US stock market futures were trading higher on Thursday, with all three major indexes pointing to a positive open. As of writing, Dow futures added 0.30%, S&P 500 futures gained 0.22%, and Nasdaq futures were up 0.12%.
European markets showed mixed performance, with Germany's DAX rising 0.36%, the UK's FTSE 100 slipping 0.27%, France's CAC 40 climbing 0.13%, and the Euro Stoxx 50 index up 0.47%.
In the commodities space, WTI crude oil fell 2.16% to $81.47 per barrel, while Brent crude declined 1.88% to $87.13 per barrel.
Market Overview: Yen Nears 160 Key Level
The Japanese yen is hovering near the critical 160 mark against the US dollar, trading around 159.36 on Thursday, even after reports that Prime Minister Shigeru Ishiba's government supports higher interest rates. Historically, when the yen approaches this level, it often signals potential government intervention to support the currency. Insiders suggest that the next rate adjustment could occur in September or October. The Bank of Japan's concern over yen weakness fueling inflation, coupled with the government's desire to enhance the effectiveness of recent currency intervention, has reportedly aligned both parties on the need for a near-term rate hike. However, investors note that the impact on the yen is minimal, as the market had already priced in expectations of a rate increase. The yen continues to weaken due to the persistent interest rate gap with the US and Japan's heavy debt burden.
Geopolitical Tensions: Iran Warns of Protracted Conflict to Exhaust US
In an interview aired on PBS on August 11, Major General Mohammad Reza Naqdi, an advisor to the commander of Iran's Revolutionary Guard Corps, asserted that the US has failed in its two primary objectives in the war against Iran: overthrowing the Iranian leadership and dividing the country. "Victory is with Iran," Naqdi stated, highlighting the US's perceived confusion and lack of strategy. He emphasized that Iran will continue to achieve victory, having gained experience over more than five months of conflict. Naqdi noted that the US military appears weaker than expected, and Iran must achieve deterrence to ensure that no enemy ever attacks it again. One way to achieve this, he said, is to "prolong the war" and exhaust the US, making potential aggressors reconsider the cost of any future attack.
Super Micro Computer: AI Era Calls for a 1:1 CPU-to-GPU Ratio
The rise of Agentic AI is fundamentally reshaping data center computing architecture, significantly elevating the strategic importance of CPUs. Bank of America Securities has revised its 2030 total addressable market (TAM) forecast for server CPUs to over $210 billion, up from a previous estimate of approximately $170 billion, representing a 20% increase. The annual growth rate projection has been raised from 30% to 36%. The core logic behind this adjustment is that as AI workloads shift from training to inference and then to agentic AI, the role of the CPU is evolving from a "supporting actor" to the "control plane" for agent orchestration. The bank predicts that the CPU-to-GPU ratio will tighten from roughly 1:4 during the training era to about 1:2 during AI inference, eventually approaching 1:1 in the agentic AI era. This would mean that by 2030, CPUs will account for about 10% of the total $2.2 trillion data center system TAM, up from less than 7% during the 2024-2025 training phase.
IPO Window Deal: Anthropic in Talks to Acquire Decart AI for $60 Billion
Just weeks before its highly anticipated initial public offering (IPO), AI giant Anthropic PBC is accelerating efforts to strengthen its technological moat through acquisitions. According to sources, the company is in advanced talks to acquire Israel-based AI infrastructure startup Decart AI for a valuation of approximately $60 billion. If reached, this deal would be Anthropic's largest acquisition to date and a critical "technology reinforcement" move ahead of its IPO. Notably, Nvidia was originally the potential buyer, but Anthropic swooped in as negotiations were nearing completion.
Central Bank Move: Bank of Korea Buys Gold Assets for First Time in 13 Years
South Korea's central bank has purchased gold-related assets for the first time in 13 years, aiming to hedge against geopolitical and economic uncertainties. According to a filing with the US Securities and Exchange Commission, the Bank of Korea held 679,765 shares of SPDR Gold Shares as of the end of the second quarter, valued at approximately $250 million. The filing shows that the bank did not hold any shares of the world's largest gold-backed ETF three months earlier. The central bank stated that this is its first investment in gold-linked assets since 2013. The purchase does not increase the bank's official gold reserves, as gold ETFs are classified as securities and are part of foreign exchange reserves. Choi Kyuho, an economist at Hanwha Investment & Securities, remarked, "The central bank's current allocation to gold is quite low. Considering the global standard, there is still room for further gold purchases. I believe they will gradually increase their gold holdings."
