Daily News 16th July 26
Daily News
Kospi Tumbles 7% in Chip Rout as Wall Street Rides Big Tech Higher; Apple Hits Record on China AI Deals; Gold Slips Toward $4,000; Crude Hovers at $80 Amid Escalating U.S.-Iran Strikes
16 July 2026
Today in Brief
Asian markets sold off sharply Thursday, with South Korea's Kospi plunging over 7% and the Kosdaq down 5% in a chip rout, while Japan's Nikkei 225 declined 3%; Hong Kong's Hang Seng bucked the trend, gaining 1.31%. U.S. stocks closed higher Wednesday on Big Tech strength and encouraging inflation signs — the S&P 500 rose 0.38% to 7,572.40, the Nasdaq climbed 0.62% to 26,269.23, and the Dow added 150 points to 52,658.64 — as investors rotated out of semiconductors and into names like Amazon, Alphabet, and Microsoft, with Apple gaining 4% to a new all-time high. Wholesale prices unexpectedly fell 0.3% in June on a big drop in gasoline, adding to the week's cooling-inflation narrative, while gold fell toward $4,000 an ounce and crude fluctuated around $80 per barrel near one-month highs as the U.S. stepped up strikes on Iranian targets near the Strait of Hormuz.
In other news: President Trump said Iran wants to meet and make a deal even as U.S. forces launched attacks twice in 12 hours, with analysts warning of a "forever war" risk; Washington slapped a 25% tariff on most Brazilian goods effective July 22 over what it calls unfair trade practices; Fed Chair Kevin Warsh completed two days of congressional testimony while giving few clues on policy direction; Oracle is reportedly leading AWS, Microsoft, and Google in talks to supply cloud services to the Japanese government; Alibaba and Baidu shares jumped in Hong Kong after confirming their AI models will power Apple Intelligence in China; SpaceX closed below its $135 IPO price for the first time ahead of Thursday's Starship test flight; and United Airlines beat second-quarter estimates but flagged $6 billion in added fuel costs from the Middle East conflict.
South Korea's Kospi tumbles 7% in chip rout
In Asia, South Korea's Kospi plunged over 7%, while the small-cap Kosdaq was down 5%. Japan's benchmark Nikkei 225 declined 3%, while the Topix was down 1.19%. Hong Kong's Hang Seng index gained 1.31%, while the CSI 300 lost 0.55%. Australia's benchmark S&P/ASX 200 was down 0.3%. A softer-than-expected U.S. producer price index added to optimism that inflation is cooling, helping lift equities and providing some comfort to investors that the Federal Reserve will keep key interest rates on hold.
Stocks close higher on Big Tech gains, encouraging inflation signs
The S&P 500 rose on Wednesday, with major technology stocks advancing, as traders digested more data showing inflation is cooling. The broad market index finished up 0.38% at 7,572.40, while the Nasdaq Composite climbed 0.62% to settle at 26,269.23. The Dow Jones Industrial Average added 150.37 points, or 0.29%, to end at 52,658.64. Investors appeared to be paring exposure to key semiconductor stocks and moving into shares of certain Big Tech names. Notably, Amazon and Alphabet moved up around 3%, while Microsoft was higher by nearly 3%. Apple gained 4%, hitting a new all-time high.
Gold fell toward $4,000 an ounce on Thursday, resuming its decline
Gold fell toward $4,000 an ounce on Thursday, resuming its decline as escalating attacks in the Middle East pushed oil prices sharply higher this week, reviving concerns about inflation and the outlook for interest rates. The US carried out additional strikes against Iranian targets on Wednesday, though President Donald Trump said Tehran had signalled a willingness to resume negotiations. Meanwhile, the precious metal found some support from softer US inflation data, which eased concerns over a near-term Federal Reserve rate hike. Data released on Wednesday showed US producer prices unexpectedly declined in June for the first time in nearly a year, largely due to lower energy costs, following Tuesday's weaker-than-expected consumer inflation report. However, June's inflation figures did not reflect the impact of the latest escalation in the US-Iran conflict, as the interim peace agreement reached last month has effectively unravelled.
Crude oil fluctuated around $80 per barrel on Thursday, but stayed close to one-month highs
Crude oil fluctuated around $80 per barrel on Thursday, but stayed close to one-month highs as the US stepped up its military campaign against Iran in an effort to safeguard shipping through the Strait of Hormuz. US forces carried out fresh airstrikes on Wednesday, targeting Iranian missile storage facilities and launch sites near the strategic waterway. Reports also indicated that President Donald Trump is leaning toward broadening US military operations and has discussed the possible seizure of Kharg Island, Iran's primary oil export terminal. The escalating conflict lifted oil prices to a one-month high and revived concerns over potential supply disruptions in the Middle East, reversing roughly a third of the second-quarter decline that followed the interim peace agreement, which had improved the supply outlook.
Trump says Iran wants to meet as U.S. fires more strikes; analysts warn of 'forever war' risk
President Donald Trump on Wednesday said Iran wants to meet and make a deal, as the U.S. military announced that it launched attacks against Iranian targets for the second time in 12 hours. But Iran has publicly maintained its combat-ready posture, and defense analysts told CNBC they see no clear path to a settlement of the renewed hostilities between Washington and Tehran. "We received a call just as I was coming here that they want to meet," Trump said in a Fox Business interview before participating in a roundtable event in Pennsylvania on defense and innovation. "They always want to meet," he said of the Islamic republic, insisting that its military capabilities have been largely depleted — a claim that he has made in similar terms for months.
