Preview of US Stock Market | All three major stock indices fell, Brent crude broke through $90, and the G20 central bank governors meeting is incoming.

Market Trends Before the Opening 1. As of August 31 (Monday) before the opening of U.S. stocks, the three major U.S. stock index futures fell. As of the time of reporting, Dow Jones futures were down 0.20%, S&P 500 futures were down 0.21%, and Nasdaq futures were down 0.13%. 2. As of the time of reporting, the German DAX index was down 0.70%, the UK's FTSE 100 index was up 0.20%, France's CAC 40 index was up 0.13%, and the Euro Stoxx 50 index was down 0.25%. 3. As of the time of reporting, WTI crude oil was up 3.21%, priced at $86.08 per barrel. Brent crude oil was up 5.34%, priced at $90.72 per barrel. Market News The U.S. military struck Iranian rocket launch sites, causing Brent crude oil to exceed $90. New clashes erupted in the Strait of Hormuz, leading to another surge in international oil prices, highlighting the ongoing fragility of oil transportation routes in the Middle East after months of conflict. On Monday, the November contract for Brent crude rose above $90 per barrel. Captain Tim Hawkins, a spokesperson for U.S. Central Command, reported that the U.S. military carried out strikes on Iranian rocket systems preparing to lay mines in the waterway, breaking several weeks of relative calm. This month's oil market has been volatile, with Brent futures experiencing a monthly fluctuation of nearly $17 per barrel. Oil prices have been repeatedly affected by intermittent ceasefire attempts amid the conflict, as well as by Washington's declarations of intensifying efforts to isolate Irans economy and force Tehran to yield. However, analysts generally have low expectations for the actual actions taken by the U.S., believing they fall short of what is needed. Becent will host the G20 finance ministers meeting this week. The G20 central bank governors meeting will take place from Monday to Tuesday in Asheville, North Carolina, USA. This meeting will become a key point for future policy communication. The Asheville meeting was originally intended to be a pivotal moment for coordinating global economic policies. It focuses on three core agendas: promoting global economic growth, strengthening financial sanctions against Iran, and addressing sovereign debt issues in developing countries. The yen has once again fallen below the 160 mark, with the market closely monitoring the 161 intervention alert line. The yens exchange rate against the dollar has breached the 160 mark, underscoring its vulnerability to further weakening, as well as increasing the risk of intervention by Japanese authorities. Although the specific intervention threshold is still unclear, strategists warned on Monday that the trigger for a new round of intervention could be around 161, followed by the 162-163 range. They believe such actions, aside from buying time, are unlikely to genuinely reverse the downward trend since the yen has already retraced most of the gains achieved through record interventions at the end of July. Socit Gnrale warns that the Federal Reserve will raise interest rates three times before March next year. France's Industrial Bank expects the Fed to begin raising interest rates in September as persistent inflation and an improving labor market are pushing policymakers toward a more hawkish stance. According to a recent report from Jan Groen, the chief U.S. economist at France's Industrial Bank, the institution currently predicts the Fed will increase rates by 25 basis points at both the September and December meetings, with another increase projected for March 2027. However, the report noted that the uncertainty surrounding the final increase is relatively high. Deutsche Bank and Nomura interpret Walshs speech: Clear hawkish shift, the window for a Fed rate hike in September is opened. Federal Reserve Chair Kevin Walshs unexpectedly hawkish remarks at the Jackson Hole meeting intensified market expectations for a rate hike next month. Deutsche Bank Aktiengesellschaft stated, "Chairman Walshs address at the Jackson Hole meeting was unexpectedly clear concerning economic outlook and dramatically leaned towards a hawkish stance." The organization continues to anticipate that the Fed will raise rates by 50 basis points this year, in separate increments in the September and December Federal Open Market Committee (FOMC) meetings. Nomura Securities stated in a report that the market is extremely sensitive to recent inflation data. Walsh made hawkish comments at the Jackson Hole Economic Symposium, emphasizing the significance of the inflation target and suggesting that if the disinflation process is not sufficiently rapid, policy may need to respond. Are the 60% rate hike expectations just self-indulgence? Goldman Sachs pours cold water on it: the Fed is essentially on hold in September. Goldman Sachs bets that Walsh's hawkish rhetoric will not be corroborated by supportive data, maintaining its baseline prediction of the Fed remaining on hold. Jan Hatzius, Goldman Sachs's chief economist, stated that Walsh's speech at Jackson Hole marked his most hawkish appearance since becoming Fed chair, but he believes a mere change in tone is unlikely to trigger a rate hike next month. In a report to clients, Hatzius highlighted that Walsh has