Overnight US stocks | The three major indexs fell this week, with the Philadelphia Semiconductor Index dropping 10%, the largest weekly drop since April last year.

On Friday, the three major indices closed lower. Kimi K3 of the dark side of the moon released a new model, shaking the market's core assumption of large-scale AI computing power investment with low-cost, open-source strategies. Global technology and semiconductor stocks plummeted in response, with investors quickly spreading concerns about the potential reoccurrence of the "DeepSeek moment." The Philadelphia Semiconductor Index fell more than 20% from its all-time high on June 22, entering bear territory. The index dropped 10% this week, marking its largest weekly decline since April 2025. The three major U.S. stock indices all recorded declines this week, with the Dow falling by 0.93%, the Nasdaq dropping by 2.9%, and the S&P 500 slipping by 1.55%. As of the close, the Dow fell 406.55 points or 0.77% to 52,146.42 points; the Nasdaq dropped 361.70 points or 1.40% to 25,520.24 points; and the S&P 500 lost 76.08 points or 1.01% to 7,457.69 points. Chip stocks had mixed performances, with Western Digital Corporation (WDC.US) rising by 2.23%, SK Hynix ADR (SKHY.US) climbing by 1.13%, NVIDIA Corporation (NVDA.US) falling by 2.21%, Meta Platforms (META.US) dropping by 2.79%, and SpaceX (SPCX.US) declining by 5.43%. Apple Inc. (AAPL.US) rose by 0.14% with a momentary market value surpassing that of NVIDIA Corporation. The Nasdaq Golden Dragon Index fell by 1.82%, while Alibaba Group Holding Limited Sponsored ADR (BABA.US) dropped by 2%. In Europe, the DAX30 index fell by 27.30 points or 0.11% to 24,839.16 points; the FTSE 100 index rose by 23.21 points or 0.22% to 10,595.45 points; the CAC40 index dropped by 39.05 points or 0.47% to 8,338.81 points; the Euro Stoxx 50 index fell by 48.56 points or 0.77% to 6,235.05 points; the IBEX35 index dropped by 22.17 points or 0.12% to 19,216.23 points; and the FTSE MIB index dropped by 490.96 points or 0.94% to 51,883.00 points. In Asian markets, the Nikkei 225 index fell by 4.03%, and the South Korean stock market was closed for a constitutional holiday. The U.S. dollar index rose slightly on the 17th. The index, which measures the dollar against six major currencies, closed at 100.765 in the forex market, slightly higher than the previous day's 100.763. By the end of the New York forex market, 1 euro exchanged for 1.1436 dollars, lower than the previous day's 1.1438 dollars; 1 pound exchanged for 1.3454 dollars, lower than the previous day's 1.3470 dollars. 1 dollar exchanged for 162.45 yen, higher than the previous day's 162.39 yen; 1 dollar exchanged for 0.8075 Swiss francs, lower than the previous day's 0.8089 Swiss francs; 1 dollar exchanged for 1.4011 Canadian dollars, lower than the previous day's 1.4048 Canadian dollars; and 1 dollar exchanged for 9.6497 Swedish crowns, lower than the previous day's 9.6499 Swedish crowns. Cryptocurrencies continued to hover around $64,000, with Bitcoin trading at $63,974.28 and Ethereum dropping by over 1.6% to $1,839.25. Oil prices rose significantly on the 17th. By the closing, the light crude oil futures price for August delivery on the New York Mercantile Exchange rose by $3.54 to $82.49 per barrel, up by 4.48%; and Brent crude oil futures price for September delivery on the London market rose by $3.87 to $88.10 per barrel, up by 4.59%. Precious metals saw gold rise by 1% to $4,018.36, while silver rose by 0.77% to $55.55. Macro News: Trump: "Good news" on inflation in June, the U.S. welcomes a "golden age." U.S. President Trump stated that the inflation data for June brought exciting news! The CPI monthly rate experienced the largest decline in six years. The June CPI was lower than the predictions of all 67 economists surveyed by the media. Prices of various goods such as gasoline, electricity, car insurance, hotels, and prescription drugs all saw decreases. With strong wage growth and falling prices, real wages increased significantly by 0.8%. As investments continue to flow into the U.S., factory construction is rapidly expanding, manufacturing employment is increasing, and prices continue to decline. There are many aspects we can be proud of the United States golden age has arrived! Dollar hedging costs drop to the lowest level this year. The cost of hedging against USD volatility has fallen to the lowest level since the beginning of the year. The one-month implied volatility index of the USD spot index dropped to the lowest level since December of last year this week, significantly lower from the spike after the Iran conflict in March. This indicates that, despite the uncertain outlook of the Federal Reserves policies and the reignition of conflict in the Middle East, traders believe that the likelihood of a major event affecting the global reserve currency is minimal. This calm market environment reinforces a key feature of this years market: the sustainability of the U.S. stock market and the reduction of currency volatility, encouraging investors to engage in arbitrage trading in large numbers. This type of trading can profit from interest rate differentials and tends to perform best when exchange rates and risk preferences remain stable. Francesco Pesole, foreign exchange strategist at ING Groep NV Sponsored