Overnight US stocks | U.S. inflation in July met expectations, and the S&P 500 index is nearing historical highs. NEBIUS (NBIS.US) rose over 34%.

On Wednesday, U.S. inflation for July met expectations, with the mild inflation data easing concerns over interest rate hikes, leading to gains in the three major indices and the S&P 500 closing near historic highs. U.S. StocksAt the close, the Dow fell 21.58 points, or 0.04%, to 53,770.27 points; the Nasdaq rose 143.04 points, or 0.54%, to 26,588.48 points; the S&P 500 index gained 20.3 points, or 0.26%, closing at 7,748.5 points. SpaceX (SPCX.US) increased by 9.6%. NEBIUS (NBIS.US) surged over 34%, CoreWeave (CRWV.US) rose over 19%, NVIDIA Corporation (NVDA.US) climbed 3%, SK Hynix (SKHY.US) jumped by 9%, Micron Technology, Inc. (MU.US) ticked up 4.9%, while Meta (META.US) fell 3% and Microsoft Corporation (MSFT.US) dropped 2%. The Nasdaq China Golden Dragon Index closed down 2.4%, with Alibaba Group Holding Limited Sponsored ADR (BABA.US) declining 2%. European StocksThe German DAX30 index fell 53.75 points, or 0.20%, to 26,341.62 points; the UK FTSE 100 index decreased 7.55 points, or 0.07%, to 10,836.64 points; the French CAC40 index dropped 40.00 points, or 0.46%, to 8,674.94 points; the European Stoxx 50 index fell 15.87 points, or 0.24%, to 6,535.35 points; the Spanish IBEX35 index decreased 8.44 points, or 0.04%, to 20,205.16 points; while the Italian FTSE MIB index rose 0.79 points, unchanged at 53,707.00 points. Asian Stock MarketsThe Nikkei 225 index increased by 0.83%, and the Korea Composite Stock Price Index rose by 3.68%. U.S. Dollar IndexThe dollar index, measuring the dollar against six major currencies, rose by 0.19%, closing at 100.014. At the close of trading in New York, 1 euro exchanged for 1.1521 dollars, down from 1.1540 dollars the previous trading day; 1 pound exchanged for 1.3488 dollars, down from 1.3503 dollars previously. 1 dollar traded for 159.49 yen, up from 159.26 yen the previous day; 1 dollar exchanged for 0.8137 Swiss francs, up from 0.8112 Swiss francs; 1 dollar swapped for 1.3947 Canadian dollars, up from 1.3920 Canadian dollars; and 1 dollar exchanged for 9.5858 Swedish kronor, up from 9.5244 Swedish kronor the previous day. CryptocurrenciesBitcoin decreased by 0.21%, trading at 63,535.28 dollars at press time; Ethereum dropped by 0.07%, priced at 1,880.9 dollars. Crude OilLight crude oil futures for September delivery on the New York Mercantile Exchange rose by 7 cents, closing at 83.27 dollars per barrel, an increase of 0.08%; October delivery for London Brent crude oil futures also rose by 7 cents, closing at 88.98 dollars per barrel, an increase of 0.08%. Precious MetalsSpot gold rose by 0.94% to 4,408.92 dollars; spot silver slightly decreased by 0.02%, priced at 65.323 dollars. Macroeconomic News U.S. July inflation meets expectations; Federal Reserve's September decision becomes uncertain. U.S. consumer prices saw a slight increase in July, which could diminish market expectations for a Federal Reserve rate hike in September. The U.S. Department of Labor's Bureau of Labor Statistics reported on Wednesday that the Consumer Price Index (CPI) rose 0.1% in July after a 0.4% decline in June, marking the first drop in six years. In the week leading up to this CPI report, the U.S. announced unexpectedly decreased job numbers for the previous month. Before the September meeting, policymakers will also receive August CPI and employment report data. Economists expect that due to recent oil price increases, the consumer price growth in August may accelerate. Additionally, as seasonal factors causing distortions fade, job growth is expected to rebound. However, despite the cooling July inflation data potentially further lowering market expectations for rate hikes, this may not bring much comfort to consumers, as wage growth has not kept pace with rising prices. The high cost of living has weakened many Americans' views of Trump and could impact the Republican Party's performance in the November midterm elections, which will determine control of the U.S. Congress for the next two years. Trump's victory in the 2024 presidential election largely hinges on his commitment to reducing inflation. U.S. July budget deficit surged to the highest level since March 2021. The U.S. Treasury reported on Wednesday that due to skyrocketing Medicare costs and the ongoing interest on federal debt, the budget deficit has soared to its highest monthly level in over five years. In addition to the significant monthly increase, the cumulative deficit for the first ten months of fiscal year 2026 has approached 1.8 trillion dollars, exceeding the amount for the same period in fiscal year 2025. The total deficit for July reached 432.3 billion dollars, an increase of about 48% from the same time last year, marking the largest monthly deficit since March 2021 and setting a record for the month of July. Medicare spending that month amounted to 174 billion dollars, up from 103 billion dollars in June, bringing the year-to-date total to 955 billion dollars. This was the largest single expenditure in July, far exceeding Social Security expenditures of 141 billion dollars and net interest on the national debt of 104 billion dollars. Additionally, tariff refunds also impacted the budget by 33 billion dollars. Furthermore, due to the first day of the month coinciding with a non-working day, U.S. Treasury income was affected by a calendar factor of 99 billion dollars. For years, Trump has urged the Fed to cut rates to ease debt costs. Since his nominee, Waller, took over the chairmanship in May, he has ceased criticizing the Fed. Canada plans to accept some automotive tariffs in exchange for U.S. tariff reductions. Reports suggest that the Canadian government is considering an automotive tariff proposal, aiming to accept some U.S. automotive tariffs in exchange for reduced tariffs on vehicles that meet U.S.