Overnight US stocks | The three major indexes fell this week, with the market value of cryptocurrencies evaporating by about $300 billion.

On Friday, after three consecutive days of decline, the three major indexes rebounded. The U.S. August PCE inflation data basically met expectations. As the inflation measure favored by the Federal Reserve, the August Personal Consumption Expenditures Price Index (PCE) showed that the seasonally adjusted core inflation (an index excluding food and energy costs) had a year-on-year increase of 2.9%. This week, the Dow Jones Industrial Average fell 0.15%, the S&P 500 Index fell 0.31%, and the Nasdaq Composite Index fell 0.65%. [Stock Market] At the close, the Dow rose 299.97 points, or 0.65%, to 46,247.29; the Nasdaq rose 99.37 points, or 0.44%, to 22,484.07; and the S&P 500 rose 38.98 points, or 0.59%, to 6,643.70. [European Stocks] The DAX30 Index in Germany rose 216.66 points, or 0.92%, to 23,738.08; the FTSE 100 Index in the UK rose 71.76 points, or 0.78%, to 9,285.74; the CAC40 Index in France rose 75.26 points, or 0.97%, to 7,870.68; the Euro Stoxx 50 Index rose 54.76 points, or 1.01%, to 5,499.65; the IBEX35 Index in Spain rose 218.00 points, or 1.44%, to 15,354.50; and the FTSE MIB Index in Italy rose 394.51 points, or 0.93%, to 42,637.00. [Crude Oil] Light crude oil futures for November delivery on the New York Mercantile Exchange rose 74 cents to $65.72 per barrel, up 1.14%; Brent crude oil futures for November delivery rose 71 cents to $70.13 per barrel, up 1.02%. [Cryptocurrency] Bitcoin fell by 0.54% to $109,663.2, while Ethereum rose by over 4% to $4,034.97. Due to a wave of leveraged betting crashes, the cryptocurrency market value evaporated by about $300 billion this week. This volatility has severely impacted the top tokens in the field, dragging the market sentiment to its weakest level since the early summer of this year. In the cryptocurrency perpetual futures market, billions of dollars in bullish bets were liquidated, further accelerating the current decline. According to data compiled by Coinglass, the cumulative liquidated long positions (bullish positions) on various exchanges have exceeded $3 billion. Some traders warn that due to the lack of complete liquidation data disclosed by most trading platforms, the true scale of leverage in the current market remains opaque. A report on Friday showed that the growth rate of key inflation indicators slowed last month, providing some cushion for the Federal Reserve to deal with a cooling labor market, improving overall risk sentiment slightly and leading to a small rebound in the prices of Bitcoin and Ethereum. Paul Howard, Senior Managing Director at market maker Wincent, called this correction a "healthy one." He pointed out that despite Bitcoin's price falling below the 100-day moving average and the total market value of digital assets falling below $4 trillion, there are no signs of panic. However, he also warned that short-term pressure may still lead to further price declines, especially because the link between current digital asset prices and macro market sentiment is closer than earlier this year. [Precious Metals] COMEX gold futures rose by 0.63% to $3,794.90 per ounce, gaining 2.37% for the week; COMEX silver futures rose by 7.89% to $46.34 per ounce. [Foreign Exchange] The U.S. Dollar Index fell on the 26th. The U.S. Dollar Index, which measures the dollar against six major currencies, fell 0.41% on the day and closed at 98.152 in the foreign exchange market. At the close of the New York foreign exchange market, 1 euro exchanged for $1.1704, higher than the previous trading day's $1.1653; 1 pound exchanged for $1.3410, higher than the previous trading day's $1.3335. 1 dollar exchanged for 149.44 yen, lower than the previous trading day's 149.89 yen; 1 dollar exchanged for 0.7975 Swiss francs, lower than the previous trading day's 0.8004 Swiss francs; 1 dollar exchanged for 1.3937 Canadian dollars, lower than the previous trading day's 1.3943 Canadian dollars; 1 dollar exchanged for 9.4041 Swedish krona, lower than the previous trading day's 9.4766 Swedish krona. [Macro News] Sources: The Trump administration plans to impose tariffs on foreign electronic devices based on the number of chips. According to Reuters, three sources familiar with the matter revealed that the Trump administration is considering imposing tariffs on foreign electronic devices based on the number of chips in each device. This move aims to encourage companies to move their production to the United States. The plan has not been reported previously and is still subject to change. Under the plan, the U.S. Department of Commerce would impose tariffs on imported products equal to a certain percentage of the estimated value of the chips in the product. If implemented, this plan would indicate that the Trump administration is trying to exert influence on various consumer products, such as toothbrushes and laptops, by imposing tariffs. The White House clarifies the scope of drug tariff exemptions: the EU and Japan will still enjoy preferential agreements. According to a White House official, the new tariff policy regarding drug imports will not apply to countries that have already reached agreements with the U.S. that include drug provisions, providing tariff exemptions promised to economies including the EU and Japan. The official stated on Friday that drug tariffs for imports from the EU will be capped at 15% according to the terms of the U.S.-EU framework agreement. The official also mentioned that Japanese drugs will be subject to tariffs as stipulated in the U.S.