U.S. stocks closed higher as inflation cooled, chip stocks strengthened, and SK Hynix soared more than 27%
On July 14, local time, the three major U.S. stock indexes collectively closed higher. As of the close, the Dow rose 0.02% to 52,508.27 points; the Nasdaq rose 0.90% to 26,107.01 points; the S&P 500 rose 0.38% to 7,543.59 points. Large-cap technology stocks were mixed, with the Wind Seven U.S. Technology Index rising 0.97%.
On July 14, local time, the three major U.S. stock indexes collectively closed higher. As of the close, the Dow rose 0.02% to 52,508.27 points; the Nasdaq rose 0.90% to 26,107.01 points; the S&P 500 rose 0.38% to 7,543.59 points. Large-cap technology stocks were mixed, with the Wind Seven U.S. Technology Index rising 0.97%. Nvidia rose 4.06%, Google rose 1.9%, Meta rose 0.66%, Tesla rose 0.36%, Amazon rose 0.07%, SpaceX fell 2.20%, Microsoft fell 1.55%, and Apple fell 0.77%. Chip stocks strengthened across the board, with the Philadelphia Semiconductor Index rising by more than 2%, Intel and Lam Group rising by more than 4%, Applied Materials and ON Semiconductor rising by more than 3%, and ASML ADR and AMD rising by more than 2%. Storage concept stocks also rose collectively. SK Hynix rose by more than 27%, closing at a 51% premium to Korean common stocks. SanDisk rose by more than 5%, Micron Technology rose by 4.92%, and Seagate Technology rose by more than 2%. IBM's stock price fell sharply, plunging more than 26% at the beginning of the trading day, and by the close of trading, the decline reached 25.21%. On the news, IBM's preliminary quarterly sales results predict that the company's second-quarter revenue will be approximately US$17.2 billion, which is lower than expected. The company's CEO Arvind Krishna said that customers are significantly tightening their spending and attributed the lower-than-expected performance to customers' large-scale shift of spending to chips and servers. Most bank stocks rose. Goldman Sachs rose more than 9%, Morgan Stanley rose more than 3%, JPMorgan Chase rose more than 2%, Bank of America rose nearly 2%, Citigroup fell more than 5%, and Wells Fargo fell more than 2%. Chinese concept stocks had mixed gains and losses, with the Nasdaq China Golden Dragon Index falling 0.11%. WeRide rose 6.62%, Pony.com rose 3.89%, Xpeng Motors rose 3.28%, Tencent rose 0.57%, Baidu closed down 3.23%, NetEase fell 2.3%, Pinduoduo fell 0.7%, and Alibaba fell 0.03%. On the news, the latest CPI report showed that the U.S. CPI rose by 3.5% year-on-year in June, lower than market expectations of 3.8%, and significantly lower than the previous value of 4.2%; it fell 0.4% month-on-month, the first month-on-month decrease in six years; core CPI rose 2.6% year-on-year, also lower than expected. After the data was released, traders pushed back expectations for a rate hike by the Federal Reserve until October. Markets still expect the Fed to raise interest rates at least once by 25 basis points before the end of the year, according to the CME Group's "FedWatch Tool." At the same time, Federal Reserve Chairman Kevin Warsh reiterated during a hearing of the U.S. House of Representatives Financial Services Committee on Tuesday that the Federal Reserve has "zero tolerance" for inflation that continues to be above the target level, and once again proposed pushing the Federal Reserve to achieve "policy system changes." He said that the Federal Reserve will comprehensively review the monetary policy framework and operating methods to ensure that price stability is completely restored. Bloomberg believes that the hearing actually outlined the policy framework of the "new Federal Reserve": insisting on the independence of monetary policy, adhering to the 2% inflation target, not accepting the idea that employment and inflation can only choose one or the other, while leaving room for future balance sheet reform and central bank governance reform. "Wash's message is that we can lower inflation, and that's what his audience wants to hear," said Chuck Carlson, chief executive of Horizon Investment Services. "Maybe inflation can come back naturally without the need for another rate hike." "This is a comprehensive downward surprise, and recent interest rate hikes are basically out. The market has been highly vigilant about overheating inflation data. This report is supportive of the bond market and will also push the yield curve to steepen again. Our baseline prediction is that the Federal Reserve will remain on hold, and this data confirms this judgment." said Dan Carter, senior portfolio manager at Fort Washington. In terms of commodities, crude oil rose overnight due to the escalation of the situation in the Middle East. The price of light crude oil futures for August delivery on the New York Mercantile Exchange rose by US$1.20 to close at US$79.34 per barrel, an increase of 1.54%; the price of London Brent crude oil futures for September delivery rose by US$1.43 to close at US$84.73 per barrel, an increase of 1.72%.
According to Xinhua News Agency, the U.S. Central Command posted on social media on the 14th that the U.S. military would resume a naval blockade on ships traveling to and from Iranian ports and coastal areas at 16:00 Eastern Time on the same day (4:00 on the 15th, Beijing time). Gold and silver fluctuated higher, with spot gold rising to $4,053.61, up 1.31%; spot silver trading at $58.68, up 1.86%. COMEX gold futures closed up 1.31% at US$4,058.3 per ounce; COMEX silver futures closed up 1.84% at US$59.04 per ounce. As of press time, spot gold is trading around $4,055 per ounce. (
According to Xinhua News Agency, the U.S. Central Command posted on social media on the 14th that the U.S. military would resume a naval blockade on ships traveling to and from Iranian ports and coastal areas at 16:00 Eastern Time on the same day (4:00 on the 15th, Beijing time). Gold and silver fluctuated higher, with spot gold rising to $4,053.61, up 1.31%; spot silver trading at $58.68, up 1.86%. COMEX gold futures closed up 1.31% at US$4,058.3 per ounce; COMEX silver futures closed up 1.84% at US$59.04 per ounce. As of press time, spot gold is trading around $4,055 per ounce. (