S&P 500 Hits Record High as Chip Stocks Rally, Gold and Oil Fall, Yen Strengthens

Market Overview

Risk appetite improved overnight, extending the rally in U.S. equities. The S&P 500 climbed 0.65% to a fresh all-time high of 7,798, while the Nasdaq Composite gained 0.81%, led by strength in semiconductor and data storage stocks.

Meanwhile, traditional safe-haven assets and commodities retreated. Spot gold fell 1.34%, slipping below $4,400/oz, while silver declined 1.43%. In the energy market, WTI crude dropped 2.43%, falling below $82 per barrel, and Brent crude lost 2.15%.

In Asia, earnings from major Chinese and Hong Kong technology companies exceeded expectations. SMIC, Hua Hong Semiconductor, and Lenovo all reported stronger-than-expected results, reinforcing optimism surrounding the semiconductor sector.

In fixed income, the 10-year U.S. Treasury yield fell 4.57 basis points, while the Japanese yen strengthened after the Bank of Japan signaled that another rate hike remains possible as early as September.

Market OutlookU.S. July Retail Sales

Markets are focused on today's release of the U.S. July Retail Sales report, a key gauge of consumer spending resilience amid elevated interest rates.

A stronger-than-expected reading would reinforce expectations that the U.S. economy remains resilient, prompting investors to reassess the Federal Reserve's policy path. Conversely, weaker data could heighten concerns over slowing economic growth in the second half of the year and revive expectations for future rate cuts.

China & Hong Kong Tech Earnings Season

Robust earnings from SMIC, Hua Hong Semiconductor, and Lenovo have shifted investor attention back toward the semiconductor and AI hardware sectors.

Going forward, markets will closely monitor order visibility across China's domestic AI computing supply chain, as well as whether improving corporate earnings can support an independent rally in Hong Kong-listed technology stocks. Investors should also watch for any spillover effects from Applied Materials' cautious guidance on semiconductor equipment manufacturers.

Key Events to Watch

• U.S. July Retail Sales

• University of Michigan August Consumer Sentiment & Inflation Expectations

• Eurozone Q2 GDP

• U.S. Institutional 13F Filings

• Korea Exchange Launches After-Hours ETF Trading