According to Zhitong Finance APP, on Friday, the three major indices rebounded after falling for three consecutive days. The U.S. August PCE inflation data was largely in line with expectations. As the inflation measure preferred by the Federal Reserve, the August Personal Consumption Expenditures Price Index (PCE) showed that core inflation (the measure excluding food and energy costs) had a year-on-year increase of 2.9% after seasonal adjustments.
This week, the Dow Jones Industrial Average fell by 0.15%, the S&amp;P 500 index decreased by 0.31%, and the NASDAQ Composite Index dropped by 0.65%.
[U.S. Stocks] As of the close, the Dow rose by 299.97 points, an increase of 0.65%, closing at 46,247.29 points; the NASDAQ rose by 99.37 points, an increase of 0.44%, closing at 22,484.07 points; the S&amp;P 500 index rose by 38.98 points, an increase of 0.59%, closing at 6,643.70 points.
[European Stocks] The German DAX 30 index rose by 216.66 points, an increase of 0.92%, closing at 23,738.08 points; the UK FTSE 100 index rose by 71.76 points, an increase of 0.78%, closing at 9,285.74 points; the French CAC 40 index rose by 75.26 points, an increase of 0.97%, closing at 7,870.68 points; the Euro Stoxx 50 index rose by 54.76 points, an increase of 1.01%, closing at 5,499.65 points; the Spanish IBEX 35 index rose by 218.00 points, an increase of 1.44%, closing at 15,354.50 points; the Italian FTSE MIB index rose by 394.51 points, an increase of 0.93%, closing at 42,637.00 points.
[Crude Oil] The price of light crude oil futures for November delivery on the New York Mercantile Exchange rose by 74 cents, closing at $65.72 per barrel, an increase of 1.14%; the price of Brent crude oil futures for November delivery rose by 71 cents, closing at $70.13 per barrel, an increase of 1.02%.
[Cryptocurrency] Bitcoin fell by 0.54%, trading at $109,663.2; Ethereum rose over 4%, trading at $4,034.97. Due to a wave of leveraged bets collapsing, the cryptocurrency market lost about $300 billion in value this week. This volatility severely impacted leading tokens in the sector and dragged market sentiment to its weakest level since early summer this year. In the perpetual futures market for cryptocurrencies, billions of dollars in bullish bets were forcibly liquidated, further accelerating this round of decline. According to data compiled by Coinglass, the total liquidated long positions (bullish positions) across exchanges have exceeded $3 billion. Some traders warned that due to most trading platforms not disclosing complete liquidation data, the true scale of current market leverage remains opaque. On Friday, a report showed that key inflation indicators slowed in growth last month, providing some buffer for the Federal Reserve to respond to a cooling labor market, which improved overall risk sentiment, leading to a slight rebound in Bitcoin and Ethereum prices. Paul Howard, Senior Director at market maker Wincent, stated that this pullback is a &#34;healthy correction.&#34; He pointed out that although Bitcoin's price fell below the 100-day moving average and the total market value of digital assets dropped below $4 trillion, there are currently no signs of panic. However, he also warned that short-term pressures may still lead to continued price declines—especially since the current prices of digital assets are more closely linked to macro market sentiment compared to earlier this year
[Precious Metals] COMEX gold futures rose 0.63% to $3,794.90 per ounce, with a cumulative increase of 2.37% this week. COMEX silver futures increased by 7.89%, priced at $46.340 per ounce.
[Foreign Exchange] The US dollar index fell on the 26th. The dollar index, which measures the dollar against six major currencies, dropped 0.41% that day, closing at 98.152 in the foreign exchange market. As of the close of the New York foreign exchange market, 1 euro exchanged for 1.1704 US dollars, up from 1.1653 US dollars the previous trading day; 1 pound exchanged for 1.3410 US dollars, up from 1.3335 US dollars the previous trading day. 1 US dollar exchanged for 149.44 Japanese yen, down from 149.89 Japanese yen the previous trading day; 1 US dollar exchanged for 0.7975 Swiss francs, down from 0.8004 Swiss francs the previous trading day; 1 US dollar exchanged for 1.3937 Canadian dollars, down from 1.3943 Canadian dollars the previous trading day; 1 US dollar exchanged for 9.4041 Swedish kronor, down from 9.4766 Swedish kronor the previous trading day.
[Macroeconomic News]
Insiders: The Trump administration plans to impose tariffs on foreign electronic devices based on the number of chips. According to Reuters, three insiders revealed that the Trump administration is considering imposing tariffs on foreign electronic devices based on the number of chips in each device, aiming to encourage companies to shift production to the United States. This plan has not been previously reported and may still change. Under the plan, the US Department of Commerce would impose tariffs on imported products, with the tariff amount equivalent to a certain percentage of the estimated value of the chips in that product. If implemented, this would indicate that the Trump administration is attempting to exert influence over a range of consumer products, from toothbrushes to laptops.
The White House clarifies the scope of drug tariff exemptions: The EU and Japan still enjoy preferential agreements. According to a White House official, Trump's new tariff policy on drug imports will not apply to countries that have reached agreements with the US that include drug provisions, providing tariff reductions for economies including the EU and Japan. The official stated on Friday that under the terms of the US-EU framework agreement, tariffs on drugs imported from the EU will be capped at 15%. The official added that Japanese drugs will also be taxed according to the rates specified in the US-Japan agreement. Trump stated on Thursday that the US would impose a 100% tariff on &#34;any branded or patented drug&#34; unless the company is building a pharmaceutical plant in the US, with &#34;under construction&#34; defined as &#34;having started or in progress.&#34; This sudden announcement did not include further details, leading some foreign capitals to question whether their agreements with Washington still apply under the new drug tariff policy.
