Overnight US stocks | US PPI exceeded expectations and cooled down in June, the three major indices rose, Apple (AAPL.US) rose 4%, and the Philadelphia Semiconductor Index fell more than 2%
The Zhitong Finance App learned that on Wednesday, the three major indices rose, and the key US PPI inflation index for June fell short of expectations. Federal Reserve Chairman Walsh attended the Senate hearing today. During this time, he frequently mentioned his dissatisfaction with inflation. He said, “Recent inflation data does not perfectly reflect the potential inflation situation. The labor market looks pretty good, but the inflation aspect is less optimistic. I'm not happy with any of the inflation indicators. We'll be reviewing our tools, including balance sheets and interest rates, to see if adjustments are needed to deal with inflation.”
The Federal Reserve's Beige Book shows that between the end of May and June, US economic activity achieved slight to moderate growth in 11 of the 12 Federal Reserve jurisdictions, and the overall growth rate was basically the same as the previous period.
[US stocks] At the close, the Dow rose 150.37 points, or 0.29%, to 52658.64 points; the NASDAQ rose 162.22 points, or 0.62%, to 26269.23 points; and the S&P 500 rose 28.81 points, or 0.38%, to 7572.40 points. The Philadelphia Semiconductor Index fell more than 2%, Apple (AAPL.US) rose 4%, ASML.US (ASML.US) rose 2%, SK Hynix (SKHY.US) fell 9%, SanDisk (SNDK.US) fell 8%, and Intel (INTC.US) fell 4.4%. The Nasdaq China Golden Dragon Index closed up 2.9%, Alibaba (BABA.US) rose 4.7%, and Baidu (BIDU.US) rose 1.5%.
[European stocks] The German DAX30 index fell 135.16 points, or 0.54%, to 25009.22 points; the British FTSE 100 index fell 15.76 points, or 0.15%, to 10513.63 points; the French CAC40 index rose 15.58 points, or 0.19%, to 8382.43 points; the European Stoxx 50 index fell 14.44 points, or 0.23%, to 6265.75 points; the Spanish IBEX35 index fell 81.81 points, or 0.42%, to report 19274.79 points; Italy's FTSE MIB index fell 437.00 points, or 0.83%, to 52425.50 points.
[Asian Stock Market] The Nikkei 225 Index rose 1.49%, and the Korea Composite Stock Price Index rose 6.24%.
[US Dollar Index] The US dollar index, which measures the US dollar against the six major currencies, fell 0.43% on the same day and closed at 100.488 at the end of the foreign exchange market. As of the end of the exchange market in New York, 1 euro was worth $1.1466, up from $1.1423 on the previous trading day; 1 pound was worth $1.3536, up from $1.3382 on the previous trading day. 1 US dollar was worth 162.05 yen, lower than 162.20 yen on the previous trading day; 1 US dollar was worth 0.8047 Swiss franc, lower than 0.8092 Swiss franc on the previous trading day; 1 US dollar was worth 1.4043 Canadian dollars, lower than 1.4067 Canadian dollars on the previous trading day; 1 US dollar was worth 9.5898 SEK, lower than 9.6586 on the previous trading day.
[Cryptocurrency] Bitcoin once surpassed 65,000 US dollars, falling slightly by 0.09% to 64,804.57 US dollars at press time; Ethereum rose more than 2% to 1920.29 US dollars.
[Crude oil] Light crude oil futures for August delivery on the New York Mercantile Exchange rose 26 cents, or 0.33%, to close at $79.6 a barrel; London Brent crude oil futures for September delivery rose 22 cents, or 0.26%, to close at $84.95 a barrel.
[Precious Metals] Spot gold rose slightly to $4059.96; spot silver was reported at $57.783.
[Macro News]
Walsh: Recent inflation data does not fully reflect the real pressure that AI investment is beneficial to employment in the short term. Federal Reserve Chairman Walsh said while attending the hearing of the “Federal Reserve's Semi-Annual Monetary Policy Report” that recent inflation data does not fully reflect the potential inflation situation. He said that any central bank would be happy when the data is moving in the right direction. One-off price changes don't necessarily cause inflation. Also, regarding the impact of artificial intelligence, he said that in the short term, he believes that investment in artificial intelligence is beneficial to employment, and artificial intelligence will trigger disruptive changes. Investments in artificial intelligence could be very good for jobs as the US is building infrastructure. Walsh said he is seeking permission to obtain access to a series of new artificial intelligence models, and currently sees the impact of artificial intelligence on demand faster than on supply.
