Overnight US stocks | S&P 500 and Nasdaq hit record highs; memory chip stocks plunge, SK Hynix (SKHY.US) drops over 6%.

On Tuesday, the three major indices closed higher, with the S&P 500 and Nasdaq hitting record highs. The S&P 500 closed above 7,800 points for the first time. U.S. Treasury Secretary Bessent insisted that the government's debt burden is controllable. Bessent sought to reassure investors, saying that a combination of economic growth and spending restraint will "soon" begin to change the U.S. government's borrowing path. In a fireside chat in Pennsylvania on Monday evening, he said the government will begin to "reverse this trend." U.S. StocksAs of the close, the Dow Jones Industrial Average rose 253.32 points, or 0.49%, to 51,521.22; the S&P 500 rose 45.03 points, or 0.58%, to 7,818.98; the Nasdaq Composite rose 122.48 points, or 0.45%, to 27,599.79. Memory concept stocks fell sharply, with Seagate Technology Holdings PLC (STX.US) down 9%, Western Digital Corporation (WDC.US) down nearly 7%, Moderna (MRNA.US) down 7.7%, and SK Hynix (SKHY.US) down over 6%. The Nasdaq Golden Dragon China Index closed up 0.3%, while Alibaba Group Holding Limited Sponsored ADR (BABA.US) fell over 1%. European StocksGermany's DAX30 rose 197.98 points, or 0.78%, to 25,452.19; the UK's FTSE 100 rose 43.33 points, or 0.41%, to 10,541.27; France's CAC40 rose 30.97 points, or 0.40%, to 7,865.07; the Euro Stoxx 50 rose 30.81 points, or 0.49%, to 6,272.95; Spain's IBEX35 rose 139.98 points, or 0.73%, to 19,439.68; Italy's FTSE MIB rose 425.12 points, or 0.84%, to 51,243.50. Asia-Pacific StocksJapan's Nikkei 225 rose 1.05%, South Korea's KOSPI fell 0.89%, and Indonesia's Composite Index rose 1.21%. ForexThe U.S. dollar index, which measures the greenback against six major currencies, fell 0.33% on the day and closed at 101.833 at the end of the forex session. As of the close of the New York forex session, 1 euro traded at 1.1261 dollars, up from 1.1215 dollars the previous trading day; 1 pound traded at 1.3277 dollars, up from 1.3219 dollars the previous trading day. 1 dollar traded at 158.12 yen, up from 158.00 yen the previous trading day; 1 dollar traded at 0.8313 Swiss francs, up from 0.8307 Swiss francs the previous trading day; 1 dollar traded at 1.4209 Canadian dollars, down from 1.4256 Canadian dollars the previous trading day; 1 dollar traded at 9.9861 Swedish kronor, down from 10.0403 Swedish kronor the previous trading day. CryptocurrenciesBitcoin hovered near 85,000 dollars, at 85,575 dollars as of press time; Ethereum fell 0.69% to 2,696 dollars. Precious MetalsSpot gold was at 4,163.82 dollars per ounce; spot silver was at 61.364 dollars per ounce. Crude OilLight crude oil futures for November delivery on the New York Mercantile Exchange rose 1 cent to close at 89.44 dollars per barrel, a gain of 0.01%; London Brent crude oil futures for December delivery rose 26 cents to close at 100.58 dollars per barrel, a gain of 0.26%. Macro News Fed's Daly: If AI, tariffs, and energy shocks persist, further rate hikes may be needed. San Francisco Fed President Daly said that chip demand driven by the AI boom could spread from high-end AI chips to the broader semiconductor market, and some companies have begun to lock in memory chip supply in advance, or even redesign products to reduce chip usage. She believes that this round of AI-driven price pressure may not be a one-time shock, and the time needed to ease it may exceed the one to three years the Fed usually assumes. Daly said she fully supports the Fed's September rate hike, and whether further action is needed will depend on whether shocks such as AI, tariffs, and energy prices pushed up by Middle East conflicts subside; if these factors persist longer or overlap, further tightening may be needed, but if the shocks are only temporary, further rate hikes may not be necessary. Fed Governor Bowman: The Fed plans to reshape the bank regulatory system and reassess the asset threshold for stricter supervision. The Fed plans to comprehensively overhaul the Bank of America Corp regulatory system, changing the current model in which regional Federal Reserve Bank presidents are responsible for supervising bank examinations to a new structure with clearer responsibility to Washington headquarters. The Fed's top bank regulator announced the reform plan on Tuesday. Fed Vice Chair for Supervision Michelle Bowman said that after the reform, five new bank supervision geographic regions will be created, each led by a "regional head." In remarks prepared for a St. Louis Fed conference, Bowman said the existing structure "weakens the vital link between responsibility and accountability." Bowman said: "The Fed's supervisory function will be readjusted