The U.S. plans to ban imports of new types of Chinese data center components, sparking a sharp rally in the U.S. optical communications sector, with AAOI surging more than 18%.

Wintermute noted in a post that the Federal Reserve held the federal funds rate steady last week, helping stabilize U.S. equities, in part due to the completion of large forced sell-offs. Leveraged AI fund Situational Awareness sold its disclosed holdings to Citadel at a discount. After AI infrastructure longs were crushed and AI software shorts were squeezed, chip stock sell-offs had become self-reinforcing, but the handover of positions allowed the market to absorb the Fed’s hawkish hold. The crypto market was relatively resilient: Strategy once again sold Bitcoin to cover preferred stock dividends, a firmware vulnerability in Coldcard led to the theft of large Bitcoin holdings from users, and altcoins continued to be offloaded. The sequence of U.S. equities releasing pressure first and crypto markets following aligned with prior assessments; major cryptocurrencies pulled back less than 4% amid multiple shocks, indicating marginal selling pressure is nearly exhausted. Heavy positioning to bet on a strong rebound remains inadvisable, but holdings and options data suggest some market participants may have been caught off guard by a short-term technical rally. This week, focus will be on ISM services and non-farm payrolls data; the Jackson Hole Symposium is the last clear signaling window from the Federal Reserve ahead of the September rate decision. Institutional OTC spot trading volume has risen to a record 72%, with liquidity further concentrating in mainstream assets.

According to foreign media reports on the 4th, citing a senior Iranian source, Iran and Oman are discussing a plan to reopen shipping through the Strait of Hormuz, with Iran aiming to control inbound shipping transiting the strait under this plan.

BlackRock Investment Institute believes the Federal Reserve may refrain from raising interest rates, but this will have limited effect on curbing the rise in U.S. long-term Treasury yields. Wei Li, chief investment strategist at BlackRock Investment Institute, stated, "We actually think the Fed may keep rates on hold." She pointed out that during the tenure of Federal Reserve Chair Powell, policy uncertainty will continue to spark investors' concerns about future financing costs, thereby keeping long-term Treasury yields under persistent pressure.

CME’s July contracts trading volume set a new record of 27 million, rising 23% year-over-year.

According to a document from the European Commission, Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) and a consortium of investors have secured EU approval under the bloc’s foreign subsidy rules to acquire global video game giant Electronic Arts (EA) for $55 billion. In another regulatory filing submitted last Thursday, EA confirmed it had obtained all required regulatory approvals by July 30 and expects the deal to close on August 4. In September 2025, EA announced it had reached a definitive agreement to be acquired by the consortium of PIF, Silver Lake, and Affinity Partners in an all-cash transaction valuing the company at roughly $55 billion. Turqi Alnowaiser, PIF’s vice president and head of international investments, stated that PIF holds a unique position in the global gaming and esports sectors and is committed to building and supporting ecosystems connecting players, developers, and IP creators. EA called the transaction the largest all-cash privatization acquisition in history. The buyers include Saudi Arabia’s PIF, U.S.-based Silver Lake, and Affinity Partners. Affinity Partners is an investment firm founded in 2021 by Jared Kushner, former U.S. President Donald Trump’s son-in-law, which has received substantial funding from Saudi Arabia; Silver Lake is a technology-focused investment firm. As such, the EA acquisition is almost entirely led by Saudi capital.

Bitcoin hardware wallet manufacturer Coldcard has released an official emergency notice, requiring users to transfer their funds immediately. The notice instructs users to follow model-specific official recommendations: upgrade the device firmware, generate a new mnemonic phrase, and carefully migrate funds to a secure address. The threat remains ongoing.