Overnight U.S. Stocks | Three Major Indices Closed Higher, Oil Prices Plummeted for the Second Consecutive Day

According to Zhitong Finance APP, on Tuesday, the three major indices closed higher, and oil prices fell for the second consecutive trading day. Federal Reserve Chairman Jerome Powell testified before the U.S. House Financial Services Committee and submitted the central bank's monetary policy report. In his prepared remarks, Powell stated that the Federal Reserve is not in a hurry to cut interest rates and will observe the impact of Trump's tariff policy on the economy.

【U.S. Stocks】 As of the close, the Dow Jones Industrial Average rose 507.24 points, an increase of 1.19%, closing at 43,089.02 points; the Nasdaq rose 281.56 points, an increase of 1.43%, closing at 19,912.53 points; the S&P 500 index rose 67.05 points, an increase of 1.11%, closing at 6,092.22 points. Circle (CRCL.US) fell 15.49%, ending a three-day rising streak.

【European Stocks】 The German DAX 30 index rose 369.71 points, an increase of 1.59%, closing at 23,643.49 points; the UK FTSE 100 index fell 0.49 points, a decrease of 0.01%, closing at 8,757.55 points; the French CAC 40 index rose 78.42 points, an increase of 1.04%, closing at 7,615.99 points; the Euro Stoxx 50 index rose 75.65 points, an increase of 1.45%, closing at 5,297.55 points; the Spanish IBEX 35 index rose 178.30 points, an increase of 1.29%, closing at 14,027.50 points; the Italian FTSE MIB index rose 613.49 points, an increase of 1.58%, closing at 39,454.00 points.

【Asia-Pacific Stock Markets】 The Nikkei 225 index rose 1.1%, the South Korean KOSPI index rose 2.96%, and the Indonesian Composite Index rose 1.21%.

【Foreign Exchange】 The ICE U.S. Dollar Index fell 0.55%, closing at 97.8976 points, remaining in a continuous decline throughout the day, with an intraday trading range of 98.276-97.707 points. Following Powell's comments on the possibility of interest rate cuts later in 2025 during the hearing, there was a relatively sharp decline. The Bloomberg Dollar Index fell 0.60%, closing at 1,200.93 points, with an intraday trading range of 1,207.36-1,199.16 points.

【Oil】 WTI crude oil August futures contracts fell 6.04%, closing at $64.37 per barrel; Brent crude oil August futures contracts fell 6.07%, closing at $67.14 per barrel.

【Metals】 Spot gold fell 1.35%, closing at $3,323.69 per ounce. After opening slightly higher at 06:00 Beijing time, it quickly turned lower and continued to decline, hitting a daily low of $3,295.62 at 21:49 Beijing time, followed by Powell's comments on the possibility of interest rate cuts by the FOMC this year. COMEX gold futures fell 1.71%, closing at $3,336.90 per ounce, continuing to decline throughout the day.

【Cryptocurrency】 Bitcoin was priced at $105,944.2 per coin, up 0.48% for the day; Ethereum rose over 1.1%, priced at $2,441.39.

【Macroeconomic News】 Powell's Congressional Testimony: Wait and See Before Considering Rate Actions. Despite ongoing pressure from President Trump, Powell reiterated that there is no rush to cut interest rates, stating that the Federal Reserve is closely monitoring the specific impacts of Trump's tariff policies on the economy. In his testimony submitted to two congressional committees, Federal Reserve Chairman Powell pointed out that the final level of tariffs will determine their impact on the economy. He emphasized that the Federal Reserve is currently in a favorable position to patiently wait and consider adjusting its monetary policy stance once there is a clearer judgment on the economic direction. Powell mentioned in his testimony that the increase in tariffs this year could push up prices and put pressure on economic activity. However, he also stated that the impact of tariffs on inflation could be temporary or more persistent, depending on the magnitude of the tariff effects, the time required for transmission to prices, and whether long-term inflation expectations can remain stable.

Senate Republicans Plan to Start Voting on Tax Bill on Friday. According to AXIOS, Senate Majority Leader Thune stated on Tuesday that he expects voting on Trump's "Beautiful Big Bill" to begin on Friday, which will extend into the weekend and disrupt the House's recess plans for next week. However, Thune is confident that Congress will submit the bill to Trump before the July 4 deadline. Thune met with House Speaker Johnson around noon on Tuesday. Just minutes before the meeting, Thune mentioned that he had not recently spoken with Johnson about the bill. Reports indicate that House leadership has expressed concerns about whether the Senate version of the bill can pass. Modifications to the state and local tax (SALT) deduction and the tax on Medicaid providers are the biggest concerns. Regarding SALT, Thune stated, "I know this will be the last issue to resolve, and that will indeed be the case."

