On Friday, the three major US indices rebounded after three consecutive days of decline. US August PCE inflation data largely met expectations, with the Personal Consumption Expenditures Price Index (PCE) - the Federal Reserve's preferred inflation gauge - showing core inflation (excluding food and energy costs) rising 2.9% year-over-year on a seasonally adjusted basis. For the week, the Dow fell 0.15%, the S&P 500 declined 0.31%, and the Nasdaq Composite dropped 0.65%.

**US Stocks** At market close, the Dow gained 299.97 points or 0.65% to 46,247.29; the Nasdaq rose 99.37 points or 0.44% to 22,484.07; and the S&P 500 advanced 38.98 points or 0.59% to 6,643.70.

**European Stocks** Germany's DAX 30 climbed 216.66 points or 0.92% to 23,738.08; the UK's FTSE 100 gained 71.76 points or 0.78% to 9,285.74; France's CAC 40 rose 75.26 points or 0.97% to 7,870.68; the Euro Stoxx 50 advanced 54.76 points or 1.01% to 5,499.65; Spain's IBEX 35 surged 218.00 points or 1.44% to 15,354.50; and Italy's FTSE MIB gained 394.51 points or 0.93% to 42,637.00.

**Oil** November delivery light crude futures on NYMEX rose 74 cents or 1.14% to $65.72 per barrel; November Brent crude futures increased 71 cents or 1.02% to $70.13 per barrel.

**Cryptocurrencies** Bitcoin fell 0.54% to $109,663.2; Ethereum surged over 4% to $4,034.97. The cryptocurrency market shed approximately $300 billion in market capitalization this week due to a wave of leveraged bet liquidations. This volatility severely impacted leading tokens while dragging market sentiment to its weakest level since early summer. In the crypto perpetual futures market, billions of dollars in bullish bets were forcibly liquidated, further accelerating the selloff. Data compiled by Coinglass shows cumulative long position liquidations across exchanges exceeded $3 billion. Some traders warn that the true scale of current market leverage remains opaque as most trading platforms don't disclose complete liquidation data.

On Friday, a report showing key inflation indicators slowed last month provided some buffer for the Federal Reserve to address cooling labor markets, improving overall risk sentiment and causing Bitcoin and Ethereum prices to recover slightly. Paul Howard, Senior Director at market maker Wincent, described the pullback as a "healthy correction." He noted that while Bitcoin fell below its 100-day moving average and total digital asset market cap retreated below $4 trillion, there are no signs of panic yet. However, he warned that short-term pressures could continue to drive prices lower - especially given that digital asset prices are now more closely correlated with macro market sentiment compared to earlier this year.

**Precious Metals** COMEX gold futures rose 0.63% to $3,794.90 per ounce, gaining 2.37% for the week; COMEX silver futures climbed 7.89% to $46.340 per ounce.

**Foreign Exchange** The US Dollar Index declined on the 26th. The index measuring the dollar against six major currencies fell 0.41% to close at 98.152 in late trading. At the New York market close: 1 euro traded at 1.1704 dollars, up from 1.1653 the previous day; 1 pound bought 1.3410 dollars, up from 1.3335; 1 dollar bought 149.44 yen, down from 149.89; 1 dollar bought 0.7975 Swiss francs, down from 0.8004; 1 dollar bought 1.3937 Canadian dollars, down from 1.3943; and 1 dollar bought 9.4041 Swedish kronor, down from 9.4766.

**Macro News** Sources: Trump Administration Plans to Tax Foreign Electronics by Chip Count. According to Reuters, three sources revealed that the Trump administration is considering imposing tariffs on foreign electronic devices based on the number of chips in each device, aimed at incentivizing companies to shift production to the US. This previously unreported plan could still change. Under the proposal, the Commerce Department would impose tariffs equivalent to a percentage of the estimated chip content value in imported products. If implemented, this would demonstrate the Trump administration's attempt to influence various consumer products from toothbrushes to laptops.

White House Clarifies Drug Tariff Exemption Scope: EU and Japan Still Enjoy Agreement Benefits. A White House official revealed that Trump's new tariff policy on drug imports will not apply to countries with existing agreements containing pharmaceutical provisions, providing promised tariff relief for economies including the EU and Japan. The official stated Friday that under US-EU framework agreement terms, tariffs on EU drug imports will be capped at 15%. The official added that Japanese pharmaceuticals will also be taxed at rates specified in the US-Japan agreement.

