The sharp drop in the US dollar has led to a surge in the value of the Chinese yuan.

The United States’ weak data, the Bank of England’s rate cut, and the escalation of geopolitical conflicts in the Middle East have led to a surge in investors’ risk-avoidance sentiment. U.S. AI stocks, chip stocks, and technology stocks have plummeted, while U.S. Treasury bonds, gold, and the Japanese yen have risen during the session due to demand for risk avoidance.

The U.S. labor market continues to cool down, with multiple indicators suggesting a return to pre-pandemic levels. The number of first-time jobless claims in the United States for the week ending July 27 was 249,000, higher than the expected 236,000 and the previous 235,000. The rebound to the highest level in a year adds to the benefits of a rate cut. The United States’ data adds further signs of economic slowdown, with the U.S. July ISM Manufacturing PMI at 46.8, significantly lower than the market’s expectation of 48.8 and the June previous value of 48.5. The contraction rate is the largest in eight months, intensifying market concerns about a U.S. economic recession and significantly impacting U.S. stocks, with the public utility sector, which offers high dividends, leading the gains.

After the data was released, the yield on the 10-year U.S. Treasury bonds fell below 4% for the first time since February, and the main U.S. stock indexes turned to a decline. Traders believe that the economic data supports the Federal Reserve cutting interest rates three times within the year, with a total of 75 basis points, the possibility of which is 100%.

Intel’s financial report was a bombshell after the market closed, plunging by 20%, and for the first time in 32 years, it suspended dividend payments. Apple’s third-quarter revenue in Greater China fell more than expected, causing a drop of more than 1% after the market closed, and Amazon’s second-quarter revenue and guidance for the next quarter were not good, causing a drop of more than 5% after the market closed.