Overnight U.S. Stocks | The "Too Big to Fail" Bill Passed, Nasdaq and S&P 500 Index Hit New Highs

According to the Zhitong Finance APP, on Friday, the three major indices rose, with the Nasdaq and the S&P 500 Index hitting new highs. After the U.S. stock market closed, the U.S. House of Representatives held a final vote on President Trump's massive tax and spending bill, known as the "Big and Beautiful" bill. The final vote showed 218 votes in favor and 214 votes against, allowing the bill to pass in the House. It is expected that the bill will be sent to the White House and officially enacted after being signed by President Trump.

【U.S. Stocks】 As of the close, the Dow Jones Industrial Average rose 344.11 points, an increase of 0.77%, closing at 44,828.53 points; the Nasdaq rose 207.97 points, an increase of 1.02%, closing at 20,601.10 points; the S&P 500 Index rose 51.93 points, an increase of 0.83%, closing at 6,279.35 points. On Thursday, the S&P 500 Index reached a high of 6,284.64 points, and the Nasdaq peaked at 20,624.51 points, both setting intraday historical highs.

【European Stocks】 The German DAX 30 Index rose 149.10 points, an increase of 0.63%, closing at 23,931.96 points; the UK FTSE 100 Index rose 49.21 points, an increase of 0.56%, closing at 8,823.90 points; the French CAC 40 Index rose 16.13 points, an increase of 0.21%, closing at 7,754.55 points; the Euro Stoxx 50 Index rose 24.43 points, an increase of 0.46%, closing at 5,343.15 points; the Spanish IBEX 35 Index rose 143.84 points, an increase of 1.02%, closing at 14,181.34 points; the Italian FTSE MIB Index rose 149.72 points, an increase of 0.38%, closing at 39,935.00 points.

【Asia-Pacific Stock Markets】 The Nikkei 225 Index rose slightly, the South Korean KOSPI Index rose 1.34%, and the Indonesian Composite Index fell 0.05%.

【Foreign Exchange】 The U.S. dollar rose against most G-10 currencies, following stronger-than-expected U.S. employment data, which pushed up U.S. Treasury yields and led traders to abandon bets on a Federal Reserve rate cut in July. After the report was released, the Japanese yen fell 1% against the U.S. dollar. Following the employment data release, the Bloomberg Dollar Index briefly rose 0.5%, marking the largest intraday gain in over two weeks, before giving back some of the gains; the U.S. dollar rose against the euro, yen, and Asian emerging market currencies. U.S. non-farm payrolls increased by 147,000 in June, exceeding the estimate of 106,000; the unemployment rate fell to 4.1%, below the estimated 4.3%.

【Crude Oil】 Light crude oil futures for August delivery on the New York Mercantile Exchange fell by 45 cents, closing at $67.00 per barrel, a decrease of 0.67%; September delivery Brent crude oil futures fell by 31 cents, closing at $68.80 per barrel, a decrease of 0.45%.

【Metals】 COMEX gold futures fell by 0.71%, closing at $3,336 per ounce; spot gold fell by 0.91%, closing at $3,326.7.

【Cryptocurrency】 Bitcoin rose over 1%, closing at $109,972.4; Ethereum rose over 1.2%, closing at $2,601.87 [Macroeconomic News]

U.S. June Non-Farm Employment Data Exceeds Expectations, Unemployment Rate Drops to 4.1%. The U.S. Bureau of Labor Statistics announced on Thursday that, after seasonal adjustments, non-farm employment increased by 147,000 in June, surpassing the expected 110,000. The unemployment rate fell to 4.1%. Steady job growth and a declining unemployment rate, with average hourly earnings rising by 0.2% month-on-month and 3.7% year-on-year, indicate easing inflation pressures. Employment in government sectors saw a significant increase, leading all categories with an addition of 73,000 jobs, primarily due to substantial job growth in state and local governments, especially in education-related positions. The federal government continued to be affected by layoffs in the Musk administration, losing 7,000 jobs. Additionally, healthcare also showed strength, adding 39,000 jobs, while social assistance employment increased by 19,000. The Bureau of Labor Statistics also revised the April non-farm employment increase from 147,000 to 158,000; the May non-farm employment increase was revised from 139,000 to 144,000. After revisions, the total new jobs added in April and May was 16,000 higher than before the revisions.

U.S. June ISM Services Providers' Expansion Moderates, Employment Slows. U.S. services providers experienced a slow expansion in June, benefiting from a rebound in business activity and orders, despite the employment index recording its largest drop in three months. The Institute for Supply Management (ISM) stated on Thursday that its services index rose nearly 1 point last month to 50.8. In May, the index saw its first contraction in nearly a year. Business activity (in line with ISM's factory output index) returned to the expansion zone after a month of stagnation. Orders also saw growth, but at a moderate pace.