-Japan agreement. Trump stated on Thursday that the U.S. would impose 100% tariffs on "any branded or patented drugs" unless the company is building a pharmaceutical factory in the U.S., with "under construction" defined as "already under construction or in the process." This sudden declaration lacked details, causing some foreign capitals to question whether their agreements with Washington still apply to the new drug tariff policy. Federal Reserve Governor Bauman supports holding only government bonds and reforming the monetary policy framework. Federal Reserve Governor Bauman said the Fed should seek to maintain the smallest possible balance sheet and comprehensively reform its monetary policy implementation framework. Bauman said, "In the long run, I am inclined to maintain the smallest possible balance sheet, so that reserve balances approach a scarcity level rather than an abundance level." She believes that returning to a mechanism where the Fed actively manages its balance sheet will better reflect market pressures and operational issues. Bauman stated, "Allowing moderate fluctuations in the money markets can enhance our understanding of market clearing points." She also said she supports the Fed holding only government bonds on its balance sheet, with a slight bias towards short-term securities rather than being entirely consistent with the market's term structure. She said this would give the Fed greater flexibility. Bauman added that the Fed should consider actively selling the mortgage-backed securities it holds. Government shutdown delays September jobs report, Federal Reserve interest rate meeting will face data gap. According to the U.S. Department of Labor's operational contingency plan released earlier this year, if the federal government shuts down, the September jobs report scheduled for release next Friday will face a delay. The exact scope of the government shutdown's impact is not clear yet, as most government agencies, including the Bureau of Labor Statistics responsible for compiling the monthly jobs report, have not publicly updated their contingency plans - if Congress fails to pass a spending bill by next Tuesday, these agencies will operate based on contingency plans. A plan updated by the Labor Department in March last year indicates that in the event of a shutdown, all data collection and planned data releases will be paused. If the government shutdown persists and labor statistics bureau data releases are delayed, it will result in missing key employment and inflation economic data for the Federal Reserve before its next policy meeting on October 28-29, undoubtedly increasing risks in policy making. U.S. tariffs impact, Canadian steel industry output and exports both decline in July. Data released by Statistics Canada on the 26th showed that due to the continued impact of the U.S. high tariff policy, industry output and export volume of Canada's steel and related manufacturing sectors significantly declined in July. The data showed that since the U.S. imposed a 25% tariff on all imported steel and aluminum in March, Canada's steel and ferroalloy manufacturing industry output in July dropped by 24.8% compared to February; after the U.S. increased the tariff rate to 50% in June, the industry's output contracted by a significant 19.1% in July, marking the largest monthly decline so far this year. In terms of exports, the volume of non-forged steel and ferroalloys exported from Canada in July fell by 25.5% compared to February; and exports of basic and semi-finished steel products fell even more sharply by 34.4% compared to February. [Individual Stock News] Apple Inc. (AAPL.US) develops ChatGPT-like tool in anticipation of breakthrough in March next year. According to sources familiar with the matter, Apple Inc. has developed an iPhone application similar to ChatGPT to help test and prepare for the highly anticipated major upgrade of Siri next year. The companys artificial intelligence department is using this application to quickly evaluate new features of Siri, including testing its ability to search personal data (such as songs and emails) and perform in-app operations like editing photos. The software is codenamed "Veritas," which means "truth" in Latin, and is currently for internal use only. Apple Inc. currently has no plans to release the application to consumers. Essentially, this application presents the new Siri technology under development in a form that employees can test efficiently. After multiple delays, the new Siri is expected to debut as early as March next year. If the software performs as promised, it could help Apple Inc. make a comeback in the field of artificial intelligence. If it doesn't perform well, the company may fall further behind competitors like Alphabet's Alphabet Inc. Class C and Samsung Electronics in the smartphone market. White House pushes for Boeing Company (BA.US) to secure large orders, key to financial recovery lies in increasing production capacity. Data shows that Boeing Company has recently received a large number of aircraft orders, partly due to the White House's push during tariff negotiations. Trump has always seen Boeing Company as a core DRIVE for aerospace exports, as the industry is one of the few in the U.S. that still has a trade surplus. However, Boeing Company's financial recovery does not rely solely on obtaining more orders and expanding the backlog. The focus for this aircraft manufacturer is to increase production capacity and complete the certification work for new models (including 777 X and 737 Max 10). Increasing production capacity will not only bring in cash flow but also deliver aircraft to airlines - previously these airlines had to extend the service life of older aircraft far beyond their expectations. Increasing the capacity of models including the 787 Dreamliner will solve most of Boeing Company's current problems. The next two to three years are a critical period for Boeing Company: if production capacity increases smoothly, the company will soon enjoy sufficient cash flow; but if there are obstacles or another incident, it will be a fatal setback. [Major Bank Ratings] Morgan Stanley: Lowered the target price for Costco (COST.US) from $1,225 to $1,130; raised the target price for Microsoft Corporation (MSFT.US) from $582 to $625.