Key indicators of US PPI inflation for June fell short of expectations. Potential indicators of US producer price inflation in June were weaker than expected, which indicates that the impact of the Iran war is still under control to a certain extent. Data released on Wednesday showed that the core PPI index, which excludes food and energy factors, rose 4.7% year over year and 0.2% month over month. Overall PPI growth slowed, with a year-on-year increase of 5.5%. The report points out that last month's drop in energy costs helped ease inflationary pressure. This could give the Federal Reserve more room to delay rate hikes — especially after another report on Tuesday showed that the June CPI was also more moderate than expected. However, as the Middle East conflict escalates again, this resuscitation period may not last long. The report shows that energy prices fell 6.4% in June, as did transportation and storage prices. Despite this, freight rates remain high due to rising fuel costs and a shortage of drivers due to the tightening immigration policies implemented by the Trump administration. Meanwhile, food prices fell for the first time in three months. Food prices have generally been rising this year due to a combination of factors such as bad weather, war, and tariffs.
The Federal Reserve's Beige Book: Inflation is rising moderately, and the pressure on corporate costs remains. The Federal Reserve's Beige Book shows that the overall price level in the US has risen moderately. Of the 12 Federal Reserve jurisdictions, 9 reported moderate price increases, 2 were strong, and 1 was small. The overall increase was flat or slower than in the previous period. According to the report, rising costs of energy, transportation and raw materials are driving up investment costs for enterprises, and some companies attribute the pressure to the Middle East conflict and the impact of tariffs. Consumer prices continue to rise, and the profit margins of some companies are being squeezed. Markets have mixed opinions on future inflation trends. Some people expect inflation to stay at current levels, while others think that falling fuel prices may ease the pressure.
Federal Reserve Governor Cook: If inflation doesn't slow down soon, be ready to act. Federal Reserve Governor Cook said on Wednesday that it is wise to wait for inflation to slow down for a while, but if inflation does not slow down soon, he is ready to take action. Cook said, “I think we should be given more time from now on to watch how inflation develops. However, in the future, I still think the risk will mainly focus on rising inflation, due to the investment boom in the field of artificial intelligence, tariffs, and price pressure brought about by the Iran war. If we don't see signs of slowing inflation any time soon, I'm ready to act. I am fully committed to meeting our inflation targets, and that commitment is unwavering.” Cook compared the current situation with the situation a year ago. At that time, the inflation rate was far higher than the Federal Reserve's 2% target, and the job market seemed stable, but there was a risk that the job market and inflation would slow down. “I have noticed a significant change in the balance of risk compared to about a year ago. The risk of inflation now exceeds the risk of employment.” she said.
Federal Reserve Williams: The inflation rate is too high, but it may have peaked, and the labor market is performing steadily. Federal Reserve Williams said that the current inflation rate remains high. The Federal Reserve must ensure that the inflation rate continues to fall back to the target level of 2.0%, and the current monetary policy stance is in an appropriate state. However, he believes there are encouraging signs that inflation may have peaked, and he expects inflation to gradually decline in the next few quarters: drop to 3.25% by the end of this year, then move closer to the 2.0% target, and eventually reach the target in 2028. Williams expects real GDP growth to remain between 2.0% and 2.25% this year and the next two years. He expected the unemployment rate to fall slightly to around 4.0%, and pointed out that the labor market has shown resilience and stability.
Trump: New York State should immediately change data center policies. US President Trump wrote that one of the biggest drivers of future employment is data centers. They are large and powerful, and they are also “money making machines” for the state where they are located. New York Governor Kathy Hochul suspended all data centers built or planned to be built in New York State for political reasons. These companies are now seeking to settle in Alabama, Florida, Texas, Arizona, and many other states. Taxes and employment opportunities are similar to liquid gold! New York State made a terrible decision. All of this revenue and other benefits will go to red states and some blue states that seek data centers as cash cows, where taxes are lower and record employment opportunities are created. New York State should change its policy immediately.
