Preview of US Stock Market | The three major stock index futures are mixed, and the U.S. August PPI data will be released tonight.

1. Before the market opened on September 10 (Wednesday), the futures of the three major US stock indexes were mixed. As of the time of writing, Dow Jones futures fell 0.13%, S&P 500 index futures rose 0.39%, and Nasdaq futures rose 0.37%. 2. As of the time of writing, the German DAX index rose by 0.01%, the UK FTSE 100 index rose by 0.21%, the French CAC40 index rose by 0.44%, and the European Stoxx 50 index rose by 0.26%. 3. As of the time of writing, WTI crude oil rose by 0.97% to $63.24 per barrel. Brent crude oil rose by 0.92% to $67.00 per barrel. Market News US August PPI data is coming! Market may see volatility. At 8:30 p.m. Beijing time tonight, the US August PPI data will be released. Economists expect the US August PPI year-on-year rate to remain unchanged at 3.3%. The core PPI year-on-year rate is expected to decrease from 3.7% to 3.5%. Analysts point out that if the US PPI data unexpectedly rises, it may eliminate the recent bearish sentiment towards the US dollar and restrain the record-breaking trend in gold prices. US stock market hits new highs, triggering a "tearing up of research reports" on Wall Street! 7000 points become a new anchor for the S&P 500 index. With strong corporate earnings growth and the resurgent interest in artificial intelligence driving the stock market to a strong rise since April and hitting historic highs in recent times, top analysts from Wall Street are rushing to revise their forecasts for the S&P 500 index. The overall trend among these top Wall Street analysts is that they generally expect the overall earnings of S&P 500 index components and the investment return rate of this benchmark index to expand in 2025 and 2026. Some analysts predict that the index may rise significantly to around 7,000 points by the end of this year or early next year. Even if inflation heats up tomorrow, it is difficult to disturb the US stock market, as employment data leads the market. Wall Street trading departments expect the Consumer Price Index (CPI) to be released on Thursday to increase significantly, but they believe that the stock market will not experience significant volatility as employment data remains the main focus. Stuart Kaiser, Chief Equity Trading Strategist at Citigroup, pointed out that options traders are betting that the S&P 500 index will only experience a small volatility of about 0.7% after the CPI report is released, which is lower than the average actual volatility of 0.9% over the past year and lower than the implied volatility expectations when the employment report was released on October 3rd. The core contradiction in the current market lies in how to interpret the Federal Reserve's interest rate trend - recent employment data has shown that the economy has reached a critical point of threatening growth weakness, so the market generally expects the Fed to cut interest rates by 25 basis points at the September 17 meeting and may continue to cut rates in October and December. Federal Reserve rate cut on the way, JPMorgan "extremely bearish" on the US dollar. JPMorgan senior portfolio manager Alessio de Longis believes that as the Federal Reserve prepares to loosen monetary policy, the US dollar will face greater pressure, as this move will reduce its advantage in relative yield over other currencies. In a report in September, de Longis told clients that his team has enhanced their bearish outlook on the US dollar from "underweight" to "maximum underweight". He pointed out that the diminishing yield advantage of the dollar and positive economic data outside the United States are factors driving this change. The team's bearish attitude towards the dollar is the strongest since June 2024. De Longis wrote, "Despite the dollar's yield still being higher than other currencies in developed markets, the expected weakening of this yield advantage historically puts downward pressure on the dollar's trend." Revised US employment data strengthens rate cut expectations, gold price briefly surpasses $3670 to hit a record high. As traders' assessments of US economic data further strengthen expectations of a Federal Reserve rate cut, gold prices hit a record high on Tuesday. Gold prices briefly surpassed $3,674 per ounce, and although they later fell to near $3,643, they continued to trade at high levels. The direct trigger for this surge in gold prices was the preliminary revision of employment data by the US Department of Labor data showed that the number of jobs reported previously may have been overestimated by 911,000, a record correction that has exacerbated concerns about a slowdown in the US labor market. The Federal Reserve will hold a monetary policy meeting next week, and the US Producer Price Index and Consumer Price Index to be released on Wednesday and Thursday this week will be key data influencing Federal Reserve decisions. Individual Stock News Explosive demand for AI computing power! Oracle Corporation's $500 billion cloud order ignites stock to new highs, aiming for Top 10 market cap in US stocks. Oracle Corporation's stock rose after the company reported a significant increase in first-quarter business bookings and raised revenue guidance for its cloud infrastructure business. As of the time of writing, Oracle Corporation rose 31.97% before the market opened following the latest quarterly performance release. If the stock continues to perform well on Wednesday, it will hit a new all-time high. Based on the closing price on Tuesday, this market cap growth will surpass JPMorgan Chase, Walmart Inc., Eli Lilly, and