Overnight US stocks | The three major indexes fell this week, with Tesla, Inc. (TSLA.US) falling by a total of 11%.

date
08/02/2025
avatar
GMT Eight
On Friday, the three major indices opened higher but ended lower. U.S. President Trump stated on Friday that he plans to impose reciprocal tariffs on trading partners. Analysts point out that Trump hopes to impose reciprocal tariffs on trading partners, which may mean he will raise tariffs across the board. This week, the Dow Jones Industrial Average fell by 0.54%, the S&P 500 Index fell by 0.24%, and the Nasdaq fell by 0.53%. Tesla, Inc. (TSLA.US) fell by 11% this week, marking the largest decline since October last year. [American Stocks] At the close, the Dow dropped 444.23 points, or 0.99%, to 44,303.40; the Nasdaq dropped 268.59 points, or 1.36%, to 19,523.40; and the S&P 500 Index dropped 57.58 points, or 0.95%, to 6,025.99. The China Golden Dragon Index rose against the trend by 1.34%. Chinese concept stocks were up, with Alibaba Group Holding Limited Sponsored ADR (BABA.US) up by 3.12%, PDD Holdings Inc. Sponsored ADR Class A (PDD.US) up by 1.38%, and JD.com, Inc. Sponsored ADR Class A (JD.US) up by 0.4%. [European Stocks] The German DAX30 index fell by 130.59 points, or 0.60%, to 21,782.42; the UK's FTSE 100 index fell by 28.59 points, or 0.33%, to 8,698.69; the French CAC40 index fell by 34.59 points, or 0.43%, to 7,973.03; the Euro Stoxx 50 index fell by 30.28 points, or 0.57%, to 5,326.35; the Spanish IBEX35 index fell by 56.58 points, or 0.44%, to 12,682.02; and the Italian FTSE MIB index fell by 62.77 points, or 0.17%, to 37,059.00. [Asian Stocks] The Nikkei 225 index fell by 0.72%, the South Korean KOSPI index fell by 0.58%, and the Indonesia Jakarta Composite index fell by 1.93%. [Cryptocurrency] Bitcoin fell below 96,000 USD per coin, dropping by 0.62% in a day. [Gold] COMEX gold futures rose by 0.35% to 2,886.80 USD per ounce. It reached 2,910.60 USD intraday, marking a new historical high during trading hours, with a weekly gain of 1.83%. [Crude Oil] U.S. WTI crude oil closed slightly higher on Friday, but the commodity's price fell by 2.1% this week for the third consecutive week. President Trump restarted the U.S.-China trade war this week and threatened other countries with tariffs, putting pressure on oil prices. The price of West Texas Intermediate crude oil for March delivery on the New York Mercantile Exchange rose by 0.39 USD, a 0.55% increase, to 71 USD per barrel. Based on the most active contract, WTI crude oil fell by 2.1% this week for the third consecutive week. [Dollar] The ICE Dollar Index rose by 0.31% to 108.019 points, with a 0.33% decline for the week. The overall trading range was between 109.881 and 107.296 points, with downward fluctuations from Monday to Wednesday, followed by low-level fluctuations on Thursday and Friday heading into a bullish trend after the release of nonfarm payrolls report. The Bloomberg Dollar Index increased by 0.22% to 1,300.22 points, with a 0.57% decline for the week and a trading range of 1,325.10 - 1,294.98 points. [Macro News] U.S. nonfarm payrolls data for January fell short of expectations. The U.S. Department of Labor reported that nonfarm payrolls increased by 143,000 in January, lower than expected. The unemployment rate dropped from 4.1% in the previous month to 4%. Analysts surveyed had an average estimate of 175,000 nonfarm payrolls in January, with a range from 105,000 to 240,000 people added according to 79 economists surveyed. The labor force participation rate was 62.6%, compared to 62.5% in the previous month. Average hourly wages increased by 0.5% compared to the previous month, estimated to increase by 0.3%, with an increase of 0.3% in the previous month. Private sector nonfarm payrolls increased by 111,000, down from 273,000 in the previous month; the estimate was an increase of 158,000 jobs with 35 economists surveyed predicting an increase of 95,000 to 210,000 people. Manufacturing nonfarm payrolls increased by 3,000, compared to a decrease of 12,000 in the previous month; the estimate was for an increase of 1,000 jobs with 12 economists surveyed predicting a range of a decrease of 20,000 to an increase of 6,000 jobs. The unemployment rate was 4%, down from 4.1% in the previous month, estimated at 4.1%, with 75 economists surveyed predicting a range of 4% - 4.4%. The underemployment rate was 7.5%, the same as it was in the previous month. Federal Reserve monetary policy report: plan to stop tapering at the appropriate time. The Federal Reserve released its semi-annual monetary policy report, stating that it will continue to greatly reduce the holding of U.S. Treasury and agency securities in a predictable manner. Since June 2024, the Federal Reserve has reduced holdings by $297 billion in securities, with a total reduction of about $2 trillion since asset reduction began. The Federal Open Market Committee (FOMC) intends to maintain holdings of securities at a level that is consistent with the effective implementation of monetary policy under a system of abundant reserves. In order to ensure a smooth transition, the FOMC slowed