All Three Major U.S. Stock Indices Closed Lower

On August 5 local time, all three major U.S. stock indices closed in the red. Data showed that by the close, the Dow was down 0.14%, the S&P 500 fell 0.49%, and the Nasdaq declined 0.65%.

Most major U.S. tech stocks fell, with the "Magnificent Seven" index dropping 0.66%. Individually, Meta and Microsoft fell over 1%, while Nvidia and Apple saw slight declines. Amazon rose nearly 1%.

Chinese stocks were mixed, with the Nasdaq Golden Dragon China Index down 0.56%. Among popular Chinese stocks, Ascentage Pharma surged over 12%, and Zhihu rose over 6%. Huhu Tech International plunged over 11%, and Yum China dropped over 6%.

Data from the Institute for Supply Management (ISM) showed the U.S. July ISM Non-Manufacturing PMI fell to 50.1, below the market expectation of 51.5. The employment index dropped to 46.4, marking its fourth contraction in the past five months.

CICC (601995) noted that U.S. stocks still face turbulence in Q3. The sharp downward revision of July’s non-farm payroll data triggered declines, and amid high floating profits and prolonged historical highs, the market’s first reaction was concerns over a "recession" and profit-taking. Meanwhile, interest rate cuts may not come as quickly as expected and could face repeated delays.

International Precious Metals Futures Mostly Rose

On August 5 local time, international precious metals futures mostly closed higher. The COMEX gold futures main contract rose 0.25% to $3,435/oz, while the COMEX silver futures main contract climbed 1.36% to $37.835/oz.

The main U.S. crude oil contract fell 1.69% to $65.17/barrel, while Brent crude’s main contract dropped 1.54% to $67.7/barrel.

Huayuan Securities stated that, in the long term, the "rate-cut trade" theme will continue to drive momentum in 2025, and central bank gold purchases will provide strong bottom support for gold prices, ensuring ample upward potential.