Morning News

Source: Wall Street News

## Market Overview

It is reported that Apple will announce a $100 billion investment plan in the United States to avoid potential tariffs. Apple's stock surged by more than 5% and rose nearly 3% after hours. Tech giants boosted the U.S. stock market, with the Nasdaq rising more than 1.2%, while the Russell Small-Cap Index closed down.

Arista soared nearly 18% as the company's second-quarter revenue exceeded expectations. Super Micro Computer continued its post-market decline from the previous night, plummeting 18%. Shopify surged more than 20% after releasing its earnings.

U.S. Treasuries showed mixed performance. The 10-year Treasury auction was weak, with the yield rising by 1.7 basis points; the 2-year U.S. Treasury yield fell by 1 basis point due to expectations of interest rate cuts.

The U.S. dollar fell by 0.52%, and gold fluctuated downward by 0.33%.

A drop in crude oil inventories once boosted oil prices, but reports that Trump's peace talks with Ukraine may make progress caused U.S. oil to fall more than 4.5% from the daily high during the session. Coking coal closed up 1.79% in night trading.

During the Asian session, China's three major stock indexes collectively closed higher. Military stocks continued to surge, while Sunway New Materials hit the daily limit down. Coking coal rose more than 6%. Hong Kong stocks fluctuated within a narrow range, with Pop Mart rising more than 7%.

## Key News

After a decade, the balance of margin trading and securities lending in A-shares has exceeded 2 trillion yuan again!

Indian media: Modi will visit China from August 31 to September 1 to attend the SCO Tianjin Summit.

Trump plans to impose a 100% tariff on chip products, with exemptions for companies like Apple that build factories in the U.S. Apple and TSMC rose after hours. Under tariff pressure, Apple will invest another $100 billion in U.S. manufacturing.

Taking action against major buyers of Russian oil, Trump ordered an additional 25% tariff on India, while Apple remains unaffected.

Failed to persuade Trump before the 39% tariff took effect; the Swiss leader reportedly returned empty-handed.

Disagreements over the U.S.-Japan trade agreement persist, with the U.S. planning to impose an additional 15% tariff on top of existing ones.

A turn of events before the "deadline": Trump is said to plan to meet with Putin as early as next week, followed by a meeting with Zelensky.

Report: Trump's advisors are pushing to temporarily fill vacancies on the Federal Reserve Board.

Another Fed official turned dovish. Governor Cook said that employment data indicates a "turning point" in the economy, suggesting a possible rate cut in the near term.

The 10-year U.S. Treasury auction was unexpectedly weak, with multiple indicators showing poor demand.

Competition in weight-loss drugs is fierce. Novo Nordisk's Q2 earnings fell short of expectations, and it reiterated its downward revision of the full-year performance outlook. To cope with the impact of U.S. generic drugs, Novo Nordisk called on the FDA to ban imports of key raw materials for generic drugs.

## Market Closing Quotes

European and American stock markets: The S&P 500 rose 0.73% to 6345.06 points. The Dow Jones Industrial Average rose 0.18% to 44193.12 points. The Nasdaq closed up 1.21% to 21169.42 points. Europe's STOXX 600 Index closed down 0.06% to 541.07 points.

A-shares: The Shanghai Composite Index closed at 3633.99 points, up 0.45%; the Shenzhen Component Index closed at 11177.78 points, up 0.64%; the ChiNext Index closed at 2358.95 points, up 0.66%.

Bond market: The yield on the 10-year U.S. benchmark Treasury note rose 1.57 basis points to 4.2257%. The yield on the 2-year U.S. Treasury note fell 1.05 basis points to 3.7137%.

Commodities: COMEX gold futures fell 0.11% to $3430.80 per ounce. WTI September crude oil futures closed down 1.24% to $64.35 per barrel. Brent October crude oil futures closed down 1.11% to $66.89 per barrel.

## Details of Key News

### Global Highlights

After a decade, the balance of margin trading and securities lending in A-shares has exceeded 2 trillion yuan again! As of August 5, the balance of margin trading and securities lending in A-shares has reached 2000.259 billion yuan, breaking the 2 trillion yuan mark again. The last "grand occasion" when the balance of margin trading and securities lending hit 2 trillion yuan dates back to May 20, 2015, during a major bull market. CICC stated that if policy efforts are increased, especially in resolving debts and improving balance sheets, there is still room for improvement in market sentiment.

