Daily News 7th July 26
Daily News
Asia Stocks Slide on AI Valuation Fears Despite Samsung's Record Profit; Dow Notches First Close Above 53,000 as Chips Rebound; Gold Eases Below $4,150; Crude Steadies Near $69
07 July 2026
Today in Brief
Asia stocks retreated Tuesday as investors questioned whether earnings growth can justify elevated AI valuations, sending semiconductor shares lower even after Samsung Electronics posted another quarter of record profit; all three major U.S. indexes had closed higher overnight, but Nasdaq 100 futures slipped 0.6% and S&P 500 futures lost 0.2% in Asian trading. On Monday, Wall Street kept its momentum after the July 4 holiday — the S&P 500 gained 0.72% to 7,537.43, the Nasdaq climbed 1.12% to 26,121.16, and the Dow rose 155.84 points, or 0.29%, to a record close of 53,055.91, its first ever finish above 53,000 — with the Technology Select Sector SPDR (XLK) up almost 2%, led by Western Digital (+7%), Teradyne (+2.8%), Marvell (+1%) and Oracle (+2.5%). Gold eased below $4,150 an ounce but held most of last week's gains ahead of the Fed's June minutes, with traders pricing roughly a 50% chance of a September hike, while crude steadied near $69 — close to four-month lows — as rising supply weighed and Saudi Aramco cut its Arab Light price for Asian buyers by $11 a barrel.
In other news: Iran's Revolutionary Guards fired at least two missiles at commercial ships transiting the Strait of Hormuz, damaging two vessels; President Trump headed to Turkey for a NATO summit strained by Russia's war in Ukraine and U.S. pressure on defence spending; Fed Governor Christopher Waller said high inflation is now the chief risk facing the central bank; Trump said he expects to meet China's Xi Jinping around September 24 in the U.S.; Microsoft announced 4,800 job cuts with a major Xbox downsizing; Broadcom locked in its role as a key Apple supplier through 2031; Micron signed a memory supply agreement with Ford; and Lockheed Martin agreed to buy naval-defence firm Ultra Maritime for $3.45 billion.
Asia stocks fall as AI valuation fears overshadow Samsung's blockbuster earnings
Asia stocks retreated on Tuesday as investors questioned whether future earnings growth can justify elevated artificial intelligence-related valuations, sending semiconductor shares lower despite Samsung Electronics posting another quarter of record profit. Broader risk sentiment remained relatively stable, but renewed selling in Asia's AI supply chain dominated regional trading after Samsung's earnings failed to dispel concerns over whether soaring investment in artificial intelligence infrastructure can continue to generate returns that justify the sector's rich valuations. All three major U.S. stock indexes ended higher on Wall Street overnight, while Nasdaq 100 Futures slipped 0.6% and S&P 500 Futures lost 0.2% in Asian trading.
Dow jumps 150 points for first close above 53,000; Nasdaq rises as chips rebound
Stocks maintained their positive momentum on Monday following a strong week on Wall Street. The S&P 500 gained 0.72% to end at 7,537.43, while the Nasdaq Composite advanced 1.12% to 26,121.16 as markets started a new trading week following Friday's U.S. Independence Day holiday. The Dow Jones Industrial Average climbed 155.84 points, or 0.29%, for a record close of 53,055.91. The 30-stock index also posted an intraday record in the session. Tech stocks rose broadly. The State Street Technology Select Sector SPDR ETF (XLK) added almost 2%, led by a 7% climb in Western Digital and a 2.8% jump in Teradyne. Marvell Technology rose more than 1%, and Oracle gained 2.5%.
Gold eased below $4,150 an ounce on Tuesday, but held most of last week's gains
Gold eased below $4,150 an ounce on Tuesday, but held most of last week's gains as investors awaited the minutes of the Federal Reserve's June meeting for fresh clues on the outlook for interest rates. Data released last week showed US job growth slowed sharply in June, while payroll figures for the previous two months were revised lower, leading markets to scale back expectations of a near-term rate hike. Traders are now pricing in roughly a 50% chance of a Fed rate increase in September, down from about two-thirds before the latest employment report.
Crude oil traded around $69 per barrel on Tuesday, remaining close to its lowest levels in more than four months
Crude oil traded around $69 per barrel on Tuesday, remaining close to its lowest levels in more than four months as signs of rising supply continued to weigh on prices, while vessel traffic through the Strait of Hormuz kept recovering. Reports showed that at least eight Japan-linked ships exited the strategic waterway via a route near Iran, including five supertankers capable of carrying 2 million barrels of crude each. Meanwhile, Saudi Arabian oil giant Saudi Aramco cut the price of its Arab Light crude for Asian buyers next month by $11 a barrel to a $1.50 discount against the regional benchmark, reflecting softer market conditions. The last two times the company offered the grade at a discount were during oil price wars in 2020 and 2015.
Trump heads to Turkey as NATO is strained by Russian attacks, U.S. impatience
President Donald Trump is headed to Turkey for a summit of the North Atlantic Treaty Organization, as the alliance is squeezed by Russia's continuing military aggression in Ukraine and America's growing insistence that NATO members quickly beef up their defence spending. Those pressing concerns come on top of lingering controversies surrounding the U.S.′ war against Iran and its prior attempts to take over Greenland, a territory of NATO member Denmark. Trump is a central figure in all of those issues.
