Overnight Stock Market | S&P 500 Index Falls 8% in August! Market Value Erodes Over $1 Trillion

We have learned that last Friday, the three major stock indexes plummeted sharply, eroding market value by over $1 trillion. The S&P 500 index fell for the fourth consecutive trading day. Amazon's market value lost over $2 trillion in a single day. Previously, data showed that the US July non-farm employment was much lower than expected, with 25.8 million jobs revised downward.

【US Stocks】 As of the close, the Dow Jones Industrial Average fell 542.40 points, down 1.23%, to 43,588.58; the Nasdaq Composite fell 472.32 points, down 2.24%, to 20,650.13; and the S&P 500 Index fell 101.38 points, down 1.60%, to 6,238.01.

【European Stocks】 Germany's DAX30 index fell 661.60 points, down 2.75%, to 23,422.47; the UK's FTSE 100 index fell 63.56 points, down 0.70%, to 9,069.25; France's CAC40 index fell 225.81 points, down 2.91%, to 7,546.16; and the European Stoxx50 index fell 151.97 points, down 2.86%, to 5,167.95.

【Asian Stocks】 Japan's Nikkei 225 index fell 0.66%; South Korea's KOSPI index fell 3.88%; and Indonesia's Composite Index rose 0.71%.

【Currency】 The US dollar index fell 0.83%, closing at 99.139.

【Commodities】

【Cryptocurrencies】 Bitcoin fell over 1.7%, to $113,760; Ethereum fell over 4.6%, to $3,524.49.

【Macroeconomic News】

US July Employment Growth Slows Sharply, Unemployment Rate Rises to 4.2%. US July employment growth slowed sharply, while the previous month's data was revised downward by 25.8 million jobs, indicating a significant cooling in the labor market. The Labor Department released its non-farm employment report on Friday, showing that 7.3 million new jobs were added in July, with June's data being revised from an initial estimate of 14.7 million to 1.4 million. Economists had predicted a growth rate of 11 million.

US Consumer Confidence Index Rises to 5-Month High. Benefiting from the stock market rally and optimism about the economy, US consumer confidence rose to its highest level in five months. The University of Michigan's consumer sentiment index ended July at a five-month high.

US Manufacturing Continues to Slump, Factory Employment Rate Hits 5-Year Low. Due to tariffs and supply chain disruptions, the US manufacturing sector has continued to slump, with factory employment rates hitting a five-year low. The ISM's manufacturing index fell to 48.0 in July from 49.0 in June.

Trump: Labor Secretary Has Been Fired; Powell Should "Retire" Too. US President Trump tweeted that he had instructed his team to immediately fire the labor secretary, Erika McEntarfer, who was appointed by former President Biden and is responsible for manipulating employment data. The president stated that the Labor Department's job growth figures were exaggerated by 81.8 million in March 2024 and then revised upward again in August and September.

Fed Chairman Powell: Job Report "Disappointing" But Doesn't Mean We Should Cut Interest Rates This Week. Federal Reserve Vice Chair Lael Brainard, in an interview with Bloomberg, said that the job report was "disappointing" but did not imply that the Fed should cut interest rates this week. She emphasized that the labor market is still relatively balanced.

Trump: Two Nuclear Submarines to be Deployed in Relevant Regions. US President Trump tweeted that he had ordered two nuclear submarines to be deployed in relevant regions, citing Russian Vice President Medvedev's provocative remarks. The president stated that these words were not just empty threats and that the US needed to take action to prevent any potential consequences.

【Individual Stock News】

Google (GOOGL.US, GOOG.US) Releases IMO 2025 Gold Medal Model Gemini 2.5 Deep Think, Outperforms GPT-5. Google announced the release of Gemini 2.5 Deep Think, a variant of its internal model that was awarded the IMO 2025 gold medal and has been optimized to be faster and more mathematically proficient than the original GPT-5. This feature is now available in the Google AI Ultra subscription version.