US stock index futures are trading higher ahead of the market open on Wednesday, July 15. At the time of writing, Dow futures are up 0.10%, S&P 500 futures have gained 0.17%, and Nasdaq futures have risen 0.47%.
European markets are showing mixed performance. The German DAX index is down 0.60%, while the UK's FTSE 100 has declined 0.20%. The French CAC 40 is 0.16% lower, and the Euro Stoxx 50 is down 0.10%.
In commodities, WTI crude oil is up 0.05% at $79.38 per barrel. Brent crude has increased 0.09% to $84.81 per barrel.
Key Market Developments
A surprisingly cool US inflation report for June has dramatically slashed market expectations for a Federal Reserve interest rate hike in July, potentially providing a boost to US equities. Data released Tuesday showed the Consumer Price Index (CPI) rose 3.5% year-over-year, below the forecast of 3.8% and a significant drop from the previous 4.2%. It also fell 0.4% month-over-month, marking the first monthly decline in six years. Core CPI, which excludes food and energy, increased 2.6% year-over-year, also below the expected 2.8%, with its monthly gain slowing to 0% from 0.2%.
This better-than-expected data has led traders to significantly reduce bets on Fed tightening. The probability of a 25-basis-point rate hike at the July 28-29 meeting has fallen from around 35% to approximately 15%. Expectations for a September hike have also receded to about 70%, down from over 90% previously. Analysts suggest that weaker inflation diminishes the urgency for the Fed to tighten policy further in the near term, boosting overall market risk appetite.
Stocks in Focus
Apple Inc (AAPL) has received approval in China for its "Apple Intelligence" AI model, with support from Alibaba Group Holding Ltd (BABA) and Baidu Inc (BIDU). According to an announcement, the model developed by Apple's Shanghai technology unit was registered on July 8, 2026, for use on Apple phones, signaling an accelerated rollout of AI features for iPhones in China. Alibaba's Tongyi Qianwen AI model will be integrated into Apple Intelligence, and Apple is also reportedly collaborating with Baidu to develop an AI-powered search function.
SK Hynix Inc (SKHY) saw its US-listed ADRs surge 27% overnight. Barclays initiated coverage with an "Overweight" rating and a $330 price target, implying a potential 70% upside from recent levels. The bank cited a persistent memory shortage, strong pricing power, and the company's leading position in high-bandwidth memory (HBM). Barclays' global DRAM model indicates supply will remain tight for several years, with demand growth outpacing supply increases through 2027.
ASML Holding NV (ASML) reported better-than-expected Q2 2026 results and raised its full-year guidance for the second time this year. The Dutch chip equipment maker posted net sales of €9.33 billion, surpassing estimates, and a net profit of €2.92 billion. It raised its full-year net sales forecast to €43-45 billion and its gross margin outlook to 54%-56%. Separately, the company announced that Intel Corporation (INTC) has become the first to use its next-generation High NA EUV lithography technology for high-volume production of logic chips.
BlackRock, Inc. (BLK) reported assets under management surpassed $15.3 trillion in Q2, driven by strong ETF inflows. The world's largest asset manager posted net inflows of $192 billion for the quarter, bringing the first-half total to a record $321 billion. Adjusted earnings per share were $13.91, beating analyst expectations.
Morgan Stanley (MS) posted record Q2 revenue and profit, fueled by a 69% surge in equity trading revenue. Net income jumped 58% year-over-year to $5.58 billion, with earnings per share of $3.46 exceeding forecasts. Revenue rose 27% to $21.35 billion.
Johnson & Johnson (JNJ) also delivered Q2 results that beat expectations, led by strong growth in its pharmaceutical business. Sales increased 6.6% to $25.31 billion, while adjusted EPS came in at $2.90. The company raised its full-year sales and profit guidance.
Upcoming Economic Data and Events
Key events scheduled for Wednesday include the US Producer Price Index for June and the New York Empire State Manufacturing Index for July at 8:30 PM Beijing Time. Speeches from Federal Reserve officials, including New York Fed President John Williams and Fed Chair Michelle W. Bowman, are also on the calendar. The Bank of Canada will announce its interest rate decision, and the Fed will release its Beige Book survey of economic conditions.
Earnings Calendar
Notable companies reporting earnings on Thursday include United Airlines Holdings, Inc. (UAL) before the market opens, and Taiwan Semiconductor Manufacturing Company Limited (TSM), UnitedHealth Group Incorporated (UNH), GE Aerospace (GE), and Abbott Laboratories (ABT) reporting before the opening bell.
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