Overnight US stocks | The three major indexes fell, with the Dow Jones down over 600 points. SK Hynix (SKHY.US) rose 4.8%.

On Tuesday, the three major indices fell. Oil prices rose after the Saudi Energy Ministry announced today that multiple energy and utility facilities in the country had been attacked by Yemen's Houthi armed forces, resulting in fires at several locations and temporary disruptions in operations at some facilities. The yield on 10-year U.S. Treasuries climbed to its highest level since November 2023 last week; the short-term 2-year Treasury yield reached a new high since January 2025. [U.S. Stocks] At the close, the Dow Jones Industrial Average dropped 626.72 points, down 1.17%, to close at 52,787.53 points; the S&P 500 declined by 44.98 points, a drop of 0.58%, closing at 7,673.62 points; the Nasdaq Composite Index fell by 85.58 points, down 0.32%, to end at 26,421.41 points. NVIDIA Corporation (NVDA.US) fell 2%, Qualcomm (QCOM.US) rose 3%, Intel Corporation (INTC.US) saw a 9% increase, and SK Hynix (SKHY.US) increased by 4.8%. The Nasdaq China Golden Dragon Index closed down 1.7%, while iQIYI, Inc. Sponsored ADR Class A (IQ.US) surged nearly 12%. [European Stocks] The German DAX 30 index rose by 26.10 points, up 0.10%, to close at 26,007.89 points; the UK FTSE 100 index fell by 5.80 points, down 0.05%, to close at 10,816.33 points; the French CAC 40 index increased by 11.83 points, up 0.14%, to close at 8,317.98 points; the Euro Stoxx 50 index rose by 9.16 points, up 0.14%, to close at 6,413.15 points; Spains IBEX 35 index fell by 40.26 points, down 0.20%, to close at 19,981.54 points; while Italy's FTSE MIB index decreased by 43.07 points, down 0.08%, to close at 52,186.50 points. [Asian Markets] The Nikkei 225 index dropped by 1.7%, and the Korean Composite Index fell by 0.58%. [U.S. Dollar Index] The U.S. dollar index, which measures the dollar against six major currencies, fell by 0.13%, closing at 98.787. By the end of trading in New York, 1 euro exchanged for 1.1629 dollars, up from 1.1624 dollars the previous trading day; 1 pound exchanged for 1.3547 dollars, up from 1.3542 dollars. 1 dollar was worth 153.61 Japanese yen, down from 154.34 yen the previous trading day; 1 dollar exchanged for 0.8090 Swiss francs, down from 0.8095 Swiss francs; 1 dollar equaled 1.3781 Canadian dollars, down from 1.3815 Canadian dollars; and 1 dollar was worth 9.5816 Swedish krona, down from 9.5935 krona. [Cryptocurrency] Bitcoin fell by 0.52%, trading at 78,514 yuan as of the time of this report; Ethereum remained relatively stable at 2,482 dollars. [Crude Oil] Light crude oil futures for October delivery on the New York Commodity Exchange rose by 1.55 dollars, settling at 93.03 dollars per barrel, an increase of 1.69%; November delivery Brent crude oil futures climbed by 92 cents, to close at 97.92 dollars per barrel, a rise of 0.95%. [Precious Metals] Spot gold was priced at 4,355.59 dollars per ounce; spot silver was priced at 65.763 dollars per ounce. [Macroeconomic News] Iran allegedly continues to launch attacks on the U.S.; the U.S. is on alert for missile escalation. According to media reports citing U.S. officials, Iran launched another attack on U.S. Navy vessels on Monday, marking the second action against U.S. maritime assets within three days, although the U.S. military has yet to acknowledge this attack. U.S. officials stated that Iran's recent actions against U.S. vessels suggest it may be using more advanced missiles. Previously, Iran claimed to have used new missiles with sophisticated guidance capabilities to strike U.S. ships. Analysts believe some Iranian missiles are equipped with electro-optical guidance heads that can recognize and track moving targets. Previously, the U.S. had attacked three Iranian oil tankers in response to Iranian attacks on U.S. vessels. The U.S. hopes to compel Iran to make concessions through blockades and sanctions, but officials said Iran is still strengthening its threat to U.S. vessels. Wall Street is paying attention to Treasury Secretary Basant's proposed repurchase scale. Analysts say it could reach the 10 billion dollar cap. U.S. Treasury Secretary Basant is about to announce the scale of the next round of long-term Treasury repurchase operations, and Wall Street is watching whether this operation will expand further and the signals it may send regarding debt management policy. Klendall, a senior economist at WrightsonICAP, believes that a single repurchase scale of 5 to 6 billion dollars is reasonable, but larger operations are also possible. Morgan Stanley analysts said that due to financing conditions, the cap for individual repurchase operations might be around 10 billion dollars; if this level is reached, the quarterly net issuance of Treasuries with maturities of 20 years or more may decrease by about 55%. Bloomberg strategist Fagan said that if the repurchase scale exceeds expectations, the market may interpret it as the Treasury sending a stronger policy signal, leading to a short-term drop in long-term yields, although the repurchase scale remains limited relative to the overall Treasury market. Barclays strategists Pradhan and Hu expect the Treasury may adopt an "at least 4 billion dollars each time" open-ended expression to retain room for adjustment. The market will continue to focus on the repurchase scale, frequency, and long-term guidance, with the 30-year swap spread possibly reflecting market