Overnight US stocks | Trump cancels plans to strike Iran, oil prices drop, Dow Jones hits a new high, and tech stocks rise broadly.

On Monday, the three major indices closed higher, with the Dow Jones reaching a record high closing. Over the weekend, Trump stated that he had canceled the planned strike against Iran and added that negotiations between the two countries would restart on Monday. U.S. StocksAt the close, the Dow rose 693.14 points, up 1.32%, to 53,178.17 points; the Nasdaq gained 540.04 points, a rise of 2.13%, to 25,913.90 points; the S&P 500 index increased by 110.76 points, up 1.48%, to 7,600.48 points. Microsoft Corporation (MSFT.US) and Alphabet Inc. Class C (GOOG.US) were up nearly 5%, while Tesla, Inc. (TSLA.US) and NVIDIA Corporation (NVDA.US) rose around 3%, and Meta (META.US) was up 6%. SanDisk (SNDK.US) rose by 6%, while SK Hynix (SKHY.US) fell by 0.7%. The Nasdaq China Golden Dragon Index closed up 0.75%, with Alibaba Group Holding Limited Sponsored ADR (BABA.US) rising 4%. European StocksThe German DAX 30 index increased by 386.44 points, up 1.51%, to 26,017.22 points; the UK FTSE 100 index fell by 13.15 points, down 0.12%, to 10,854.90 points; the French CAC 40 index rose by 104.18 points, up 1.22%, to 8,613.82 points; the Euro Stoxx 50 Index increased by 72.34 points, up 1.14%, to 6,430.35 points; the Spanish IBEX 35 index gained 186.21 points, up 0.94%, to 19,969.11 points; the Italian FTSE MIB index rose by 684.47 points, up 1.31%, to 52,857.00 points. Asian MarketsThe Nikkei 225 index fell by 0.94%, while the South Korean Composite Stock Price Index decreased by 5.12%. U.S. Dollar IndexOn the same day, the dollar index, which measures the value of the dollar against six major currencies, fell by 0.02%, closing at 99.894 in the forex market. As of the close of the New York forex market, 1 Euro exchanged for 1.1514 dollars, down from 1.1531 dollars in the previous trading day; 1 British Pound exchanged for 1.3431 dollars, down from 1.3482 dollars previously. 1 Dollar exchanged for 156.74 Yen, lower than the previous day's 158.90 Yen; 1 Dollar exchanged for 0.8101 Swiss Francs, up from 0.8082 Swiss Francs; 1 Dollar exchanged for 1.4045 Canadian Dollars, up from 1.4019 Canadian Dollars; 1 Dollar exchanged for 9.5557 Swedish Krona, up from 9.5193 Swedish Krona. CryptocurrencyBitcoin hovered around $63,000, briefly breaking through $64,000; Ethereum fell by 1.26%, trading at $1,858.47. Crude OilLight crude oil futures for September delivery on the New York Mercantile Exchange fell by $4.33, closing at $80.34 per barrel, a decline of 5.11%; October delivery Brent crude oil futures fell by $4.16, closing at $83.77 per barrel, a drop of 4.73%. Precious MetalsSpot gold was priced at $4,055.09; spot silver was priced at $58.16. Macroeconomic News 25 states in the U.S. file a lawsuit opposing the government's latest tariff measures. Court documents reveal that 25 states in the U.S. have filed a lawsuit opposing the government's latest tariff measures. The New York Attorney General announced that the lawsuit was initiated by 25 states led by Democrats. These states claim that the President's imposition of the latest round of tariffs on goods from 60 trade partners exceeds his statutory authority over import taxation. The Attorney General stated that the new tariffs were merely a replacement for tariffs that had already been struck down by the U.S. Supreme Court. The scope of the new tariffs is excessively broad and bypasses the legal procedural requirements for investigations targeting specific nations. The U.S. Treasury raises borrowing estimates for July to September to $739 billion. The U.S. Treasury expects that net marketable debt financing held by the private sector will reach $739 billion in the quarter from July to September 2026, assuming a cash balance of $950 billion at the end of September. This estimate is $68 billion higher than previously disclosed in May, mainly due to expected decreases in net cash flow. The Treasury also estimates $628 billion in financing for the quarter from October to December 2026, assuming a cash balance of $850 billion at the end of December. For the quarter from April to June 2026, the Treasury financed $190 billion, which is broadly in line with the $189 billion estimated in May. More details regarding the quarterly refinancing from the Treasury will be released at 8:30 AM EST on August 5 (8:30 PM Beijing time). Fed Whisperer: Powell may become the fourth official in decades to complete a full 14-year term as a Fed governor. Fed Whisperer Nick Timiraos: The last three officials to complete a full 14-year term as a Fed governor were Alan Greenspan (1992 to 2006), George