Becerra Denies Dollar Decline Threatens Its Status as a Major World Currency. U.S. Treasury Secretary Becerra dismissed claims that the recent depreciation of the dollar would affect its status as a major world currency. Becerra stated, "The price of the dollar is unrelated to a strong dollar policy. The key to a strong dollar policy is whether we take measures in the long term to ensure the dollar continues to be the global reserve currency." He believes the Trump administration is indeed taking such measures. The dollar index fell nearly 11% in the first half of the year, marking its worst first-half performance since 1973. This depreciation occurred against concerns about Trump administration policies, particularly the potential impact of increased tariffs on economic growth and a tough diplomatic stance towards long-term allies who have historically funded the U.S. Becerra stated that the Republican tax bill "created conditions for economic growth."

IMF Warns: Trump Tax Bill May Worsen U.S. Fiscal Deficit and Debt Burden Issues. The International Monetary Fund (IMF) warned that the upcoming Trump tax bill could complicate efforts to reduce fiscal deficits and debt burdens in the coming years. IMF spokesperson Julie Kozack stated that the U.S. needs to gradually reduce public borrowing to begin significantly cutting the debt-to-GDP ratio, which is an important measure of debt sustainability. Kozack remarked, "The bill seems to contradict the goal of mid-term debt reduction." The IMF typically defines "mid-term" as three to five years. According to data from the Congressional Budget Office, the bill would increase the deficit by $3.3 trillion OPEC+ discusses increasing production by 411,000 barrels per day in August. According to anonymous sources at the meeting, OPEC+ has begun discussions on increasing production by 411,000 barrels per day in August, which is expected to be further discussed in an online meeting this weekend. Saudi Arabia and its partners had previously approved the same scale of production increase for May, June, and July, and they are accelerating the recovery of suspended production to regain global market share. As of last week, OPEC+ has focused on the fourth increase of 411,000 barrels per day, and the latest discussions are nearing this proposal. The meeting will be held on Sunday. Some representatives added that due to scheduling issues, the online meeting may also be moved to Saturday.

U.S. trade deficit widened in May. The U.S. trade deficit widened in May as exports fell. According to data from the U.S. Department of Commerce, imports slightly decreased to $350.5 billion in May, down from $350.8 billion in April. However, the decline in exports was more significant, dropping from $290.6 billion in April to $279.0 billion. This resulted in a trade deficit of $71.5 billion, an increase of 19% from April's $60.3 billion, exceeding economists' expectations of $70.9 billion. The White House's negotiating stance has led to significant fluctuations in monthly trade data this year.

Canada's trade deficit narrowed in May, with continued decline in exports to the U.S. Data released on Thursday showed that Canada's trade deficit narrowed in May as expected, following a record deficit in April. Despite the impact of U.S. tariff policies on exports to the U.S., the trade deficit for the month fell to CAD 5.9 billion (approximately USD 4.34 billion) due to a rebound in total exports and a decrease in imports. Statistics Canada reported that the trade deficit in May narrowed from a revised CAD 7.6 billion in the previous month, primarily driven by a 1.1% month-on-month increase in exports—this marked the first export growth in four months following an 11% drop in April, mainly fueled by record exports to non-U.S. markets. Excluding the exceptional year of the pandemic in 2020, the bilateral trade volume between Canada and the U.S. in May fell to historical lows. As the destination for three-quarters of Canada's exports, U.S. imports have declined for the fourth consecutive month, with a decrease of 0.9% in May.

[Stock News]

Lucid (LCID.US) achieves record delivery numbers. Lucid's deliveries reached 3,309 vehicles in the second quarter, a year-on-year increase of 38%, setting a new quarterly delivery record. In the first half of this year, the company's total deliveries amounted to 6,418 vehicles, nearly a 50% increase compared to the same period last year. The growth in Lucid's deliveries is attributed to several factors. First, the global electric vehicle market is experiencing rapid growth, with increasing consumer demand for high-performance electric luxury cars. Second, Lucid's continuous innovation in its product line and successful brand positioning have allowed it to stand out in the competitive electric vehicle market. With policy support and improved infrastructure, the penetration rate of electric vehicles is expected to further increase, and as an emerging force in the industry, Lucid's future market performance is worth looking forward to. However, investors should remain vigilant about potential risks, including intensified market competition, rising production costs, and macroeconomic fluctuations that may impact consumer car purchasing decisions