Overnight US stocks | Three major indices fell, oil prices fell for five consecutive days, and Coinbase (COIN.US) fell more than 6%.

On Tuesday, the three major indices fell. U.S. President Trump stated during an interview with foreign media that tariffs on Indian imports would be "very significantly" increased within the next 24 hours, and tariffs on drugs and chips would be announced within the next week, with drug tariffs potentially rising to 250%. [US Stocks] At the close, the Dow fell 61.9 points, or 0.14%, to 44111.74 points; the Nasdaq fell 137.03 points, or 0.65%, to 20916.55 points; the S&P 500 fell 30.75 points, or 0.49%, to 6299.19 points. Pfizer Inc. (PFE.US) rose by 5%, Coinbase (COIN.US) fell by 6.3%, Microsoft Corporation (MSFT.US) and Meta Platforms (META.US) both fell by over 1%. The Nasdaq Golden Dragon Index fell by 0.56%. [European Stocks] The Germany DAX30 index rose by 78.54 points, or 0.33%, to 23835.82 points; the UK FTSE 100 index rose by 9.20 points, or 0.10%, to 9137.50 points; the France CAC40 index fell by 10.97 points, or 0.14%, to 7621.04 points; the Europe Stoxx 50 index rose by 6.53 points, or 0.12%, to 5248.85 points; the Spain IBEX35 index rose by 21.24 points, or 0.15%, to 14396.04 points; the Italy FTSE MIB index rose by 11.62 points, or 0.03%, to 40709.00 points. [Asia-Pacific Stock Market] The Nikkei 225 index rose by 0.64%, the South Korea KOSPI index rose by 1.6%, and the Indonesia Composite index rose by 0.68%. [Forex] The U.S. Dollar Index against six major currencies closed at 98.782 in the foreign exchange market, lower than the previous trading day's 98.786. At the close of the New York foreign exchange market, 1 Euro exchanged for 1.1574 U.S. Dollars, higher than the previous trading day's 1.1566 U.S. Dollars; 1 British Pound exchanged for 1.3295 U.S. Dollars, higher than the previous trading day's 1.3276 U.S. Dollars. 1 U.S. Dollar exchanged for 147.61 Japanese Yen, higher than the previous trading day's 146.95 Japanese Yen; 1 U.S. Dollar exchanged for 0.8074 Swiss Francs, lower than the previous trading day's 0.8082 Swiss Francs; 1 U.S. Dollar exchanged for 1.3784 Canadian Dollars, unchanged from the previous trading day; 1 U.S. Dollar exchanged for 9.6722 Swedish Krona, higher than the previous trading day's 9.6704 Swedish Krona. [Crude Oil] International oil prices fell on the 5th. At the close of the day, the light crude oil futures contract for September delivery on the New York Mercantile Exchange fell by 1.13 U.S. Dollars to settle at 65.16 U.S. Dollars per barrel, a decrease of 1.70%; while the London Brent crude oil futures contract for October delivery fell by 1.12 U.S. Dollars to settle at 67.64 U.S. Dollars per barrel, a decrease of 1.63%. [Metals] Spot gold rose by 0.18% to 3379.73 U.S. Dollars per ounce, experiencing a V-shaped reversal during the day, reaching a daily low of 3349.96 U.S. Dollars at 19:39 Beijing time. COMEX gold futures rose by 0.21% to 3406.50 U.S. Dollars per ounce; the December contract rose by 0.20% to 3433.40 U.S. Dollars, also hitting a daily low of 3403.30 U.S. Dollars at 19:39. The Philadelphia Gold and Silver Index rose by 2.85% to 221.91 points. [Cryptocurrency] Bitcoin fell by over 1% to 113889.7 U.S. Dollars; Ethereum fell by over 3.5% to 3589.57 U.S. Dollars. [U.S. Treasury Bonds] The yield on U.S. 10-year Treasury bonds rose by 0.98 basis points to 4.2021%, fluctuating upwards until 21:37 Beijing time, hitting a daily high of 4.2237%, then falling after the release of the U.S. ISM Non-Manufacturing Index at 22:00. The yield on U.S. 2-year Treasury bonds rose by 4.49 basis points to 3.7201%, fluctuating throughout the day with a trading range of 3.6629%-3.7284%. The yield on U.S. 20-year Treasury bonds fell by 1.33 basis points, while the yield on U.S. 30-year Treasury bonds fell by 1.69 basis points. The yield on U.S. 3-year Treasury bonds rose by 3.64 basis points, the yield on U.S. 5-year Treasury bonds rose by 2.76 basis points, and the yield on U.S. 7-year Treasury bonds rose by 2.06 basis points. The 2/10-year U.S. Treasury bond yield spread fell by 3.514 basis points to +47.995 basis points. It held steady near its daily high of +51.751 basis points reached at 08:04 before the release of the ISM Non-Manufacturing Index, but failed to breakthrough to +52 basis points afterwards. [Macroeconomic News] U.S. service sector activity growth near standstill, employment index contracting for consecutive months. Due to layoffs in businesses, the expansion pace of the U.S. service sector nearly stagnated in July. The Institute for Supply Management (ISM) Service Sector Index fell to 50.1 last month, below all economists' estimates by Bloomberg. A reading above 50 indicates industry activity expansion. The employment index fell to 46.4, falling below the boom-bust line for the fourth time in the past five months, hitting one of the lowest levels since the pandemic. The index measuring material and service payment prices rose to 69.9, the highest since October 2022. The data released on Tuesday depicts a picture of sluggish service sector growth in a high tariff environment, with uncertainties caused by consumer cautiousness and Trump's policies affecting the industry in addition to tariffs. U.S. trade deficit in June falls to lowest level since September 2023. The U.S. trade deficit narrowed in June, with a significant decrease in imports of consumer goods, providing the latest evidence of the impact of President Trump's comprehensive tariffs on global trade. The overall trade deficit (including services) in the U.S. shrank by 16.0% to 602 billion U.S. dollars in June, the lowest level since September 2023, following a 10.8% drop in the trade deficit of goods to the lowest level since September 2023. Data released last week showed that the reduction in the trade deficit significantly boosted the rebound of U.S. GDP in the second quarter, reversing the