The two storage giants will announce their earnings next week.

After experiencing significant fluctuations in technology stocks in July, the market is now looking forward to whether the momentum of stabilization over the last two days of this week can continue into the first week of August. Next week, the market will see the release of the U.S. non-farm payroll data for July, as well as the first earnings report for SpaceX since its IPO. Additionally, the escalating situation in the Middle East has reached a critical juncture. The U.S. non-farm payroll report for July will have an important impact on the Federal Reserve's next actions. According to LSEG data, prior to the Federal Reserve's interest rate decision this week, the money market has fully priced in expectations for a rate hike in September, although the current probability for a rate hike is only 68%. Given that the June non-farm payrolls (+57,000) were only half of expectations, a continued soft performance in July's non-farm payrolls would lead to a more significant dovish repricing. (The number of U.S. non-farm jobs has declined for three consecutive months; Source: tradingeconomics) Economists' surveys show that the current expectation for job growth is around 80,000, with an expected unemployment rate of 4.3%. The U.S. Treasury Department will announce its quarterly refunding plan, which includes estimates of borrowing scales, next Monday, followed by a refinancing policy statement and specific arrangements for Treasury auctions on the following Wednesday. The recent sharp rise in U.S. Treasury yields may hinder any measures aimed at increasing the supply of medium- to long-term Treasuries. Next week will still be a peak period for U.S. earnings reports, with more than a quarter of S&P 500 constituents set to announce their results, including commercial aerospace giant SpaceX, semiconductor star AMD, and storage giants SanDisk and Western Digital. The most closely watched is still SpaceX, owned by the worlds richest man Elon Musk. This is the company's first earnings report since going public, and on August 6, up to 911.5 million shares will become unrestricted, which is more than the current circulating shares. Data from S3 Partners shows that as of July 29, short positions in SpaceX have reached 219.3 million shares, accounting for about 34% of the company's publicly traded stock. This indicates that short sellers are betting that SpaceX's earnings report will not provide sufficient positive news to offset the pressure from the release of shares. Since its IPO pricing at $135 on June 12, SpaceX had traded above $200 at one point but closed this past Friday below $110. Combined with the decline following Tesla's earnings report at the end of July, Elon Musk's net worth, as the world's richest person and the first "trillionaire," has evaporated by more than $600 billion in just over a month, currently estimated at slightly over $680 billion. In addition to aerospace ambitions, investors are also watching the prospects of a merger between SpaceX and Tesla. The storage sector will remain a focus next week. On Friday, Kioxia released a significantly lower-than-expected earnings report, leading to a 10.1% drop in the company's U.S. ADR. This has made SanDisk's earnings report next week even more closely scrutinized. By the way, despite poor performance of tech stocks in July, due to the teeter-totter effect, the S&P 500 index closed at 7489.72 points on Friday, just under 2% away from its historical closing high of 7609.78 points. (Daily chart of the S&P 500 index; Source: TradingView) For this Sunday and next week, the Middle East issue remains the greatest uncertainty. U.S. President Trump has repeatedly called for a "severe blow" to Iran this week, and the State Department on Saturday advised U.S. citizens in the region to consider evacuation. On August 1, the Iranian Foreign Ministry stated that Iran is "determined to continue down the path of resistance and steadfastness" until "the enemy's malice is completely eradicated." Earlier this week, concerns over inflation caused by the rebound in oil prices have pushed U.S. long-term Treasury yields to a new high since the subprime mortgage crisis. Art Hogan, Chief Market Strategist at B. Riley Wealth, stated: "The market is to some extent being held hostage by oil prices and the yields on 10-year U.S. Treasuries, both of which are on an upward trend, and we will see if there is any relief in that aspect next week." Overview of important financial events next week (Beijing time) Monday (August 3): China's July RatingDog Manufacturing PMI, U.S. July ISM Manufacturing PMI Tuesday (August 4): South Korea's July CPI, U.S. June Trade Balance, U.S. June JOLTs Job Openings Wednesday (August 5): China's July RatingDog Services PMI, Eurozone June PPI, U.S. July ADP Employment Change, U.S. EIA Crude Oil Inventory for the week ending July 31 Thursday (August 6): Eurozone June Retail Sales Data Friday (August 7): U.S. July Non-Farm Employment Report, U.S. July New York Fed 1-Year Inflation Expectations This article is reprinted from "Finance Link," author: Shi Zhengcheng; GMTEight editor: Xu Wenqiang.