The US Dollar Index, which measures the greenback against six major currencies, rose 0.2% on the day, closing at 99.003 in the forex market. At the end of the New York trading session, 1 euro exchanged for 1.1663 US dollars, lower than the previous trading day's 1.1683; 1 pound exchanged for 1.3631 US dollars, lower than 1.3652 in the prior session. 1 US dollar exchanged for 159.19 Japanese yen, higher than 159.02 in the previous session; 1 US dollar exchanged for 0.8026 Swiss franc, higher than 0.8008 previously; 1 US dollar exchanged for 1.3850 Canadian dollars, higher than 1.3761 previously; 1 US dollar exchanged for 9.4973 Swedish krona, higher than 9.4626 previously.

[Cryptocurrencies] Bitcoin rose 1.82%, trading at $79,009.88 at the time of writing; Ethereum is up over 1%, at $2,482.55.

[Crude Oil] At the close of trading, the price of light sweet crude oil futures for October delivery on the New York Mercantile Exchange fell $2.05, settling at $85.01 per barrel, a decrease of 2.35%; Brent crude oil futures for October delivery in London fell $2.22, closing at $92.17 per barrel, down 2.35%.

[Precious Metals] Spot gold rose 1.07%, settling at $4,652.5; spot silver was reported at $68.94.

[Macroeconomic News]

Only 31% of Americans support the Iran war; Trump’s approval remains at historic low. According to the latest media polls, the US public's support for the Iran war has dropped to the lowest level since the conflict began, at 31%, resulting in Trump’s approval rating remaining at a historical low of 33%. Only 31% of Americans now support military action against Iran, down from 37% in March and 34% at the start of this month. The main reason for the decline is a drop in support among self-identified Republicans. Trump’s popularity has clearly been dragged down by discontent over the Iran war, with two consecutive polls showing his approval rating at a record low, and only 33% of respondents approving of his performance as president. The survey also shows that about 83% of Americans believe this war will “last a long time,” higher than 80% in a poll earlier this month.

US urges Canada back to negotiation table with both hard and soft tactics. After US-Canada tariff negotiations broke down, Trump repeatedly announced additional tariffs and warned Canada of severe consequences if they did not comply, while his administration tried to ease the situation. US Treasury Secretary Bessente said at a press conference announcing Iran sanctions that Trump wants Canada to return to the negotiation table for sincere talks. Canadian Prime Minister Carney stated that reaching a mutually beneficial agreement with the US is possible, but Canada would only return to negotiations if the US takes the right attitude toward Canadian industries. Previously, US Vice President Vance, attending an event in Maine, stated that trade talks with Canada are still ongoing and that both parties should reach an agreement. However, he also demanded that the Canadian prime minister make clear that Canada will no longer take advantage of the US and that trade policy should be fair and just.

Bessente says US Treasury buybacks yet to start, market doubts over policy signals persist. At the “Economy D-Day” press conference, US Treasury Secretary Bessente did not provide further signals on Treasury operations. Earlier, as the yield on 30-year Treasuries surged to the highest since 2007, Bessente unexpectedly announced an expansion of long-term Treasury buybacks. According to the plan, from September 9 to November 4, the minimum amount for each buyback will be raised from $2 billion to $4 billion. When asked if the buyback could be further expanded, Bessente replied: “We haven't bought a single bond yet; the next operation is scheduled for September 9.” Not long ago, he hinted that the buyback scale might surpass the newly set lower limit, making the current statement a clear pullback. Analysts pointed out that Treasury buybacks are essentially a regular, predictable debt management tool, not an emergency measure to deal with market pressure. Previously, Bessente had claimed to have “a complete set of tools” to stabilize the Treasury market, leading to speculation that the Treasury Department might reduce long-term bond issuances. Regarding whether long-term debt auction sizes would be reduced, Bessente said that the Treasury would “proceed according to the regular issuance plan” and hinted that specific arrangements would not be disclosed until the next quarter’s quarterly refunding announcement.

AI fund acquired at discount by Citadel under SEC investigation. According to reports, the US Securities and Exchange Commission is investigating the recent near-collapse of AI hedge fund Situational Awareness and has subpoenaed major Wall Street banks involved in trading or providing leveraged funding for the fund. According to insiders, the SEC asked banks for time stamps of the fund's trades and related communication records with lenders over borrowed funds, and requested the preservation of all fund-related materials. Situational Awareness was founded by former OpenAI researcher Leopold Aschenbrenner, and once achieved high returns propelled by the AI boom. At its peak, the fund managed over $30 billion in assets and borrowed tens of billions more to amplify investments. However, at the end of last month, as hot AI stocks fell and traditional tech stocks shorted by the fund rose, losses quickly increased, eventually forcing a “fire sale” liquidation in which most of the equity portfolio was sold to Citadel at a discount. The SEC said the investigation is still in an early stage and does not necessarily mean there will be penalties. Situational Awareness was not accused of any wrongdoing. The fund stated it will “fully cooperate with any regulatory requirements.”

US Treasury launches Quantum Security Working Group to accelerate quantum-resilient financial transition. The US Treasury recently announced the establishment of the “Quantum Security Preparedness Working Group” to lead the financial industry's transition to quantum-resistant cryptographic technology and strengthen the protection of sensitive data, critical infrastructure, and the digital economy. Treasury Secretary Bessente stated that the US must be at the forefront of technology security, and the working group will ensure the financial system remains secure, stable, and competitive amidst new technological disruption. The working group brings together government agencies, financial institutions, and technology vendors, focusing on three major tasks: promoting post-quantum cryptography migration in finance, improving third-party supply chain security readiness, and assessing the risks brought by digital assets and emerging technologies. The Treasury emphasized that once quantum computing matures, it will be able to break current encryption systems, meaning financial data, payment systems, digital identity, and market infrastructure will face long-term threats. Therefore, early implementation of post-quantum cryptographic technology is a key step in maintaining economic security and financial system resilience.

[Stock News]

Boeing (BA.US) wins US Air Force contract worth up to $131.2 billion. Boeing has secured a US Air Force contract with a maximum value of $131.2 billion. The project is codenamed F-15 Eagle Crest and serves the F-15 Project Office. The contract covers aircraft production, systems integration, modernization, upgrades, conversions, maintenance support, and base-level maintenance capacity building, delivering and supporting the core combat capability of the F-15 Eagle weapon system for the US Air Force, Air National Guard, and other Department of Defense customers.

[Major Brokerage Ratings]

Wells Fargo raises target price for Marvell. Wells Fargo stated that Marvell Technology (MRVL.US) has performed strongly this year, and as the company prepares to report its latest quarterly results, its stock still has further upside potential. The firm gave the chip manufacturer an “Overweight” rating, raising the target price from $240 to $310, implying nearly 31% upside from Friday’s close. “We think Marvell is more like a chip company with an independent growth story and could outperform industry growth whether the overall chip sector is in a good or bad cycle,” Wells Fargo analyst Aaron Rakers wrote in a report to clients.