Overnight U.S. Stocks | Tech Earnings from Nvidia (NVDA.US) and Others Boost Market Sentiment; All Three Major Indexes Close Higher; Salesforce (CRM.US) Surges Over 22%

According to Zhihu Finance APP, on Thursday, the three major indexes closed higher as the latest earnings reports from well-known tech companies such as Nvidia (NVDA.US), CrowdStrike (CRWD.US), and Salesforce (CRM.US) boosted market sentiment. On Thursday, Nvidia (NVDA.US) saw its market cap increase by $442 billion, setting the second-largest single-day gain in the history of individual stocks. This market cap growth is second only to Microsoft’s $450 billion gain set less than a month ago.

[U.S. Stocks] At the close, the Dow rose 105.56 points, or 0.20%, to 53,569.44 points; the S&P 500 gained 55.29 points, or 0.72%, to 7,730.99 points; the Nasdaq rose 411.15 points, or 1.57%, to 26,541.35 points. It was the best day for the technology sector, the S&P 500, and the Nasdaq Composite Index since August 4. CrowdStrike rose 20.5%, Salesforce gained 22.58%, SK Hynix (SKHY.US) rose 2%, Tesla (TSLA.US) climbed 2.6%, Nvidia (NVDA.US) surged 8.7%, and Broadcom (AVGO.US) gained 4%. The Nasdaq Golden Dragon China Index fell 0.74%; Baidu (BIDU.US) rose 4%, Alibaba (BABA.US) dropped 3%.

[European Stocks] Germany's DAX30 rose 50.54 points, or 0.19%, to 26,366.45; UK's FTSE 100 fell 81.85 points, or 0.75%, to 10,796.27; France's CAC40 dropped 142.52 points, or 1.68%, to 8,319.87; the Euro Stoxx 50 lost 44.99 points, down 0.70%, to 6,425.75; Spain's IBEX35 fell 186.70 points, or 0.93%, to 19,880.60; Italy's FTSE MIB declined 596.99 points, or 1.13%, to 52,286.00.

[Asian Markets] Nikkei 225 fell 0.2%, Korea's KOSPI rose 1.53%.

[U.S. Dollar Index] The U.S. Dollar Index, which measures the greenback against six major currencies, fell 0.01% on the day, closing at 99.159 in late trading. By the end of New York trading, 1 euro was exchanged for $1.1649, lower than the previous session’s $1.1651; 1 pound sterling traded for $1.3589, lower than $1.3592. 1 U.S. dollar traded for 159.43 Japanese yen, higher than the previous day’s 159.40 yen; 1 U.S. dollar traded for 0.8043 Swiss franc, lower than 0.8055; 1 U.S. dollar for 1.3858 Canadian dollars, lower than 1.3878; and 1 U.S. dollar for 9.5220 Swedish kronor, lower than the previous 9.5329.

[Cryptocurrencies] Bitcoin rose 1.95%, quoted at $80,232 at press time; Ethereum rose 0.62%, quoted at $2,509.

[Crude Oil] October-dated light crude oil futures on the New York Mercantile Exchange rose $1.30, or 1.58%, to close at $83.53 per barrel; October-dated London Brent crude futures rose $1.86, or 2.12%, to $89.70 per barrel.

[Precious Metals] Spot gold is priced at $4,600.69; spot silver at $69.32.

[Macro News]

Federal Reserve's Collins: If inflation cools less than expected, may support rate hike. Boston Fed President Collins stated that if future data shows less-than-expected progress in reducing inflation, she might support the Fed raising rates at the next meeting. She mentioned earlier this week that if there is no clear evidence of sustained improvement in inflation, “further tightening of policy may soon be appropriate.” When asked if “soon” meant the next one or two meetings, Collins admitted, “It’s possible, yes.” Collins believes the July inflation report matches her judgment overall. Although core inflation was slightly higher than expected, after excluding items with hard-to-track prices, the data was “more encouraging.” She still expects that even without a rate hike, inflation will ease gradually. Collins also revealed her latest June forecast is for rates to remain unchanged through year-end, and she believes the current interest rate level is “mildly restrictive” for the economy.

