Overnight US stocks | The situation in the Middle East has worsened again, with the three major indices declining. Dell Technologies, Inc. Class C (DELL.US) saw its stock rise nearly 10% in after-hours trading.

On Tuesday, the three major indices fell as the situation in the Middle East worsened. U.S. President Trump stated on social media: "The U.S. military is striking Iranian targets near the Strait of Hormuz. This strike is extensive and powerful, responding to Iran's laying of mines in the Strait of Hormuz and the launch of eight missiles towards the U.S. military base in Jordan. If this failing Iranian nation retaliates against this completely justified strike, they will face even more severe and intense retaliation, but that is not the deadliest attack yet; the final strike is in preparation, and once it concludes, Iran will have very little left." [U.S. Stocks] At the close, the Dow Jones Industrial Average fell 418.49 points, down 0.79%, to 52,767.41 points; the S&P 500 index dropped 54.61 points, a decline of 0.71%, to 7,631.53 points; the Nasdaq Composite index decreased by 271.11 points, down 1.03%, to 26,099.77 points. Oracle Corporation (ORCL.US) fell 5%, Micron Technology, Inc. (MU.US) and SK Hynix (SKHY.US) were down over 2%, while Apple Inc. (AAPL.US) rose 2%, and Dell Technologies, Inc. Class C (DELL.US) decreased by 7%. The Nasdaq Golden Dragon China Index closed down 0.34%. [European Stocks] The German DAX30 index fell 321.10 points, down 1.22%, to 25,960.39 points; the UK's FTSE 100 index decreased by 34.18 points, down 0.32%, to 10,790.08 points; France's CAC40 index dropped 32.65 points, down 0.39%, to 8,301.85 points; the Euro Stoxx 50 index declined by 52.81 points, down 0.82%, to 6,367.35 points; Spain's IBEX35 index fell 169.66 points, down 0.85%, to 19,818.74 points; Italy's FTSE MIB index decreased by 677.19 points, down 1.29%, to 51,935.50 points. [Asian Markets] The Nikkei 225 index fell 0.15%, while the South Korean KOSPI index rose 0.23%. [U.S. Dollar Index] The U.S. Dollar Index, which measures the dollar against six major currencies, rose 0.25% to close at 99.677. As of the close of the New York foreign exchange market, 1 euro was exchanged for 1.1590 U.S. dollars, down from 1.1616 dollars the previous trading day; 1 pound was exchanged for 1.3514 U.S. dollars, down from 1.3550 dollars; 1 dollar was traded for 160.20 Japanese yen, up from 159.80 yen; 1 dollar was traded for 0.8118 Swiss franc, up from 0.8083 franc; 1 dollar was traded for 1.3894 Canadian dollars, up from 1.3855 dollars; 1 dollar was traded for 9.6188 Swedish kronor, up from 9.5767 kronor. [Cryptocurrency] Bitcoin fell 1.87%, trading at $77,126; Ethereum dropped 2.48%, trading at $2,406. [Crude Oil] Light crude oil futures for October delivery on the New York Mercantile Exchange rose by $4.46, settling at $90.22 per barrel, a gain of 5.2%; London Brent crude oil futures for November delivery rose by $4.16, settling at $94.65 per barrel, an increase of 4.6%. [Precious Metals] Spot gold fell by 2.69% to $4,328.89; spot silver traded at $64.105. [Macroeconomic News] Iran claims to have launched missiles and drones at U.S. bases. According to reports, the Iranian armed forces have begun operations against the U.S., with Iranian missiles and drones attacking U.S. bases and interests in the region. Specific locations and targets are currently unknown. Earlier, multiple explosions were reported around Qeshm Island in southern Iran and the Strait of Hormuz. There have been no reports of casualties or damage to facilities. The U.S. Central Command stated that at 12:00 PM Eastern Time on September 1, U.S. forces began striking targets of the Islamic Revolutionary Guard Corps within Iran. The Iranian armed forces general staff issued a statement on the same day, declaring that in response to the U.S. airstrikes on targets in Iran's Sistan and Baluchestan Province and Hormozgan Province, Iranian armed forces would deliver a devastating strike against U.S. enemies. The yield on the 10-year U.S. Treasury bond rose to 4.8% as investors bet on rising long-end yields. Reports indicate that traders are scrambling to hedge against further declines in U.S. Treasuries as concerns over budget deficits and inflation have pushed yields to multi-year highs. Noteworthy actions include a $6.5 million position established on Monday, targeting a 30-year yield rise to 5.7% by the end of November. David Roberts, head of fixed income at Nedgroup Investments, stated, "It is currently difficult to see a turning point for bonds; certainly, a long-term solution to the Iran issue would help." Other positions established on Monday include upward protection for new risk preferences in SOFR options; CME data shows these strategies cover scenarios where the 10-year yield rises to about 4.85% and the 5-year yield reaches 4.6% in the coming weeks. On Tuesday, during trading, the 10-year yield hit 4.8%, its highest level since 2025. Analysts noted that bond anxiety is likely to remain in the long end, rather than in the short end controlled by the Federal Reserve. The U.S. Congress passed a temporary funding bill to avoid a government shutdown. The U.S. Congress passed a temporary funding bill to prevent a government shutdown on October 1. The House of Representatives passed the bill with 370 votes in favor and 48 against, funding the government until December 11, and it has now been