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AI startup Hark announced a multi-year partnership with NVIDIA to advance personalized intelligent agent AI based on gigawatt-scale computing.

The Kansas City Fed Manufacturing Composite Index for August was 10, down from 9 in the previous month.

1. Trump is paying a political price – the war with Iran is becoming increasingly unpopular, with Trump's approval rating dropping from 40% to 33%, and only 31% of Americans supporting the conflict. High oil and commodity prices are also putting pressure on the Republican Party in the November midterm elections, with the party increasingly divided between those demanding an immediate end to the war and those advocating continued pressure on Iran. 2. The global economy has suffered a limited impact: the disruption of shipping through the Strait of Hormuz, which carries about one-fifth of the world's energy supply, has driven up oil prices and triggered recession fears. The IMF has twice lowered its global growth forecast, predicting global economic growth of 3.0% this year, but strong consumption, investment, and the AI ​​boom are helping the global economy weather the shock. 3. Iran has been severely damaged but still has the ability to retaliate: the US military claims to have destroyed 161 Iranian naval vessels and disabled 82% of Iran's air defense system, but Iran still possesses drones and missiles and is capable of attacking ships and US military facilities. Iran's economy has also been damaged, with food inflation reaching 128% in July. 4. Deteriorating security situation in the Middle East: Iran launched missile and drone attacks on US Gulf allies and disrupted shipping; related blockades in the Red Sea have also driven up insurance and transportation costs, disrupted supply chains, and increased uncertainty throughout the Gulf region. 5. The status of Iran's nuclear capabilities remains unclear: US-Israeli attacks severely damaged three known Iranian nuclear facilities and resulted in the deaths of several nuclear scientists. US intelligence assessments suggest that Iran's production time to produce enough fissile material has increased from six months to approximately one year. However, the International Atomic Energy Agency cannot confirm the current location of approximately 440 kilograms of 60% enriched uranium. 6. The readiness of the US military has been weakened: The US military has lost 42 military aircraft in the war, and some of its precision-guided missile stockpiles are nearing depletion. As of July, the United States had used approximately 65% ​​of its Patriot interceptor missiles, and its THAAD interceptor missile stockpile had decreased by at least 38%.

The Stoxx Europe 600 index is on track for its biggest one-day drop in a month, having fallen as much as 0.95%.

Federal Reserve Chairman Hammarck: The Treasury has its own objectives, and the Federal Reserve System will operate independently to achieve those objectives.

U.S. EIA natural gas storage for the week ending August 21 was 15 billion cubic feet, below the expected 20 billion cubic feet and the previous week's 16 billion cubic feet.

Federal Reserve's Hamack: Accountability means discussing the economic situation and providing information to the public.

Federal Reserve official Hamak: I think the neutral interest rate is too high compared to other Federal Reserve officials.

Federal Reserve's Hamack: In the financial environment, I do not see any policy constraints at the moment.

Federal Reserve's Hamack: The situation of exceeding targets persists, and the market remains uncertain about the impact of the shock.

Federal Reserve's Hamak: The Fed's action to lower inflation was appropriate.

Federal Reserve's Hammarck: I do not believe that the Fed's policies will restrict the economy.

Federal Reserve's Hamack: Given persistent inflation, now is the time to take action.

California Attorney General: Following the settlement with Meta, we communicated with Snap regarding related issues and are also very interested in YouTube. We hope these companies will sit down and commit to future changes.

Market news: Iranian President Pezechzian met with Iran's newly appointed ambassadors to South Korea, Belarus, the Czech Republic, Kazakhstan, and Singapore.

[Alphabet Falls 15% from Peak, AI Advantage Questioned by Market] For most of the past year, Alphabet (GOOG.O) was one of the most sought-after large-cap tech stocks, with investors betting it would be the most likely winner in the artificial intelligence boom. On May 13, Alphabet's stock price rose 3.9%, hitting an all-time high. In the previous year, the stock had surged over 150%, ranking among the top 25 performing stocks in the S&P 500 and far outperforming other companies in the "Big Seven" tech giants. However, this momentum subsequently reversed, due to concerns about talent drain at Google's parent company and anxieties about the company's waning dominance in artificial intelligence. The stock fell 15% from its peak, wiping out $692 billion in market capitalization and becoming the second-largest drag on the S&P 500 during the same period. The core reason for this sell-off is that Alphabet's position in the AI ​​race has suddenly become less secure. The company's massive investments in AI development infrastructure and the delayed release of its new Gemini AI model have both dampened investor confidence.

[Musk, Huang, and Altman to Speak at G20 Technology Summit Next Week] According to sources, SpaceX CEO Elon Musk and former White House AI chief David Sachs plan to speak at a technology-focused G20 ministerial meeting in North Carolina next week. Nvidia CEO Jensen Huang and OpenAI CEO Altman will also be in attendance. The event, organized by White House Office of Science and Technology Policy Director Jesse Kratsios and Commerce Secretary Rutnick, is part of a prelude to the G20 summit in December.

[Middle Eastern Oil Producers Increase Exports, Hormuz Crude Oil Transport Gradually Resumes] Middle Eastern oil-producing countries are increasing exports, and crude oil traffic through the Strait of Hormuz is gradually recovering. This increase is curbing global crude oil price increases. Oil traders involved in and monitoring freight activity estimate that approximately 6 to 8 million barrels of crude oil are currently passing through this key global oil transport route daily. In July, crude oil traffic declined due to the breakdown of the temporary ceasefire caused by a series of Iranian attacks on supertankers, increasing navigational risks. Current transport volumes are still about half of pre-war levels. However, estimates from various parties can differ significantly and fluctuate considerably. Vortexa estimates that crude oil transport through the Strait of Hormuz averages 10 million barrels per day, and US officials have also given higher estimates. The British Navy stated that two cargo ships were attacked on Monday, a reminder that ships still face significant risks when passing through the strait. One factor driving the continued recovery in transport volumes is the record-high freight rates in the supertanker market, which further increases the incentive for shipowners to risk transiting the strait.

[US Capital Goods Imports Hit Highest Since 1993 Amid AI Boom] According to foreign media reports, US merchandise imports rose 3.7% in July. The growth was primarily driven by capital goods, which saw the highest increase since 1993. This category includes computers and accessories, semiconductors, and telecommunications equipment. Imports of artificial intelligence-related equipment have remained strong in recent months. Data also shows that both imports and exports of industrial goods declined in July. This category includes crude oil and petroleum products, as well as non-monetary gold, the latter having contributed to trade volatility over the past year.

Shares of US cloud computing companies rose, with Nebius (NBIS.O) up 5% and Coreweave (CRWV.O) up 2.6%.