Trump said Thursday that the US would impose 100% tariffs on "any brand-name or patented drug" unless the company is building a pharmaceutical plant in the US, with "building" defined as "already broken ground or under construction." This sudden announcement lacked details, causing some foreign capitals to question whether their agreements with Washington still apply to the new drug tariff policy.

Fed Governor Bowman Advocates Treasury-Only Holdings, Monetary Policy Reform. Fed Governor Bowman stated the Federal Reserve should seek the smallest possible balance sheet size and comprehensively reform its monetary policy implementation mechanisms. Bowman said: "In the long term, I favor maintaining the smallest possible balance sheet, with reserve balances near scarce rather than ample levels." She believes returning to active Fed balance sheet management would better reveal market pressures and operational issues. Bowman noted: "Allowing moderate volatility in money markets can enhance our understanding of market clearing points." She also expressed support for the Fed's balance sheet holding only Treasuries, with durations slightly favoring shorter-term securities rather than fully matching overall market duration structures. This would provide the Fed greater flexibility, she said. Bowman added that the Fed should consider actively selling its mortgage-backed securities (MBS) holdings.

Government Shutdown to Delay September Jobs Report, Fed Meeting Faces Data Gap. According to the Department of Labor's contingency plan released earlier this year, the September employment report scheduled for next Friday will face delays if the federal government shuts down. The specific impact scope remains unclear as most agencies, including the Bureau of Labor Statistics responsible for monthly employment reports, have not publicly updated contingency plans - these would govern operations if Congress fails to pass spending legislation by next Tuesday. A Labor Department plan updated last March shows that all data collection and scheduled releases would halt during a shutdown. Extended government shutdown and delayed BLS data releases would leave the Fed without key employment and inflation data before its October 28-29 policy meeting, undoubtedly increasing policymaking risks.

US Tariffs Impact Canadian Steel Output and Exports Fall in July. Statistics Canada released data on the 26th showing Canada's steel and related manufacturing industry output and exports both declined sharply in July due to continued US high tariff policy impacts. Data shows that since March when the US imposed 25% tariffs on all imported steel and aluminum, Canadian steel and ferroalloy manufacturing output fell 24.8% in July compared to February; after the US increased tariff rates to 50% in June, the industry's output contracted 19.1% in July alone, the largest monthly decline this year. For exports, Canadian unwrought steel and ferroalloy exports fell 25.5% in July compared to February; basic and semi-finished steel product exports declined even more sharply by 34.4% compared to February.

**Individual Stock News** Apple (AAPL.US) Develops ChatGPT-Like Tool, Betting on March Breakthrough. Sources reveal Apple has developed a ChatGPT-like iPhone application to help test and prepare for next year's highly anticipated major Siri upgrade. Sources say Apple's AI division is using the app to rapidly evaluate new Siri voice assistant features, including testing its ability to search personal data (like songs and emails) and perform in-app operations like photo editing. The software, codenamed "Veritas" (Latin for "truth"), is currently for internal use only. Apple has no plans to release the app to consumers. Essentially, the app presents still-developing new Siri technology in a form employees can test more efficiently. After multiple delays, the new Siri will debut as early as March next year. If the software performs as promised, it could help Apple stage a comeback in artificial intelligence. Poor performance could leave the company further behind smartphone competitors like Alphabet's Google and Samsung Electronics.

White House Push Helps Boeing (BA.US) Secure Major Orders, Financial Recovery Hinges on Capacity Increases. Data shows Boeing has recently secured substantial aircraft orders, partly due to White House promotion during tariff negotiations. Trump has consistently viewed Boeing as a core driver of aerospace exports - one of the few industries where the US maintains a trade surplus. However, Boeing's financial recovery doesn't depend on securing more orders or expanding its backlog. The aircraft manufacturer's core focus is on increasing production capacity and completing certification for new models including the 777X and 737 Max 10. Capacity increases would not only generate cash flow but also deliver aircraft to airlines forced to extend aging aircraft service lives far beyond expectations. Increased production of models including the 787 "Dreamliner" would solve most of Boeing's current problems. The next two to three years are "make-or-break" for Boeing: smooth capacity increases would soon bring abundant cash flow, but any obstacles or accidents would be fatal setbacks.

**Analyst Ratings** Morgan Stanley: Lowered Costco (COST.US) target price from $1,225.00 to $1,130.00; raised Microsoft (MSFT.US) target price from $582.00 to $625.00.