US Stocks Close: Three Major Indices All Rise, Nasdaq Gains 0.9%; June CPI Cools Across the Board, Trump Cancels Decision to Charge Fees in Strait of Hormuz; SK Hynix ADR Surges 27%, Memory Stocks Lead Gains

TradingKey - US June CPI came in lower than expected across the board, the probability of a July Fed rate hike fell below 20%, and Trump's cancellation of the decision to charge fees in the Strait of Hormuz all boosted market trading sentiment. The three major US stock indexes closed higher across the board, with memory and chip stocks leading the gains, while IBM's plunge dragged down software stocks.

At the close, the Dow Jones Industrial Average rose 0.02% to 52,508.27 points; the Nasdaq Composite Index rose 0.90% to 26,107.01 points; and the S&P 500 Index rose 0.38% to 7,543.59 points.

Tech Stock Performance

SK Hynix ADR (SKHY) rose 27.29% to $193.92, hitting a record high since listing.

SK Hynix has officially initiated mass production and shipments of 12-layer HBM4 for Nvidia, with the product entering the capacity ramp-up phase. Unlike previously supplied products which were classified as samples, this marks the first time that HBM4 is supplied in its final specification, having completed all quality certifications, for Nvidia's next-generation AI platform, "Vera Rubin". It is reported that starting from September this year, SK Hynix will officially expand the scale of its HBM4 shipments to fully support Nvidia's supply demand for high-end computing chips.

IBM Corp (IBM) fell 25.21% to $217.07.

IBM announced its preliminary second-quarter results. Data shows that preliminary Q2 revenue was $17.2 billion, missing expectations of $17.9 billion. Sales in the infrastructure business declined by 7%. IBM CEO Arvind Krishna stated that the company had originally expected supply chain issues to weigh on performance, but did not anticipate that customers would ultimately shift their budgets from IBM products to hardware purchases such as servers, storage devices, and memory to hedge against the risk of further price increases in the future.

Among mega-cap tech stocks, Nvidia (NVDA) rose 4.06%, Google (GOOGL) rose 1.99%, Broadcom (AVGO) rose 1.32%, Meta Platforms (META) rose 0.66%, Tesla (TSLA) rose 0.34%, and Amazon (AMZN) rose 0.07%; among decliners, SpaceX (SPCX) fell 2.20%, Microsoft (MSFT) fell 1.55%, Apple (AAPL) fell 0.77%, and TSMC (TSM) fell 0.28%.

[Source: FutuBull]

The Philadelphia Semiconductor Index rose 2.54% to 12,661.93 points. Among its 30 constituents, 22 rose and 8 fell. Micron Technology (MU) rose 4.92%, Lam Research (LRCX) rose 4.90%, Intel (INTC) rose 4.50%, KLA (KLAC) rose 3.65%, and Applied Materials (AMAT) rose 3.53%.

US-listed Chinese stocks saw a similar number of gainers and decliners, with Luckin Coffee (LKNCY) up 4.44%, Pony.ai (PONY) up 3.89%, Hesai (HSAI) up 3.17%, and XPeng (XPEV) up 3.17%.

Company News

Apple in Talks with AI Startup to Run Large Models Directly on iPhones

Apple is in preliminary talks with AI startup PrismML and is evaluating its AI model compression technology, aiming to run large AI models directly on iPhones without relying on cloud computing. PrismML claims its technology can reduce model memory footprints by 10 to 15 times, enabling a 27-billion-parameter model to run on the iPhone 15 and above, while increasing response speeds by 6 to 8 times and reducing power consumption by 3 to 6 times. If the technology matures, Apple is expected to move more Siri and generative AI features to on-device processing, further improving response times, privacy protection, and offline user experience while reducing cloud computing costs. However, industry insiders note that the technology still needs to be validated in large-scale practical applications, and its impact on battery life, stability, and long-term performance remains to be seen.

Goldman Sachs Q2 Net Profit Rises 78% YoY, Equity Trading Business Up 72% YoY

Goldman Sachs reported its second-quarter 2026 financial results. Q2 net revenue reached $20.34 billion, up 39% year-on-year, setting a company record. Net profit was $6.63 billion, up 78% year-on-year; diluted earnings per share were $20.98, nearly doubling from $10.91 in the same period last year. In terms of specific businesses, equity trading revenue rose 72% year-on-year; Fixed Income, Currency, and Commodities (FICC) revenue rose 32% year-on-year; and investment banking revenue rose 55% year-on-year.