U.S. slaps 25% tariff on most Brazilian goods over 'unfair trade practices'
The U.S. has levied 25% tariffs on most imports from Brazil effective next week, concluding a yearlong investigation into what Washington calls unfair trade practices, and reigniting tensions with the Latin American nation after negotiations fell apart. The action, taken under Section 301 of the Trade Act of 1974, targets Brazilian practices, such as orders directing American technology firms — including X, Meta, and Google — to remove certain political content and suspend accounts belonging to U.S. residents, preferential tariffs for Mexico and India, weak intellectual property enforcement, and ethanol market barriers. The 25% levy, set to take effect on July 22, will apply to most imports from Brazil, with exemptions for certain goods such as beef, orange juice, aircraft and parts, and energy products.
Fed Chairman Kevin Warsh's testimony to Senate banking committee hits on economy, interest rates
Federal Reserve Chairman Kevin Warsh testified Wednesday before the Senate banking committee, facing questions over the economy and how various factors might impact interest rates. As part of congressionally mandated Capitol Hill appearances for the central bank leader, Warsh spoke Tuesday to the House financial services committee. During his remarks, he reaffirmed the Fed's commitment to fighting inflation though he gave few clues about the direction of monetary policy. Legislators tried baiting Warsh into commenting on fiscal and political matters, but he largely avoided the topics, stressing the importance of the Fed staying focused on its assigned responsibilities.
Wholesale prices unexpectedly declined 0.3% in June on big drop in gasoline
Wholesale prices unexpectedly fell in June as sliding energy costs helped brighten the inflation picture, the Bureau of Labor Statistics reported Wednesday. The producer price index posted a seasonally adjusted 0.3% decline for the month, compared with the Dow Jones consensus estimate for the final demand cost measure to be unchanged. On an annual basis, the index indicated a 5.5% inflation rate. The May reading was revised sharply lower, from an initially reported increase of 1.1% to 0.6%. Excluding food and energy, the core PPI rose 0.2%, against the outlook for a 0.3% increase. The core PPI less trade services rose 0.1% and was up 5.1% from a year ago. As with consumer prices, the index benefited from easing energy costs, particularly as oil fell due to the brief pause in tensions between the U.S. and Iran. Goods prices posted a 1.4% monthly decline, the biggest drop since July 2022 as energy slumped 6.4% and final demand food prices were off 0.6%.
Oracle stock rises on report of Japan cloud contract lead
Oracle shares gained in recent sessions following a report that the company is leading rivals in talks to supply cloud services to Japan. The Financial Times reported that Oracle is ahead of Amazon Web Services, Microsoft, and Google in discussions to provide cloud infrastructure to the Japanese government, citing seven people familiar with the talks. According to the report, Japan has not made a final decision and could still split the contract among multiple providers, two people familiar with the situation told the Financial Times. Oracle, Microsoft, Google, and the Japanese prime minister's office declined to comment to the Financial Times. AWS told the publication, "We engage with every customer, including the government of Japan, to design the architecture that best meets their security, sovereignty, and mission needs."
Alibaba and Baidu shares jump in Hong Kong on Apple AI partnership
Shares of Chinese tech giants Alibaba and Baidu rose Thursday on their partnership with Apple for deploying their AI tools. Hong Kong-listed shares of Alibaba rose 5% after the company confirmed that its Qwen AI model would be integrated into Apple services in China. U.S.-listed shares of Alibaba had closed slightly higher overnight after an Alibaba spokesperson told CNBC that "Qwen will be integrated into Apple Intelligence experiences within iOS, iPadOS, macOS, and visionOS for users in China." Baidu's Hong Kong-listed shares gained 4% as the company confirmed that it was working with Apple on Apple Intelligence features for iPhones in China. This comes amid reports in late June that its artificial intelligence chip unit Kunlunxin is targeting an initial public offering in the city, which could value its affiliate at $50 billion.
SpaceX stock sinks below $135 IPO price for the first time
SpaceX shares fell for a fourth-straight session on Wednesday, briefly dropping below their $135 initial public offering price for the first time as hype around the reusable rocket maker fizzled. Shares have whipsawed since the reusable rocket maker's historic IPO last month, which raised a record $86 billion and cemented founder Elon Musk as the first trillionaire. The stock dipped about 1% on Wednesday and closed at $135.27 per share. SpaceX's unwind comes ahead of the company's 13th Starship test flight, slated for Thursday, and suggests enthusiasm for the aerospace company is already cooling off about a month after its blockbuster debut. Last month's offering also ushered in a potential hot streak for IPOs, with offerings from Anthropic and OpenAI likely on the horizon. Both companies have confidentially filed to go public with the U.S. Securities and Exchange Commission, but haven't provided any official plans.
United earnings top estimates but airline expects $6 billion in added fuel costs
United Airlines' second-quarter results came in ahead of Wall Street estimates, but billions of dollars in added fuel costs continue to weigh on earnings, the carrier said Wednesday. United forecast third-quarter adjusted earnings per share of between $2.50 and $3.50, compared with analysts' estimates for $3.60 a share. It estimated full-year adjusted earnings per share of between $9 and $11, the higher end of the range of the adjusted $7 to $11 a share it forecast in April, when it cut its January forecast after the U.S. and Israel attacked Iran in late February.
