Preview of US Stock Market | The three major stock index futures showed mixed performance. It is reported that Japan plans to raise interest rates to 1.25% in September. Multiple attacks in Saudi Arabia have reignited geopolitical concerns.

Pre-Market Trends 1. As of September 8 (Tuesday) before the market opens, U.S. stock index futures showed mixed movements. As of the time of this report, Dow futures fell by 0.81%, S&P 500 futures dropped by 0.25%, while Nasdaq futures rose by 0.07%. 2. As of the time of this report, Germany's DAX Index rose by 0.07%, the UK's FTSE 100 Index increased by 0.02%, France's CAC 40 Index fell by 0.05%, and the Euro Stoxx 50 Index climbed by 0.06%. 3. As of the time of this report, WTI crude oil rose by 2.40%, priced at $93.68 per barrel. Brent crude oil increased by 1.59%, priced at $98.54 per barrel. Market News It is reported that the Bank of Japan plans to raise interest rates to 1.25% in September. According to Kyodo News, the Bank of Japan is expected to raise interest rates to 1.25% during its meeting on September 17-18. Previously, data released by Japan's Ministry of Health, Labour and Welfare indicated that nominal wages in July increased by 4.7% year-on-year, the largest rise since 1997, significantly higher than the economists' forecast of 3.8%. A report from Japan's Cabinet Office showed that Japan's GDP growth on an annualized basis in the second quarter rose by 1.4% from the previous quarter, above the previously announced preliminary value of 1.1%, but lower than the median economist expectation of 1.8%. These two sets of better-than-expected data further bolster the widespread expectation of a rate hike by the Bank of Japan. Investors also anticipate that the Bank of Japan may further tighten its policies in a relatively short time frame after this interest rate hike. The U.S. Treasury will announce the scale of the U.S. Treasury bond buyback, with market attention on Secretary Yellen's actions. Reports indicate that U.S. Treasury Secretary Yellen's determination to support the bond market will soon be tested. At 11:00 a.m. EDT (23:00 Beijing time) on Wednesday, the U.S. Treasury will announce the maximum amount it plans to repurchase of 10 to 20-year U.S. Treasury bonds. On September 10, the U.S. Treasury will also disclose the exact amount actually purchased from the buyback plan that commenced in May 2024. Previously, the U.S. Treasury stated that before November 4, it would repurchase at least $4 billion in long-term U.S. Treasury bonds during each market buyback, up from the previous $2 billion. However, the Treasury retains the discretion to expand the buyback size. The market generally expects that Yellen's actions will ultimately exceed the previously announced repurchase targets. Multiple energy facilities in Saudi Arabia have been attacked and caught fire. According to a statement from Saudi Arabia's Ministry of Energy today, several energy and utility facilities in the country were attacked by Houthi forces from Yemen, leading to fires at multiple locations and temporary disruptions in the operation of some facilities. The Ministry of Energy stated that it is working to ensure facility safety, personnel safety, and continuity of operations. Earlier today, the Saudi-led coalition in Yemen reported that Houthi forces attacked civilian and economic facilities in Abha, Khamees Mushait, Najran, and Jizan, resulting in 73 injuries. The coalition stated that it would respond resolutely to the attacks by Houthi forces. An extremely powerful El Nio is approaching, with the World Food Programme warning of an exacerbation of global food insecurity. The United Nations World Food Programme (WFP) stated in an interview that the El Nio phenomenon itself could drive up food prices in affected countries. The latest analysis shows that under the current El Nio conditions, by the end of 2027, approximately 49 million additional people will face sudden food insecurity in 45 countries and regions that are already facing severe food security challenges. By then, the number facing sudden food insecurity in these countries and regions may rise from about 225 million currently to 274 million, an increase of approximately 22%. Among them, parts of Central America and southern Africa will be among the most severely affected areas, while East Africa, South Asia, and Southeast Asia will also be significantly impacted. Zimbabwe has immediately banned the export of antimony and tungsten, accelerating the strategy for local mineral processing. The Zimbabwean government announced an immediate ban on the export of antimony and tungsten, while suspending the transport of ores and concentrates, aiming to encourage mining companies to conduct raw material processing locally to increase resource added value. The ban was communicated by Mining Minister Thomas Muchinguri in a letter to the state-owned Zimbabwe Mineral Marketing Corporation dated July 21, which has been confirmed by the Ministry of Mining. Zimbabwe is following the examples of African countries like Guinea, Ghana, and the Democratic Republic of the Congo to extract greater economic value from natural resources. Earlier, Zimbabwe had already suspended lithium concentrate exports in February to promote local processing and curb illegal transport; related restrictions were eased in April, with the ban scheduled to take effect in early 2027. Copper prices continue to rise strongly, with record prices in both the UK and US markets. Driven by conflicting supply and demand conditions and tariff concerns, copper prices in London and New York markets hit historical highs today. Analysts believe that the current rise in copper prices stems from optimism about long-term strong demand driven by data center construction, grid upgrades, electric vehicles, and new energy projects, while global copper production is declining, putting pressure on supply. The potential increase in tariffs on refined copper further supports the trend; the copper tariffs announced last summer did not cover refined copper, but the U.S. Department of Commerce previously proposed to levy a 15% tariff on refined copper imports starting in 2027, increasing to 30% in 2028. Goldman Sachs Group, Inc. has raised its oil price forecasts, citing ongoing risks of shipping interruptions in the Middle East. Goldman Sachs Group, Inc. has increased its forecasts for Brent crude and WTI crude oil prices by $5 per barrel for December 2026 and December 2027, citing expectations