All stocks rose in the early morning! Big announcement from the Federal Reserve! U.S. tech giants soar
“AI trading” in U.S. stocks returns. Last night and this morning, the U.S. stock market continued its rise. The S&P 500 index closed close to a record high, and technology stocks led the gains. SK Hynix ADR surged more than 12% on its first day of listing, Meta surged nearly 6%, and Nvidia surged more than 4%. AI trading is back at the center of the market. At the same time, the latest semi-annual report released by the Federal Reserve has also attracted market attention. The report pointed out that the impact of tariffs continues to ferment, the conflict in the Middle East pushes up energy prices, and the construction of AI infrastructure drives a surge in demand, which together push up inflationary pressure.
“AI trading” in U.S. stocks returns. Last night and this morning, the U.S. stock market continued its rise. The S&P 500 index closed close to a record high, and technology stocks led the gains. SK Hynix ADR surged more than 12% on its first day of listing, Meta surged nearly 6%, and Nvidia surged more than 4%. AI trading is back at the center of the market. At the same time, the latest semi-annual report released by the Federal Reserve has also attracted market attention. The report pointed out that the impact of tariffs continues to ferment, the conflict in the Middle East pushes up energy prices, and the construction of AI infrastructure drives a surge in demand, which together push up inflationary pressure. The report makes it clear that all available tools will be used to achieve the dual mission of full employment and price stability. All three major U.S. stock indexes rose across the board On July 10, Eastern Time, the three major U.S. stock indexes continued to strengthen. As of the close, the Dow rose 0.29%, the Nasdaq rose 0.29%, and the S&P 500 rose 0.42%. Large-scale technology stocks rose or fell, with Meta rising nearly 6%. Research institution SemiAnalysis gave a positive evaluation of Meta's AI computing infrastructure; Nvidia rose more than 4%, Microsoft and Tesla closed slightly higher; SpaceX fell more than 4%, and Apple, Google, and Amazon closed slightly higher. South Korean memory chip giant SK Hynix ADR performed well on its first day of listing, rising nearly 19% during the session, and finally closed up by more than 12%. At the same time, most U.S. storage concept stocks also strengthened. SanDisk rose by more than 3%, Seagate Technology rose by more than 2%, Western Digital rose by 0.78%, and Micron Technology fell by 1.24%. Some analysts pointed out that the listing of SK Hynix's ADR strengthened the US stock market's confidence in the continued expansion of AI computing infrastructure investment. SK Hynix CEO Kwak Noh-Jung said in an interview after the issuance of American depositary receipts that the global memory chip industry is heading towards the most serious supply shortage in history, and 2027 is expected to be the year with the tightest supply in the industry. Although the company is actively expanding production capacity, he predicts that memory chip demand will continue to exceed the company's production capacity until after 2030. Kwak Noh-Jung revealed that customers are signing long-term contracts because they believe the shortage will last longer. He also said that he does not rule out the possibility of establishing a memory chip manufacturing base in the United States, but the location must meet the company's standards in terms of power, water resources and talent. SK Group Chairman Choi Tae-won said in an interview that demand will grow exponentially in the future, and hinted that if the company can achieve strong enough returns and attract more investor demand, it does not rule out the possibility of further issuance of U.S. stocks. He also revealed that SK Hynix is considering launching a "memory as a service" business model that allows customers to rent storage resources instead of purchasing chips directly to solve the AI-related memory capacity bottleneck. The Federal Reserve's semi-annual report is released On July 10, Eastern Time, the Federal Reserve’s official website released its semi-annual monetary policy report, which warned that U.S. inflation will rise further this spring. It also reiterated its commitment to maintaining price stability and made it clear that it will use all available tools to achieve its dual mission goals. It is worth mentioning that the Federal Reserve proposed "another way of looking at inflation" in its report. By excluding "some of the effects of abnormal price movements," the censored average annual PCE inflation rate compiled by the Dallas Fed fell to 2.4% in May from 2.6% last May. The report shows that the impact of U.S. tariff policies continues to ferment, conflicts in the Middle East push up energy prices, and AI infrastructure construction drives a surge in demand, which together push up U.S. inflation pressure. The report pointed out that the Fed's preferred personal consumption expenditures (PCE) price index was still about twice the 2% target as of May this year. This is the first monetary policy report released by new Federal Reserve Chairman Kevin Warsh after taking office. According to the schedule, Warsh will appear at House of Representatives and Senate committee hearings next Tuesday and Wednesday respectively to accept a mid-year review of monetary policy. The report pointed out that AI-related data center investment has promoted strong growth in factory output, U.S. production capacity is increasing at a "steady pace," and labor productivity growth has also remained strong.
The report also lists AI infrastructure construction as one of the factors driving up inflation. The reason is that AI construction continues to have strong demand for electricity, chips and other materials, which has created price pressure in the near future. Goldman Sachs economist Megan Peters calculated in the latest report that the triple effects of AI-driven memory price surges, software price increases, and electricity price increases have now increased the U.S. core PCE year-on-year inflation rate by more than 0.2 percentage points, and this contribution is expected to rise to 0.5 percentage points by the end of the year. In terms of employment, the report pointed out that the labor market has stabilized and supply and demand are roughly balanced. The unemployment rate in June was 4.2%, which is still at a low level. The report clearly commits the Federal Reserve to maintaining price stability and expresses its readiness to use a full set of tools to achieve the dual mission of full employment and price stability, especially when the federal funds rate is constrained by an effective lower limit. The report also pointed out that the growth of foreign economic activities in the first half of 2026 was weak, mainly affected by the headwinds caused by the conflict in the Middle East and US tariffs, but the demand brought by AI investment partially offset the above impact. Despite the high uncertainty caused by the war in the Middle East, U.S. economic activity continued to expand at a "steady pace." (
The report also lists AI infrastructure construction as one of the factors driving up inflation. The reason is that AI construction continues to have strong demand for electricity, chips and other materials, which has created price pressure in the near future. Goldman Sachs economist Megan Peters calculated in the latest report that the triple effects of AI-driven memory price surges, software price increases, and electricity price increases have now increased the U.S. core PCE year-on-year inflation rate by more than 0.2 percentage points, and this contribution is expected to rise to 0.5 percentage points by the end of the year. In terms of employment, the report pointed out that the labor market has stabilized and supply and demand are roughly balanced. The unemployment rate in June was 4.2%, which is still at a low level. The report clearly commits the Federal Reserve to maintaining price stability and expresses its readiness to use a full set of tools to achieve the dual mission of full employment and price stability, especially when the federal funds rate is constrained by an effective lower limit. The report also pointed out that the growth of foreign economic activities in the first half of 2026 was weak, mainly affected by the headwinds caused by the conflict in the Middle East and US tariffs, but the demand brought by AI investment partially offset the above impact. Despite the high uncertainty caused by the war in the Middle East, U.S. economic activity continued to expand at a "steady pace." (