Overnight US stocks | Japan, China, and the UK all reduced their holdings of U.S. Treasuries in June, with the three major indices closing lower. SanDisk (SNDK.US) rose nearly 9%.

On Monday, the three major indexes closed lower, while the storage sector continued to rise. U.S. Treasury yields generally climbed. The yield on the 30-year U.S. Treasury bond, which is typically sensitive to political events involving GEO Group Inc., rose by more than 4 basis points to reach 5.311%, the highest level since June 2007. The yield on the 10-year U.S. Treasury bond increased by over 2 basis points to 4.724%. The 2-year U.S. Treasury yield, which usually follows the Federal Reserve's short-term interest rate decisions, rose by more than 1 basis point to 4.182% on Monday. Oil prices surged as the 60-day deadline for a peace agreement between the U.S. and Iran expired on Monday, with Trump ruling out the possibility of extending this deadline. Investors are awaiting the release of the Federal Reserve's meeting minutes later this week for further insights into the Fed's latest monetary policy decisions and future interest rate trends. Data from the U.S. Treasury Department shows that in June, the holdings of U.S. Treasury bonds by the UK, Japan, and China all decreased compared to May. Japan held $1.117 trillion in U.S. debt, a reduction of $26.4 billion from May; the UK held $939.9 billion, down $8.7 billion; and China held $633.4 billion, a decline of $26 billion. [U.S. Stocks] At the close, the Dow Jones Industrial Average dropped 272.39 points, a decrease of 0.51%, to settle at 53,460.02; the S&P 500 fell by 40.39 points, down 0.52%, closing at 7,745.37; and the Nasdaq Composite Index fell by 84.25 points, a decline of 0.32%, ending at 26,644.91. SK Hynix (SKHY.US) rose 3%, Micron Technology, Inc. (MU.US) went up 4%, and SanDisk (SNDK.US) increased by 8.8%. The Nasdaq China Golden Dragon Index closed up 0.37%, with XPeng, Inc. ADR Sponsored Class A (XPEV.US) rising by 4%, while MNSO (MNSO.US) fell 8%. [European Stocks] The DAX 30 in Germany fell by 97.04 points, a decrease of 0.37%, closing at 26,335.82; the FTSE 100 in the UK dropped 30.96 points, down 0.29%, to 10,719.15; the CAC 40 in France decreased by 57.20 points, a drop of 0.66%, closing at 8,579.60; the Euro Stoxx 50 fell by 10.24 points, down 0.16%, to close at 6,529.35; the IBEX 35 in Spain dropped 183.06 points, down 0.91%, to 19,973.54; and the FTSE MIB in Italy fell by 9.61 points, a decline of 0.02%, to close at 53,574.00. [Asian Stock Markets] The Nikkei 225 index rose 0.74%, while the South Korean market was closed for the day due to the National Liberation Day holiday. [U.S. Dollar Index] The U.S. Dollar Index, which measures the dollar against six major currencies, fell 0.03%, closing at 99.636. As of the end of trading in New York, 1 euro exchanged for 1.1572 dollars, up from 1.1566 the previous trading day; 1 pound exchanged for 1.3538 dollars, a rise from 1.3533 the previous day. 1 dollar was exchanged for 159.59 yen, up from 159.38 yen; 1 dollar was changed for 0.8115 Swiss francs, down from 0.8131 the previous day; 1 dollar exchanged at 1.3877 Canadian dollars, unchanged from the previous day; and 1 dollar was exchanged for 9.5193 Swedish kronor, down from 9.5246 the previous day. [Cryptocurrency] Bitcoin broke through $64,000, trading at $64,433.73; Ethereum rose over 1.7% to $1,908.82. [Crude Oil] Light crude oil futures for September delivery on the New York Mercantile Exchange rose by $2.10, settling at $84.50 per barrel, an increase of 2.55%; October delivery of London Brent crude oil futures rose by $2.35, closing at $90.87 per barrel, a gain of 2.65%. [Precious Metals] Spot gold rose 0.93% to $4,416.46; spot silver was at $65.787. [Macro News] Trump: The U.S. is not seeking to extend the understanding memorandum with Iran. U.S. President Trump stated that the U.S. is currently not seeking to extend its understanding memorandum with Iran. Trump claimed that Iran wishes to reach an agreement but will not accept what he considers "necessary" terms. He reiterated the idea of declaring the Strait of Hormuz as U.S. territory and reaffirmed U.S. control over the strait. He claimed that the Strait of Hormuz remains open, and oil prices are trending