The Zhitong Finance App learned that on Tuesday, the three major indices closed higher, and the S&P 500 index and NASDAQ reached record highs. The S&P 500 index closed at 7,800 points for the first time. US Treasury Secretary Vincent insisted that the government's debt burden is manageable. Bezent tried to appease investors, saying that the combination of economic growth and spending restrictions would “soon” begin to change the US government's borrowing path. On Monday evening, during a fireside conversation in Pennsylvania, he said the government would begin to “reverse this trend.”
[US Stocks] At the close, the Dow Jones index rose 253.32 points, or 0.49%, to 51521.22 points; the S&P 500 rose 45.03 points, or 0.58%, to 7818.98 points; the Nasdaq Composite rose 122.48 points, or 0.45%, to 27599.79 points. Storage concept stocks plummeted, with Seagate Technology (STX.US) falling 9%, Western Digital (WDC.US) falling nearly 7%, Modena (MRNA.US) falling 7.7%, and SK Hynix (SKHY.US) falling more than 6%. The Nasdaq China Golden Dragon Index closed up 0.3%, while Alibaba (BABA.US) fell more than 1%.
[European stocks] The German DAX30 index rose 197.98 points, or 0.78%, to 25452.19 points; the British FTSE 100 index rose 43.33 points, or 0.41%, to 10541.27 points; the French CAC40 index rose 30.97 points, or 0.40%, to 7865.07 points; the European Stoxx 50 index rose 30.81 points, or 0.49%, to 6272.95 points; the Spanish IBEX35 index rose 139.98 points, or 0.73%, to report 19439.68 points; Italy's FTSE MIB index rose 425.12 points, or 0.84%, to 51243.50 points.
[Asia Pacific Stock Market] The Nikkei 225 Index rose 1.05%, South Korea's KOSPI Index fell 0.89%, and the Indonesian Composite Index rose 1.21%.
[Foreign Exchange] The US dollar index, which measures the US dollar against the six major currencies, fell 0.33% on the same day and closed at 101.833 at the end of the foreign exchange market. As of the end of the exchange market in New York, 1 euro was worth $1.1261, up from $1.1215 on the previous trading day; 1 pound was worth $1.3277, up from $1.3219 on the previous trading day. 1 US dollar was worth 158.12 yen, up from 158.00 yen on the previous trading day; 1 US dollar was worth 0.8313 Swiss franc, higher than 0.8307 Swiss franc on the previous trading day; 1 US dollar was worth 1.4209 Canadian dollars, lower than 1.4256 Canadian dollars on the previous trading day; 1 US dollar was worth 9.9861 SEK, lower than SEK 10.0403 on the previous trading day.
[Cryptocurrency] Bitcoin hovered around $85,000, at $8,5575 as of press release; Ethereum fell 0.69% to $2,696.
[Precious Metals] Spot gold reported US $4163.82 per ounce; spot silver reported US $61.364 per ounce.
[Crude oil] Light crude oil futures for November delivery on the New York Mercantile Exchange rose 1 cent, or 0.01%, to close at $89.44 a barrel; London Brent crude oil futures for December delivery rose 26 cents, or 0.26%, to close at $100.58 a barrel.
[Macro News]
Federal Reserve Daly: Further rate hikes may be needed if AI, tariffs, and energy shocks continue. San Francisco Federal Reserve Chairman Daly said that the demand for chips brought about by the AI boom may spread from high-end AI chips to the wider semiconductor market. Some companies have begun to lock down the supply of memory chips ahead of schedule, or even redesign products to reduce the use of chips. She believes that the price pressure brought about by this round of AI may not be a one-time shock, and the time required to ease it may take more than one to three years as the Federal Reserve usually assumes. Daly said that she fully supports the Fed's interest rate hike in September. Whether further action is needed will depend on whether shocks such as AI, tariffs, and energy prices driven up by the Middle East conflict subside; if these factors continue for a longer period of time or are superimposed on each other, further policy tightening may be necessary, but if the impact is only temporary, there may be no need to continue to raise interest rates.