Oil prices under pressure ahead of midterm elections, Trump plans to meet with refiners and fuel retailers. According to informed sources, President Trump is expected to meet next week with U.S. refiners and fuel retailers to present initiatives on lowering gasoline prices. With the November congressional midterm elections approaching, the Trump administration is seeking to ease the burden of the Iran war on consumers. Companies expected to attend include Valero Energy, Marathon Petroleum, and PBF Energy, as well as major fuel retailers. The Republican Party is trying to retain its slim majority in Congress in the November elections. U.S. regular gasoline prices remain above $4 per gallon, about $1 higher than a year ago. The Iran war has disrupted global energy markets and tightened gasoline and other refined product supplies; U.S. oil majors and refiners all posted strong results in the second quarter. These profits prompted criticism from Trump, who believes oil companies benefiting from higher prices should take more steps to lower costs for consumers and has pressured large producers and refiners to reduce prices.

Media: Trump administration rejects returning to the June agreement with Iran. Media reports, citing informed sources, state that the Trump administration has told mediators multiple times that it has no intention of reembracing the terms of the memorandum of understanding reached with Iran in June this year. Trump is currently turning to economic pressure on Iran and is willing to wait and see if this strategy works. The June agreement was originally intended to reopen the Strait of Hormuz and initiate nuclear issue and war-ending talks in exchange for easing sanctions and releasing Iran’s frozen overseas funds. However, the deal collapsed weeks later after Iranian attacks on vessels. Iran insists that the U.S. resume implementing the June agreement and contends that Article 5 of the agreement in effect recognizes Iran’s right to determine the conditions for the Strait’s opening. The Iranian Revolutionary Guard stated Iran will reopen the Strait only if the U.S. resumes the agreement, grants oil sale exemptions, and ends the maritime blockade. Recently, Pakistan, Oman, and Qatar have successively mediated, but progress has been limited. Analysts say the memorandum of understanding reached in June has effectively lapsed, and both sides are preparing for escalation.

U.S. mortgage rates rise for the first time in three weeks; 30-year rates up to 6.66%. U.S. mortgage rates increased for the first time in three weeks, further hurting housing affordability as the real estate market slumps. Freddie Mac data shows the average 30-year fixed mortgage rate rose slightly to 6.66% from 6.65% the prior week, higher than 6.56% a year ago. So far this year, the U.S. housing market remains sluggish; mortgage rates briefly fell below 6% before the Middle East conflict erupted in late February but have stayed above 6.5% since July, with little sign of financing costs easing. Thomas Ryan, senior North America economist at Capital Economics, said, “High rates are still keeping the market in a stalemate;” potential pent-up demand could be significantly released if rates finally fall to around 5%, but it’s unclear in the short term what would cause this drop. U.S. new home sales in July fell to a six-month low, with new single-family home signed contracts down 10.5%, at a seasonally adjusted annual rate of 607,000 units, below the expected 620,000 units.

Fed’s Harker reiterates anti-inflation stance: Interest rates still not restrictive enough. Federal Reserve’s Harker reiterated that now is the time for officials to act to curb inflation. She said the cooling effect of the current interest rate on the economy is not strong enough to bring down price pressures by itself. She added, “I believe maintaining some degree of restrictiveness now is appropriate to help inflation return to target. The longer inflation remains above our target, the harder it will be to bring it down.” Harker was one of three dissenting officials at last month’s policy meeting, favoring a 25 basis points rate hike. She said: “In my view, inflation has long deviated from our target; the real concern is that the public may start developing an inflationary mindset.” She added that while she had not yet seen such a mindset, conversations with some people made her worried. Harker also said capital markets’ performance shows current interest rates are not putting sufficient pressure on credit or economic growth. She said: “We are seeing trillion-dollar scale IPOs and record debt issuance in the market. From my perspective, this doesn’t look like the economy is being constrained.”