Stock Movers: Lenovo's Results Lift HP and Dell
In pre-market trading on Thursday, shares of HP Inc (HPQ.US) and Dell Technologies Inc. (DELL.US) rose 7% and 4%, respectively, following a stronger-than-expected first-quarter report from PC peer Lenovo Group Ltd. (00992.HK). Lenovo's revenue for the quarter ended June 30 grew 43.1% year-over-year to $26.94 billion, marking the fastest growth rate in five years and one of the company's strongest quarterly performances. The results were driven by robust performance across all business segments, with the Infrastructure Solutions Group nearly doubling revenue (up 98% year-over-year) to $8.5 billion.
Apple in Talks to Pay Publishers for AI Content
Sources say Apple (AAPL.US) is in discussions with publishers about new licensing agreements to use their content for the latest news and information, aiming to enhance its AI-powered voice assistant, Siri. The proposed multi-year deals would grant Apple access to content to improve Siri's performance, a feature expected to launch later this year. Some sources indicate that Apple has proposed a floating fee structure based on content usage and has discussed a budget that could reach several hundred million dollars.
Ford to Move Lincoln Production to US by 2030
Ford (F.US) CEO said Wednesday that the company plans to move production of some Lincoln models from China to the US starting in 2030. Imports of both gasoline and electric vehicles from China are subject to high tariffs. Ford confirmed that the tariff rate on the Lincoln Nautilus, its main import from China, has already reached 52.5%. The CEO stated that the Lincoln models produced in the US will be sold domestically, though the company did not specify where they will be manufactured. Beyond tariffs, automakers also face restrictions from the Connected Vehicle Rule, which prohibits the use of certain Chinese technology and hardware in vehicles sold in the US. Ford's CEO said both regulations prompted the decision, but tariffs were the core driver.
SpaceX's 14th Starship Test Flight Could Be a Turning Point
CEO Elon Musk has hinted at the 14th test flight of Starship as early as the end of August. UBS analyst Gavin Parsons noted that this flight could mark a significant turning point, moving from proving the rocket's functionality to demonstrating the capabilities needed to support SpaceX's ambitious growth plans. The test flight aims to achieve two major technical breakthroughs: deploying the first batch of upgraded Starlink V3 satellites into orbit and attempting to recover the Starship's upper stage (the spacecraft) using a land-based launch tower. Musk stated that the 14th flight represents a major leap forward for the reusable rocket. Whether the land-based recovery attempt proceeds depends on data from the 13th test flight and final approval from the Federal Aviation Administration (FAA). If approved, SpaceX will use giant mechanical arms mounted on the Texas launch tower to catch and recover the 52-meter-high upper stage in mid-air. The company has previously successfully used this technology to recover the Super Heavy booster (first stage).
Paramount Considers Selling CNN to Resolve Antitrust Lawsuit
Paramount Chief Legal Officer Makan Delrahim said Wednesday that selling CNN is one of the options to resolve a 12-state antitrust lawsuit that threatens Paramount's $110 billion acquisition of Warner Bros. Discovery. This move indicates Paramount's willingness to go beyond internal safeguards to save the deal, which is one of the most politically charged media mergers in recent years. Reports also suggest that Paramount had discussed creating an editorial board and other safeguards for CNN to maintain its editorial independence, even before the antitrust lawsuit was filed. The company responded cautiously, stating, "We are always open to internal improvements that enhance journalistic integrity."
Key Economic Data and Events Schedule
20:15 Beijing Time: FOMC voter for 2026 and Cleveland Fed President Beth Hammack delivers a speech.
20:30 Beijing Time: US July PPI year-over-year rate and US weekly initial jobless claims for the week ending August 8.
20:40 Beijing Time: FOMC voter for 2027 and Richmond Fed President Tom Barkin speaks on the economic outlook.
Earnings Preview: Applied Materials (AMAT.US) and Agora (API.US) report on Friday morning. RLX Technology (RLX.US) reports before the market opens on Friday.
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