Preview of US Stock Market | Three major stock index futures fell in unison, oil prices rose, Google and Tesla announced their earnings after the bell.

Pre-market market trends 1. On July 22 (Wednesday), before the US stock market, the futures of the three major US stock indexes all fell. As of the time of writing, Dow futures fell by 0.16%, S&P 500 index futures fell by 0.37%, and Nasdaq futures fell by 0.90%. 2. As of the time of writing, the German DAX index rose by 0.27%, the UK FTSE 100 index rose by 1.28%, the French CAC40 index rose by 0.86%, and the European Stoxx 50 index rose by 0.15%. 3. As of the time of writing, WTI crude oil rose by 3.53% to $87.32 per barrel. Brent crude oil rose by 3.86% to $94.52 per barrel. Market News Escalation of Middle East conflict! On the night of July 21 in the US, early morning of July 22 in Iran, the US military launched military strikes on multiple locations in Iran for the 11th consecutive night. In response, Iranian forces attacked US military bases in Kuwait, Jordan, and Bahrain. According to reports, on the early morning of the 22nd, the air defense system in the Iranian capital of Tehran was activated, but Iran has not disclosed casualties or property damage so far. Iranian analysts pointed out that deep-rooted mistrust between Iran and the US, pressure from Israel, and domestic political issues in the US have limited and fragile negotiations to ease tensions. Currently, there are no signs of easing the new round of conflicts between Iran and the US, and the power struggle around the Strait of Hormuz has led to continued instability in the entire Middle East region. In addition, US Secretary of State Pompeo stated that the US is still willing to resolve the Iran crisis through diplomatic means, but Iran has not shown a willingness to engage in serious negotiations. $1.65 trillion off-balance-sheet bomb! The "hidden debts" of the five tech giants have skyrocketed eightfold in four years, and the AI arms race may lead to the next liquidity catastrophe. The five US tech giants' crazy "arms race" in artificial intelligence (AI) infrastructure is creating an "off-balance-sheet debt empire" far exceeding their officially disclosed debts of about $1.35 trillion, soaring eightfold over the past four years. This massive off-balance-sheet obligation has raised concerns on Wall Street and among global regulatory agencies: if the demand for AI falls short of expectations, these future payment commitments hidden in footnotes may quickly turn into a "debt bomb" that consumes cash flow. The US reportedly plans to impose new tariffs before Friday, following the expiration of the temporary 10% global tariffs. According to sources, US President Trump is preparing to impose new tariffs on products from dozens of economies before Friday, aiming to ensure that the tariff system can be maintained after the temporary 10% global tariffs expire. The new round of tariffs is expected to be between 10% and 12.5%. Earlier this year, the US Supreme Court rejected Trump's previous global tariff policy, and Trump subsequently implemented a 10% global tariff. Trump's temporary tariffs expire on Friday, and by implementing new tariffs at that time, the White House can avoid any gaps. The plan is not final and could still change. With the mid-term elections approaching in November, Trump hopes to solidify his tariff commitments with the latest proposal, despite concerns from voters about living costs. Critics argue that import duties will raise prices of consumer goods, but Trump and other senior officials argue that tariffs are necessary to rebuild US manufacturing strength and protect domestic industries. Trump cracks down on generic drugs: 100% tariffs countdown to two years, doubling to 200% in 2029. Trump announced that generic drug manufacturers will have two years to transfer production to the US, or face a 100% import tariff starting in August 2028. This tariff will double to 200% a year later, in August 2029. Trump stated in a post, "This is to bring back the production of generic drugs to the US, and punish companies that do not build factories and buy equipment within the specified time frame." As the 2026 mid-term elections approach, Trump sees drug costs as a key variable affecting people's affordability. He has long complained that drug prices paid by American consumers are much higher than in overseas markets and has repeatedly tried to narrow this price gap. Recently, his administration also launched a consumer-oriented discount drug sales platform called "TrumpRX." The White House has recently set multiple dates for tariff implementation, highlighting the catastrophic consequences approaching as leverage in future negotiations with countries and businesses. Stock Market News Tech stocks in US stocks fell before the market. On Wednesday, before the US stock market, as of the time of writing, SK Hynix (SKHY.US) fell by over 6%, Micron Technology, Inc. (MU.US) and Western Digital Corporation (WDC.US) fell by nearly 4%, SanDisk (SNDK.US) and Seagate Technology Holdings PLC (STX.US) fell by over 3%; Intel Corporation (INTC.US) fell by over 3%, AMD (AMD.US), Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US), Qualcomm (QCOM.US) fell by over 2%, Broadcom Inc. (AVGO.US) and ASML Holding NV ADR (AMSL.US) fell by nearly 2%, NVIDIA Corporation (NVDA.US) fell by over 1%; optical communication stocks