the pace of reductions in securities holdings in 2024 judging that the reserve balance is slightly higher than what is believed to be consistent with adequate reserve levels. Fed Governor Quarles: Rates should remain unchanged "for some time." Fed Governor Quarles stated that, given the stable labor market, limited progress in inflation in recent months, and uncertainties in fiscal and trade policies, it is appropriate for the Federal Reserve to keep the benchmark interest rate unchanged for some time. "We lowered the policy rate by 100 basis points until December last year, but recent progress in inflation has been slow and uneven, with inflation rates remaining high," Quarles said at the Miami Economic Club on Friday.A speech prepared for a event held.United States consumer credit in December saw a record increase, with credit card balances and non-revolving credit rising. Unexpectedly, in December, the outstanding consumer debt balance in the United States saw a record increase, reflecting the rise in credit card balances and non-revolving credit. According to data released by the Federal Reserve on Friday, consumer credit total increased by $40.8 billion in December, revised from a decrease of $5.4 billion in November. This number exceeded the estimates of all economists surveyed by Bloomberg. The data was not adjusted for inflation. Outstanding credit card and other revolving debt balances increased by $22.9 billion, significantly reversing the previous month's decline. Automakers urge the U.S. Department of Transportation to quickly restart the federal electric vehicle charging program. A group representing automakers and electric vehicle charging companies urged the U.S. Department of Transportation on Friday to quickly restart a $5 billion government electric vehicle infrastructure program. On Thursday, the Trump administration announced the suspension of the electric vehicle charging program and the cancellation of approvals for state electric vehicle charging programs pending a new review. The Electrification Coalition (whose members include General Motors Company, Toyota, BorgWarner Inc., EVGo, Walmart Inc., etc.) stated that the coalition urged the Trump administration to "quickly resume the critical work of this program and maximize the reduction of uncertainty for states and their businesses." EU plans to reduce U.S. car import tariffs to avoid triggering an imminent trade war. According to the Financial Times, a senior European MEP stated that as part of an agreement to avoid a trade war with Trump, the EU will propose cutting U.S. car import tariffs. The chairman of the European Parliament's Trade Committee, Berndt, who is familiar with negotiations to ease tensions with the White House, revealed that the EU is willing to reduce the 10% import tariff to a level closer to the 2.5% levied by the U.S. He said, "We can try to reach an agreement before costs and tariffs increase. The EU will also propose buying more liquefied natural gas and military equipment from the U.S." The EU has been hoping to avoid a destructive trade war by finding ways to reduce its trade surplus with the U.S. Trump often cites this surplus as a reason for punitive measures. During Trump's first term, Brussels lowered tariffs on EU lobster and proposed buying more liquefied natural gas and soybeans, which limited the trade dispute to the steel and aluminum sectors. New York State in the U.S. discovers 7 cases of avian flu, and some areas' live poultry markets will be closed for a week. New York State government officials announced on February 7th that live poultry markets in the Brooks Corporation forest area, Bronx, and Queens in New York State will be closed for a week following the discovery of 7 cases of avian flu. The order requires these markets to be closed after completing cleaning and disinfection procedures. These cases were found in routine inspections. Local officials stated that closing live poultry markets was a "prudent move," and all infected poultry flocks will be culled. New York State Governor Kathy Hochul pointed out that avian flu does not pose a threat to public health. [Stock News] Apple Inc. (AAPL.US) plans to release the highly anticipated revamped iPhone SE in the next few days. Apple Inc. is planning to launch an upgraded version of the iPhone SE in the coming days, which will modernize its low-cost model to stimulate growth and attract consumers from other brands to the iPhone SE. According to sources familiar with the matter, the company is expected to announce this new device as early as next week and release it for sale later this month. Apple Inc. is unlikely to hold an event for this device but is expected to announce it on its website. There are already signs that the new device is imminent. In many Apple Inc. retail stores in the U.S., current iPhone SE inventory has been depleted, which usually happens before an update. [Major Rating Updates] Citi: Lowered the target price of Amazon.com, Inc. (AMZN.US) to $273 from $275 Bank of America Corp: Raised the target price of Eli Lilly (LLY.US) from $997 to $1000

Contact: contact@gmteight.com