This Week's Highlights: Fed Rate Hike Expectations Plummet, AI Frenzy and Middle East Crisis Dominate the Market

On August 15, global markets focused on cooling inflation, Federal Reserve policies, the situation in the Middle East, and the AI investment wave. The U.S. July CPI and PPI both fell, leading to a significant reduction in the market's expectations for rate hikes this year, although long-term U.S. Treasury yields remain suppressed by fiscal pressures. U.S. tech stocks rebounded, while the South Korean stock market rose over 20% in two weeks, with the AI industry chain becoming the main focus of capital again.

The U.S. July CPI rose 3.4% year-on-year, while core CPI increased by 2.5%, and the PPI's year-on-year growth rate dropped to 4.7%, leading to a noticeable decline in market expectations for a Fed rate hike in September. However, the yield on the 30-year U.S. Treasury bond rose to 5.22%, reaching a new high since 2001, as investors worried that the expanding U.S. deficit would push up long-term financing costs.

The situation in the Middle East continues to escalate. Trump stated that the U.S. would declare the Strait of Hormuz as "U.S. territory" after "defeating Iran" and would impose further economic sanctions on Iran. Iran responded that the opening and closing of the strait could only be decided by Iran. The U.S. military continues to strengthen its regional deployment, with the USS Washington heading to the Middle East for defense.

The AI capital market continues to expand, planning to mobilize over $500 billion in capital to support the construction of AI data centers. Jensen Huang stated that AI computing is becoming a new type of infrastructure similar to energy and transportation, but the market is also beginning to pay attention to the risks of AI financing models.

The KOSPI index in South Korea rebounded strongly this week, rising nearly 22% from its late July low, re-entering a technical bull market. Samsung Electronics and SK Hynix led the gains driven by increased demand for AI servers and HBM.

Valuations of AI companies continue to heat up. Plans for an IPO are underway, with market expectations that valuations could reach $2 trillion. This accelerates commercialization efforts, with annual revenue reportedly exceeding $40 billion.

Regarding tech giants, it has been reported that they are collaborating to train a large model exclusive to the Chinese market and adjusting their AI localization strategies. Meanwhile, there is still controversy over whether the 20th anniversary "all-glass iPhone" project will proceed.

In the market, the S&P 500 and Nasdaq continued to rise this week, as investors re-bet on the logic of "rate cut expectations + AI profit realization." However, there are warnings that the current bullish sentiment in the market is nearing extreme levels not seen since 2021, and caution is advised regarding geopolitical risks and valuation pressures.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.