The specter of stagflation returns: Which parts of the 1970s asset playbook still hold true today?

Fifty-three years ago, Federal Reserve Chairman Burns characterized the oil price shock as an "exogenous variable," after which inflation spiraled out of control for seven years. Today, the new chairman, Warsh, has almost replicated the same logic — CPI has risen to 3.7%, the Strait of Hormuz remains blockaded, and history seems to be knocking at the door. However, three structural differences determine that this is not a complete replay of the 1970s but rather a more sophisticated game of asset differentiation.

Futu News18:51

Market Snapshot | All three major indices declined, with the tech index down 0.7%; oil stocks bucked the trend, as PetroChina rose nearly 4%; storage-related stocks retreated, with Southern Twice Leveraged Hynix dropping over 5% and GigaDevice Semiconduct

The three major indices all declined, with the technology index falling by 0.7%; oil stocks bucked the trend, with PetroChina rising nearly 4%; memory stocks retreated, with the Southern Twice Leveraged Hynix dropping more than 5%, and Gigadevice declining over 4%.

Futu News16:16

U.S. Futures, European Stocks Decline as U.S.-Iran Stalemate Weighs on Mood

Dow Jones15:32

Hong Kong Stock Market Midday Review | Mixed performance across the three major indices, with the Technology Index down 0.39%; storage and optical communication stocks retreated, Huiju Technology fell over 11%, and Southern Two-Times Long Samsung Electron

Tech stocks showed mixed performance, with Kuaishou-W up 3.49% and NetEase-S up 2.08%; most semiconductor stocks declined, with Gigadevice down 4.35% and Huahong Semiconductor down 3.66%; gold stocks rose, with Lingbao Gold up 3.32% and China Gold International up 2.31%;

Futu News12:14

Express News | Cailian Press News Highlights at Noon on May 12

Breakings12:03

Futu Morning Brief | Trump expresses strong anticipation for his upcoming visit to China; U.S. April CPI data to be released at 20:30, with Morgan Stanley suggesting the figures could be 'more explosive'; reports indicate Kuaishou plans to spin off Kelin

The Senate Banking Committee will hold a formal markup session on the Clarity Act on Thursday; the S&P 500 Index and Nasdaq Composite hit new highs, with storage and optical communication sectors continuing their upward momentum.

Futu News08:02