Indian media: Modi will visit China from August 31 to September 1 to attend the SCO Tianjin Summit. According to Global Times, Indian Prime Minister Modi will visit China from August 31 to September 1 to attend the Shanghai Cooperation Organization Tianjin Summit. NDTV reported that Modi's visit comes at a time when U.S. President Trump is imposing high tariffs on India and continuing to put pressure on India over its purchase of Russian oil. External expectations suggest that against this backdrop, India's readjustment of its relations with China may become a key factor in checking and balancing the United States.

Trump plans to impose a 100% tariff on chip products, with exemptions for companies like Apple that build factories in the U.S. Apple and TSMC rose after hours. Trump announced that he will impose a 100% tariff on all imported products containing semiconductors, but exempt companies that build factories in the U.S. or promise to do so.

Apple CEO Tim Cook and Trump announced a new $100 billion investment plan in the Oval Office, including launching new manufacturing projects and cooperating with multiple U.S. companies to produce all glass covers for iPhones and watches in the United States. Trump said Apple will build the world's largest smart glass production line in the U.S. Under tariff pressure, Apple is investing another $100 billion in U.S. manufacturing, and this latest commitment will bring Apple's total investment in the U.S. to $600 billion. Trump once warned that if Apple does not move iPhone manufacturing back to the U.S., it will face a tariff of at least 25%.

After the news broke, Apple's stock rose nearly 3% after hours, and TSMC's U.S. ADR rose nearly 2.9%.

Taking action against major buyers of Russian oil, Trump ordered an additional 25% tariff on India, while Apple remains unaffected. Trump's executive order will bring the additional tariffs on Indian goods to 50% this month. The first round of 25% tariffs took effect on Thursday, and the new tariffs will take effect 21 days after he signed the order on Wednesday. India reiterated that the U.S. action is unfair and unreasonable, saying it will take necessary measures to protect national interests. Media quoted White House officials as saying that Apple will be largely unaffected by the tariffs targeting India.

Failed to persuade Trump before the 39% tariff took effect; the Swiss leader reportedly returned empty-handed. Media reported that Swiss President Viola Amherd, who is about to leave Washington, will not announce any progress in reducing tariffs. The Swiss delegation led by her submitted a new plan to the U.S. during their visit, but it is expected that no agreement more favorable to Switzerland will be reached before returning home. Earlier on Wednesday, after meeting with U.S. Secretary of State Marco Rubio, Amherd said they discussed tariffs, and Rubio expected to announce some news soon.

Disagreements over the U.S.-Japan trade agreement persist, with the U.S. planning to impose an additional 15% tariff on top of existing ones. Japan's chief trade negotiator Ryosei Akazawa said on Wednesday that he had repeatedly confirmed with the U.S. side that for goods with an existing tax rate lower than 15%, the total tax rate after the August rate increase should be 15%. However, the U.S. announcement of tariffs starting from August 7 is inconsistent with this, exposing Japan to higher tariffs. Japan has demanded that the U.S. correct this and implement the content that both sides have agreed upon.

A turn of events before the "deadline": Trump is said to plan to meet with Putin as early as next week, followed by a meeting with Zelensky. With only two days left until Trump's ultimatum to Russia, Trump said on Wednesday that the meeting between U.S. envoy Wittkopf and Putin on the same day "made significant progress," and efforts will be made to end the Russia-Ukraine war in the next few days and weeks, while retaining the possibility of further punitive measures against Russian oil. The White House said Russia has expressed a desire to meet with Trump. Media reported that after India, more countries will face Russia-related sanctions on Friday. It is expected that the U.S. will announce the implementation of secondary sanctions on Friday, and the U.S. is also considering new sanctions on Russia.

Report: Trump's advisors are pushing to temporarily fill vacancies on the Federal Reserve Board. It is reported that nominating a temporary governor to complete the term of the upcoming vacant seat can buy Trump more time to select a suitable candidate to replace the current Federal Reserve Chairman Jerome Powell. The short-term temporary governor candidate is likely to be from the existing members of the Trump administration and has previously obtained Senate confirmation for federal positions. Trump plans to hold a meeting with advisors on the Federal Reserve candidates on Wednesday.

Another Fed official turned dovish. Governor Cook said that employment data indicates a "turning point" in the economy, suggesting a possible rate cut in the near term. Federal Reserve Governor Lisa Cook called the July employment report "concerning" and said it may signal a turning point in the U.S. economy. Cook also pointed out that the ongoing uncertainty faced by enterprises is like a tax burden, and business leaders spend a lot of time managing uncertainty.

