Important data is released, and Wash speaks out! SK Hynix surges 19%
On the evening of July 14th, Beijing time, the three major U.S. stock indexes rose collectively, the storage sector rose, and SK Hynix’s stock price once soared 19%. The much-anticipated U.S. inflation data for June cooled more than expected, injecting new variables into the market. After the data was released, the price of gold rose sharply during the session. On the same day, Federal Reserve Chairman Warsh attended the Congressional Semi-annual Monetary Policy Report hearing for the first time and delivered a speech on inflation, economic prospects and the Federal Reserve's policy framework. Warsh said committee members have "zero tolerance" for continued high inflation and are firmly committed to restoring price stability.
On the evening of July 14th, Beijing time, the three major U.S. stock indexes rose collectively, the storage sector rose, and SK Hynix’s stock price once soared 19%. The much-anticipated U.S. inflation data for June cooled more than expected, injecting new variables into the market. After the data was released, the price of gold rose sharply during the session. On the same day, Federal Reserve Chairman Warsh attended the Congressional Semi-annual Monetary Policy Report hearing for the first time and delivered a speech on inflation, economic prospects and the Federal Reserve's policy framework. Warsh said committee members have "zero tolerance" for continued high inflation and are firmly committed to restoring price stability. SK Hynix surged over 19% intraday Wind data shows that as of 23:27 Beijing time, the Dow Jones Industrial Index rose 0.07%, the S&P 500 Index rose 0.47%, and the Nasdaq Composite Index rose 1%. Many popular semiconductor stocks rose. As of press time, the Philadelphia Semiconductor Index rose 3.19%. Among the index constituent stocks, AMD Semiconductor rose more than 6%, Teradyne, Ram Research, and Micron Technology rose more than 5%. Large technology stocks had mixed gains and losses. As of press time, the Wind US Technology Big Seven Index rose 0.55%. Among them, Nvidia rose by more than 2%, Google and Tesla rose by more than 1%, and Microsoft fell by more than 1%. The U.S. optical communications sector was stronger at the beginning of the session. Lumentum once soared more than 8%, and Corning once rose nearly 5%. As of press time, SK Hynix had risen by more than 19% during the session, with a total market value exceeding US$1.28 trillion. IBM's stock price plunged 25%, its biggest one-day drop since 1987, after the company reported preliminary second-quarter sales were lower than expected. The company blamed the lack of performance on customers shifting spending to chips and servers. IBM's latest performance data shows that IBM's preliminary revenue in the second quarter was US$17.2 billion, an increase of 1%, and an estimated US$17.86 billion; of which software revenue increased by 5%; infrastructure revenue fell by 7%. Diluted earnings per share were $2.27, down 2% year-on-year; operating (non-GAAP) earnings were $2.93, up 5% year-on-year. Bank of America's latest fund manager survey shows that global investors who have recently been buying stocks should consider appropriately reducing their positions. Bank of America strategists said optimism among asset allocators has risen to extremely high levels, which is often seen as a warning sign for markets. The survey shows that the proportion of cash holdings has dropped to an "extremely low level" of 3.6% of assets from 4.1% last month, while the proportion of U.S. stock allocations has risen to the highest since December 2024, with a net overweight of 24%. U.S. June CPI data cooled more than expected On the evening of July 14th, Beijing time, the U.S. Bureau of Labor Statistics released data showing that due to the sharp plunge in energy prices, the Consumer Price Index (CPI) in June hit the largest month-on-month decline in more than six years, and the high inflation during the year was temporarily alleviated. After the data was released, traders pushed back expectations for a rate hike by the Federal Reserve until October. Data show that the CPI rose by 3.5% year-on-year in June, lower than market expectations of 3.8%, and a significant decline from the previous value of 4.2%. Core CPI rose 2.6% year-on-year, also lower than the expected 2.8% and the previous value of 2.9%. In terms of month-on-month data, the overall CPI fell by 0.4%, far exceeding market expectations of -0.1%, while the core CPI was 0% month-on-month, a significant slowdown from the previous value of 0.2%. After the data was released, international gold prices rose sharply during the session. Wind data showed that as of press time, spot gold prices rose by 2.13% and COMEX gold futures rose by 2.26%. Looking back on the past few months, the sharp rise in energy prices triggered by geopolitical conflicts in the Middle East has become the core driver of the continuous rebound in U.S. inflation since March. The year-on-year CPI growth has soared from 2.4% to 4.2% in May, setting a three-year high. At the same time, the non-agricultural data continued to exceed expectations, which once made the market expect the Federal Reserve to raise interest rates within the year. Although the June interest rate meeting remains unchanged, the dot plot shows that half of the officials support at least one interest rate hike this year. However, with the continued fall in oil prices in May and June, coupled with the significant cooling in June’s inflation data, coupled with signs of a slowdown in the labor market reflected in the previously “upsetting” non-farm payrolls data, the current market expectations for the Federal Reserve to restart interest rate hikes have significantly cooled down. Warsh: "Zero tolerance" for high inflation