judgment on supply changes more directly. The New York Fed's 1-year inflation expectations dipped slightly, while unemployment rate expectations rose. The Federal Reserve Bank of New York's Microeconomic Data Center released its August 2026 consumer expectations survey today. The results showed that household inflation expectations slightly decreased in the medium term, while short-term and long-term expectations remained unchanged. Expectations for gasoline price increases rose again in August. Labor market expectations were mixed: expectations for unemployment and employment worsened, while expectations for layoffs and resignations improved. The expected rise in unemployment rate reached its highest level since April 2020. The survey was conducted from August 3 to 31. On inflation, the 1-year inflation expectation fell from 3.63% to 3.58%, while the median home price growth expectation dropped by 0.2 percentage points to 3.0%, driven by residents of the Northeast. For commodities, the 1-year expectation for gasoline prices rose by 1.7 percentage points to 4.6%, food prices increased by 0.3 percentage points to 5.3%, and medical costs rose by 0.2 percentage points to 9.1%; college tuition increased by 0.3 percentage points to 6.1%, and rent rose by 0.7 percentage points to 6.6%. In the labor market, the median expectation for income growth over the next year increased slightly by 0.1 percentage points to 2.9%. The average expectation for the rise in the unemployment rate increased by 1.6 percentage points to 44.4%, the highest since April 2020, with increases seen across all age, education, and income groups. Trump plans to revoke Canadas eligibility for over 50 billion dollars in GSA procurement program. U.S. President Trump stated on social media that Canada has long restricted U.S. Shenzhen Agricultural Power Group and companies from entering its market, while enjoying opportunities to access the U.S. government procurement market, calling this practice "lacks trade reciprocity." Trump announced that he has instructed the U.S. General Services Administration (GSA) and the Office of the United States Trade Representative (USTR) to take measures to remove Canadian products from various GSA government procurement programs if Canada does not restore "full and fair treatment" for U.S. farmers and businesses. Trump stated that the relevant procurement program amounts to over 50 billion dollars. He declared that the Canadian government and provincial governments limit U.S. small businesses' participation in their government procurement market, while Canadian companies can enter the vast U.S. government procurement market, thus the U.S. will adopt a policy of "no access without reciprocity." [Stock News] Alphabet Inc. Class C and Blackstone's 5 billion data center project reportedly faces delays. According to insiders, Alphabet Inc. Class C's parent company, Alphabet (GOOG.US), and Blackstone Inc. (BX.US) are experiencing delays in the construction of an AI cloud project called "Project Braid." This project, backed by a 5 billion dollar investment from Blackstone, is scheduled to lease compute resources equipped with Alphabet Inc. Class Cs AI chips to clients starting in 2027. Insiders stated that Alphabet Inc. Class C previously planned for AI data center developer Crusoe to build the data center in Cheyenne, Wyoming, but later canceled that arrangement and took over the project, reapplying for relevant permits. Sources indicated that Alphabet Inc. Class C lost confidence in Crusoe's ability to deliver the project on schedule. Crusoe drew attention previously for its involvement in the flagship "Intergalactic Gateway" data center project built in Texas in collaboration with OpenAI and Oracle Corporation. Additionally, another data center site has been impacted by a lack of required transformers. Currently, the construction of AI data centers faces bottlenecks such as insufficient power equipment supply and delayed approvals. The head of Project Braid stated that the project is still moving forward, with plans to provide 500 megawatts of computing capacity next year. Meta launches personal AI assistant Muse, with a monthly fee of up to 100 dollars. Meta Platforms (META.US) has launched a personal AI assistant application called Muse, allowing users to delegate digital tasks such as scheduling, filling out forms, and monitoring home cameras to an AI assistant. Alexander's, Inc. Wang, head of Meta AI, stated that Muse is powered by Meta's Muse Spark series of foundational models, offering a free version as well as subscription services at 20 dollars and 100 dollars per month. He noted that Muse operates in an isolated environment within Meta's computing infrastructure, does not access users' actual passwords or payment information, and will request confirmation before performing sensitive actions. Users can choose whether to allow Meta to use interactions with Muse to train the AI model; if they opt-in, Meta will remove key personal identifying information for model improvement purposes. At the time of the product launch, Meta is facing issues related to AI safety, privacy concerns, and pressures regarding AI investment returns. Meta CEO Mark Zuckerberg previously stated that personal AI assistants would be a direction for the company's future products and revenue growth. Meta also announced that it is exploring business models related to shopping transactions with AI assistants.