Who will be the next Federal Reserve Chairman: Bessent is out, the scope is narrowed to 4 people, including "two Kevins" and Waller, and there is also a dark horse? It is reported that the identity of the fourth candidate has not been disclosed, but the latest Federal Reserve Chairman betting chart released by Polymarket shows that the probability of the "dark horse" winning is currently only lower than that of Kevin Warsh. Media quoted informed sources as saying that James Fishback, CEO of investment company Azoria, had spoken with Trump and recommended himself for a temporary Federal Reserve position. Trump will determine Kugler's successor by the end of this week, which may be a preview of the future Federal Reserve Chairman candidate.

The "changing of the guard" drama at the Federal Reserve has now begun. Analysts said that if Trump decides to fill the position as soon as possible with his intended chairman candidate, National Economic Council Director Kevin Hassett is an obvious front-runner because he is "the easiest to confirm and the most loyal." However, once the public begins to believe that the Federal Reserve makes decisions based on political loyalty rather than objective analysis, the credibility of the Federal Reserve will be damaged.

The 10-year U.S. Treasury auction was unexpectedly weak, with multiple indicators showing poor demand. After yesterday's poor 3-year U.S. Treasury auction, the market was highly nervous about today's 10-year U.S. Treasury auction. The results of the 10-year U.S. Treasury auction showed that a tail spread appeared for the first time in six months; buyer demand was weak, especially demand from buyers outside the United States declined; the bid-to-cover ratio hit a one-year low; primary dealers were forced to take a large number of positions to make up for the demand gap. After the auction, U.S. Treasury yields hit an intraday high.

Competition in weight-loss drugs is fierce. Novo Nordisk's Q2 earnings fell short of expectations, and it reiterated its downward revision of the full-year performance outlook. Novo Nordisk's second-quarter sales increased by 13% year-on-year, which was lower than expected, but its star weight-loss drug Wegovy outperformed market expectations. The CEO said that as the growth of its GLP-1 drugs is expected to slow down in the second half of this year, the company is lowering its full-year outlook for this business.

To cope with the impact of U.S. generic drugs, Novo Nordisk called on the FDA to ban imports of key raw materials for generic drugs. Novo Nordisk called on the U.S. Food and Drug Administration (FDA) to ban the import of key ingredients used in counterfeit weight-loss and diabetes drugs to crack down on the proliferation of counterfeit drugs. Novo Nordisk believes that these illegal generic drugs not only threaten patient safety but also erode the company's profits in the U.S. market.

"Retail investors are resting, institutions are full": Is a U.S. stock storm coming in September? When retail buying tide ebbs, coupled with the drying up of institutional buying and the historically worst-performing month, the market may usher in a "support vacuum period."

All historical trends are no longer valid, and U.S. stock retail investors have caught Wall Street investors off guard. After the sell-off last Friday, retail investors quickly entered the market to bottom-fish U.S. stocks, driving the market to almost completely reverse the decline. Institutional investors are currently afraid to short because the buying power of retail investors has invalidated the traditional market adjustment model. Analysts suggest that currently, "do not bet against retail investors."

Goldman Sachs trader: Global stock markets are singing all the way, turning a deaf ear to the risk of U.S. recession. A Goldman Sachs trader warned that although the probability of a U.S. economic recession is as high as 30%, global stock markets remain strong because "shorting almost seems irrational" in the face of current market momentum. "The key is that the market cannot see far enough into the future, which is why it ignores the risk of recession."

Will the current U.S. stock bull market pause? Morgan Stanley said that U.S. stocks may experience a phased adjustment in the third quarter, with the core contradiction being the lagging impact of tariffs and the swing of Federal Reserve policies. Nevertheless, Morgan Stanley still believes that the current U.S. stock bull market has not ended, and the adjustment in the third quarter is more likely to be a "pause" rather than an "end." "The stock market bottoms out amid bad news, and this bottom was clearly established in April." The correction will be an opportunity to buy on dips.

### Domestic Macro

Why did coking coal and coke surge again? Since July, first, the expectation of the "anti-involution" policy triggered the strength of industrial products as a whole, and then various provinces forwarded the No. 108 document of the National Energy Administration, which aroused the market's attention to the inspection of overproduction in coal mines, leading to the long-lost sharp fluctuation of coking coal. Guotou Futures said that from the perspective of the medium and long-term trend, the "inflection point of coking coal has been established." However, the specific implementation of the policy remains to be seen, and the rebound in coal valuations should not be a大幅度 one-step process because coking coal production will not return to a shortage state overnight. The short-term rise is relatively sharp, and we need to be alert to the risk of a continuous cumulative correction.