downward. The sell-off of U.S. debt continues, with the 30-year U.S. Treasury yield reaching its highest level since 2007. The yield on the 30-year Treasury bond has risen to its highest level in nearly 20 years, reflecting investors' concerns about the growing U.S. debt, large amounts of long-term bond issuance, and persistently high inflation above the Federal Reserve's target over the past five years. The yield on the so-called "ultra-long U.S. Treasury bonds," the 30-year Treasury bond, increased by 3 basis points on Monday to reach 5.29%, the highest level since 2007. This surge brings it closer to the 5.44% peak set at the beginning of the 2007 global financial crisis. The rising long-term Treasury yields are increasing the U.S. government's financing costs. Investors are demanding higher yields as compensation against the risks posed by the continuing increase in government debt and persistent high inflation, both of which might keep short-term rates elevated for an extended period. "We continue to oppose the view that the sell-off in long-term Treasuries will soon dissipate, and we maintain this view," said Anshul Pradhan, head of U.S. rates strategy at Barclays. "For a constructive view on long-term Treasuries to arise, a combination of some of the following factors would need to occur: positive fiscal surprises, a slowdown in AI-related bond issuance, adjustments to the U.S. Treasury's bond issuance strategy, and persistently weak economic activity data." [Individual Stock News] NVIDIA Corporation (NVDA.US) announces a $1.5 billion investment in SB Energy. NVIDIA Corporation announced a $1.5 billion investment in SB Energy to support SB Energy's commitment to CKH HOLDINGS in Ohio. NVIDIA Corporation announced that through its partnership with SB Energy, it has secured land, power, and shell (LPS) capacity at the PORTS-Pike Technology Park in Pike County, Ohio, to accommodate NVIDIA's computing. OpenAI will be a client. SB Energy will build, own, and operate the data center under a 20-year lease, leasing it to OpenAI. The PORTS-Pike campus project will create tens of thousands of jobs in Ohio, finance power infrastructure construction, and invest hundreds of millions into the community, centered around an initial community benefit fund of $80 million. NVIDIA Corporation will provide credit support for the construction of land, power, and shell to ensure an initial 4.25 IT-GW, with the option to receive the remaining 3.75 IT-GW. NVIDIA Corporation will be the exclusive AI computing infrastructure provider for PORTS-Pike. $110 billion merger embroiled in lawsuit, Paramount (PSKY.US) demands states "pay up" for delays. Paramount Global on Monday asked a U.S. judge to order several states challenging its acquisition of Warner Bros. Discovery (WBD.US) to pay $1.88 billion in bail to cover the costs arising from the delayed merger transaction. If the $110 billion merger deal is not completed by September 30, Paramount Global will incur costs of $7 million per day. Paramount Global pointed out that the legal challenges from the states regarding the deal are expected to go to trial in March next year, and by the time the trial concludes and final legal briefs are submitted, the company will have already paid $1.3 billion in unrecoverable "time costs" to Warner Bros. Discovery shareholders. The AI funding wave continues as U.S. investment-grade bond issuance hits record high for August. U.S. investment-grade bond issuance has set monthly records for the third consecutive month, continuing the fastest pace of issuance in history for the bond market. Companies are investing heavily in AI infrastructure, driving up corporate borrowing demand. According to institutional statistics, as of Monday, Augusts investment-grade bond issuance in the U.S. reached $145.2 billion, surpassing the previous record of $136 billion set in August 2020. Earlier this year, January, June, and July each set single-month issuance records, with three months having the second-highest issuance levels in history. Data shows that this months issuance was largely driven by Alphabets (GOOG.US) $25 billion bond issuance. This marks the eighth transaction this year to reach or exceed $25 billion in issuance, all of which came from technology companies.