The US June CPI fell to 3.5% year-on-year, marking the first monthly decline in six years, causing the market to sharply lower the probability of a rate hike in July. All three major US stock indexes closed higher, with the Nasdaq rising 0.9%. The AI hardware sector rebounded strongly, and the Philadelphia Semiconductor Index rose 2.54%. SK Hynix ADR surged 27%, leading gains in the memory and optical communication sectors; IBM, however, recorded a 25% drop, the largest in 115 years, due to corporate budgets shifting towards AI infrastructure. Bank stocks posted strong earnings, with JPMorgan achieving the highest quarterly profit in the banking sector. The VIX fell back to low-risk levels, but the situation in the Middle East continues to support oil prices, with WTI fluctuating around $80. US Treasury yields fell back to 4.58%, and gold remained in a consolidation range. The market is focused on the upcoming PPI release and Fed officials' speeches to confirm the persistence of cooling inflation.