-Mexico-Canada Agreement (USMCA) standards. The proposal includes the continuation of exemption policies, meaning the value of U.S.-produced parts within Canadian-exported vehicles will not be counted toward tariffs. According to sources, U.S. and Canadian negotiators have discussed this proposal. Based on preliminary details, automotive tariffs imposed by Trump under Section 232 of the Trade Expansion Act of 1962 may be further reduced from the current 25% on all Canadian vehicle exports meeting USMCA standards. In addition, the value of U.S. parts in Canadian-manufactured vehicles will still be excluded from tariff calculations. Approximately 50% of parts in a Canadian-made vehicle come from the U.S., and businesses believe the tariff level of 10% to 15% would be manageable if U.S. content is excluded. Both sides aim to reach an agreement by August 19. Canadian officials believe it is more likely that a delay in the next round of tariffs will be achieved by August 19, rather than a comprehensive resolution of the Section 232 tariff issue. U.S. International Trade Commission initiates 337 investigation against Samsung mobile electronic devices. On August 12, the U.S. International Trade Commission (USITC) announced the initiation of a "337 investigation" against certain mobile electronic devices, including those of Samsung Electronics Co., Ltd. and Samsung Electronics America. This investigation stems from a complaint filed by Japan's Kyoto Maxell Co., Ltd. in July this year. Maxell alleges that certain mobile electronic devices infringe its patent rights during the import and sale in the U.S., violating Section 337 of the Tariff Act of 1930, and requests that the USITC issue a limited exclusion order and a cease-and-desist order. The USITC emphasized that the initiation of an investigation does not mean a final ruling has been made on the case. The case will enter the hearings process, where an administrative law judge will be responsible for collecting evidence and conducting hearings, followed by a preliminary ruling on whether any violations exist. The USITC will establish a case schedule within 45 days of the investigation's initiation and will make a final ruling based on the investigation's results. Individual Stock News Sources: Alphabet Inc. Class C reorganizes departments to focus on developing Gemini. Reports indicate that Alphabet Inc. Class C (GOOG.US), the parent company of Google, is undergoing a large-scale leadership restructuring at Google DeepMind, with some teams transferring from DeepMind to the Alphabet Inc. Class C organizational structure, further diminishing DeepMind's autonomy. Sources state that Alphabet Inc. Class C co-founder Sergey Brin has recently urged core AI employees to "fully commit" to the Gemini model and promote research in AI directions such as "recursive self-improvement." Following this adjustment, DeepMind CEO Demis Hassabis will transition to the role of chairman, with his deputy, Koray Kavukoglu, taking on leadership responsibilities. Alphabet Inc. Class C stated that Kavukoglu will have final decision-making authority over significant decisions at DeepMind. According to sources, internal testing has shown that the new flagship Gemini model still lags behind competitors in areas like programming, prompting Alphabet Inc. Class C to delay its release by two months. Analysts believe that this restructuring by Alphabet aims to accelerate AI commercialization and reclaim competitive advantages in modeling, but some employees are concerned that DeepMind's long-term research autonomy may decline further. Apple Inc. appoints new head of government affairs. Apple Inc. (AAPL.US) has appointed Nate Gatten, former head of government affairs at American Airlines Group Inc., as Vice President of Government Affairs, responsible for global government affairs, effective August 31. Gatten served as the head of government affairs at American Airlines Group Inc. from 2017 until this year and previously held a similar position at JPMorgan Chase. Sources indicate that Apple Inc. seeks to appoint someone capable of maintaining good communication with the Trump administration to address policy challenges such as tariffs. In recent years, Apple Inc. CEO Tim Cook has invested more effort in managing the relationship with the White House. This adjustment is also part of a broader leadership change at Apple Inc., as Cook is set to step down as CEO on September 1, with hardware chief John Ternus taking over, although Cook will continue to serve as executive chairman. Cerebras' second-quarter report shows mixed results, stock falls 17% after hours. AI chip manufacturer Cerebras (CBRS.US) reported second-quarter revenue of 210 million dollars, a year-on-year increase of 103%; of this, cloud business revenue reached 126 million dollars, a nearly fourfold year-on-year increase, but hardware sales declined by 23% year-on-year to 54.1 million dollars; the company recorded a net loss of 450.5 million dollars this season, compared to a net profit of 309.5 million dollars in the same period last year. The company raised its full-year guidance, now expecting core revenue to be between 880 million and 890 million dollars, higher than the previous expected range of 855 million to 865 million dollars. This report has left investors with mixed feelings, as Cerebras' stock has risen 42% since its IPO in May. The company was initially positioned as a challenger to the AI chip sector dominated by NVIDIA Corporation, but its largest revenue source is now cloud computing. Cerebras stated that its core gross margin for the quarter would expand to between 38% and 40% to address investor concerns. Following the earnings report, Cerebras' stock fell over 17% in after-hours trading. SpaceX surges nearly 12%, Morgan Stanley optimistic about two structural advantages. SpaceX (SPCX.US) saw its stock surge nearly 12% during trading. This increase was fueled by a Morgan Stanley research report, which SpaceX SpaceX AI SpaceX AI GrokBotSpaceXXStarlinkGrok4.7SpaceX