Waller says risks in US tilted towards high inflation
U.S. Federal Reserve Governor Christopher Waller said on Monday that high inflation is the chief risk facing the Fed given a labor market that remains stable. "A year ago I was advocating for rate cuts because the labor market was not looking good, so I was willing to tolerate a longer movement back to our 2% (inflation) target based on the labor market," Waller said at an economics conference in Rome. "Those risks have completely flipped around now. The labor market seems to be stabilizing in the US. Inflation has been taking off. So then that changes how you might want to think about policy." Waller did not explicitly mention a June jobs report that showed weaker-than-expected hiring but a drop in the unemployment rate to 4.2% versus 4.3% in May.
Trump says he expects to meet China's Xi in the U.S. around September 24
President Donald Trump said Monday he expects to meet with Chinese President Xi Jinping around Sept. 24, a date that would align with the United Nations General Assembly in New York that month. Trump mentioned the potential date while discussing the construction of a White House ballroom during a Monday event, citing a possible visit by the Chinese president as justification for the new structure. "For instance, President Xi is coming here in the — toward the end of Sept. 24, I believe," Trump said. "What we need is a big ballroom, we could hold thousands of people to see him. Everyone wants to see him." A visit on that date in Washington would occur alongside the annual high-level meeting of the United Nations General Assembly. Trump is scheduled to deliver his speech to the General Assembly on Sept. 22 and typically remains in New York for several nights to meet with other world leaders. Xi has attended the event only once since taking office in 2012.
Iran fires missiles at commercial ships in Strait of Hormuz
Iran's Revolutionary Guards fired at least two missiles at commercial ships transiting through the Strait of Hormuz on Monday night, Axios reported, citing two U.S. officials. Two commercial ships suffered significant damage but had no casualties, the report said, citing a U.S. official. U.S. Central Command did not immediately respond to Reuters' request for comment. The United Kingdom Maritime Trade Operations agency (UKMTO) said early on Tuesday that a tanker was hit by an unknown projectile on its port side while traveling southbound about 8 nautical miles (15 km) east of Oman's Limah, causing a fire; no casualties or environmental impact had been reported. The development comes after indirect U.S.-Iran talks ended last week without any public sign of headway toward a lasting peace, despite a 60-day ceasefire intended to create space for diplomacy following the U.S. and Israeli strikes that triggered the conflict.
Microsoft cuts 4,800 jobs, as Xbox unit downsizes and plans to spin off four gaming studios
Microsoft said Monday it is immediately eliminating 4,800 jobs, representing 2.1% of its workforce, in the software giant's latest effort to cut costs in the era of artificial intelligence. Its Xbox division will lose about one-fifth of its staff, including 1,600 jobs on Monday and additional cuts in the coming months. "The way technology is built, deployed, and used is transforming faster than at any point in my time here," Amy Coleman, Microsoft's chief people officer and a 27-year company veteran, wrote in a message to employees Monday. Xbox will be cutting a total of 3,200 people, Xbox CEO Asha Sharma wrote in an email to division employees. Half of those roles are part of the 4,800 jobs being eliminated Monday, and the other 1,600 people will be exiting throughout fiscal year 2027.
Broadcom secures role as key Apple supplier with chip deal through 2031
Broadcom said on Monday it will expand its partnership with Apple through 2031 to develop and supply custom chips, cementing the chipmaker's role as a critical supplier to the iPhone maker. The deal eases investor fears that Apple would replace Broadcom's components with its own chips in the near term and shows that despite efforts to design its own modems and processors, Apple needs Broadcom for complex custom silicon. The chipmaker, whose shares jumped more than 3%, has been supplying Apple key components such as radio frequency chips used in iPhones for connecting to cellular networks, Wi-Fi and Bluetooth connectivity chips and other networking semiconductors. Apple's shares rose more than 1%.
Micron, Ford sign semiconductor supply agreement for vehicles
Micron Technology and Ford Motor on Monday signed a long-term agreement to secure the supply for memory and storage platforms used in the automaker's next-generation vehicle production. This comes days after Micron's similar agreement with General Motors, as part of the chipmaker's ongoing investments to expand manufacturing in the United States for automotive customers, including its expansion of advanced DRAM production in Virginia. DRAM, or dynamic random-access memory, is a critical component for servers that power cloud computing, databases and AI workloads. DRAM prices have risen about 70% since December, according to a S&P Global Mobility report, amid high demand for memory chips owing to surging investments towards AI-powered data centers.
Lockheed Martin to buy Ultra Maritime for $3.45 billion
Lockheed Martin will buy naval defense company Ultra Maritime from private equity firm Advent for $3.45 billion, bolstering its portfolio as global demand for military technology surges. After the closing of the deal, announced on Monday, Ultra Maritime will become a part of Lockheed's rotary and mission systems, which reported revenue of $17.3 billion in 2025 and employs 35,000 people worldwide. Sustained conflicts in Ukraine and the Middle East, and U.S. President Donald Trump's $1.5 trillion defense budget request for 2027 are driving up demand for weapons and military technology, pushing defense contractors to expand their capabilities. Ultra Maritime, specializing in anti-submarine warfare and undersea defense technologies, is a part of Cobham Ultra — created after Advent acquired British aerospace company Cobham in 2020 and then combined it with Ultra Electronics following its 2022 takeover.