to build a culture that emphasizes accountability and clear decision-making authority." Under the new supervisory arrangement, five regional heads will be responsible for all supervisory activities in their respective regions. However, specific examination work will still be carried out by staff at the regional Federal Reserve Banks. Bowman also announced that the Fed will consider adjusting asset-size thresholds later this year, which determine the size at which banks become subject to stricter regulatory rules. JPMorgan CEO Dimon: The Mythos model has made global cybersecurity risk "ten times higher." JPMorgan CEO Jamie Dimon said that the artificial intelligence model Mythos launched by Anthropic has greatly increased global cybersecurity risk. Dimon said on Tuesday: "After Mythos appeared, the risk brought by AI rose tenfold. AI has created vulnerabilities we did not previously know about, and even before these technologies appeared, we were already worried about cybersecurity." He said artificial intelligence is exposing banks to new types of security vulnerabilities that did not previously exist or had not yet been discovered. Dimon said: "The negative side is obviously what everyone sees regarding AI agents, Mythos, and other technologies that could cause trouble. This concern is reasonable and real." However, he said he would not get caught up in the debate over whether artificial intelligence constitutes an "existential threat." Dimon said: "I will not become hysterical over questions like 'Is this an existential threat or not?' What we are doing now is rolling up our sleeves and getting to work, trying to figure out how to solve these problems." Institution: The Bank of Canada may hike only twice, with the first move expected to be delayed until early next year. Central 1 Credit Union expects that the Bank of Canada may raise rates only twice in this tightening cycle, and the first move may not come until early next year, clearly less aggressive than current financial market pricing reflects. Central 1 economist Bryan Yu said Canada is currently in a period of high uncertainty, and the economic outlook is still changing rapidly. The sharp rise in U.S. and Canadian bond yields, the impact of tariffs, and violent fluctuations in oil prices have all made policy judgments more difficult. Yu pointed out that Canada's core inflation is still close to 2%, while economic growth may slow by late 2026 due to trade uncertainty. At the same time, higher bond yields may also suppress the recovery of the housing market, thereby limiting the necessity and room for the Bank of Canada to further tighten monetary policy. Individual Stock News SpaceX plans to raise 40 billion dollars to buy NVIDIA Corporation chips. According to reports, SpaceX (SPCX.US) is seeking to raise 40 billion dollars through a financing plan led by Apollo to purchase NVIDIA Corporation (NVDA.US) chips. According to people familiar with the matter, the company plans to raise about 10 billion dollars through bank loans and 30 billion dollars through investment-grade debt to support its large-scale chip order. The people said private capital group Apollo is expected to lead the transaction and help sell the debt to a broad group of investors. It is reported that bond group Pimco is one of a small group of lenders in discussions to provide financing for the deal. The transaction is expected to be completed in 2027. Apple Inc. is reportedly teaming up with LG to expand into smart homes, planning door locks, cameras, and more. According to media reports citing sources, Apple Inc. (AAPL.US) plans to launch smart home devices such as smart doorbells and thermostats, and will partner with LG Electronics to develop related accessories. These products will connect to an upgraded Apple Inc. HomePod mini and a new Apple TV set-top box to form a smart home ecosystem. Apple Inc. is expected to release these new products on October 13. Products developed in cooperation with South Korea's LG will also include smart deadbolt locks and security cameras. Although the two companies jointly developed these accessories, the products will use the LG brand. LG will be responsible for production and product support. Through this kind of cooperative arrangement with so-called "second-party suppliers," Apple Inc. can rapidly expand its ecosystem without bearing all the costs and complexity of producing and supporting various accessories. Major Bank Ratings TD COWEN: Cut American Express Company (AXP.US) price target from 338 dollars to 335 dollars BNP Paribas: Raised Microsoft Corporation (MSFT.US) price target from 549 dollars to 604 dollars Wells Fargo & Company: Cut United Airlines (UAL.US) price target from 17 dollars to 14 dollars