drag from the first quarter when consumers and businesses rushed to purchase goods to avoid Trump's tariffs, leading to a surge in imports. Trump plans to gradually raise drug tariffs to a maximum of 250%. According to reports from foreign media, U.S. President Trump stated on Tuesday that tariffs on imported drugs could eventually be raised to 250%, becoming the highest tariff rate he has threatened to implement so far. Trump said he would first impose "small tariffs" on drugs, then gradually raise them to 150% to 250% in a year to a year and a half. However, Trump has wavered on tariff policies multiple times in the past, so there is uncertainty as to whether the 250% rate will ultimately be implemented. In early July, Trump threatened to impose a 200% tariff on drugs. The proposed tariffs would deal a heavy blow to the pharmaceutical industry, with warnings that such tariffs would raise costs, inhibit investment in the U.S., disrupt the drug supply chain, and ultimately jeopardize patient drug safety. New York Times Company Class A: U.S. to end $7 billion solar panel grant program. According to reports from New York Times Company Class A, two sources revealed that the Trump administration is preparing to terminate a $7 billion federal grant aimed at helping low- and middle-income families install CECEP Solar Energy panels at home. The Environmental Protection Agency (EPA) is reportedly drafting termination letters to 60 non-profit organizations and state agencies that received the funding through the "National CECEP Solar Energy for All" program, with plans to send out these letters by this weekend. If finalized, this move would further exacerbate the Trump administration's actions to reclaim billions of dollars in grants under the 2022 Inflation Reduction Act. Legal challenges from grant recipients are likely to follow, with many recipients already advancing related projects in Republican-led states. Two former U.S. Treasury secretaries warn of risks facing the U.S. treasury bond market. Two former officials who served as U.S. Treasury secretaries during the global financial crisis warned of the risks facing the U.S. treasury bond market, totaling $29 trillion, including issues such as an unsustainable fiscal trajectory and concerns about the Washington political system. Regarding federal borrowing, our current path is not sustainable, former U.S. Treasury Secretary Henry Paulson said in an interview on Tuesday, I don't know if this means we will hit a wall in six months, or six years, or when. Timothy Geithner, who succeeded Paulson in early 2009, said in the same interview that the 10-year U.S. Treasury bond yield is at quite a comfortable level, reflecting some level of fundamental confidence in the ability of the U.S. to govern reasonably. Geithner said, But it ultimately depends on whether the system can restore some balance between income and expenditure and reduce the deficit a bit, and maintain the factors that give people confidence in the U.S. treasury bond, such as the rule of law and the independence of the Federal Reserve. Compared to the recent past, these aspects currently face greater shadows. [Stock News] Reports suggest significant price increase for iPhone 17 series. Multiple media outlets and analytical firms have recently pointed out that Apple Inc.'s upcoming iPhone 17 series, set to be launched in September 2025, will see a significant price increase, with the iPhone 17 Pro starting price surpassing $1000, becoming a focal point of attention. Jefferies, an analytical firm, predicts that the overall price increase for the iPhone 17 series (including non-Pro models) will be around $50 compared to the previous generation, with the starting price for the iPhone 17 Pro expected to be around $1049, the iPhone 17 Pro Max starting price around $1249, and the base model of the iPhone 17 potentially staying unchanged at $799. TomsGuide also analyzed that if the previous starting price for the iPhone 16 Pro was $999, then the expected starting price for the iPhone 17 Pro would be around $1049; if the entry-level non-Pro model sees an increase, it could also reach around $849. Intel Corporation's 18A process faces quality dilemma, high-end chip production hindered. Two sources revealed to Reuters that Intel Corporation had hoped for a production process that was supposed to help it win manufacturing orders and regain an advantage in the production of high-end, high-profit margin chips. However, during the testing of the new technology, the process encountered a significant quality issue. In recent months, Intel Corporation has promised investors that it would use its 18A process to expand chip manufacturing scale. Intel Corporation invested billions of dollars in the research and development of the 18A process, including building or upgrading several factories, with the goal of challenging Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR. Early tests last year disappointed customers, with only a small portion of the Panther Lake chips produced using the 18A process since the end of last year meeting quality standards, according to the two sources. This percentage, known as yield rate, suggests that Intel Corporation may have difficulty achieving profitable production of high-end laptop chips in the near future. Alibaba Group Holding Limited Sponsored ADR (BABA.US) new model Qwen-Image tops global open-source list. Alibaba's new open-source Wen-sheng image model, Qwen-Image, topped the global AI open-source community HuggingFace's model list on the same day, becoming the most popular open-source model worldwide. Qwen-Image is a 20B MMDiT model, the first basic model for image generation in the Tongyi Qian Wen series. It has achieved the best performance in mainstream evaluation lists such as GenEval, DPG, general image generation, GEdit, ImgEdit, and image editing (SOTA), particularly excelling in Chinese character rendering.