sent to Trump. The bill had previously been approved by the Senate and postpones government funding disputes until after the mid-term elections. With only a few days before the new fiscal year begins, Congress has not passed any of the 12 annual appropriations bills, necessitating temporary measures to keep the government running. House Appropriations Committee Chairman Tom Cole stated, The bill does not include controversial items or partisan add-ons. He mentioned that the bill has White House support. Following the bill's passage, discussions on contentious issues, including increases in the Pentagon budget and further cuts to social security programs proposed by Republicans, will be postponed. Meanwhile, Republican members of Congress plan to delay consideration of a separate $95 billion emergency funding bill for the Iran war until after elections; a proposal to increase the Pentagons base budget by $350 billion has also been postponed until the fall. [Stock News] Dell Technologies, Inc. Class C significantly raises annual revenue forecast as AI server demand remains strong. Dell Technologies, Inc. Class C (DELL.US) has significantly revised its annual sales forecast upwards by $25 billion, exceeding analyst expectations, further indicating that demand for servers needed for AI workloads continues to surge. The company announced on Tuesday that it anticipates revenue of approximately $192 billion for the fiscal year ending January 2027, with AI server sales expected to reach $74 billion, exceeding the companys previous estimate of about $167 billion given in May and also surpassing the average analyst forecast of $173.8 billion. Dell Technologies, Inc. Class C expects AI server sales to triple from the previous fiscal year. This is the fifth consecutive quarter that Dell Technologies, Inc. Class C has raised its fiscal year revenue forecast and exceeded market expectations. Amid robust AI demand, Dell Technologies, Inc. Class C is continuously receiving orders for servers equipped with NVIDIA Corporation AI chips, while demand for traditional servers is also growing. After-hours trading saw Dell Technologies, Inc. Class C shares rise nearly 10%. After aggressive expansion, SpaceX (SPCX.US) reportedly reorganizes data center leadership. According to reports, Elon Musk has recently adjusted the team responsible for the construction of data centers at SpaceX, replacing several leaders and transferring executives from the rocket and satellite internet business to strengthen data center infrastructure construction. Two insiders indicated that this data center restructuring is due to existing civil engineering issues and ongoing reliability problems at SpaceX AIs data center facilities in Tennessee and Mississippi. In the initial stages of AI infrastructure construction, SpaceX AI rushed to build these data centers quickly, resulting in some facilities operating for months without backup cooling and power systems. Insiders stated that this increased the risk of system outages. OpenAI: Soon to launch the Astra model but will limit cybersecurity capabilities. OpenAI plans to launch the Astra model soon, but will restrict the use of its advanced cybersecurity features. The company stated on Tuesday that the model will be released "soon," but did not specify a date. The company indicated that Astras advanced cybersecurity capabilities will initially be available only to a few testers, and subsequent access for defensive purposes will be provided to more users through the Daybreak Blue program, along with protective cybersecurity measures. OpenAI had previously paused part of the Astra internal work in August to enhance security protections. The company stated on Tuesday that Astra has reached "critical cybersecurity thresholds" and can identify and develop zero-day exploit programs without human intervention. To prevent misuse, OpenAI has further strengthened the model's protective measures, including monitoring unauthorized behaviors and automatically stopping relevant activities. Anthropic releases Fable 5.1, claiming improved programming capabilities and reduced costs. Anthropic has launched a new version of its AI model, Fable 5.1, claiming better performance in programming and scientific tasks, while also being more cost-effective. In programming, Fable 5.1 excels at handling long, complex tasks, including software project development, code review, and complex scenarios involving entire application code. Its scientific capabilities have also been enhanced, covering experimental design, simulation of experimental results, and reading complex charts and data tables. In terms of costs, the token pricing for enterprise users remains comparable to Fable 5, but the models re-invocation of previously processed information has reduced prices by 75%. This aspect might account for over half of token usage in long texts and complex tasks, and the price reductions are expected to significantly lower overall operating costs. In terms of security, Fable 5.1 has upgraded its classifiers, achieving more accurate identification of risky instructions with reduced false positives, allowing users concerned with cybersecurity and biology to use it more efficiently. Additionally, Anthropic plans to allow corporate clients to store their most powerful models' data on their own cloud infrastructure rather than on its servers while continuing to perform security checks.