Overnight U.S. Stocks | S&P 500 Rises for Three Consecutive Days, Chip Stocks Outperform the Market, U.S. Secretary of Commerce States that China-U.S. Negotiations are "Progressing Smoothly"

According to the Zhitong Finance APP, the Nasdaq led the three major stock indices on Tuesday, with the S&P rising for the third consecutive day. Investors are waiting for more signals from the China-U.S. trade negotiations. The China-U.S. economic and trade consultation meeting entered its second day, continuing from the morning into the afternoon after lunch. The U.S. Secretary of Commerce mentioned the talks, and optimistic sentiment drove chip stocks higher, leading to gains in the three major U.S. indices. The S&P has risen for three consecutive days, and the Nasdaq Composite Index reached a closing historical high for the first time in nearly four months.

[U.S. Stocks] As of the close, the Dow Jones Industrial Average rose 105.11 points, an increase of 0.25%, closing at 42,866.87 points; the Nasdaq rose 123.75 points, an increase of 0.63%, closing at 19,714.99 points; the S&P 500 index rose 32.93 points, an increase of 0.55%, closing at 6,038.81 points. Tesla (TSLA.US) closed up 5.67%, about to recover all losses since June 5 when Musk had a fallout with U.S. President Trump. Google (GOOGL.US) rose 1.44%, Meta Platforms (META.US) rose 1.20%, Nvidia (NVDA.US), Apple (AAPL.US), and Amazon (AMZN.US) rose up to 0.93%, while Microsoft (MSFT.US) closed down 0.39%.

[European Stocks] The German DAX30 index fell 0.77%; the UK FTSE 100 index rose 0.24%; the French CAC40 index rose 0.17%; the Euro Stoxx 50 index fell 0.11%; the Spanish IBEX35 index fell 0.21%.

[Foreign Exchange] The ICE U.S. Dollar Index rose 0.15%, closing at 99.085 points; the Bloomberg Dollar Index rose 0.13%, closing at 1,210.98 points. The euro rose 0.03% against the U.S. dollar, the British pound fell 0.38% against the U.S. dollar, and the U.S. dollar rose 0.12% against the Swiss franc.

[Metals] At the New York close, spot gold fell 0.10%, closing at $3,222.71 per ounce; COMEX gold futures fell 0.31%, closing at $3,344.40 per ounce.

[Cryptocurrency] CME Bitcoin futures BTC main contract rose 0.73% compared to Monday's New York close, closing at $110,000. CME Ethereum futures DCR main contract rose 6.47%, closing at $2,773.50, remaining in an upward trend throughout the day.

[Crude Oil] WTI July crude oil futures closed down $0.31, a decline of over 0.47%, closing at $64.98 per barrel; Brent August crude oil futures closed down $0.17, a decline of over 0.25%, closing at $66.87 per barrel.

[Macroeconomic News]

U.S. fiscal deficit pressure increases; government budget may run out by mid-August at the earliest. The nonpartisan Congressional Budget Office (CBO) stated on Monday that the U.S. government may face a situation between mid-August and the end of September where it does not have enough funds to pay all its bills on time. The CBO wrote in its monthly budget report: "It is now estimated that if the debt ceiling remains unchanged, the government's ability to borrow using extraordinary measures may run out between mid-August and the end of September 2025." The agency noted that the revenue and expenditure data from the past three months "are consistent with expectations, reducing the likelihood that these measures will run out in early August." The World Bank lowers global economic growth forecast for 2025 to 2.3%. The World Bank on Tuesday downgraded its global economic growth forecast for this year and warned that the 2020s could become the weakest decade since the Apollo moon landing due to trade tensions and policy uncertainties. The World Bank has revised its 2025 economic growth forecast down from 2.7% predicted in January to 2.3%. This growth rate would be the weakest in 17 years, excluding the recessions caused by the global financial crisis and the COVID-19 pandemic in 2009 and 2020.

U.S. crude oil production expected to decline in 2026, Trump’s energy strategy faces setbacks. The U.S. is expected to see its domestic crude oil production decline for the first time since 2021 next year, posing a blow to President Donald Trump’s efforts to establish U.S. energy dominance. The U.S. Energy Information Administration (EIA) released its Short-Term Energy Outlook on Tuesday, indicating that crude oil production is projected to drop from about 13.42 million barrels per day in 2025 to 13.37 million barrels per day in 2026. Trump has stated that U.S. oil producers would ramp up production and declared an energy emergency at the start of his second term to boost output. However, several shale oil companies have warned that weak oil prices will impact production.

U.S. small business confidence rebounds in May, tariffs and tax legislation raise concerns. Small business confidence in the U.S. saw its first increase of the year in May 2025, with businesses becoming more optimistic about the economic outlook. The National Federation of Independent Business (NFIB) reported on Tuesday that its optimism index rose by 3 points to 98.8, with 7 of the 10 indicators surveyed showing improvement, primarily due to better expectations for the business environment and actual sales. Nevertheless, the uncertainty index also rose, highlighting the rocky implementation of President Donald Trump’s tariff policies and the additional controversies sparked by his signature tax legislation in Congress.

Trump and California governor's conflict escalates, Marines prepare to move into Los Angeles, Army units on standby. The Trump administration has escalated its response to anti-eviction protests in Los Angeles, mobilizing 700 Marines to reinforce the thousands of National Guard troops already deployed, further straining relations with Democratic leaders. The U.S. military stated that the Marines would work alongside the 51st Task Force, composed of 2,100 National Guard troops, while hundreds of soldiers from the 79th Infantry Brigade Combat Team are also stationed in the Greater Los Angeles area. The statement did not specify when the Marines would arrive in Los Angeles, and the local police chief indicated that no formal notification had been received, stating that the arrival of troops without coordination would pose significant challenges for law enforcement.

[Stock News]

Meta (META.US) establishes a new AI research lab, reportedly negotiating over $10 billion investment with Scale AI. Tech giant Meta (META.US) is forming a new artificial intelligence research lab and has invited Alexandr Wang, founder and CEO of startup Scale AI, to join, focusing on exploring the concept of "superintelligence." The so-called "superintelligence" refers to AI systems that can surpass human intelligence. At the same time, another foreign media outlet cited sources saying that Meta is in deep negotiations with Scale AI to invest over $10 billion in the latter to strengthen its strategic layout in the AI field.

GameStop (GME.US) ventures into the Bitcoin space but sees stock price decline, Q1 revenue falls short of expectations dragging down performance. Despite achieving profitability for the fourth consecutive quarter, GameStop's stock price fell more than 6% in after-hours trading on Tuesday due to first-quarter revenue not meeting Wall Street expectations, as consumers increasingly prefer digital downloads over physical store purchases. The earnings report showed that GameStop's first-quarter revenue decreased by 17% year-on-year, from $881.8 million in the same period last year to $732.4 million, with analysts expecting $750 million.

【Major Firm Ratings】

Morgan Stanley: Reiterates "Overweight" rating on Coca-Cola (KO.US), target price $81