Canada expands counter-tariffs against U.S. by 50%; adds copper wire and charcoal. Canada’s Ministry of Finance stated that Canada added U.S.-made copper wire and charcoal to its 50% counter-tariff list, replacing previously removed fish and seafood products. The Trudeau government intends the counter-tariffs to cover about $20 billion of annual imports, roughly equivalent to the scale affected by U.S. 50% tariffs on Canadian goods imposed by the Trump administration. U.S. tariffs took effect last Saturday; Canadian counter-tariffs will take effect on September 8. Canadian Finance Minister Chrystia Freeland said the removal of U.S. fish and seafood products was made after consulting Canada’s fisheries industry. In addition to copper wire and charcoal, some U.S. glass containers, printed images, and gypsum bricks were also newly included in the 50% tariff list.

[Individual Stock News]

Murdoch considers re-merging Fox Corporation and News Corp. According to media reports, court documents and related footage show media mogul Rupert Murdoch’s long-standing wish to re-merge Fox Corporation (FOX.US) and News Corp (NWS.US) may become reality through a potential merger. Discussions about a possible re-merger have surfaced in recent weeks as court documents related to a family succession dispute that began in 2023 were unsealed and a lawyer’s testimony was disclosed. In 2022, Rupert Murdoch, then chairman of both Fox Corporation and News Corp, developed an interest in merging the two companies, which he separated less than a decade ago. Murdoch drafted a letter to the boards of both companies stating that the family trust would not “support any sales, mergers, or similar transactions involving entities other than these two companies.” When questioned about the restructuring by a representative of his daughter Elisabeth Murdoch, Murdoch promptly threatened by text: “If necessary, I’ll force it through.” The merger failed due to investor opposition, but June’s court proceedings indicate Murdoch may try again. During a hearing on whether court testimony should be made public, Lachlan Murdoch’s lawyer argued any merger-related discussions should remain confidential or be redacted, as “this is still possible in the future and could open a new chapter.”

SK Hynix CEO says considering closer cooperation with Kioxia. SK Hynix (SKHY.US) is considering further deepening collaboration with Japanese flash memory maker Kioxia. CEO Kwak Noh-Jung said various ways to strengthen cooperation are being studied, but there are “no established plans” regarding its current indirect stake in Kioxia. At present, SK Hynix indirectly holds a significant stake in Kioxia through an investment vehicle under Bain Capital. Under a previous agreement, its voting rights cannot exceed 15% before 2028 without Kioxia's consent. When asked whether further expansion of U.S. investment is planned, Kwak did not disclose specifics. He also revealed that SK Hynix is still evaluating the possibility of listing its U.S. NAND subsidiary, Solidigm. Earlier Korean media reported Solidigm is seeking pre-IPO financing of 5 trillion to 10 trillion won, but SK Hynix has stated no decision has been made yet.

Media: Nvidia suspends part of AI cloud revenue-sharing agreement involving $36 billion commitments. According to media reports citing informed sources, Nvidia (NVDA.US) has suspended part of its agreements to provide credit support to AI cloud service providers in exchange for revenue sharing, even though the plan was announced less than two months ago in July. Some Nvidia employees worry the plan could trigger antitrust scrutiny, particularly regarding the extent to which the company can decide how customers operate. The plan, called the “AI Compute Partnership Program,” commits Nvidia to renting GPU compute power itself in case cloud service providers fail to find other customers, thus securing their income and helping them secure financing. Nvidia announced this week these typically six-year deals involve $36 billion in commitments. Under the proposed agreements, Nvidia will receive 50% of any cloud provider's revenue above a baseline covering chip depreciation, data center, and personnel costs. Nvidia may adjust the plan or incorporate it into other projects in the future.

[Major Bank Ratings]

UBS Group: Raises Nvidia (NVDA.US) target price from $280 to $300.