Tonight! Storage, optical communications, and chips collectively surged
[Introduction] AI technology surges Hello everyone, the US stock market performed well tonight! AI technology stocks continue to rise sharply. In terms of news, there are two good news. One is that the CPI data has cooled down, and the other is that Trump "TACO" again! Let’s see what’s going on. On the evening of July 14, the three major U.S. stock indexes had mixed gains and losses, with the Dow Jones Industrial Average falling slightly and the Nasdaq Composite Index rising about 1%. The Nasdaq 100 index, which is more concentrated in technology stocks, rose more than 1%. Representative of AI hardware stocks, the Philadelphia Semiconductor Index surged 3%.
[Introduction] AI technology surges Hello everyone, the US stock market performed well tonight! AI technology stocks continue to rise sharply. In terms of news, there are two good news. One is that the CPI data has cooled down, and the other is that Trump "TACO" again! Let’s see what’s going on. On the evening of July 14, the three major U.S. stock indexes had mixed gains and losses, with the Dow Jones Industrial Average falling slightly and the Nasdaq Composite Index rising about 1%. The Nasdaq 100 index, which is more concentrated in technology stocks, rose more than 1%. Representative of AI hardware stocks, the Philadelphia Semiconductor Index surged 3%. In terms of individual stocks, U.S. AI hardware stocks rebounded across the board, led by storage, optical communications, and chip stocks. SK Hynix soared nearly 20%, Lumentum soared 7%, AMD, SanDisk, and Micron Technology rose more than 5%, and Nvidia rose more than 2%. In addition, the stock price of IBM, an established technology giant, plummeted by more than 20% (dragging the performance of the Dow Jones Index), and its stock price hit the largest decline in at least 58 years. On the news, the company's preliminary second-quarter sales fell short of expectations. The company said that customers are shifting more of their budgets to chip and server purchases due to supply shortages caused by the artificial intelligence boom. IBM said in a statement on Tuesday that preliminary second-quarter revenue was $17.2 billion, below analysts' expectations of $17.9 billion. Among them, the infrastructure business was particularly hard hit, with sales falling by 7%. The world is building data centers on an unprecedented scale to support the operation of artificial intelligence systems, resulting in a serious shortage of semiconductors, especially memory chips. Tight supply has pushed up costs for makers of everything from iPads to Xbox game consoles. IBM's performance shows that this situation has also forced companies to shift more of their budgets to server and chip purchases, thereby reducing spending on IBM mainframes, software and other technology products. The U.S. consumer price index fell 0.4% month-on-month in June, and the year-on-year inflation rate dropped to 3.5%. Economists surveyed by Dow Jones had expected the consumer price index to fall 0.2% month-on-month in June and the year-on-year inflation rate to be 3.8%. Following the data, markets lowered their expectations for the Federal Reserve to raise interest rates this year as inflation cools. According to CME Group's "FedWatch" tool, the market expects the probability of the Federal Reserve to raise interest rates at its July meeting fell to 17% from 42% the day before. However, traders still expect the Fed to raise interest rates at its September meeting. The market believes that the probability of the target interest rate being raised by 25 basis points or 50 basis points is 63%. "Tuesday's lower-than-expected consumer price index suggests that the rise in inflation driven by the Iran war is fading, but that may be just a temporary respite as tensions have escalated in recent days," said Skylar Weinand, chief investment officer at Reagan Capital. He said: "Weaker inflation data may make the Fed temporarily on hold and reduce the probability of raising interest rates. However, we remind investors that although Warsh has not been chairman of the Fed for a long time, almost all of his public statements have been hawkish." He added: "Wash wants to control consumer prices, and the Fed's most effective tool right now is to raise interest rates." Elsewhere, oil price gains narrowed tonight as Trump dropped charges for ships passing through the Strait of Hormuz. Crude oil prices fell from session highs after Trump dropped a requirement that ships pay a 20% protection fee when passing through the Strait of Hormuz. Trump posted on the "Real Social" platform: "After very productive talks with leaders in the Middle East, I have decided to cancel the 20% compensation fee charged by the United States and instead have various Gulf countries reach trade and investment agreements with the United States." (