Feng Huang Wang Cai Jing·2025-08-21 23:17Market Performance - The three major U.S. stock indices experienced slight declines, with the S&P 500 down 0.4%, the Dow Jones down 0.34%, and the Nasdaq down 0.34% [1] - Major tech stocks mostly fell, with Tesla and Meta dropping over 1%, while Apple, Microsoft, Nvidia, Netflix, Amazon, AMD, and Intel saw slight declines; Google experienced a small increase [1] - Popular Chinese concept stocks mostly rose, with the Nasdaq Golden Dragon China Index up 1.35%. Xpeng Motors surged nearly 12%, NIO rose over 9%, and several others saw gains of over 6% [1] Federal Reserve and Market Sentiment - The market is highly focused on the future monetary policy direction of the Federal Reserve, with traders betting on a significant 50 basis point rate cut in September [2] - There are 325,000 options contracts betting on a 50 basis point cut, with a potential profit of $100 million if the Fed follows through [2] - Many market participants believe that a weak U.S. job market has opened the door for a more dovish statement from Powell at the upcoming Jackson Hole conference [2] Political Influence on Federal Reserve - Trump is pushing to remove Federal Reserve Governor Lisa Cook, which could allow him to gain majority control over the seven-member board [4] - If successful, this move would enhance the White House's influence over the Fed, which has faced ongoing criticism from Trump regarding its monetary policy decisions [4] - Analysts suggest that this is part of the current administration's broader strategy to exert control over the Federal Reserve [5]