Federal Reserve Kashkari: More Clarity Needed on Tariff Impacts. Minneapolis Fed President Kashkari stated that despite recent inflation data being "quite positive," the Federal Reserve still needs further clarity on how tariffs will affect prices before adjusting policy. "The inflation data we've received over the past two to three months has been quite positive, indicating that the anti-inflation path I described is on track," Kashkari said on Tuesday. "But we clearly have not yet seen the full impact of tariffs, so we are slowly understanding the situation before making any significant changes to our policy outlook." While some Federal Reserve officials have indicated they support a rate cut as early as July, Fed Chairman Powell earlier on Tuesday told lawmakers that the Fed is not in a hurry to cut rates, as he and his colleagues are waiting for the economy to respond to various new policies, including tariffs.

Federal Reserve Williams: Tariffs and Uncertainty Will Slow U.S. Economic Growth and Increase Inflation This Year. New York Fed President Williams expects U.S. economic growth to slow this year and inflation to rise, largely due to the impact of trade tariffs. Williams stated, "I expect uncertainty and tariffs to suppress spending, reduce immigration, and thus slow labor force growth," leading to an anticipated significant slowdown in economic growth to around 1% this year, with the unemployment rate rising from the current 4.2% to 4.5% by the end of the year. He also expects that as Trump's tariff policies push prices up, the inflation rate will rise to 3%, then gradually slow to the 2% target over the next two years Williams did not make any forward-looking comments on interest rate policy. When discussing the FOMC meeting, he stated, "Maintaining this moderately restrictive monetary policy stance is entirely appropriate for achieving maximum employment and price stability goals." The Federal Reserve's current interest rate position "gives us time to closely analyze newly received data, assess the evolving outlook, and evaluate the risk balance in achieving our dual mandate goals."

The U.S. Treasury Department announces recent U.S. Treasury bond purchases. The U.S. Treasury Department: In the latest biweekly report period, investment funds purchased $40.967 billion in 3-year U.S. Treasury bonds, down from $43.185 billion last month; purchased $16.295 billion in 30-year U.S. Treasury bonds, down from $17.763 billion last month; purchased $29.07 billion in 10-year U.S. Treasury bonds, up from $28.942 billion last month. Foreign investors purchased $6.35 billion in 3-year U.S. Treasury bonds, up from $5.552 billion last month; purchased $5.293 billion in 10-year U.S. Treasury bonds, down from $7.875 billion last month; purchased $2.518 billion in 30-year U.S. Treasury bonds, down from $3.006 billion last month.

Reports indicate that if Trump retains the baseline tariffs on the EU, the EU will take retaliatory measures. According to foreign media reports, if Trump imposes baseline tariffs on EU goods, the EU plans to impose retaliatory tariffs on U.S. imports, including Boeing aircraft. EU officials expect that even after trade negotiations conclude, the U.S. will retain some tariffs. Stefana Sejurne, head of the EU's industrial department, stated, "If the U.S. insists on an asymmetric agreement, we will need to take retaliatory and rebalancing measures in some key areas," with the asymmetric agreement including "the negotiation result of retaining a 10% tariff." According to an anonymous EU official, negotiations have accelerated, and the European Commission is making every effort to reach a mutually beneficial solution. U.S. demands include measures related to fish export quotas, which EU officials say may not comply with World Trade Organization rules. Many EU countries expect that even if an agreement is reached, most U.S. tariffs will remain in place, including the 10% baseline tariff.

【Individual Stock News】

Uber (UBER.US) expands partnership with Waymo to launch Robotaxi service in Atlanta. U.S. ride-hailing platform Uber announced that it will expand its partnership with Waymo to officially launch a self-driving taxi (Robotaxi) service in Atlanta. Following this news, Uber's stock price surged nearly 8%, with a year-to-date increase of 52%. According to Uber, Waymo's Robotaxi service will cover a 65-square-mile area around Atlanta, including downtown, Buckhead, and the Congressional District, but will not operate on highways or go to the airport for now. Waymo stated that it will deploy dozens of taxis in Atlanta initially, currently owning over 1,500 self-driving taxis in the U.S. The collaboration between Waymo and Uber only covers passenger ride services and does not include Uber's delivery services. If customers do not wish to ride in a self-driving car, Uber can provide a car driven by a human