Visa, making Oracle Corporation the tenth largest company by market cap in the S&P 500 index, with a market capitalization of around $870 billion. During this quarter, Oracle Corporation signed four contracts worth billions of dollars with three different customers, and the company expects to collaborate with more customers in the coming months, bringing the total value of outstanding performance obligations to over $500 billion. Synopsys, Inc.'s Q3 performance and guidance were below expectations, with the stock plummeting by 23.27% before the US market opened on Tuesday as the electronic design automation (EDA) software company Synopsys, Inc. reported third-quarter performance and guidance below expectations. Synopsys, Inc. stated that in the third quarter ended July 31, its revenue increased by 14% year-on-year to $1.74 billion; adjusted earnings per share were $3.39. Analysts had previously estimated the company's revenue to be $1.77 billion and adjusted earnings per share to be $3.80. Revenue from the third-quarter design automation business increased by 23% year-on-year to $1.31 billion, higher than the market's expectation of $1.18 billion. However, revenue from the design intellectual property (IP) business decreased by 7.7% year-on-year to $427.6 million, below the market's expectation of $552.1 million. Adjusted operating profit for the quarter was $669.8 million. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR saw a 34% increase in August sales, further confirming solid demand for AI. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR reported a 34% year-on-year increase in August revenue, indicating a continued strong demand for cutting-edge artificial intelligence (AI) chips in the global market. As a major chip manufacturer partner of NVIDIA Corporation, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's sales reached NT$335.8 billion ($11 billion) last month, an increase of 3.9% month-on-month. Total revenue from January to August reached NT$2.43198 trillion, a year-on-year increase of 37.1%. Analysts generally expect the company's revenue for the third quarter of 2024 (ending in September) to achieve a growth of about 25%. Alphabet Inc. Class C has $106 billion in cloud orders, expected to add $58 billion in revenue by 2027. Alphabet Inc.'s cloud division, Alphabet Inc. Class C Cloud, has signed existing customer contracts totaling $106 billion that have not yet been fulfilled. CEO Thomas Kurian of Alphabet Inc. Class C Cloud revealed on Tuesday that within the next two years, as these services are gradually delivered, at least 55% (or $58 billion) of the contract amount will be converted into actual revenue for the company. "The growth rate of committed contract amounts exceeds our revenue growth rate," he added. "This means that not only are we achieving revenue growth, but the size of outstanding performance obligations (remaining unconfirmed revenue) is also expanding." Currently, tech companies are increasing data center capacity to meet the growing demand for artificial intelligence (AI) computing power, and Alphabet is one of them. Apple Inc.'s watch undergoes its biggest innovation in three years, adding blood pressure monitoring and satellite communication features. Apple Inc. has introduced an end-to-end update to its smartwatch series for the first time in three years, adding blood pressure monitoring and satellite communication features to its high-end products and improving entry-level products. Apple Inc. unveiled the all-new iPhone 17 series at a product launch event on Tuesday, along with updates to Apple Inc. watches, AirPods, and other products. The new watch will feature 5G connectivity through a new cellular modem. The Series 11 and Ultra series watches will be equipped with a new high blood pressure detection system and new watch face designs. The low-end SE model will add health features, a faster chip, and an upgraded display. The new Ultra 3 model will also introduce a feature designed for hikers: the ability to access satellite networks in areas without mobile network coverage. Microsoft Corporation rumored to introduce Anthropic in Office 365, partly replacing OpenAI technology. Microsoft Corporation seems to be preparing to replace some of OpenAI's technology in its Office 365 applications with Anthropic's artificial intelligence (AI) technology. This move will break OpenAI's monopoly within Microsoft Corporation following Microsoft Corporation's investment of billions of dollars in the company since January 2023. Previously, OpenAI's technology had been used in the development of new features for Microsoft Corporation's productivity software suite (including Word, Excel, Outlook, and PowerPoint). As part of the agreement, Microsoft Corporation will pay fees to Amazon.com, Inc. AWS to use Anthropic's models. AWS is the sole provider of Anthropic's models. Important Economic Data and Events Preview Beijing time 20:30: US August PPI year-on-year (%). Beijing time 22:00: US July final wholesale inventory month-on-month (%). Beijing time 22:30: US EIA crude oil inventory change in the week ending September 5 (thousand barrels). Beijing time 23:00: US September IPSOS Main Consumer Sentiment Index PCSI. Early the next day at 01:00 Beijing time: US 10-year Treasury auction on September 10 - total amount (billion US dollars). The US Senate Banking Committee will vote on the nomination of Milan to the Federal Reserve Board of Governors, with a full vote to follow if approved. To be determined: US Treasury Secretary Bezent will preside over a meeting of the Financial Stability Oversight Council (FSOC). Earnings Forecast Before market open on Thursday: Kroger Co.