On the same day, Federal Reserve Chairman Warsh attended the Congressional Semi-annual Monetary Policy Report hearing for the first time and delivered a speech on inflation, economic prospects and the Federal Reserve's policy framework. This is Warsh's first public policy statement since taking office as chairman of the Federal Reserve, which has attracted great attention from the market. Warsh said the Fed's primary goal is to ensure that monetary policy is "as close to correct as possible" and that this is a "guiding light moving forward." He said committee members have "zero tolerance" for continued high inflation and are firmly committed to restoring price stability. At its June interest rate meeting, the Federal Reserve decided to keep the target range for the federal funds rate unchanged at 3.5% to 3.75%. In terms of the economic situation, Wash said that the most significant feature of the current economy is the rapid growth and acceleration of business investment, which mainly reflects the huge demand for data center construction and AI-related equipment and software. As of the end of the first quarter, total equipment investment increased by approximately 8%, and high-tech expenditures increased by nearly 25% in the four quarters. He said it seemed inevitable that "investments in artificial intelligence" would soon be called simply "investments" and that the Fed was closely watching the impact of these changes on inflation and the labor market. In addition, the U.S. labor market has generally remained stable, with the unemployment rate remaining low and nominal wages growing steadily. It is worth noting that Warsh announced that he has launched a comprehensive policy framework review, covering five major areas: monetary policy communication, balance sheet policy, data sources and methodologies, productivity and employment, and inflation framework, and working groups have been established to conduct systematic evaluations. He said the purpose of this move is to "help the Fed make smarter decisions on monetary policy and move away from years of high inflation." Warsh said that the Federal Reserve is at a "turning point in history" and it is up to everyone to seize this moment to ensure that the U.S. economy prospers and develops for the long term in the future. (
On the same day, Federal Reserve Chairman Warsh attended the Congressional Semi-annual Monetary Policy Report hearing for the first time and delivered a speech on inflation, economic prospects and the Federal Reserve's policy framework. This is Warsh's first public policy statement since taking office as chairman of the Federal Reserve, which has attracted great attention from the market. Warsh said the Fed's primary goal is to ensure that monetary policy is "as close to correct as possible" and that this is a "guiding light moving forward." He said committee members have "zero tolerance" for continued high inflation and are firmly committed to restoring price stability. At its June interest rate meeting, the Federal Reserve decided to keep the target range for the federal funds rate unchanged at 3.5% to 3.75%. In terms of the economic situation, Wash said that the most significant feature of the current economy is the rapid growth and acceleration of business investment, which mainly reflects the huge demand for data center construction and AI-related equipment and software. As of the end of the first quarter, total equipment investment increased by approximately 8%, and high-tech expenditures increased by nearly 25% in the four quarters. He said it seemed inevitable that "investments in artificial intelligence" would soon be called simply "investments" and that the Fed was closely watching the impact of these changes on inflation and the labor market. In addition, the U.S. labor market has generally remained stable, with the unemployment rate remaining low and nominal wages growing steadily. It is worth noting that Warsh announced that he has launched a comprehensive policy framework review, covering five major areas: monetary policy communication, balance sheet policy, data sources and methodologies, productivity and employment, and inflation framework, and working groups have been established to conduct systematic evaluations. He said the purpose of this move is to "help the Fed make smarter decisions on monetary policy and move away from years of high inflation." Warsh said that the Federal Reserve is at a "turning point in history" and it is up to everyone to seize this moment to ensure that the U.S. economy prospers and develops for the long term in the future. (