The Bank of Canada kept interest rates unchanged for the sixth time in a row, and the economic outlook improved. The Bank of Canada kept the policy interest rate at 2.25% on Wednesday, keeping interest rates unchanged for the sixth consecutive meeting, in line with market expectations. Policymakers believe that the Canadian economy is recovering, while inflationary pressure driven by oil prices is fading. The Bank of Canada stated in its monetary policy report: “After a year of weakness, the Canadian economy is showing signs of improvement. Economic growth is expected to pick up, and the inflation rate will gradually decline from recent highs. But the uncertainty is still high.” The Bank of Canada stated in its interest rate statement that the current level of borrowing costs is still suitable to support economic recovery and push inflation back to the target level of 2%. The central bank said, “The Governing Council will continue to evaluate the resilience and inflation prospects of the Canadian economy and prepare to adjust monetary policy as needed.” The Bank of Canada expects the economy to grow at an annual rate of 2.5% in the second quarter and 1.5% in the third quarter. Due to the weak economy at the beginning of the year, officials previously lowered the 2026 economic growth forecast sharply to 0.7%, but at the same time raised the 2027 and 2028 growth forecasts, both adjusted to 1.8%. The Bank of Canada expects the overall inflation rate to average 2.5% in 2026, higher than the 2.3% forecast previously, and is expected to return to the central bank's target level of 2% at the beginning of next year.
The German sovereign wealth fund plans to increase the allocation ratio of the private equity market from 25% to 30%. German sovereign wealth fund Kenfo will increase its allocation to the private equity market from 25% to 30% over the next two years, while reducing its exposure to private equity. According to its annual report, Kenfo expects to expand its real estate and infrastructure portfolio to meet its target allocations. “We can still see attractive returns in these markets,” said Verena Kempe, head of Kenfo's investment management department. At the same time, she warned that since private equity performance in recent years has fallen short of expectations, it is necessary to adopt a more prudent strategy in the future. Some investors have cut their investments in the private equity market due to rising interest rates and the challenges artificial intelligence poses to software investments. Kenfo also adjusted its position on US Treasury bonds. The fund reduced its holdings of US Treasury bonds from 600 million euros a year ago to about 200 million euros at the end of 2025, then increased its holdings by more than 500 million euros by the end of June. Kenfo CEO Anya Mikus said, “We have no plans to stop investing in treasury bonds because treasury bonds are still a very important part of the government bond market. The current yield can reach up to 2.8%, surpassing the yield of many other sovereign bonds. We are adopting a flexible strategy.”
[Individual Stock News]
Media: ASML.US plans to raise EUV prices, and TSM.US has objected. According to reports, Asmack plans to raise the price of its chip-making equipment, a move that could clash with its biggest customer, TSMC. According to reports, TSMC has begun to oppose the plan. Asmack's advanced EUV equipment is necessary for chipmakers to produce advanced semiconductors, and artificial intelligence is driving a surge in demand. Asmack's chief financial officer Roger Dawson mentioned in the company's earnings conference call on Wednesday that the price of the company's less advanced equipment — low numerical aperture EUV — may be adjusted. He said, “We continue to improve the production efficiency of low numerical aperture EUV, which naturally provides us with a strong development space for potential future price increases.” However, he added that due to the long order cycle, any price changes will not have a pricing impact “tomorrow.”
Guo Mingyi: Apple's upward trend in the second half of the year remained unchanged. Guo Mingyi, an analyst at Tianfeng International Securities, said that the recent trend in Apple's (AAPL.US) stock price is in line with its previous expectations. Before WWDC26 was held, he was optimistic about Apple's stock price performance in the second half of 2026, and believed that as long as Apple's long-term growth logic remained unchanged, changes in short-term news would not change the stock price trend. He pointed out that Apple's stock price had previously recovered due to market profit settlement and news of product price increases after WWDC26, but it still hit a new high in the recent market turmoil, verifying the previous judgment on Apple's stock price trend.
SpaceX shares fell below the IPO price for the first time. On Wednesday, SpaceX (SPCX.US) fell below the IPO price of 135 in the intraday market. For the first time since listing, it was just over a month since the company sparked an investment boom, set the record for the largest IPO in history, and made Musk the world's first trillionaire. SpaceX shares reached an all-time high of $225.64 — it was this high that once briefly surpassed Silicon Valley giants Microsoft and Amazon in market capitalization. This decline made investors who bought the stock at the IPO price face book losses for the first time, which may test the market's confidence in the stock. It's also a reminder that Wall Street's enthusiasm could quickly cool down even for a company as large as SpaceX — the company had raised around $85.7 billion by the end of the first trading day, and reached a valuation of around $2.1 trillion.