clearly indicated that his primary concern is to ensure core inflation returns significantly and quickly to the Fed's goal of 2%, and warned that if that target is not met, there will be more work to do. Potential trillions of yen in funds could shift! Rising yields reignite appeal, calls to increase GPIFs holdings in Japanese bonds are growing. As Japanese government bond yields rise sharply, analysts suggest that one of the largest pension funds globallythe Government Pension Investment Fund (GPIF) of Japanmay have good reason to consider increasing its domestic bond allocation target from the current 25% in search of higher returns. Given the fund's enormous scale, GPIF's asset allocation decisions are closely watched by global market participants. As of the end of June, this fund managed assets of approximately 318 trillion yen (about $2 trillion). This means that theoretically, a 1 percentage point shift in allocation could trigger over 3 trillion yen in fund flows. Goldman Sachs: A trillion-dollar computing power surge supports the semiconductor bull market, and global AI capital expenditure enters the trillion-dollar era. Based on the AI computing power supply chain as well as NVIDIA Corporation's performance and the latest positive signals for AI computing power demand from the Hot Chips Conference, Goldman Sachs Group, Inc. has recently reclassified the market-recognized "capital expenditure of U.S. hyperscalers" into genuine "global AI investment." The previously compiled estimate of $794 billion by Goldman Sachs Group, Inc. omitted private AI companies, Asian firms, and non-U.S. projects, while also mixing in traditional capital expenditures not entirely directed toward AI; consequently, Goldman Sachs' latest prediction suggests global AI investment will reach approximately $1 trillion by 2026, with about $581 billion occurring in the U.S. Goldman Sachs Group, Inc.'s latest estimates also indicate that total global AI investment accumulated since 2022 is expected to hit a record $1.8 trillion by the end of 2026, while various leading indicators remain at the high end of the 2022 range, suggesting that a turning point in recent capital expenditures has yet to appear. Individual Stock News SK Hynix (SKHY.US) seeks the next capacity stronghold in Japan; Wall Street continues to bet on an "AI storage shortage". One of the largest storage chip manufacturers globally, SK Hynix (SKHY.US) is evaluating the feasibility of establishing a joint storage wafer manufacturing plant in Japan, listing ample and low-cost power and water resources as key site selection factors. The potential Japanese project will complement Korea's 54 trillion won expansion plan and the advanced packaging base in Indiana, USA, while leveraging Japan's advantages in high-end semiconductor equipment, semiconductor materials, major customers, government subsidies, and market leader Kioxia's supply chain relationships. This move appears to be more about SK Hynix's global capacity upgrades in response to the severe shortage of storage chips and the allocation of capacity after considering costs and GEO Group Inc. risks, rather than signaling an oversupply or weakening demand in the AI computing power fundamentals. Amazon.com, Inc. (AMZN.US) amplifies its government AI race! OpenAI, Meta, Anthropic and other major models land on GovCloud. Amazon.com, Inc.'s cloud division, Amazon Web Services (AWS), recently announced it has expanded the availability of AI models within the AWS GovCloud (U.S.) region, providing government agencies access to third-party large models via the Amazon Bedrock platform, including those from Anthropic, Meta, OpenAI, xAI and NVIDIA Corporation, while also supporting Amazon.com, Inc.'s self-developed Nova series models. All services run in a compliant isolated cloud environment. $4.3 billion "Dark Universe Eye" launches, NASA's space orders ignite SpaceX (SPCX.US) growth plan in space exploration. The Falcon Heavy rocket, successfully launched by Elon Musk's AI and space exploration leader SpaceX, carried NASA's Roman telescope, further validating SpaceX's reliability for government flagship missions, heavy payload capacity and long-term order barriers, and adding credibility to its execution of more complex space orbital infrastructure projects. However, the $4.3 billion figure represents the total project value for the Roman space telescope, not directly reflecting the launch business income for SpaceX. Roman will travel about one million miles from Earth to study dark matter, dark energy, and exoplanets at a survey speed approximately 1,000 times that of Hubble. Tesla, Inc. (TSLA.US) launches a budget version of Model 3 in Hong Kong and Macau, with a starting price as low as $26,000. Tesla, Inc. has introduced a more affordable, simplified version of the Model 3 rear-wheel drive in Hong Kong and Macau, with starting prices of 205,000 HKD (approximately $26,000) and 252,000 MOP (approximately $31,000), respectively. It is reported that the new model's price in Hong Kong has decreased by 8.5% compared to the previous entry-level version. This version has reportedly simplified or downgraded some interior and exterior trim configurations such as interior fabric, audio system, and wheels. Important Economic Data and Event Forecast At 21:45 Beijing time, U.S. Chicago PMI for August.