U.S. stocks experience a brief cooldown, the crypto market sees a pullback, and the global market awaits Nvidia's earnings report.

After last Friday's strong rise, global stock markets entered a consolidation phase this Monday, with investor sentiment turning cautious and focus shifting to the upcoming earnings report from NVIDIA. Meanwhile, the crypto assets market experienced a significant pullback, with Ethereum and Bitcoin both retreating from their highs, highlighting the market's sensitivity to macroeconomic signals. This article will provide an in-depth analysis of the latest developments in major global markets, including US stocks, Asian stocks, European stocks, as well as commodities and crypto assets, offering investors a comprehensive market overview.

US stocks briefly pull back, Nvidia's earnings report becomes the market focus

The stock market frenzy from last Friday seems to have come to an abrupt halt on Monday. U.S. stock index futures are all down, with Dow Jones futures falling by 99 points, a decrease of 0.2%; S&P 500 and Nasdaq 100 futures also dipped slightly by 0.2% and 0.3%, respectively, ending last week's brief euphoria.

Looking back at last Friday, the Dow Jones Industrial Average surged by 846.24 points, an increase of 1.89%, closing at 45,631.74 points; the S&P 500 index rose by 1.52%, closing at 6,466.91 points, just 3 points away from its all-time high; while the Nasdaq Composite Index, driven by optimism in tech stocks, rose by 1.88%, closing at 21,496.53 points. However, the market cool-down on Monday showed that investors chose to take profits and remain cautious ahead of key earnings reports.

Crypto Assets face a heavy pullback: ETH and BTC high position pullback

Unlike the slight adjustments in traditional stock markets, the Crypto Assets market has experienced more severe fluctuations. After reaching a historic high of $4,954, Ethereum plummeted 5% on Monday, falling back to $4,588. Bitcoin also did not escape, with its price dropping over 1% to $111,501.

During the weekend, Bitcoin briefly fell to $110,779.01, hitting a new low since July 10, far below its historical high of $124,496 reached on August 13. The decline in the two major Crypto Assets primarily stemmed from traders digesting comments made by Federal Reserve Chairman Jerome Powell. Powell hinted at a potential rate cut, which briefly boosted risk assets but subsequently led to large-scale liquidations. According to CoinGlass data, over $245 million in Ethereum long positions and $175 million in Bitcoin long positions were liquidated in the past 24 hours, revealing the vulnerability of leveraged trading in the crypto market.

Asian stock markets rise against the trend, led by tech stocks

Despite the general weakness in the European and American markets, the Asian stock markets have risen against the trend, continuing their strong upward momentum. The CSI 300 index in mainland China rose by 2.08%, closing at 4,469.22 points, achieving a fourth consecutive trading day of gains and hitting a 37-month high during the trading session.

The Hong Kong Hang Seng Index also rose by 1.94%, closing at 25,829.91 points, close to a four-year high. Zijin Mining and NetEase surged by 6.38% and 6.04% respectively, showing impressive performance. The Hang Seng Tech Index soared by 3.14%, with the new car-making force Nio skyrocketing by 15.17%, and semiconductor manufacturer ASM Pacific Technology (ASMPT) also rising by 7.6%. In addition, the Taiwan Weighted Index, South Korea's Composite Index, and the Nikkei 225 Index all recorded gains, indicating a general optimism in the Asian market, particularly notable in the tech sector.

European market is weak, with mixed performance in commodities and foreign exchange markets

In contrast to the strong performance in Asia, European stock markets generally fell. The STOXX 600 index dropped by 0.3%, while Germany's DAX index and France's CAC 40 index both fell by around 0.5%. The UK market is closed due to a public holiday.

In terms of exchange rates, market signals are mixed. The euro fell 0.1% against the dollar to $1.1701. Meanwhile, boosted by a weaker dollar, the RMB to USD exchange rate reached a new high in nearly a month.

In the commodities sector, precious metals generally retraced some of last Friday's gains. The spot price of gold fell by 0.3% to $3,362.56 per ounce; silver, platinum, and palladium also declined respectively. U.S. Treasury yields climbed again, with both the 10-year and 2-year Treasury yields rising slightly, reflecting changes in market expectations regarding inflation and monetary policy.

Conclusion:

The global market has started this week with a complex sentiment. The US stock market has entered a wait-and-see phase ahead of tech giants' earnings reports, while the Asian market continues to show strong growth momentum. The crypto assets market has experienced significant volatility, reminding investors of the fragility of risk assets under macroeconomic uncertainty. In the coming week, the market's direction will largely depend on NVIDIA's earnings performance and further policy signals from the Federal Reserve.