Overnight US stocks | The three major indexes continue to fall for three consecutive days, with Oracle Corporation (ORCL.US) falling more than 5%.

On Thursday, the three major indexes fell, marking the third consecutive trading day of decline. The surge in U.S. Treasury bond yields put pressure on the stock market. Oracle Corporation (ORCL.US) further declined, closing down 5.55%. In the U.S. stock market, as of the close, the Dow Jones fell by 173.96 points, a decrease of 0.38%, closing at 45947.32 points; the Nasdaq fell by 113.16 points, a decrease of 0.50%, closing at 22384.70 points; the S&P 500 index fell by 33.25 points, a decrease of 0.50%, closing at 6604.72 points. Bitcoin-related stocks fell in general, with Strategy (MSTR.US) falling nearly 7% and Coinbase (COIN.US) falling nearly 4.7%. In the European stock market, the German DAX30 index fell by 136.90 points, a decrease of 0.58%, closing at 23544.80 points; the UK FTSE 100 index fell by 36.88 points, a decrease of 0.40%, closing at 9213.55 points; the French CAC40 index fell by 32.03 points, a decrease of 0.41%, closing at 7795.42 points; the Euro Stoxx 50 index fell by 16.86 points, a decrease of 0.31%, closing at 5447.70 points; the Spanish IBEX35 index fell by 67.12 points, a decrease of 0.44%, closing at 15147.88 points; the Italian FTSE MIB index fell by 172.12 points, a decrease of 0.41%, closing at 42251.00 points. In the commodity market, the price of light crude oil futures for delivery in November on the New York Mercantile Exchange fell by 1 cent, closing at $64.98 per barrel, a decrease of 0.02%; the price of Brent crude oil futures for November delivery rose by 11 cents, closing at $69.42 per barrel, an increase of 0.16%. In the cryptocurrency market, Bitcoin fell by more than 3%, closing at $109,421.3, while Ethereum fell by more than 6%, closing at $3,903.01. In the precious metals market, spot gold rose by over 0.3%, closing at $3,749.04. In the forex market, the U.S. Dollar Index, which measures the dollar against six major currencies, rose by 0.7% on the day, closing at 98.554. By the close of the New York forex market, 1 euro exchanged for $1.1653, lower than the previous trading day's $1.1737; 1 pound exchanged for $1.3335, lower than the previous trading day's $1.3449. 1 dollar exchanged for 149.89 yen, higher than the previous trading day's 148.84 yen; 1 dollar exchanged for 0.8004 Swiss francs, higher than the previous trading day's 0.7954 Swiss francs; 1 dollar exchanged for 1.3943 Canadian dollars, higher than the previous trading day's 1.3904 Canadian dollars; 1 dollar exchanged for 9.4766 Swedish krona, higher than the previous trading day's 9.4078 Swedish krona. In macroeconomic news, The U.S. economy grew strongly in the second quarter, with resilient consumer spending and business equipment spending. The U.S. economy grew at its fastest pace in nearly two years in the second quarter, and the U.S. government increased its estimate of consumer spending. A report released by the U.S. on Thursday showed that the inflation-adjusted U.S. GDP grew by 3.8% on an annualized basis, stronger than the previously announced 3.3% growth, following a contraction in the first quarter. The data shows that the annual revisions are relatively small, with actual GDP still growing at an average rate of 2.4% per year from 2019 to 2024, depicting an economy rapidly rebounding from the initial impact of the pandemic and transitioning to a more stable trend of growth, despite continuing inflation. The latest quarterly GDP data confirm a rebound in the U.S. economy in the second quarter after a sharp rise in imports earlier this year. The third quarter also looks robust, with recent reports showing resilient consumer spending and business equipment spending. Economists expect personal consumption expenditure data for August to show growth of nearly 3% compared to the same period last year. Fed Governor Milan: Federal Reserve can cut interest rates by 50 basis points in a very short time. Federal Reserve Governor Milan said that if interest rates are not lowered quickly, the Fed will face risks to the economy. He believes that the Fed's current policy rate is highly restrictive at 4% to 4.25%, far above his estimate of the so-called "neutral" level. Milan said, "That's why it's so important to start adjusting rates faster rather than slower." "When monetary policy is restrictive, the economy is more vulnerable to downturns. In my view, there's really no need to take that risk." He said, "My view is that we can cut interest rates by 50 basis points in a very short period of time, and then readjust monetary policy, and once we reach our target, we will act more cautiously." Fed's Logan: Fed should abandon federal funds rate and switch to Treasury repo overnight rate. Dallas Fed President Logan said that the Fed should abandon the federal funds rate as the benchmark for executing monetary policy and instead consider linking it to the more robust U.S. Treasury repo overnight rate. Logan believes that the federal funds rate target is outdated, and the fragile connection between the less-used interbank market and the overnight money market may suddenly break down. She said that updating the mechanism by which the Fed implements monetary policy would be part of an efficient and effective central banking system. Logan said, "Some may say, if everything is fine now, there's no need to take action. But if the transmission mechanism between the federal funds rate and other money markets fails, we will need to quickly find an alternative target, and I don't think making important decisions under time pressure is the best way to promote a strong economy and financial system." She said the