Preview of US Stock Market | The three major stock index futures all fell, the panic index skyrocketed, and Federal Reserve officials intensified their hawkish stance.

Pre-market Market Trends 1. Before the market opens on July 17 (Friday), the futures of the three major US stock indexes all fell. As of the time of writing, Dow futures fell by 0.56%, S&P 500 futures fell by 0.84%, and Nasdaq futures fell by 1.79%. 2. As of the time of writing, the Germany DAX index fell by 0.38%, the UK FTSE 100 index fell by 0.08%, the France CAC 40 index fell by 0.70%, and the Euro Stoxx 50 index fell by 1.00%. 3. As of the time of writing, WTI crude oil rose by 2.44% to $80.88 per barrel, and Brent crude oil rose by 2.17% to $86.06 per barrel. Market News Nasdaq futures plummeted, dragging down the global chip sector. On Friday, Nasdaq 100 index futures plunged, intensifying the global sell-off of chip stocks. At the same time, the VIX panic index hit a new high in over a week. Traders are withdrawing from stocks that have driven the market up this year but are now overvalued. Chip manufacturers are facing increasing scrutiny as to whether the massive increase in valuation driven by AI infrastructure development has gone too far. The core issue is whether the billions of dollars invested in AI by mega-enterprises will eventually lead to substantial returns and continue to sustain strong demand for chips. Attacks and counterattacks in the Middle East have also dampened market sentiment. Inflation concerns reignite, Fed officials intensify their hawkish stance. With more signs of stability in the labor market, Federal Reserve officials are sharpening their focus on inflation. While pressure from tariffs has eased, concerns remain about energy prices affected by the Middle East situation. The market demand brought by the development of AI has become a new focus. Federal Reserve Vice Chairman Philip Jefferson said on Thursday that if inflation does not cool down quickly, the Fed should consider raising interest rates, but he also stated that the current monetary policy situation is good. Jefferson also mentioned that the widespread deployment of AI coupled with energy disruptions caused by the Iran conflict are putting the Fed's policy in a difficult balancing act. On the same day, two other Fed officials expressed stronger concerns about price increases. Loretta Logan, FOMC voting member and President of the Dallas Fed, became the first Fed official to call for rate hikes in 2026, stating that inflation does not seem to be returning to the Fed's 2% target level. Jeff Schmidt, President of the Kansas City Fed, expressed concerns that inflation risks could escalate further in the coming months, making inflation his top concern. Despite better-than-expected June inflation data in the United States, Schmidt warned that it is too early to determine that inflation is starting a downward trend. "The smartest people in the company" are accelerating their exits: US executives cashed out $77.6 billion in the first half of the year, reaching the second-fastest pace in over two decades. In the first half of this year, US corporate executives sold stocks at the second-fastest pace in over twenty years. This could be seen as a classic danger signal for some investors, as it indicates that those who know the company best are uneasy about the market outlook. According to EPFR Global Market Intelligence data, US corporate insiders sold a total of $77.6 billion worth of stocks in the first half of 2026, a 20% increase from the same period last year. Insider stock buying behavior remained subdued during the first half of the year, with only $6.9 billion worth of stocks purchased, slightly higher than the seven-year low of $6.7 billion set in the same period last year. US-Iran Strikes Escalate, Strait of Hormuz Traffic Plummets, Gulf States Engaged in Battle. Military confrontation between the US and Iran has significantly escalated, with the US expanding airstrikes on key Iranian infrastructure while Tehran launching missiles and drones at several US allied Gulf countries. The latest round of strikes has targeted bridges, military facilities, and critical infrastructure near the Strait of Hormuz, one of the busiest oil shipping routes in the world. As a result, maritime security in the waterway has deteriorated, leading to a substantial decrease in commercial vessel traffic. Iran's retaliation targets include US-affiliated facilities in Bahrain, Kuwait, Qatar, and Jordan, escalating regional tensions and prompting multiple governments to heighten alert levels amid concerns of further escalation of hostilities. Diplomatic breakthroughs appear dim once again as both sides continue retaliatory actions, disrupting energy supply chains and keeping oil price volatility risks high, putting the overall stability of the Gulf region to a severe test. Following Finance Minister, Prime Minister Speaks Again! Prime Minister Koji boldly emphasizes the need for GPIF to increase Japanese asset allocation. Japanese Prime Minister Koji emphasized the importance of encouraging the Government Pension Investment Fund (GPIF) to increase investment in Japanese financial assets for both households and the