JPMorgan Chase Q2 Net Profit Rises 41% YoY

JPMorgan Chase reported its second-quarter financial results. Q2 net profit was $21.155 billion, up 41% year-on-year; diluted earnings per share were $7.70. Revenue was $58 billion, up 27% year-on-year, beating market expectations of $50.19 billion. JPMorgan raised its full-year expense guidance to approximately $107.5 billion, higher than the $106 billion guidance Jamie Dimon gave at an industry conference in May and above the $105 billion expected in April.

Lucid Says It Has Ample Liquidity, Dismisses Bankruptcy and Restructuring Rumors as Unfounded

Media reports indicate that electric vehicle maker Lucid Group has hired consulting firm AlixPartners to conduct a comprehensive review of all aspects of its operations. According to a person familiar with the matter, strategic options under consideration by Lucid include taking the company private or filing for Chapter 11 bankruptcy protection. Following the publication of the electric vehicle article, Lucid's stock plummeted by as much as 55%, marking its largest single-day drop on record and triggering multiple trading halts due to volatility.

Lucid subsequently responded that the company has ample liquidity to sustain operations well into next year, calling the rumors completely unfounded. It stated that AlixPartners is assisting the company in optimizing operational execution efficiency and has not advised the company to file for bankruptcy, nor has the company established a special board committee to evaluate various scenarios.

Industry & Macro News

New York State Will Temporarily Ban Construction of New Large-Scale Data Centers

New York State will become the first state in the U.S. to temporarily halt approvals for new hyperscale data centers to address energy and environmental pressures caused by the rapid expansion of high-energy-consuming data centers. The Governor of New York State stated that she plans to sign an executive order on Tuesday to halt the construction of large data centers for up to one year. The ban takes effect immediately and applies to data centers with power consumption of 50 megawatts or more.

BofA Warns: Global Investors' Equity Positions Currently Overheated, Recommends Proactively Reducing Equity Asset Exposure

Surveys show that market sentiment has entered extremely bullish territory, serving as a classic tactical peaking signal. Investors' cash allocations plunged from 4.1% last month to an "extremely low level" of 3.6%; the net overweight ratio of U.S. equities reached 24%, hitting a new high since December 2024. Currently, U.S. stocks have rebounded quickly after the shock of the Iran conflict and are hovering near historic highs, with the market's main narrative revolving around AI beneficiary sectors (especially semiconductors). However, the fragile ceasefire in the Middle East has intensified oil price volatility, which, coupled with concerns over peaking earnings expectations and excessive AI capital expenditure by tech giants, has stalled the S&P 500 Index's rally since June.

Trump: U.S. Will Make Huge Deals with Iraq and Extract Large Amounts of Oil from the Country

Speaking before his meeting with the Iraqi Prime Minister, U.S. President Donald Trump said that the U.S. will reach major deals with Iraq and extract large amounts of oil from the country. He stated: "Iraq has tremendous potential, thanks to its oil resources... We are going to make a lot of deals. This will create many jobs for both countries, and at the same time, we will extract a lot of oil from there."

U.S. CPI Registers First Month-on-Month Decline in Four Years

U.S. CPI fell 0.4% month-on-month in June, far below the market expectation of -0.1%; on a year-on-year basis, the annual CPI rate in June fell sharply to 3.5% from 4.2% in the previous month. Core CPI month-on-month growth was 0%. The year-on-year growth rate also fell from 2.9% to 2.6%, lower than the market's previous expectation of 2.8%.

Fed Governor Bowman: Fed Should Not Over-Interfere with Banks on New Technologies Like AI

Federal Reserve Governor Bowman stated that lenders understand the risks of innovation better and should be allowed to decide for themselves when to adopt new technologies like artificial intelligence. Speaking at a conference on financial inclusion, Bowman said: "When and how to innovate is a decision for each individual bank and its management. They understand their customers, their communities, and their risk tolerances better than we do." Bowman also stated that the Fed should "set clear expectations, remain transparent, and not interfere in individual business decisions related to innovation." Bowman's remarks come as top officials are assessing the impact of the rapid development of AI platforms, including the new Mythos AI model launched by Anthropic.