Futu Morning Brief | Renewed Middle East conflict fuels inflation concerns; AI chip stocks slump, dragging down equities; Apple shares hit new highs amid retreat from computing power arms race; CPI and Waller in focus tonight

On July 13 local time, U.S. President Trump told the media at the White House that he still believes the United States and Iran could reach an agreement, saying, 'Iran wants to reach a deal and has re-engaged with the U.S.'

Futu News07:53

Fed rate hike in July? Probability surges, nearing 50%, as Hormuz developments rewrite the interest rate script

① On Monday, market expectations for the Federal Reserve to raise interest rates rose markedly; ② traders now see a 46.5% probability of a 25-basis-point rate hike by the Fed on July 29, up from just 34% on Sunday; ③ both the evolving situation in the Strait of Hormuz and comments by Federal Reserve Governor Christopher Waller contributed to the increased likelihood of a rate hike.

cls.cn1minutes ago

U.S. forces resume blockade against Iran; Trump warns of 'heavy strikes' tonight or tomorrow and imposes a 20% fee on Strait shipping.

Iranian media reported that Iran shot down a U.S. military drone over the Strait; explosions were heard from Larak Island, located in the Strait, and from Bandar Abbas in southern Iran. Trump stated that U.S. fees on cargo transiting the Strait of Hormuz are intended to offset necessary expenditures for maintaining regional security, and that the relevant procedures and deployments would commence immediately. The U.S. military will impose a naval blockade on Iran starting at 4:00 p.m. Eastern Time on the 14th. It was reported that Trump has notified Congress of the renewed outbreak of hostilities with Iran. The International Maritime Organization (IMO) opposes levying tolls on straits used for international navigation. Iran’s Foreign Minister described the U.S.-proposed fee rate as “excessive.”

wallstreetcn53minutes ago

Apollo Chief Economist: If the AI boom fades, the U.S. dollar could also plunge sharply.

Apollo's Slork warned that the U.S. dollar is vulnerable to an AI-driven pullback.

Zhitong Finance07:55

Top 20 by Trading Volume | Capital flight from memory stocks; SK Hynix down 9%, SanDisk plunges 12%; Jensen Huang debunks rumors of Rubin delay; Apple hits new highs amid market downturn; Meta adds $40 billion to AI infrastructure investment

Micron Technology, the top-traded stock on U.S. markets on Monday, fell by 4.32%. The company recently announced that, in response to surging memory demand driven by the AI era, it plans to increase its previously committed investment in the United States from $200 billion by 2035 to over $250 billion. This expanded production plan includes multiple projects across New York, Idaho, and Virginia. Micron expects the increased investment to support its long-term goal of manufacturing 40% of its DRAM products in the U.S., while creating additional high-paying direct and indirect jobs.

Global Market Update06:56

U.S. Market Close | Geopolitical turmoil and hawkish sentiment dealt a double blow, sending the Nasdaq down more than 1.5%; the semiconductor index plunged 5%, with Micron, AMD, and NVIDIA each falling around 4%; crude oil surged 10%, gold tumbled, and th

The Nasdaq Composite declined 1.55%, closing below its 50-day moving average. The Dow Jones Industrial Average fell just 0.26%, while the S&P 500 dropped 0.79%. Semiconductor stocks faced broad-based selling pressure. NVIDIA fell 3.52% to $203.53, Broadcom declined 3.98% to $384.05, AMD dropped 4.21% to $534.39, Micron lost more than 4%, ARM fell nearly 8%, and SanDisk plunged over 12%.

wallstreetcn06:19