that shipping disruptions in the Middle East will continue into next year. The firm currently projects Brent crude prices at $85 per barrel and WTI at $80 per barrel by December 2026; Brent crude is projected to be $80 per barrel and WTI at $75 per barrel in 2027. Goldman Sachs Group, Inc. noted that if average oil production in the Gulf region in 2027 is 4 million barrels per day lower than pre-war levels (compared to the 500,000 barrels per day gap in its baseline scenario), Brent crude prices could surge above $120 per barrel. Conversely, if Gulf production exceeds pre-war levels by 1 million barrels per day, Brent prices could fall to the low $60 range. Individual Stock News Amazon.com, Inc. (AMZN.US) makes its initial endeavor into the pound bond market as the tech giant expands its financing efforts. Amazon.com, Inc. appointed banks on Tuesday to arrange its first issuance of pound-denominated bonds, intending to launch four varieties with maturities of 3, 6, 12, and 19 years, with the transaction possibly landing as soon as Wednesday, although specific financing amounts have not been disclosed. This issuance continues the trend of massive technology companies engaging in cross-currency financing this year; Amazon.com, Inc. and other giants have successively tapped the euro, Swiss franc, and Japanese yen bond markets in an effort to diversify financing channels to support the substantial capital expenditures required for their AI transformations. Intel Corporation (INTC.US) and ASML Holding NV ADR (ASML.US) are advancing high-NA EUV production applications, with performance standards met for the 18A process, having processed a million wafers. Intel Corporation and ASML Holding NV ADR jointly announced that they are continuing to promote the mass production application of high numerical aperture extreme ultraviolet lithography technology. Intel Corporation has accumulated over 1 million wafers processed through early equipment certification, research and development, and partial mass production stages. High-NA EUV has been applied to mass production of certain layers in Intel Corporation's Core Ultra 3 series processor Panther Lake; products using this technology reached performance standards at or above similar layers produced with the traditional 0.33 NA EUV lithography platform. Both parties will continue to promote the transition of photomasks from 6 inches to a larger 612 inch size while also employing photomask stitching technology, allowing customers to achieve certain advantages of high-NA EUV under existing 6-inch photomask conditions. Apple Inc. (AAPL.US) signs a long-term supply agreement for NAND with Kioxia, potentially with no price cap. It is reported that Apple Inc. has signed a long-term supply agreement (LTA) for NAND flash memory with Japan's Kioxia, with speculation in the memory market indicating that the contract will last for three to five years and may have no price cap. This means that Apple Inc., which holds significant bargaining power in memory price negotiations, is prioritizing guaranteed stable supplies of NAND flash over cost compression. Intel Corporation increases CPU prices by 10% again and plans to phase out low-margin products. According to supply chain sources, Intel Corporation is expected to raise PC CPU prices by about 10% on October 5, 2026. This would be Intel Corporation's third price increase since the end of 2025previously, CPU prices were raised by about 10% in the first quarter of 2026, and again in July, when prices for some consumer and server-grade CPUs were increased by amounts ranging from several dozen to over a thousand dollars. Meanwhile, Intel Corporation's CEO Pat Gelsinger is reviewing its low-margin Small Core product line, with some products expected to enter the End of Life (EOL) phase. Supply chain insiders noted that this series of moves points towards a single goal: to improve overall gross margins and move away from the past strategy of gaining market share through price cuts. Three setbacks in a week! Novartis AG Sponsored ADR (NVS.US) reports its DM1 drug fails to meet primary endpoints in Phase III clinical trial. Novartis AG Sponsored ADR has faced its third clinical trial setback in just one week. The Swiss pharmaceutical company announced on Tuesday that its experimental injectable drug del-desiran for treating type 1 myotonic dystrophy (DM1, a rare muscle wasting disease) did not meet its primary endpoints in the Phase III HARBOR study. Del-desiran is a core drug obtained from Novartis AG Sponsored ADRs acquisition of Avidity Biosciences for $12 billion, previously seen as a blockbuster potential drug. The trial failure occurs as Novartis AG Sponsored ADR is facing the largest patent cliff in its history, further hampering its efforts to find new sources of growth. Anthropic abandons approximately $6 billion acquisition of Decart AI and is preparing for a major IPO. Sources reveal that Anthropic has decided to abandon its acquisition of AI startup Decart AI. Previously, Anthropic had explored the transaction and completed due diligence but ultimately withdrew; however, both parties may still seek other collaboration opportunities. Decart AI focuses on reducing AI training and operational costs by improving chip efficiency, and its software products optimize computing resource utilization without sacrificing performance. Anthropic rarely engages in large-scale acquisitions and is currently allocating primary resources to develop new products and the computing power needed for customer service in preparation for its highly anticipated initial public offering (IPO); insiders indicate that the company plans to raise funds in the IPO comparable to or exceeding those of SpaceX. Canaan Inc. Sponsored ADR Class A (CAN.US) reports pressured Q2 revenue amid record high cryptocurrency holdings. Canaan Inc. Sponsored ADR Class A reported total revenue of $31.9 million for Q2 2026, with product revenue of $13.6 million reflecting softened demand for mining machines and a decrease in the average selling price of computing power; mining revenue was $17.7 million, affected by Bitcoin price pressures and seasonal power limits. However, the company produced 243 bitcoins during the quarter, with cryptocurrency holdings reaching historic highs of 1,915 BTC and 3,952 ETH. Key Economic Data and Event Forecasts 23:00 Beijing time: U.S. 1-Year Inflation Expectations from the New York Fed for August. Earnings Forecasts Wednesday morning: Braze (BRZE.US)