Federal Reserve Governor Bowman: The Federal Reserve plans to reshape the banking supervision system and re-evaluate the asset threshold for stricter regulation. The Federal Reserve plans to comprehensively adjust the Bank of America supervision system, changing the current model where the governors of the Federal Reserve banks in each region are responsible for supervising bank inspections to a new structure with more clear responsibilities for the Washington headquarters. The Federal Reserve's top banking regulator announced the reform plan on Tuesday. Michelle Bauman, the Federal Reserve's vice chairman in charge of regulatory affairs, said that after the reform, five new geographical regions for bank supervision will be established, and each region will be headed by a “regional head”. In a speech prepared for a St. Louis Federal Reserve meeting, Bauman said the current structure “weakens the critical link between responsibility and accountability.” “The Federal Reserve's regulatory function will be realigned to create a culture that emphasizes accountability and clear decision-making authority,” Bauman said. Under the new regulatory arrangements, five regional directors will be responsible for all supervisory activities within their respective regions. However, the specific inspection work will still be carried out by the staff of the Federal Reserve banks in each region. Bowman also announced that the Federal Reserve will consider adjusting asset size thresholds later this year. These thresholds determine what size banks need to apply stricter regulations after reaching what size.
J.P. Morgan CEO Dimon: The Mythos model “increased global cybersecurity risks tenfold.” J.P. Morgan CEO Jamie Dimon said Mythos, the artificial intelligence model launched by Anthropic, has significantly increased global cybersecurity risks. Dimon said on Tuesday: “After the advent of Mythos, the risks posed by artificial intelligence have increased tenfold. AI has created holes we didn't know about before, and until these technologies appeared, we had always been concerned about cybersecurity issues.” He said that artificial intelligence is exposing banks to a new type of security vulnerability that did not exist or have not been discovered before. Dimon said, “The negative side is clearly what everyone sees about AI agents, Mythos, and other technologies that can cause trouble. This concern is both legitimate and real.” However, he said he would not get involved in a debate about whether artificial intelligence poses an “existential threat.” Dimon said, “I'm not going to be hysterical about questions like 'is this an existential threat? ' What we're doing now is roll up our sleeves and get to work to solve these problems.”
Institutions: The Bank of Canada's first move to raise interest rates only twice is expected to be postponed until early next year. Canada's Central 1 Credit Union predicts that the Bank of Canada may only raise interest rates twice in the current cycle, and that the first action will not take place until early next year, which is clearly not as aggressive as reflected in current financial market pricing. Central 1 economist Bu Bryan Yu said that Canada is currently in a period of high uncertainty, and the economic outlook is still changing rapidly. The sharp rise in US and Canadian bond yields, the impact of tariffs, and sharp fluctuations in oil prices have all made policy decisions more difficult. Yu pointed out that Canada's core inflation is still close to 2%, and economic growth may slow in late 2026 due to trade uncertainty. At the same time, higher bond yields may also suppress the recovery of the real estate market, thereby limiting the need and space for the Bank of Canada to further tighten monetary policy.
[Individual Stock News]
SpaceX plans to raise $40 billion to buy Nvidia chips. According to reports, SpaceX (SPCX.US) is seeking to raise $40 billion to purchase Nvidia (NVDA.US) chips through an Apollo-led financing program. According to people familiar with the matter, the company plans to raise around $10 billion through bank loans and $30 billion through investment-grade debt to support its large-scale chip orders. Relevant sources said private equity group Apollo is expected to lead the deal and help sell debt to a broad group of investors. According to reports, the bond group Pimco is one of a small group of lenders that are currently negotiating to finance the transaction. The deal is expected to close in 2027.
It is reported that Apple will join forces with LG to increase smart home plans to push door locks, cameras, etc. According to media reports citing sources, Apple (AAPL.US) plans to launch smart home devices such as smart doorbells and thermostats, and cooperate with LG Electronics to develop related accessories. These products will be connected to the upgraded Apple HomePod Mini and the new Apple TV set-top box to form a smart home ecosystem. Apple is expected to release these new products on October 13. Products developed in collaboration with Korea's LG company will also include smart door latch locks, security cameras, etc. Although the two companies have collaborated to develop these accessories, the products will use the LG brand. LG will be responsible for production and product support. By reaching such cooperative arrangements with so-called “second-party suppliers,” Apple was able to rapidly expand its ecosystem without having to bear the full cost and complexity of producing and supporting various types of accessories.
[Major Bank Ratings]
TD COWEN: Lowering the American Express (AXP.US) price target from $338 to $335
Bank France and Pakistan: Raise Microsoft (MSFT.US) price target from $549 to $604
Wells Fargo: Lowers United Airlines (UAL.US) price target from $17 to $14