U.S. stock markets closed mixed on August 13, with a mild CPI reading boosting expectations for interest rate cuts, while AI concept stocks led gains in the technology sector. On the list of top 20 U.S. stock turnover for August 13, the Philadelphia Semiconductor Index rose over 2%, and memory chip stocks saw broad gains.
Most popular Chinese concept stocks fell on August 13, with Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM) up 1.66% and Alibaba Group Holding Ltd (NYSE: BABA) down about 2%. In commodities, oil prices experienced volatile trading, copper continued to decline, and gold prices rose. European markets edged lower, with attention focused on escalating tensions in the Middle East.
On the macro front, former President Donald Trump claimed that "America fully controls the Strait of Hormuz." He also announced that White House Press Secretary Karoline Leavitt will leave her post. U.S. core inflation for July was mild, reducing the probability of a Federal Reserve rate hike. The U.S. military reported that it has diverted 59 commercial ships. The U.S. budget deficit surged in July, with federal spending accelerating. A new U.S. plan aims to speed up the flow of critical AI materials among allies. Iran's "Persian Gulf Strait Authority" stated that the Strait of Hormuz remains closed. Talks between the U.S. and Iran are at an impasse, and Tehran is preparing for a prolonged regional conflict. Canada is weighing a proposal for automotive tariffs in negotiations with the U.S. Switzerland is planning legislation to forcibly delay the payment of bonuses for bank executives, with a maximum deferral period of five years.
In corporate news, Cisco Systems Inc (NASDAQ: CSCO) issued a fiscal forecast that significantly exceeded expectations, attributing the results to record "broad-based" demand. Chipmaker Cerebras Systems Inc saw a drop in hardware sales, leading to a sharp decline in its stock price after hours. The world's largest sovereign wealth fund disclosed that it has taken a stake in SpaceX for the first time, recording a record profit of $184 billion. Short sellers of SpaceX have exhausted their ammunition, and the stock has rebounded over 30% from its low. Blackstone Inc (NYSE: BX) is considering abandoning a $3 billion debt financing plan. Alphabet Inc (NASDAQ: GOOGL) launched the new Pixel 11 smartphone series. Jane Street issued $14.6 billion in bonds, with a 10-year yield of over 8%. Hedge fund clients of Bank of America Corp (NYSE: BAC) continued to buy U.S. stocks heavily, with a single-week volume not seen since 2008.
In commentary, the Fed is expected to maintain its pace of reserve management purchases. Traders are closely watching whether the yen will face renewed intervention as it is locked in a battle near the 160 level. The outlook for a U.S.-Iran agreement remains uncertain, with shipping volumes through the Strait of Hormuz near a three-month low. U.S. gasoline and diesel prices during the summer travel season have both hit new highs for the period. In the U.S. bond market, following mild inflation data and a 10-year Treasury auction, bonds closed mixed. The yield on the newly issued 10-year U.S. Treasury hit a new high since the financial crisis. Former President Trump faces a lawsuit over the sale of priority access to his Truth Social posts. JPMorgan Asset Management noted that America's "Teflon-like inflation" won't stick, and the Fed does not need to raise rates. The CEO of a sovereign wealth fund managing $2.3 trillion warned that the strong returns of the first half of the year are unlikely to be sustained.
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