Overnight US stocks | The three major indexes fell as Meta shifted to cloud business, leading to a reversal of the "sell chipmakers" logic. Micron (MU.US) and SanDisk (SNDK.US) both dropped more than 10%.

On Wednesday, the three major stock indexes fell. Federal Reserve Chair Kevin Wash gave a speech at the European Central Bank meeting in Portugal, where he did not signal any policy actions the central bank may take later this month, but noted that inflation levels remain too high. In addition, reports suggest that Meta is building cloud infrastructure business and selling excess computing power from its data centers to external parties, signaling a potential turnaround in long-standing capital expenditures by tech giants, leading to a 1.5% drop in the Nasdaq 100 index. In economic news, the ADP agency reported that private sector employment growth in June was adjusted to 98,000, slightly lower than May's 122,000 and below the Dow Jones consensus forecast of 110,000. [US stocks] At the close, the Dow Jones fell 13.96 points, or 0.03%, to 52,305.24 points; the Nasdaq fell 173.69 points, or 0.66%, to 26,040.03 points; the S&P 500 index fell 16.13 points, or 0.22%, to 7,483.23 points. NVIDIA Corporation (NVDA.US) fell 1%, Micron Technology, Inc. (MU.US) fell 10.5%, SanDisk (SNDK.US) fell 10.6%, AMD (AMD.US) fell 6.8%, and Meta (META.US) rose 8.8%. The Nasdaq China Dragon Index rose 2.9%, while Alibaba Group Holding Limited Sponsored ADR (BABA.US) rose 2%. [European stocks] The DAX 30 index in Germany rose 64.28 points, or 0.26%, to 25,043.53 points; the FTSE 100 index in the UK fell 19.51 points, or 0.19%, to 10,477.61 points; the CAC 40 index in France fell 66.70 points, or 0.79%, to 8,337.29 points; the Euro Stoxx 50 index fell 46.49 points, or 0.73%, to 6,281.60 points; the IBEX 35 index in Spain fell 49.67 points, or 0.26%, to 19,409.03 points; and the FTSE MIB index in Italy fell 78.93 points, or 0.15%, to 51,603.50 points. [Asian stock markets] The Nikkei 225 Index rose 0.59%, while the KOSPI fell 2.04%. [US Dollar Index] The US dollar index, which measures the dollar against six major currencies, rose 0.2% on the day, closing at 101.39 in the forex market. At the close of the New York forex market, 1 euro was exchanged for 1.1380 US dollars, lower than the previous trading day's 1.1420 US dollars; 1 pound was exchanged for 1.3278 US dollars, higher than the previous trading day's 1.3255 US dollars. 1 US dollar was exchanged for 162.53 Japanese yen, lower than the previous trading day's 162.62 Japanese yen; 1 US dollar was exchanged for 0.8092 Swiss francs, higher than the previous trading day's 0.8083 Swiss francs; 1 US dollar was exchanged for 1.4216 Canadian dollars, higher than the previous trading day's 1.4204 Canadian dollars; and 1 US dollar was exchanged for 9.7300 Swedish kronor, higher than the previous trading day's 9.7005 Swedish kronor. [Cryptocurrency] Bitcoin rose over 3.7% to $60,821.53, while Ethereum rose over 3.95% to $1,629.66. [Oil] The price of light crude oil futures for August delivery on the New York Mercantile Exchange fell 92 cents to close at $68.58 per barrel, a 1.32% decrease; while the price of Brent crude oil futures for September delivery fell $1.38 to close at $71.57 per barrel, a 1.89% decrease. [Precious metals] Spot gold rose to $4,031.61 per ounce; spot silver was at $59.102 per ounce. [Macro News] It was reported that Wash appointed a Bernette assistant as a Federal Reserve advisor. According to media reports, Federal Reserve Chairman Wash is expanding his advisory team, with one of the latest appointments being the senior assistant to the US Treasury Secretary Bernette, Samantha Schwab, to serve as an advisor to the Fed. Schwab has served as Deputy Chief of Staff to Bernette at the Treasury Department since January 2025 and previously worked in the White House during Trump's first term. She also comes from a well-known financial family and is the granddaughter of Charles Schwab Corp founder Charles Schwab. The specific start date for this appointment has not yet been determined. The appointment has sparked discussions on whether the relationship between the Federal Reserve and the Treasury Department will become closer, especially given Wash's weekly meetings with Bernette, raising market concerns about the independence of the central bank. Wash: It is still necessary for the Federal Reserve to reduce its balance sheet, but there will be no hasty actions. Federal Reserve Chairman Wash said on Wednesday that although he still believes that the Fed's large balance sheet should be reduced, any major policy adjustments on this issue will require time and thorough communication. Wash stated, "Decisions on this matter will be subject to full public discussion, to allow the market to fully understand, and will not be implemented until the financial markets fully understand the content of these measures." He said: "It took us about 18 years to get to the current situation of a large balance sheet. Frankly, in my personal opinion, this already has fiscal policy color." He also stated that it will take time to determine the direction of future balance sheet policies. Wash said, "I remain open to this issue we will not make judgments in advance. But I hope that interest rate policy remains the primary policy tool of the Federal Reserve." US Manufacturing Expansion Slows, Cost Index Falls. In June, with the momentum of input cost increases driven by war factors moderating, US manufacturing activity achieved expansion for the sixth consecutive month. According to data released on Wednesday, the Institute for Supply Management (ISM) manufacturing index fell 0.7 points to 53.3 points, still close to a four-year high level. The index above 50 indicates industry expansion, and the latest data also shows that the industry is experiencing its longest expansion period since 2022. The rate of increase in raw material prices in June slowed significantly. The association's price sub-index fell 9.1 points to 73 points, marking the largest single-month decline since July 2022; earlier, a temporary agreement between the US and Iran led to a sharp drop in oil prices. South Korean Banks Expand Trading Teams to Accommodate 24-Hour Currency Trading. Major banks in South Korea are expanding their foreign