Preview of US Stock Market | Three major stock index futures are falling together, NVIDIA Corporation(NVDA.US) earnings report and PCE data will be released this week.

1. Before the opening of the US stock market on Monday, the three major stock index futures fell together. As of the time of writing, Dow futures fell by 0.18%, S&P 500 index futures fell by 0.22%, and Nasdaq futures fell by 0.31%. 2. As of the time of writing, the German DAX index fell by 0.25%, the UK FTSE 100 index rose by 0.13%, the French CAC 40 index fell by 0.65%, and the European Stoxx 50 index fell by 0.44%. 3. As of the time of writing, WTI crude oil rose by 0.79% to $64.16 per barrel. Brent crude oil rose by 0.70% to $67.69 per barrel. Market News After the rate cut celebration, the US stock market faces a series of "big tests": NVIDIA Corporation (NVDA.US) earnings, PCE data to be released this week! Following Federal Reserve Chairman Jerome Powell's opening of the door to a rate cut in September, the US stock market ended last week's trading with continuous gains. This week, the earnings report of NVIDIA Corporation, the world's largest market value company and a leader in the AI industry, will test the summer rebound that has pushed the stock market back to near historic highs. After a brief pullback early in the week, Powell's statements at the Jackson Hole symposium sparked a substantial market surge, leading to the Dow Jones Industrial Average hitting a new all-time high and other major indices rising strongly. NVIDIA Corporation will release its quarterly earnings report after the market closes on Wednesday, which will be the key event of the week. Meanwhile, the economic calendar will be busier than the earnings calendar, with inflation data, GDP growth, home sales, and consumer confidence data among others set to be released. "The Wall Street Oracle" warns: Market overly optimistic about Fed rate cut. Tom Lee, a strategist at Fundstrat known as "The Wall Street Oracle," has issued a warning to investors, stating that the market is currently overly optimistic about the possibility of a Fed rate cut. Lee believes that although there are signs of economic slowdown in the United States, ongoing inflation remains a major issue. He believes that the Fed must make a difficult decision. Lee explained, "On one hand, the economy is showing signs of slowing down, and lowering rates may have a stimulative effect." He said, "On the other hand, inflation is still a worrying issue, and cutting rates too early could exacerbate inflation." He believes that the market is too optimistic about a rate cut. Lee emphasized that the Fed should continue to "rely on data and not rush into decisions," and stated that major action should only be taken when there is clear evidence of a slowdown in inflation and weakness in the labor market. Most investment banks expect Fed rate cut in September, while Morgan Stanley and BofA remain cautious. Large investment banks, including Barclays, BNP Paribas, and Deutsche Bank Aktiengesellschaft, now expect the Fed to cut rates by 25 basis points in September. Prior to this, at the Jackson Hole symposium, Fed Chairman Powell changed his tone, mentioning the increasing risks in the labor market. Powell's speech at the Jackson Hole symposium highlighted a change in the Fed's reaction mechanism, now placing greater emphasis on labor market risks. Meanwhile, Macquarie and Deutsche Bank Aktiengesellschaft have both revised their expectations, predicting a 25 basis point rate cut by the Fed in September and December, respectively. Morgan Stanley and Bank of America Corp are the only two major Wall Street brokerages that have not yet predicted a rate cut by the Fed in September. Morgan Stanley stated that if upcoming labor and inflation data confirm further economic weakness, the Fed is likely to cut rates in September. Individual Stock News PDD Holdings Inc. Sponsored ADR Class A (PDD.US): The "Billion Yuan Support" continues to reduce commissions and costs for merchants, Q2 revenue growth slows. Due to the increased investment in the "Billion Yuan Support" initiative, PDD Holdings Inc. Sponsored ADR Class A's Q2 revenue growth slowed to 7% year-on-year, continuing a trend of slowing growth for several quarters. In the second quarter, PDD Holdings Inc. Sponsored ADR Class A launched the "billion-level" merchant support action in the e-commerce industry for the first