Preview of US Stock Market | All three major stock index futures rose, oil prices plummeted, and U.S. stocks are gearing up for non-farm payroll data and a heavy earnings report week.

Pre-market Market Trends 1. On August 3rd (Monday) ahead of the US stock market opening, all three major US stock index futures rose. As of the time of publication, Dow futures are up 1.08%, S&P 500 futures are up 0.64%, and Nasdaq futures are up 0.32%. 2. As of the time of publication, Germany's DAX index is up 1.50%, the UK's FTSE 100 index is up 0.23%, France's CAC 40 index is up 1.30%, and the Euro Stoxx 50 index is up 1.01%. 3. As of the time of publication, WTI crude oil is down 5.91%, priced at $79.67 per barrel. Brent crude oil is down 4.98%, priced at $83.55 per barrel. Market News US stock market braces for non-farm payrolls and a super earnings week: SpaceX's public debut kicks off, can AI company earnings withstand the market's valuation judgment? This week, global markets will welcome the latest US non-farm employment data, Purchasing Managers' Index (PMI) data, and a new wave of dense US corporate earnings releases. On Friday, the US Bureau of Labor Statistics will publish the non-farm payroll report for July. If job growth in July is significantly stronger than expected, Treasury yields and the dollar may continue to rise; if the labor market cools quickly, market focus may shift back from inflation concerns to risks surrounding economic growth. Regarding earnings reports, SpaceX will release its first quarterly report since going public after US market close on Tuesday. Given the volatility of SpaceX's stock price following its IPO, this first earnings report will help investors assess whether the company's business model, profitability, and cash flow can support its high valuation. Additionally, earnings from Palantir, AMD, and SanDisk will provide important insights into AI software demand and data center chip growth. New York Fed President Williams: Current interest rates are well positioned, and inflation is expected to start retreating in the second half of the year. In an interview, Williams stated, "My personal forecast is that inflation will decline in the second half of this year and will continue to retreat next year." He added, "I believe that the current positioning of monetary policy is very suitable to support this inflation decline path." Williams indicated that the Federal Reserve may need to take action if inflation does not perform as expected. He stated, "If the economic trajectory cannot push inflation back to the 2% target level, then in my view, it would be appropriate for the Federal Reserve to take action to ensure that the economy returns to a path that allows inflation to fall to 2%." Wall Street's major banks: The most intense selloff in US stocks may have passed, but there are still risks in "buying the dip." After a month of severe volatility, the US stock market stands at a critical crossroads. On one hand, data from institutions like JPMorgan indicate that the months-long deleveraging process in the tech sector is nearing its end, with leveraged ETFs, hedge fund net exposures and CTA positions significantly retreating from extreme levels. On the other hand, inflation fears are resurfacing, interest rate paths are uncertain, and doubts about AI capital expenditure returns remain unresolved. Macroeconomic risks are now taking over from the position cleanup, becoming the core driver of market pricing. Entering August, major Wall Street banks like JPMorgan, Goldman Sachs Group, Inc., and France's Industrial Bank have been releasing strategy reports, outlining a complex picture of "deleveraging nearing its end, valuations becoming reasonable again, but macroeconomic risks are still accumulating." For instance, Goldman Sachs Group, Inc.'s top trading team warned that despite deleveraging nearing its end, risks have not been completely eliminated, with multiple key events still poised to suppress the market; constrained by seasonal fund outflows and insufficient institutional appetite, the upward momentum for US stocks in August lacks "fuel." Farewell to mindless surges! The US stock earnings season displays extreme differentiation, and Wall Street consensus: AI investments are entering a "validation period," only profitability can traverse turbulence. As the second quarter earnings season of 2026 comes to a close, global investors are experiencing a cognitive reshaping: the narrative around artificial intelligence (AI) is far from over, but the indiscriminate rally akin to "flying pigs on a windfall" no longer exists. Faced with massive financial commitments from companies, the market is starting to vote with its feet, strictly differentiating "burn rate companies" from "rental income companies." Nonetheless, some Wall Street giants, represented by Goldman Sachs Group, Inc., believe that the current tumult in the AI sector does not signal the start of a market collapse; rather, it is a normal consolidation in a long-term bull market supported by strong earnings. Notably, the forces supporting the market are spreading from a singular AI winner to a broader base, providing a thicker cushion for the current bull market. Goldman Sachs Group, Inc. emphasizes that the equal-weighted S&P 500 index, which measures market breadth, continues to rise in steady improvement of earnings expectations, indicating that even after excluding the massive impetus from a few tech giants, broader corporate fundamentals remain healthy. International oil prices plummet! Trump halts military actions against Iran and initiates negotiations, OPEC+ announces production increases adding fuel to the fire. US President Trump announced the cancellation