Mitchell (1962 to 1976), and William McChesney Martin Jr. (1956 to 1970). All three had previously filled uncompleted terms of other governors who left early before starting their own 14-year terms. If Powell can remain until January 2028, he will join this group. (Powell has served 14 years on the board, but his official 14-year term began in 2014.) U.S. manufacturing activity expands at the fastest pace since 2022. In July, driven by sustained strong demand, skyrocketing output, and increased hiring, U.S. manufacturing activity surged to its highest level in over four years. According to data from the Institute for Supply Management (ISM), the ISM Manufacturing PMI for July recorded 55.6, marking the highest level since May 2022. An index above 50 indicates industry expansion, and the industry has maintained this level for seven consecutive months. The production index rose to 58.5, its highest level since the end of 2021, while the employment indicator showed that manufacturers increased their workforce for the first time since September 2023. New ordersan indicator of demandalso saw a rebound. Manufacturing momentum remains strong this year as factories benefit from robust consumer demand, solid business investment, and government spending in defense. All sectors, except one, reported growth in July, including printing, apparel, and electrical equipment industries. The only industry to report a decline was the chemicals sector. Individual Stock News Trump: Exxon Mobil Corporation and Chevron Corporation are making too much profit due to the Iran war. On Monday local time, President Trump stated that due to the Iran war causing oil prices to rise, Exxon Mobil Corporation (XOM.US) and Chevron Corporation (CVX.US) were making excessive profits. "They've made too much money because of the supply shortage," Trump told reporters at the White House. "I don't like that." Exxon Mobil Corporation and Chevron Corporation reported hefty profits for the second quarter last Friday. Chevron's profits surged nearly 400% to $12 billion compared to $2.5 billion in the same period last year. Exxon Mobil Corporations profit more than doubled from $7.1 billion in the same period last year to $14.5 billion. "Chevron is making too much money. Exxon Mobil is making too much money," Trump said. "They need to return some of that to the public, and they better lower retail prices, which is what consumers pay." Head of Amazon.com, Inc. cloud business: The potential scale of AI business is enormous. The head of Amazon.com, Inc. (AMZN.US) cloud business stated that customers are beginning to shift from using the company's services to train AI models to integrating these models into their own business processes, which is driving an increase in computing demand for inference. Matt Garman, CEO of Amazon's cloud computing department, said on Monday: "We still see some companies using large training clusters, but as these models become more popular and powerful, more companies are integrating this inference capability into their workloads." He remarked that the potential for the AI business is "enormous," and the company will continue to increase capital expenditures to meet the growing demand. As the world's largest provider of computing power and data services, Amazon.com, Inc. last week projected capital expenditures could reach $220 billion by 2026, up from a previous forecast of $200 billion. The increase in spending reflects rising prices for storage chips and other components needed for data centers. Boeing Company (BA.US) 737 Max 7 receives FAA certification after nearly a decade of delays. The Federal Aviation Administration (FAA) has approved certification for the Boeing Company 737 Max 7 model after nearly a decade of delays. This model is the smallest in the 737 series, and airlines initially expected to operate this model before the COVID-19 pandemic. However, the certification process was delayed due to increased regulatory scrutiny following fatal crashes of the 737 Max 8 in 2018 and 2019, along with other safety and manufacturing crises, and redesigns of engine anti-ice systems. After the plane receives certification, airlines will be able to start operating it for passenger service shortly, but incorporating it into flight schedules typically takes several months. Boeing Company is still awaiting FAA certification for another long-delayed model, the 737 Max 10, as well as for its largest aircraft, the 777X. Major Ratings BNP Paribas: Raises target price for Western Digital Corporation (WDC.US) from $1,050 to $1,275. Bank of America Global Research: Restarts coverage on Best Buy Co., Inc. (BBY.US) with an underperform rating; target price set at $80.