Preview of US Stock Market | The three major stock index futures showed mixed performance. It is reported that Japan plans to raise interest rates to 1.25% in September. The multiple attacks in Saudi Arabia have once again raised concerns over geopolitical issues.

Pre-Market Market Trends 1. As of September 8 (Tuesday) in pre-market trading, the three major U.S. stock index futures show mixed results. At the time of writing, Dow futures are down 0.81%, S&P 500 futures are down 0.25%, and Nasdaq futures are up 0.07%. 2. At the time of writing, the German DAX index is up 0.07%, the UK FTSE 100 index is up 0.02%, the French CAC40 index is down 0.05%, and the Euro Stoxx 50 index is up 0.06%. 3. At the time of writing, WTI crude oil is up 2.40%, trading at $93.68 per barrel. Brent crude oil is up 1.59%, trading at $98.54 per barrel. Market News It is reported that the Bank of Japan plans to raise interest rates to 1.25% in September. According to Kyodo News, the Bank of Japan plans to raise interest rates to 1.25% at its meeting on September 17-18. Earlier, data released by Japan's Ministry of Health, Labour and Welfare showed that nominal wages in Japan rose 4.7% year-on-year in July, marking the largest increase since 1997 and well above the economist forecast of 3.8%. A report released by Japan's Cabinet Office indicated that Japan's GDP for the second quarter grew at an annualized rate of 1.4% compared to the previous quarter, up from the previously announced preliminary figure of 1.1%, but below the median economist expectation of 1.8%. These two sets of stronger-than-expected data further support widespread expectations for a rate hike by the Bank of Japan. Investors also anticipate that the Bank may further tighten policy within a relatively short timeframe after this rate hike. The U.S. Treasury Department will announce the scale of Treasury buybacks, with market attention focused on Secretary Yellen's intentions. Reports suggest that U.S. Treasury Secretary Yellen's determination to support the bond market is about to be tested. On Wednesday at 11:00 AM Eastern Time (23:00 Beijing Time), the U.S. Treasury Department will announce the maximum amount of 10- to 20-year U.S. Treasury bonds it plans to buy back. On September 10, the Treasury will also announce the exact amount purchased from its buyback plan that began in May 2024. Previously, the Treasury Department stated that before November 4, it would buy back at least $4 billion every time it repurchased long-term U.S. Treasuries, up from the prior $2 billion operation. However, the Treasury still has the discretion to expand the buyback size. The market generally expects that Yellens actions will ultimately exceed the previously announced buyback targets. Several energy facilities in Saudi Arabia were attacked and caught fire. According to a statement released by the Saudi Ministry of Energy today, several energy and public facilities in the country were attacked by Yemen's Houthi armed group, resulting in fires in multiple locations and a temporary halt in operations at some facilities. The Saudi Ministry of Energy stated that it is working to ensure the safety of the facilities, the staff, and continuity of operations. Earlier today, the Saudi-led coalition in Yemen stated that Houthi forces attacked civilian and economic facilities in Abha, Khamis Mushait, Najran, and Jizan, resulting in 73 injuries. The coalition claimed it would respond decisively to the Houthi attacks. The extremely strong El Nio phenomenon approaches, and the World Food Programme warns it will exacerbate global food insecurity. In an interview, the United Nations World Food Programme (WFP) stated that the El Nio phenomenon itself may drive up food prices in affected countries. Latest analyses indicate that due to the current El Nio phenomenon, by the end of 2027, roughly 49 million additional people facing sudden food insecurity are expected in 45 countries and regions already facing severe food security challenges globally. This means the number of people experiencing sudden food insecurity in these countries and regions could rise from the current approximately 225 million to 274 million, an increase of about 22%. Among these, parts of Central America and Southern Africa will be the hardest hit, with significant impacts also expected in East Africa, South Asia, and Southeast Asia. Zimbabwe has immediately banned the export of antimony and tungsten, accelerating its strategy for local mineral processing. The Zimbabwean government announced an immediate ban on the export of antimony and tungsten, as well as a suspension of ore and concentrate transportation, aimed at prompting mining companies to process raw materials locally and increase resource value addition. This ban was confirmed by the Ministry of Mining in a letter from Minister Thomas Wush to the state-owned Zimbabwe Mineral Sales Company, dated July 21. Zimbabwe is following the example of several African nations, such as Guinea, Ghana, and the Democratic Republic of Congo, to achieve greater economic value from its natural resources. Earlier, Zimbabwe had suspended lithium concentrate exports in February to promote local processing and curb illegal transport, with restrictions eased in April, while the ban is officially set to take effect in early 2027. Copper prices continue to soar, with both the London and New York markets hitting record highs. Driven by supply and demand imbalances and tariff concerns, copper prices in both the London and New York markets hit historical highs today. Analysts believe that this round of copper price increases stems from optimistic projections regarding long-term demand driven by data center construction, grid upgrades, electric vehicles, and new energy projects, alongside a decline in production in major copper-producing countries, leading to pressures on supply. Potential increases in import tariffs on refined copper further bolster the trend; last summer's announced copper tariffs did not cover refined copper, but the U.S. Department of Commerce had proposed a 15% import tariff on refined copper starting in 2027, which would be raised to 30% by 2028. Goldman Sachs Group, Inc. has raised its oil price forecasts, citing ongoing risks of shipping disruptions in the Middle East. Goldman Sachs Group, Inc. has increased its Brent crude oil and WTI oil price forecasts for December 2026 and December 2027 by $5 per barrel, citing expected shipping disruptions in the Middle East to persist