Arbitrage trading surges, Shanghai gold inventory hits a record high. It is reported that gold inventories in warehouses related to the Shanghai Futures Exchange have jumped to a record high, with more than 36 tons of gold bars/ingots registered for futures contract delivery, which has almost doubled in the past month. The surge in inventory is mainly due to the boom in arbitrage trading driven by strong futures demand.

### Domestic Companies

Goldman Sachs warns: E-commerce and food delivery drag down, profits of Chinese internet giants may see the first decline since Q2 2022. AI and food delivery businesses will be the focus of the second quarterly reports of Chinese internet giants. Goldman Sachs expects that thanks to the surge in reasoning demand and the rapid development of AI applications, the AI cloud business will achieve significant growth acceleration in the second quarter, with Alibaba Cloud's growth rate expected to increase by 5 percentage points year-on-year. However, food delivery competition has led to a significant decline in platform profits. It is expected that Alibaba's EBITA will decrease by 16% year-on-year, while Meituan and JD.com's EBIT will decrease by 58% and 70% respectively.

Li Auto, China Automotive Engineering Research Institute, and Dongfeng Liuqi issued a joint statement: Eliminate any form of improper competition such as derogatory comparisons. The three parties jointly initiated: Strictly adhere to the bottom line of self-discipline and jointly shape benign competition and cooperation: Call on the automotive industry to strictly exercise self-discipline, abide by the principles of integrity and business ethics in product research and development, testing and verification, and publicity and promotion, and eliminate any form of improper competition such as derogatory comparisons.

BeiGene's Q2 revenue surged 42%, Brukinsa's global revenue nearly $1 billion, and raised its full-year guidance. BeiGene's total revenue in Q2 was $1.3 billion, up 42% year-on-year, with operating profit turning from loss to profit. The global revenue of its core product Brukinsa increased by 49% year-on-year. The company raised its full-year revenue guidance to $5.0-5.3 billion and maintained its expectation of positive operating profit for the full year. BeiGene's U.S. stock rose more than 4% before the market and closed down 2.8%.

### Overseas Macro

U.S. farmland prices hit a record high, with Bill Gates and Jeff Bezos snapping them up. The latest "2025 Farmland Value Report" released by the U.S. Department of Agriculture shows that U.S. farmland prices have risen for the fifth consecutive year, with an average price of $4,350 per acre, a record high. Farmland rents have also risen simultaneously. Billionaires such as Bill Gates and Jeff Bezos are quietly hoarding land. Because farmland has small fluctuations and strong risk resistance, it is a hedge against global inflation and uncertainty, and its intergenerational wealth preservation ability is comparable to that of precious metals.

Under the shadow of tariffs, European corporate profits unexpectedly show resilience. Although some industries such as luxury goods and automobiles have been hit by U.S. tariffs, industries such as finance, infrastructure, and military industry have performed prominently. Analysts believe that Germany's large-scale infrastructure investment and the growth of European defense spending provide important support for the economy, and tariff risks are being offset by fiscal stimulus measures. It is expected that the performance in 2025 will be better than pessimistic expectations.

Hundred billion to leverage hundreds of billions: Germany plans to launch a strategic fund to invest in national defense and energy. The German government plans to establish a "Germany Fund" with a scale of 100 billion euros, focusing on investment in national defense, energy infrastructure, and key raw materials to ensure supply chain security and boost the economy. The German government plans to invest 10 billion euros first to leverage ten times the private capital. The fund may be officially launched in September or October.

Surging 45% this year, is a platinum supply crisis imminent? The global platinum market is experiencing a "buying spree." Against the background of continuous supply shortages for many years, the massive absorption by major consuming countries is depleting the inventory of trading centers and pushing borrowing costs to extreme levels. A supply crisis seems to be brewing.

### Overseas Companies

The "four giants" are "burning money fiercely," non-U.S. and second-tier cloud vendors are undervalued, GB200 yield is improving, and Morgan Stanley is very optimistic about AI servers. Morgan Stanley significantly raised its capital expenditure forecast for the four major U.S. cloud service providers - Amazon, Google, Meta, and Microsoft, expecting their total to reach $359 billion this year. Morgan Stanley believes that the market's attention should not be limited to this. The huge potential demand from non-U.S. regions and second-tier cloud vendors, as well as the improvement in Nvidia's GB200 yield, together constitute the undervalued growth driver of the AI server market.

