Written by: Tide Research

On Tuesday, US stocks faced the first trading day after Labor Day, with all three major indices closing lower. The Dow Jones fell 1.18% to 52786.07 points, dropping over 600 points; the S&P 500 fell 0.58% to 7673.52 points; and the Nasdaq fell 0.32% to 26421.410 points. The main factors pressuring the market are the combined effects of geopolitical risks and inflation concerns. The US military struck targets near Iran's Khark Island, including Iranian oil tankers; multiple energy facilities in Saudi Arabia were attacked by Yemen's Houthi forces. The main Brent crude oil contract rose 2.46% to $99.39 per barrel, briefly nearing $100 at one point. However, the chip sector performed independently, with Intel soaring 9.05%, AMD rising nearly 6%, and the Philadelphia Semiconductor Index increasing by 1.3%. Apple's fall product launch event is scheduled for 1 AM Beijing time on September 10, with the first foldable iPhone expected to make its debut. This Thursday, the US August CPI data will determine the direction of interest rate hike expectations for September.

The US military attacks Iranian oil tankers, and Brent oil approaches $100

Geopolitical risks were the main pressure factor on Tuesday. The US military struck targets near Iran's Khark Island, including Iranian oil tankers. In response, the Iranian Revolutionary Guard Navy stated that related ships would become targets in retaliation for the US attack on Iranian tankers. Meanwhile, multiple energy and public facilities in Saudi Arabia were attacked by the Houthi forces in Yemen, leading to fires in several locations and temporary interruptions in the operation of some facilities.

As a result, international oil prices continued to rise. The main Brent crude oil contract rose 2.46% to $99.39 per barrel, briefly approaching $100; the main WTI crude oil contract rose 1.67% to $94.25 per barrel.

Intel soars 9%, leading the chip sector, with funds concentrating on AI hardware

Under market pressure, the chip sector performed independently. Intel surged 9.05%, reportedly planning to increase PC CPU prices by 10%. AMD rose nearly 6%, while the Philadelphia Semiconductor Index increased by 1.3% against the trend.

The optical communication sector saw a broad breakout, with Lumentum rising over 11% and Corning up over 7%. Funds are shifting from macro-sensitive assets to clearer industrial logic in AI hardware and chip sectors.

Among the seven tech giants, Tesla rose 3.98% to lead; Nvidia fell 2.01%; and Apple dropped over 1%. The Wind US Tech Seven Index fell 0.74%.

Most Chinese concept stocks declined, with the Nasdaq China Golden Dragon Index down 1.7%.

US Treasury yields rise, inflation concerns suppress valuations

Soaring oil prices have reignited inflation concerns, leading to higher US Treasury yields. The 2-year US Treasury yield rose by 2.72 basis points to 4.394%; the 10-year US Treasury yield is around 4.79%.

Traders are closely watching this week's CPI data. Federal Reserve Governor Waller has previously stated that the August inflation data will "greatly influence" the voting for the September interest rate meeting.

Today's focus

US Treasury long-term bond repurchase. The repurchase announcement is expected to be released at 11 PM tonight, targeting 10 to 20-year existing treasury bonds. Morgan Stanley calculates that $10 billion is roughly the maximum of the Treasury's current operations. The size of the repurchase will directly affect long-term interest rate trends.

Apple's fall product launch event. New CEO Turnas's first appearance, the event will take place at 1 AM Beijing time on September 10, with market attention on whether the first foldable iPhone Ultra will officially debut.