government, further raising expectations of possible adjustments in the fund's asset allocation. During a parliamentary session, Prime Minister Koji stated, "As the stock market continues to perform steadily, we believe it is very important to take measures to encourage not only families and pension funds, but also the Government Pension Investment Fund, to increase their investment in Japanese financial assets, so that the public can share the benefits of Japan's economic growth." She added, "By doing so, our goal is to promote a virtuous cycle between economic growth and the accumulation of household assets." Individual Stock News Meta (META.US) to hire Amazon.com, Inc. (AMZN.US) cloud executive to accelerate data center and cloud computing development. It has been reported that a senior executive from Amazon.com, Inc.'s cloud technology division, Amazon Web Services (AWS), is set to join Meta Platforms in the coming weeks, highlighting Meta's ambitions in building data centers and computing resources. Dave Brown, one of the top executives at Amazon.com, Inc.'s cloud technology division, will bring nearly 20 years of industry experience to Meta, reporting to Meta's head of infrastructure. Meta CEO Mark Zuckerberg stated at the annual shareholders meeting in May that building a cloud computing business is "definitely in consideration." He mentioned that companies "almost every week" reach out to Meta seeking permission to use their AI models or to pay a premium for using their idle computing capabilities. Micron Technology, Inc. signs long-term agreement with Qualcomm (QCOM.US) and others to secure AI automotive storage supply. Micron Technology, Inc. is extending its reach into the automotive sector from data centers with a long-term supply agreement with various automotive suppliers to lock in customers and stabilize revenue streams. Micron announced on Thursday that it has signed long-term agreements with several automotive suppliers, including chip designer Qualcomm, audio product manufacturer Harman, as well as Visteon, JOYNEXT, DENSO, Astemo, and Hyundai Mobis. The agreements aim to provide stable storage and storage component supply for powering AI-enabled vehicles and help partners optimize production planning and investment decisions for future advanced vehicle platforms by locking in prices. Trump charges for early access to posts. It has been reported that former US President Trump's media and technology group (DJT.US) recently launched a paid authorized data interface that will provide the "fastest" access to posts from top accounts on the "Truth Social" platform, including Trump's own account. The product, called the "Truth API," is set to launch on August 1st, providing customers with real-time updates from the ten most influential accounts on the platform at a speed far surpassing conventional notifications from the "Truth Social" platform. A company spokesperson stated that the product is designed specifically for algorithmic trading companies and other institutions most affected by information delay costs. Previously, institutions closely monitoring popular posts on "Truth Social" could only rely on manual tracking. PayPal (PYPL.US) rejects Stripe's discounted acquisition offer of $53 billion! The battle for digital payment "dominance" intensifies. According to reports citing sources familiar with the matter, the board of directors of PayPal, one of the world's largest digital payment service providers, believes that the $53 billion acquisition offer from Stripe, a large-scale financial technology infrastructure platform for businesses and developers, undervalues the overall worth of the company and will face global antitrust scrutiny and financing barriers in the future. A PayPal spokesperson and representatives have not yet responded formally to the proposal. According to media reports, the PayPal board of directors is weighing this offer, as well as the possibility of other offers, against the business turnaround strategies of the management. Netflix (NFLX.US) stock plunges due to lower-than-expected performance guidance. The stock price of US streaming giant Netflix plunged in pre-market trading on the US stock market, dropping more than 10% at one point due to performance guidance below expectations. The company expects third-quarter revenue in 2026 to be $12.9 billion and earnings per share of $0.82, both lower than expected. Netflix also narrowed its full-year revenue forecast range to $51.0 billion to $51.4 billion, down from the previous range of $50.7 billion to $51.7 billion. This heightened investor concerns about the company's growth hitting a ceiling. Some Wall Street analysts have indicated that investors widely believe that Netflix, Inc.'s business is deteriorating. Goldman Sachs Group, Inc. lowered its target price for Netflix, Inc. from $110 to $94. Similarly, Industrial Bank of France also lowered Netflix's target stock price from $100 to $95. Key Economic Data and Events Preview 20:30 Beijing time: US June Building Permits MoM preliminary data, US June Housing Starts YoY. 21:15 Beijing time: US June Industrial Production MoM. 22:00 Beijing time: US July University of Michigan Consumer Confidence Index preliminary reading.