ADR, stated that the drop in USD volatility is "striking." He pointed out, "The resilience of the stock market supported by the AI boom seems to be stabilizing the exchange rate and helping to maintain an environment of low volatility and prevalent carry trades." He added that even with a tech stock pullback, this trading strategy will likely remain popular. U.S. consumer confidence improves in July, but Middle East conflict poses downside risks. The U.S. consumer confidence index rose to its highest level in five months in July. However, given the reignition of conflict in the Middle East pushing up gasoline prices, this improvement may be temporary. The University of Michigan Consumer Sentiment Survey released on Friday stated that its consumer confidence index rose to 54.4 this month, the highest since February, up from June's final value of 49.5, surpassing economists' expectations of an increase to 51.0. The survey was conducted from June 23 to July 13, with over 70% of interviews conducted before the ceasefire agreement between the U.S. and Iran was broken last week, which had driven oil prices to a one-month high. In response, gasoline prices also rose. "The rise in consumer confidence this month transcended all demographic groups, with all groups showing improvement, regardless of age, income, wealth, or party affiliation," said Joanne Xu, director of the consumer survey project. "However, due to persistently high prices, consumers are not optimistic about the economic outlook; the confidence index has decreased by 12% from a year ago. Therefore, if the recent downward trend of gasoline prices continues to reverse, the momentum of this confidence rebound may be difficult to sustain." Individual Stock News: Sources revealed that Apple Inc. is in early settlement negotiations with the U.S. Department of Justice on an antitrust case. Sources disclosed that Apple Inc. is in preliminary settlement negotiations with the U.S. Department of Justice over a 2024 antitrust lawsuit accusing Apple Inc. of violating antitrust laws. Apple Inc. and the U.S. Department of Justice have not immediately responded to requests for comment. Reports state that both parties are actively negotiating, but there is no guarantee of reaching an agreement, and Apple Inc. has reportedly proposed multiple solutions to the U.S. Department of Justice to settle the case. In 2024, as the government increased its crackdown on tech giants, the U.S. Department of Justice and 15 states filed a lawsuit against Apple Inc., accusing the company of monopolizing the smartphone market, harming the interests of small competitors, and raising prices. It is currently unknown whether state attorneys general are engaging in settlement negotiations. Meta is reported to be negotiating the rental of computing power to Anthropic with a deal size of up to $10 billion. According to reports, Meta Platforms (META.US) is in talks with Anthropic to rent out its own AI data center computing power, with the potential deal size reaching $10 billion over a two-year collaboration. Sources stated that Anthropic proposed this partnership in June, and Meta is currently evaluating it, with transaction details still being adjusted. Under the plan, Anthropic will make monthly payments to Meta over two years, and both companies have the right to terminate the agreement early. The scale of computing power procurement proposed by Anthropic to Meta is only one-third of the deal signed with SpaceX in May. Sources stated that the negotiations are in the early stages and may not necessarily come to fruition. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR increases investment in the U.S., Trump: invites everyone to build factories in the U.S. U.S. President Trump stated that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) announced an additional investment of $100 billion in its semiconductor manufacturing factory in Arizona, bringing its total investment in U.S. manufacturing facilities to a record $265 billion. My trade policies and agreements are achieving everything I promised. From cars, drugs, semiconductors, to the entire economic sector, the Trump administration is bringing advanced manufacturing back to the U.S. This is what success looks like! Massive hiring, massive construction, massive investment welcome to the golden age of the U.S., and we invite everyone to come build factories in the U.S. SpaceX is reportedly in negotiations to provide billions of dollars worth of computing power for the U.S. Department of Defense's AI projects. According to reports, sources revealed that SpaceX (SPCX.US) is in discussions with the U.S. Department of Defense to provide computing power worth several billion dollars to the agency to run artificial intelligence models, further strengthening the cooperation between Musk's company and the U.S. Department of Defense. These negotiations are still ongoing but could ultimately collapse. Person familiar with the plans said that SpaceX has recently signed similar agreements with Anthropic and Alphabet Inc. Class C in recent months, and is now planning to significantly expand its cloud computing business. In recent weeks, SpaceX employees have discussed plans to provide computing power to AI customers at lower prices, potentially competing more directly with existing suppliers like CoreWeave.