Federal Reserve Governor Bowman supports holding only Treasury securities and reforming the monetary policy mechanism. Federal Reserve Governor Bowman stated that the Fed should seek to achieve the smallest possible balance sheet size and comprehensively reform its monetary policy implementation mechanism. Bowman said, &#34;In the long term, I tend to maintain the smallest possible balance sheet, keeping reserve balances close to scarce levels rather than abundant levels.&#34; Bowman believes that returning to a mechanism where the Fed actively manages its balance sheet will better reflect market pressures and operational issues. Bowman stated, &#34;Allowing moderate fluctuations in the money market can enhance our understanding of market clearing points.&#34;
&#34;She also stated that she supports the Federal Reserve holding only government bonds on its balance sheet, with a slight inclination towards short-term securities rather than being fully aligned with the overall market's term structure. She said this would provide the Federal Reserve with greater flexibility. Bowman added that the Federal Reserve should consider actively selling its holdings of mortgage-backed securities (MBS).
Government shutdown delays September employment report; Federal Reserve's meeting faces data gap. According to the operational contingency plan released by the U.S. Department of Labor earlier this year, if the federal government shuts down, the September employment report, originally scheduled for release next Friday, will face delays. The specific impact of the government shutdown is currently unclear, as most government agencies, including the Bureau of Labor Statistics responsible for compiling the monthly employment report, have not publicly updated their contingency plans—if Congress fails to pass a spending bill by next Tuesday, these agencies will operate based on their contingency plans. A plan updated by the Department of Labor in March last year indicated that once a shutdown occurs, all data collection activities and planned data releases would be suspended. If the government shutdown continues and the Bureau of Labor Statistics delays data releases, the Federal Reserve will lack several key employment and inflation economic data before its next policy meeting on October 28-29, which will undoubtedly increase the risks in policy-making.
U.S. tariff impact causes Canadian steel industry to see declines in both production and exports in July. Statistics Canada released data on the 26th showing that due to the ongoing impact of high U.S. tariff policies, both the industry output and export volume of Canada's steel and related manufacturing sectors saw significant declines in July. The data indicated that in terms of output, since the U.S. imposed a 25% tariff on all imported steel and aluminum in March, the output of Canada's steel and ferroalloy manufacturing industries in July decreased by 24.8% compared to February; after the U.S. raised the relevant tariff rate to 50% in June, the industry's output shrank by as much as 19.1% in July, marking the largest monthly decline of the year. In terms of exports, the export volume of unrefined steel and ferroalloys from Canada in July decreased by 25.5% compared to February; while the export volume of basic and semi-finished steel products saw an even larger decline of 34.4% compared to February.
【Individual stock news】
Apple (AAPL.US) develops ChatGPT-like tool, aiming for breakthrough in March next year. According to informed sources, Apple has developed an iPhone application similar to ChatGPT to assist in testing and preparing for the highly anticipated major upgrade of Siri next year. The sources indicated that Apple's artificial intelligence department is using the application to quickly evaluate new features for the Siri voice assistant, including testing its ability to search personal data (such as songs and emails) and perform in-app operations like editing photos. The software's code name is &#34;Veritas,&#34; which means &#34;truth&#34; in Latin, and is currently intended for internal use only. Apple currently has no plans to release the application to consumers. Essentially, the application presents the new Siri technology still under development in a form that employees can test more efficiently. After several delays, the new Siri is expected to debut as early as March next year. If the software performs as promised, it could help Apple make a comeback in the field of artificial intelligence
If performance does not improve, the company may fall further behind smartphone competitors such as Google under Alphabet and Samsung Electronics.
The White House pushes to help Boeing (BA.US) secure a large number of orders; financial rebound hinges on capacity enhancement. Data shows that Boeing has recently received a large number of aircraft orders, partly due to the White House's push during tariff negotiations. Trump has always viewed Boeing as a core driver of aerospace exports—one of the few sectors in the U.S. that still maintains a trade surplus. However, the rebound in Boeing's financial situation does not rely on acquiring more orders or expanding the backlog of unfulfilled orders. Currently, the aircraft manufacturer’s core focus is on enhancing capacity and completing the certification work for new models, including the 777 X and 737 Max 10. Increasing capacity will not only bring cash flow but also allow the delivery of aircraft to airlines—who have previously been forced to extend the service life of older aircraft far beyond their expectations. Increasing production capacity for models including the 787 &#34;Dreamliner&#34; will address most of the issues Boeing currently faces. The next two to three years will be a &#34;critical period for success or failure&#34; for Boeing: if capacity enhancement proceeds smoothly, the company will soon welcome ample cash flow; but any obstacles or further incidents will be a fatal setback.
【Major Ratings】
Morgan Stanley: Downgraded Costco (COST.US) target price from $1,225.00 to $1,130.00; raised Microsoft (MSFT.US) target price from $582.00 to $625.00

.SPX

.IXIC

This week, the three major U.S. stock indices closed lower, with the Dow Jones Industrial Average down 0.15%, the S&P 500 down 0.31%, and the NASDAQ Composite Index down 0.65%. On Friday, the three major indices rebounded, with the Dow up 299.97 points, the NASDAQ up 99.37 points, and the S&P 500 up 38.98 points. The U.S. August PCE inflation data met expectations, with a year-on-year core inflation increase of 2.9%. The cryptocurrency market saw a market capitalization evaporation of approximately $300 billion this week

Zhitong

S&P 500

NASDAQ Composite Index

Overnight U.S. Stocks | The three major indices closed lower this week, with the cryptocurrency market losing approximately $300 billion in value this week