exchange trading teams and strengthening their presence in Seoul and London to accommodate the upcoming 24-hour forex market for the South Korean won. Shinhan Bank of South Korea has added 8 employees to its London office, covering foreign exchange, derivatives, and bond trading positions. Hana Bank in South Korea has added traders in Seoul and implemented a three-shift rotation to provide round-the-clock coverage. Shinhan Bank and KB Kookmin Bank are also expanding their staff and upgrading their systems. The adjustment is to align with the nearly 24-hour forex trading system scheduled to start on July 6, aiming to improve market liquidity and promote the internationalization of the South Korean financial market. Trump's Advisor Hassett Urges Fed Not to Raise Interest Rates. Two weeks after Wash took office as Federal Reserve Chairman, a senior economic advisor to Trump hinted that the White House may not favor any interest rate hikes. With the Fed's favored inflation gauge currently above 4%, Wash emphasized that lowering it to 2% is non-negotiable. However, in an interview with Fox Business Channel on Wednesday morning, White House National Economic Council Director Hassett warned that raising rates to curb price increases is a mistake. Hassett believes the economy is currently in a "supply-driven boom." He pointed out that Wash shares a similar view, as Wash emphasized this during his campaign for Fed Chairman last year. "In this context, raising rates is simply a macroeconomic mistake," Hassett said. President Trump has repeatedly criticized former Fed Chair Powell for keeping rates higher than Trump expected. Over the past few months, Trump has indicated that he will give Wash more autonomy to set policy based on his own judgment. However, Hassett's comments on Wednesday suggest that the White House still has strong ideas about how the Fed should formulate its policies. [Individual stock news] SpaceX Reveals Prototype of Mobile AI Device in the Form of a Phone, Uses Qualcomm Chip and Integrates xAI. SpaceX showcased an early-stage handheld device prototype believed to redefine human interaction with artificial intelligence to investors. This device, designed to be thinner and sleeker than an iPhone, was reportedly presented to investors and stakeholders by SpaceX before the company's planned IPO. The device is designed to run a proprietary operating system and integrate artificial intelligence technology from xAI. The device is said to utilize Qualcomm's Snapdragon chip solution. However, SpaceX emphasized to investors that the project is still in its very early stages, and the design is subject to significant changes, with no confirmation whether it will actually go into production or hit the market. SpaceX and its partners have not commented on this development. Apple Inc. Plans to Launch Upgraded iPad Pro and Redesigned MacBook Pro Next Year. According to American tech journalist Gurman, Apple Inc. is planning to launch an upgraded iPad Pro series and a redesigned entry-level MacBook Pro next year, along with several other major new products to celebrate the 20th anniversary of the iPhone's debut. Insiders revealed that the company is testing four new iPad Pro models scheduled to be released in the spring of 2027. These new models will continue to feature the current 11-inch and 13-inch screens. The updates will mainly focus on internal improvements, including faster chips. It was previously reported that Apple Inc. had tested a vacuum chamber heat plate cooling system for tablets to enhance sustained performance and reduce overheating issues. Apple Inc. is also reportedly planning to unveil a redesigned entry-level MacBook Pro, code-named K104, in the first half of the year, while a 14-inch laptop will feature an all-new design consistent with the upcoming high-end touchscreen MacBook, expected to be launched later this year to early next year. Micron Injects $250 Million into "Trump Account," Trump Calls Policy "Great Success." US President Trump posted on social media that "Micron Technology, Inc. (MU.US), a truly great American company and one of the world's 'hottest' companies, has announced a historic $250 million investment in the Trump Account. This incredible move by Micron's outstanding CEO Sanjay Mehrotra will make a lot of children very happy in the near future. This is the largest corporate investment of its kind, which will help kickstart the American Dream for these excellent children as we celebrate the 250th anniversary of the United States! This huge investment will help millions of American children and families get a solid start in life and provide them with real financial security. Micron is directly investing in American workers and families! This is the purpose of the successful Trump Account giving every American child an opportunity to start and a real chance at success. My policies are working and are a 'great success.' Our country is better than any country in the world, and companies like Micron prove this every day. This is America's golden age!" US Treasury Department Reveals Investment Portfolio Target of "Trump Account," Mainly Invests in Broad S&P 500 Index ETF. The US Treasury Department announced today the investment product portfolio of the "Trump Account," including the initial default investment plan to be launched at launch, as well as four additional low-cost index fund options that will be available to select parties in the coming months. At the launch of the account, all funds invested in the "Trump Account" will be invested in the State Street SPDR Portfolio S&P 500 ETF (SPYM.US). Additionally, the Treasury Department has selected the following other low-cost index ETFs for the "Trump Account" investment portfolio: iShares Core S&P 500 ETF (IVV.US), Vanguard Total Stock Market ETF (VTI.US), State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM.US), and iShares Core S&P total U.S. Stock Market ETF (ITOT.US). The Treasury Department stated that SPYM will be the default investment option for all "Trump Accounts." In the coming months, the Treasury Department plans to roll out a new feature that will allow parents or guardians to allocate funds among other investment options. Until this feature is launched, all contributions will continue to be invested in the default fund.