time, providing real support to merchants and industries, on the one hand, continuing to reduce commissions and costs for millions of merchants; on the other hand, increasing support for small and medium-sized merchants, new quality merchants, and brand merchants to promote multi-level, high-quality development in various agricultural production areas and industrial belts. Keurig Dr Pepper (KDP.US): Coffee business growth hindered, acquires JDE Peet's for 15.7 billion euros to break through. Keurig Dr Pepper announced that it will acquire Dutch coffee giant JDE Peet's NV for 15.7 billion euros (approximately USD 18.4 billion) in cash to revitalize its struggling coffee business through a strong alliance. According to a statement released on Monday, the transaction will be completed at a price of 31.85 euros per share, offering a 20% premium over JDE Peet's closing price on August 22. Since the merger of Keurig, known for its single-serve coffee capsule technology, with soda maker Dr Pepper in 2018, the business segment has struggled to break through its growth challenges due to increased market competition. This cross-border acquisition may prove to be a key strategic move for Keurig Dr Pepper to turn the tide. Boeing Company (BA.US): Strike enters fourth week, Boeing and machinists union plan to restart negotiations. Boeing Company and the machinists union leadership are scheduled to resume contract negotiations on Monday. Defense workers assembling F-15 and F/A-18 in the St. Louis area and Illinois have been on strike since August 4, 2025. Workers rejected Boeing Company's offer of a 20% pay increase, $5,000 ratification bonus, more vacation and sick days, and a path to higher wages. Boeing Company defense spokesman Didi VanNierop said that the company has managed to maintain production, flight testing, and other work using non-union workers so far. Almost no winners in "bad decision"! Think tank criticizes US government's massive investment in Intel Corporation (INTC.US). Last Friday, the US government announced that it would invest up to $11 billion in the troubled US chipmaker Intel Corporation. The Cato Institute called this move a "bad decision that hurts almost everyone." Intel Corporation announced last Friday that it has reached an agreement with the US government, under which the government will invest $8.9 billion in Intel Corporation common stock, acquiring a 9.9% stake in the company. After the successful transaction, the US government will become a major shareholder of Intel Corporation. Intel Corporation stated that the US government will purchase 4.333 billion shares of Intel Corporation common stock at a price of $20.47 per share. Including the $2.2 billion subsidy that Intel Corporation had already received, the total investment by the US government in Intel Corporation will be $11 billion. Thoma Bravo reportedly close to acquiring call center software manufacturer Verint Systems Inc. (VRNT.US) for an estimated $2 billion. According to sources, private equity firm Thoma Bravo is close to finalizing a deal to acquire call center software manufacturer Verint Systems Inc. The deal values Verint at around $2 billion, including debt. Sources indicate that the agreement may be announced as early as Monday. However, a final decision has not yet been made. Verint is headquartered in Melville, New York, and its website states that it is a leading company in the field of customer experience automation, serving approximately 10,000 customers in 175 countries worldwide. The company has been listed on the NASDAQ stock exchange since 2002. In February 2021, Verint completed the spin-off of Cognyte Software (CGNT.US), creating an independent publicly traded company focused on investigation analysis software. Important Economic Data and Events Preview 20:00 Beijing time: US July Building Permits MoM Revised (%). 22:00 Beijing time: US July Seasonally Adjusted Annualized Sales of New Homes (thousands). Next day, 03:15 Beijing time: 2026 FOMC Voting Member, Dallas Fed President Robert S. Kaplan delivers a speech and participates in a panel discussion at the 100th anniversary celebration of the Bank of Mexico. Earnings Preview Before the market opens on Tuesday: KE Holdings, Inc. Sponsored ADR Class A (BEKE.US), Daqo New Energy Corp Sponsored ADR (DQ.US), EHang Holdings Ltd. Sponsored ADR Class A (EH.US), Gaotu Techedu, Inc. Sponsored ADR Class A (GOTU.US)