of a large-scale military attack against Iran and stated that negotiations aimed at reopening the Strait of Hormuz are set to resume. Simultaneously, OPEC+ approved a slight increase in production of about 188,000 barrels per day starting in September, officially completing the gradual rollback of the voluntary production cuts implemented since last year, amidst expectations of easing signals from GEO Group Inc and supply-side normalization, market panic has abruptly cooled. However, on August 3rd local time, Iranian Foreign Ministry spokesman Baghaei stated that Iran is currently not in talks with the US. Iran is dialoguing with Oman on topics concerning the Strait of Hormuz. Baghaei further remarked that the situation in the Strait of Hormuz will not experience significant changes given the US's continued violations of ceasefire agreements and memorandums of understanding. Individual Stock News US tech stocks show mixed results ahead of market open. On Monday, ahead of the US market opening, all of the "magnificent seven" US stocks rose except for NVIDIA Corporation (NVDA.US); SpaceX (SPCX.US), Intel Corporation (INTC.US), and AMD (AMD.US) fell nearly 2%; storage chip stocks generally declined pre-marketSK Hynix (SKHY.US), Micron Technology, Inc. (MU.US), SanDisk (SNDK.US), and Seagate Technology Holdings PLC (STX.US) fell over 3%, while Western Digital Corporation (WDC.US) decreased nearly 3%; most optical communication stocks droppedAXT Inc (AXTI.US) fell nearly 5%, Astera Labs (ALAB.US) dropped nearly 3%, and Coherent (COHR.US) and Marvell Technology, Inc. (MRVL.US) declined over 2%. Is Tesla, Inc. (TSLA.US) planning to divest its China business to merge with SpaceX (SPCX.US)? Musk refutes: never discussed, it's purely absurd fake news. Tesla, Inc. CEO Elon Musk denied reports that the electric vehicle giant is considering selling its China business. Previously, it was reported that such a sale could pave the way for a potential merger between Tesla, Inc. and SpaceX. Reportedly, Tesla, Inc. executives have been asked to prepare for separation from the China business, with potential options including listing the China business separately or shutting it down. Musk denied these reports, stating: This topic has never come up in any discussions. He subsequently described the report as absurd fake news, urging people to assume news is false until proven true. AI "manufactured" flood of vulnerabilities overwhelms review chain, Apple Inc. (AAPL.US) sets limits to address the surge in false reports, cybersecurity cost alarm bells ring. Apple Inc. is limiting the number of security vulnerabilities that external researchers can submit at one time, as a surge in AI-generated reports has overwhelmed its review process. This phenomenon highlights new challenges that the software industry faces, as AI accelerates both network defense and cyber attacks. The tech giant stated that after its security team was inundated with a large number of so-called AI-generated reports, it introduced new restrictions in Junethese reports often identify vulnerabilities that do not actually exist. Researchers can now only submit a limited number of open reports before they can apply for higher quotas, while Apple Inc. uses AI internally to prioritize the reports received. Reshaping the global pharmaceutical landscape! AstraZeneca PLC Sponsored ADR (AZN.US) is negotiating to acquire Bristol-Myers Squibb Company (BMY.US), potentially creating the largest pharmaceutical merger in history. According to insiders, AstraZeneca PLC Sponsored ADR has begun discussions to acquire Bristol-Myers Squibb Company, and if this super deal is concluded, it would create one of the largest pharmaceutical companies globally. AstraZeneca PLC Sponsored ADR is advancing towards an ambitious sales target of $80 billion by 2030, aiming to break into the lucrative weight loss market with several drugs in development. With a market value of $133.4 billion, Bristol-Myers Squibb Company could provide AstraZeneca PLC Sponsored ADR with a larger foothold in the US market. However, a Mizuho analyst believes that investors may oppose the merger proposal, as AstraZeneca PLC Sponsored ADR is expected to achieve a per-share earnings growth of 10% or higher over the next five years, while Bristol-Myers Squibb Company's per-share earnings may decline during the remainder of this decade. As of the time of publication, on Monday ahead of the US market opening, AstraZeneca PLC Sponsored ADR fell over 4%, while Bristol-Myers Squibb Company rose over 6%. AI data center and electrical infrastructure demand rising, Prysmian spends $3.8 billion to acquire Atkore (ATKR.US). Italian cable giant Prysmian SpA announced on Monday that it has reached a cash acquisition agreement to acquire the US electrical manufacturing company Atkore. According to the agreement, Prysmian will acquire Atkore, headquartered in Harvey, Illinois, for $95 per share, corresponding to an enterprise value of approximately $3.8 billion. Atkore primarily produces various products and systems used for electrical wiring installation and protection. This acquisition is the latest step in Milan-based Prysmian's strategy for expanding in the US market. As of the time of publication, Atkore's stock soared over 27% before the US market opening on Monday. Important Economic Data and Events Forecast Beijing time 22:00 US July ISM Manufacturing PMI Earnings Forecast Tuesday morning: Palantir (PLTR.US), ON Semiconductor Corporation (ON.US), Snap (SNAP.US) Tuesday pre-market: Toyota (TM.US), BP p.l.c. Sponsored ADR (BP.US), HSBC (HSBC.US), McDonald's Corporation (MCD.US), Merck & Co., Inc. (MRK.US), Carter's Incorporated (CAT.US), Pfizer Inc. (PFE.US)