fell, Astera Labs (ALAB.US) fell by over 4%, Lumentum (LITE.US) and Marvell Technology, Inc. (MRVL.US) fell by nearly 3%. A market "false joy" event! SK Hynix (SKHY.US) denies rumors of acquiring Intel Corporation's Ohio semiconductor factory, billion-dollar merger deal falls through. SK Hynix officially denied the market rumors that it was negotiating to acquire Intel Corporation's semiconductor park in New Albany, Ohio. The company clarified through formal regulatory filings submitted to the Korean Exchange (DART) that while it has been evaluating global investment opportunities, it "neither sought nor decided to acquire Intel Corporation's factory and semiconductor park in Ohio." Although the deal was ultimately proven to be a false rumor, the reason the market paid high attention to it at first is that this assumption perfectly fits two key contradictions in the current global semiconductor industry restructuringthe "North American manufacturing anxiety" of storage giants and the "funding gap" of Intel Corporation's foundry business. The market response reflects investors' strong expectations for SK Hynix to accelerate its US manufacturing layout. Trump pushes for "Made in America," raising costs, warns Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) that overseas expansion will erode profit margins in the long term. Pressure from US President Trump to manufacture advanced semiconductors in the US is pushing up costs for the world's largest chipmaker, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, and squeezing its profit margins. Since Trump returned to power in 2025, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR has announced a total commitment of $200 billion to invest in the US, including the additional $100 billion investment announced last week for advanced semiconductor manufacturing and packaging facilities in the US. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR stated that despite the boost from the AI boom, this quarter's strong profits were still affected by overseas expansion. Yellow Ren-Chiao, CFO of Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, stated that the gross margin growth exceeded expectations but was offset by dilution effects from overseas semiconductor plants. He added that with the ramping up of overseas semiconductor projects, profit margins will be further diluted in the "coming years." New orders surpass $600 billion, backlog orders reach new highs, Super Micro Computer, Inc. (SMCI.US) surges pre-market. Preliminary performance data released by Super Micro Computer, Inc. shows that new orders for the quarter exceeded $600 billion, driven primarily by strong demand for advanced AI servers, with backlog orders hitting a historic high. These new orders "are expected to be delivered in the coming quarters," which is a positive signal for future revenue and indicates that the company is winning more contracts. The company also stated that the gross margin for the quarter ending June 30 is expected to be between 15% and 17%, a better-than-expected performance that shows progress in selling high-margin products. The company also mentioned that fourth-quarter revenue will fall at the low end of the previously given guidance range of $11 billion to $12.5 billion, with analysts' average expectations at $11.8 billion. As of the time of writing, Super Micro Computer, Inc. surged nearly 16% before the US stock market on Wednesday. AT&T (T.US) exceeds Q2 earnings expectations, accelerates stock buyback. The financial report shows that AT&T's Q2 revenue increased by 2.3% year-on-year to $31.6 billion, below the market's expected $31.77 billion; adjusted earnings per share were $0.65, better than the market's expected $0.59. The company plans to maintain its annual dividend level of $1.11 per share and conduct a $24 billion stock buyback. The company still expects adjusted earnings per share of $2.25 to $2.35 in 2026, with the midpoint of $2.30 below the market's expected $2.32. As of the time of writing, AT&T surged over 4% before the US stock market on Wednesday. Market volatility leads to a trading spree, Interactive Brokers Group, Inc. Class A (IBKR.US) reports second-quarter profit and revenue exceeding expectations. US online brokerage Interactive Brokers Group, Inc. Class A reported strong second-quarter financial results after-hours on Tuesday. Benefiting from continued active client trading activity, a significant expansion in margin loans, and steady growth in net interest income, the company's revenue and profit exceeded Wall Street expectations. The financial report shows that Interactive Brokers Group, Inc. Class A's second-quarter net revenue reached approximately $1.9 billion, not only a 28% increase from the $1.48 billion in the same period last year but also significantly higher than the market's general expectation of $1.79 billion; adjusted diluted earnings per share were $0.69, higher than the $0.51 in the same period last year and significantly surpassing analysts' forecast of $0.64. Earnings forecast Thursday morning: Alphabet Inc. Class C (GOOGL.US), Tesla, Inc. (TSLA.US), Texas Instruments Incorporated (TXN.US) Thursday pre-market: Nokia Oyj Sponsored ADR (NOK.US), STMicroelectronics NV ADR RegS (STM.US), TotalEnergies SE (TTE.US), Southwest Airlines Co. (LUV.US), T-Mobile US (TMUS.US), Union Pacific (UNP.US), American Airlines Group Inc. (AAL.US)