into next year. The bank currently forecasts Brent crude oil prices at $85 per barrel and WTI prices at $80 per barrel in December 2026; for December 2027, the anticipated price for Brent crude is $80 per barrel and for WTI, $75 per barrel. Goldman Sachs Group, Inc. pointed out that if the average oil production in the Gulf region in 2027 is 4 million barrels per day lower than pre-war levels (compared to its baseline scenario assumption of a 500,000 barrels per day gap), Brent crude prices could rise above $120 per barrel. Conversely, if Gulf production exceeds pre-war levels by 1 million barrels per day, Brent prices may drop to the low $60 range. Individual Stock News Amazon.com, Inc. (AMZN.US) makes its first foray into the pound bond market as the tech giant expands its financing strategy. Amazon.com, Inc. appointed banks on Tuesday to arrange its inaugural issuance of bonds denominated in pounds, planning to launch four varieties with maturities of 3 years, 6 years, 12 years, and 19 years, with transactions possibly landing as early as Wednesday; specific financing size has not been disclosed. This issuance continues a trend of large-scale tech companies diversifying their currency financing this year, with Amazon.com, Inc. and others having entered the euro, Swiss franc, and Japanese yen bond markets to broaden financing channels for the substantial capital expenditures needed for their AI transformations. Intel Corporation (INTC.US) and ASML Holding NV ADR (ASML.US) are advancing high-NA EUV mass production applications, with 18A process performance meeting standards and millions of wafers processed. Intel Corporation and ASML Holding NV ADR jointly announced that they are continuing to advance the mass production application of high numerical aperture extreme ultraviolet lithography technology. Intel Corporation has processed over 1 million wafers in total through early equipment certification, R&D, and some volume production stages. High-NA EUV has been applied in the mass production of certain layers of Intel Corporation's Core Ultra 3 series processor "Panther Lake"; products using this technology in the 18A process meet or exceed the performance of similar layers using the conventional 0.33 numerical aperture EUV lithography platform. The two companies will continue to push for the transition of photomasks from 6 inches to a larger size of 612 inches while using photomask stitching technology, allowing customers to achieve some advantages of high-NA EUV under current 6-inch photomask conditions. Apple Inc. (AAPL.US) has signed a long-term supply agreement for NAND with Kioxia, possibly without a price cap. Reports indicate that Apple Inc. has signed a long-term supply agreement (LTA) with Japans Kioxia for NAND flash memory, with internal speculation on the memory market suggesting that the contract will last three to five years and might not have a price ceiling. This means that Apple Inc., which possesses significant bargaining power in memory price negotiations, is placing stability of NAND flash supply over cost reduction. Intel Corporation is raising CPU prices by another 10% and plans to eliminate low-margin products. Supply chain sources reveal that Intel Corporations PC CPUs are expected to see another price increase of about 10% on October 5, 2026. This marks Intel Corporation's third round of price hikes since late 2025following a roughly 10% increase in the first quarter of 2026 and further price adjustments in July for some consumer and server-grade CPUs, with increases ranging from several dozen to over a thousand dollars. Meanwhile, Intel Corporations CEO Pat Gelsinger is reviewing low-margin Small Core product lines, with some products likely entering EOL (End of Life) phases. Supply chain sources indicate that these actions are all aimed at improving overall profit margins while moving away from past strategies of gaining volume at the expense of price. Facing setbacks for the third time in a week! Novartis AG Sponsored ADR (NVS.US) DM1 drug fails to meet primary endpoint in Phase III clinical trial. Novartis AG Sponsored ADR has faced its third clinical trial setback within just one week. The Swiss pharmaceutical company announced on Tuesday that its experimental injection drug del-desiran for treating Type 1 Myotonic Dystrophy (DM1, a rare muscle-wasting disease) failed to meet its primary endpoint in the Phase III HARBOR study. Del-desiran is the core drug acquired by Novartis AG Sponsored ADR in its $12 billion acquisition of Avidity Biosciences, previously viewed as a potential blockbuster drug. The trial failure further undermines Novartis AG Sponsored ADRs efforts to find new sources of growth as it faces the largest patent cliff in the company's history. Anthropic has abandoned its approximately $6 billion acquisition of Decart AI and is preparing for a major IPO. Sources reveal that Anthropic has decided to abandon the acquisition of the AI startup Decart AI. Previously, Anthropic had explored the transaction and completed due diligence but ultimately chose not to proceed; however, both parties may seek other collaboration opportunities. Decart AI focuses on improving chip efficiency to reduce costs associated with AI training and operations, with software products that can optimize computing power usage without sacrificing performance. Anthropic seldom pursues large-scale acquisitions and is currently focusing major resources on the computing power necessary for new product development and customer service in preparation for its anticipated initial public offering (IPO); sources indicate that the company plans to raise an amount comparable to or more than SpaceX's in its IPO. Canaan Inc. Sponsored ADR Class A (CAN.US) faces revenue pressure in Q2, with cryptocurrency holdings hitting a record high. Canaan Inc. Sponsored ADR Class A reported total revenue of $31.9 million for Q2 2026, with product revenue of $13.6 million reflecting a soft demand for mining machines and a decline in the average selling price of computing power; mining revenue was $17.7 million, affected by pressure from Bitcoin prices and seasonal limitations on electricity supply. However, the company produced 243 Bitcoins during the quarter, with cryptocurrency assets reaching a historic high of 1,915 BTC and 3,952 ETH. Important Economic Data and Event Forecast At 23:00 Beijing Time: U.S. one-year inflation expectations for August from the New York Fed. Earnings Forecast Wednesday morning: Braze (BRZE.US)