Tri-party General Collateral Rate (TGCR) could bring the most benefit. Logan noted that the TGCR covers over $1 trillion in transactions every day, so changes can effectively transmit in the money market. The average daily trading volume in the federal funds market is currently less than $100 billion. Fed Governor Barr calls for decoupling bank capital requirements from stress tests and customizing them. Federal Reserve Governor Barr said that setting bank capital levels should be separate from stress test results and more closely tailored to individual banks' circumstances. He is looking for ways to maintain the rigor of stress tests while responding to industry calls for relaxation. Barr opposes increasing transparency of stress tests in advance and linking them to formulaic capital requirements. He said that such an approach could make capital levels "less targeted than they are now, and not fully reflect the unique business models, risk exposures, and risk profiles of specific companies." Barr believes that regulators should not weaken this process, but should maintain the rigor of the tests and, in special cases, use their authority to impose personalized capital requirements based on factors such as a bank's capital structure, degree of risk, complexity, and financial activities. Stress tests were introduced after the 2008 financial crisis to enhance banks' ability to withstand future economic shocks and evaluate how banks would perform in assumed economic downturns. Barr has been a key supporter of these tests. U.S. mortgage rates rise to 6.3%, ending a streak of consecutive declines. U.S. mortgage rates rose, reversing a trend of several weeks of consecutive declines. In a statement, Freddie Mac reported that the average rate for a 30-year fixed-rate mortgage was 6.3%, up from 6.26% last week. While this week saw the first increase since July, borrowing costs remain near their lowest levels in nearly a year, creating opportunities for homebuyers and homeowners seeking refinancing. However, affordability remains a barrier for many potential homebuyers, who may also hesitate due to concerns about the economic outlook. Many buyers and sellers are waiting for mortgage rates to fall further. Some economists believe that 6% is a threshold, and once broken, it will make more homeowners willing to give up their current lower-rate mortgages and move, releasing new inventory of existing homes. According to a study by Realtor.com, the areas where a higher percentage of mortgage households will benefit from rates dropping below 6% are Washington, D.C., Denver, Virginia Beach in Virginia, and Raleigh in North Carolina, where over 70% of property owners have mortgages. All living former Fed chairs sign brief urging Supreme Court to protect Fed's independence. The major economic policy makers in the U.S. over the past 35 years, including all living former chairs of the Federal Reserve, are urging the Supreme Court to allow Fed Governor Cook to continue in her role. A friend-of-the-court brief warns that allowing her to be dismissed while her legal challenge is pending would mark a damaging erosion of protections established by Congress 90 years ago safeguarding the independence of the executive departments. The signatories to the brief cited research showing that central banks, when setting interest rates, free from short-term political considerations, can reduce inflation and lower long-term interest rates. The brief was signed by former Fed chairs Greenspan, Bernanke, and Yellen. The 18 signatories also include former presidential advisers from both Republican and Democratic administrations, as well as leading economists from different ideological backgrounds, such as former Treasury Secretaries Robert Rubin and Lawrence Summers, former CEA chairs Glenn Hubbard and Greg Mankiw, respectively. Individual stock news: Meta (META.US) faces EU charges for inadequate regulation of illegal content. Meta is set to face charges from the European Union for failing to adequately regulate illegal content, potentially facing fines for breaching EU content moderation rules. According to two people familiar with the plans, the European Commission is preparing to announce preliminary findings, stating that Meta's Facebook and Instagram lack sufficient "notice and action mechanisms" to allow users to flag and remove illegal posts. They said the statement of objections is expected to be issued in the coming weeks. This move is an escalation of an investigation initiated by the EU's executive arm in April 2024. If the findings are confirmed, Meta could face fines of up to 6% of its global annual sales. The company will have the opportunity to first provide remedies or challenge the European Commission's charges. The European Commission did not immediately respond to requests for comment. Alphabet Inc. Class C (GOOG.US, GOOGL.US) may face a second fine from the EU in the coming months, according to sources. Three sources told foreign media that Alphabet Inc. Class C may receive a second landmark fine from the EU in the coming months, as the European Commission is currently drafting a decision. As the EU's competition enforcement body, the European Commission earlier this month fined Alphabet Inc. Class C 29.5 billion for unfairly favoring its own display advertising technology services and strengthening the dominance of its AdX advertising trading platform, harming competitors and online publishers. The second imminent fine is related to charges from March, which allege that Alphabet Inc. Class C prioritized its vertical search engines, such as Alphabet Inc. Class C Shopping, Alphabet Inc. Class C Flights, and Alphabet Inc. Class C Hotels, over similar functions of competitors.