OpenAI's valuation rises to $500 billion, negotiating to sell "billions of dollars" of employee equity. It is reported that OpenAI allows current and former employees to cash out their shares, and existing investors including Thrive Capital have expressed their intention to acquire some of the employees' shares from OpenAI. Two years ago, OpenAI's valuation was only $15 billion.

Elon Musk: Tesla is training a new FSD model, and xAI will open-source Grok 2 next week. Elon Musk announced that his AI company xAI will open-source the source code of its flagship chatbot Grok 2 next week, continuing his strategy of promoting transparency in the field of artificial intelligence. Musk also said: "Tesla is training a new FSD model, which may be ready for public release by the end of next month if the test goes well."

Shopify's performance is strongly better than expected, with an optimistic guidance, surging more than 20% intraday. The adjusted earnings per share in the second quarter were $0.35, expected $0.29; revenue was $2.68 billion, up 31% year-on-year, also higher than expected. The gross merchandise sales (GMS) was $87.8 billion, up 29% year-on-year, expected $81.5 billion. The company also gave an optimistic third-quarter guidance, expecting revenue growth of about 25%, higher than the market expectation of 21.7%.

McDonald's Q2 revenue increased by 5.4% year-on-year, exceeding expectations, and operating profit increased by 11% year-on-year. McDonald's achieved a 3.8% growth in global same-store sales in the second quarter, reversing the decline in the same period last year. Same-store sales in the U.S. market increased by 2.5%, mainly driven by the increase in customer unit price.

Disney's Q3 revenue increased slightly by 2% year-on-year, with strong performance in streaming media and parks, raising its full-year forecast, but unable to hide the decline of traditional TV business, with its stock price falling more than 2.6%.

Pfizer CEO: There will be a grace period for drug tariffs, which will be relatively low in the first few years, and the company is preparing to implement price reductions. Pfizer's CEO said that it is conducting "productive" communication with the Trump administration on drug tariffs and the "most-favored-nation" pricing policy. The latest dialogue shows that there may be a lower initial tariff and a grace period. However, the details of policy implementation, especially how to define the "country of origin" of drugs and the specific implementation method of "most-favored-nation" pricing, will ultimately determine its real impact on Pfizer and the entire industry.

Industries/Concepts

1. Reducers: Cycloidal reducers feature high torque, impact resistance, and high transmission precision. They combine the advantages of harmonic reducers and planetary reducers and are expected to become a new solution for joint transmission in humanoid robots.

2. Motorcycles: A research report from TF Securities points out that motorcycle exports have three scarce attributes: ① The overseas sales space is more than 10 times that of the domestic market; ② The core markets are Europe and Latin America, with the U.S. market accounting for less than 1% of the global total capacity; ③ The product strength of independent brands has undergone a qualitative leap in the past five years, while their overseas market share is less than 5%, and it is expected to accelerate the growth from 1 to 10.

3. AI Applications: The development trend of the AI video industry may exceed expectations, based on three possible logics (market expectation gaps) that can be seen this year: extended duration per unit, lower prices, and expanded content. We firmly optimistic about the multi-modal + overseas track. The advantages of its industrial development and business model will drive the corresponding companies in the industry to enjoy high growth and high valuations.

4. Commercial Aerospace: Since the end of July 2025, the launch frequency of China's GW constellation has significantly increased. The launch interval between the 01-05 satellite groups, which was one to two months, has been shortened to 3-5 days for the 05-07 satellite groups. The networking speed has obviously accelerated, which may indicate that China's satellite internet has entered a period of high-density networking. In addition, the launch bidding for the Qianfan Constellation has been launched. The No. 1 and No. 2 launch pads of Hainan Commercial Launch have started regular launch work. Large private liquid rockets will also make their maiden flights one after another, and reusable experiments are steadily carried out. Private rocket companies represented by LandSpace have started IPO counseling. China's commercial aerospace industry has entered a period of rapid development.

Preview of Today's Key News

The State Council's regular policy briefing will introduce the relevant situation of gradually implementing the free preschool education policy.

China's import and export data for July.

China's foreign exchange reserves for July.

The number of initial jobless claims in the United States last week.

The Bank of England announces its interest rate decision.

Speech by Raphael Bostic, President of the Atlanta Fed.

Eli Lilly releases its financial report.

<End of the full text>

Disclaimer: The views in this article only represent the author's personal opinions and do not constitute investment advice for this platform. This platform does not guarantee the accuracy, completeness, originality, and timeliness of the article information, nor does it bear any responsibility for any losses caused by the use or reliance on the article information.