Preview of US Stock Market | All three major stock index futures rise as NVIDIA Corporation (NVDA.US) teams up with Wall Street to leverage $500 billion. The yen approaches 160 again.

Pre-Market Market Trends 1. On August 11 (Tuesday), U.S. stock index futures showed widespread gains before the market opened. As of the time of writing, Dow futures were up 0.06%, S&P 500 futures were up 0.17%, and Nasdaq futures were up 0.33%. 2. As of the time of writing, Germany's DAX index was up 0.05%, the UK's FTSE 100 index was up 0.03%, France's CAC40 index was up 0.06%, and the Europe Stoxx 50 index was up 0.31%. 3. As of the time of writing, WTI crude oil was up 0.12% at $82.23 per barrel. Brent crude oil was down 0.05% at $87.68 per barrel. Reports from Pakistan indicated that signals from the U.S. and Iran suggest that both sides are "close to reaching some arrangement," with the situation moving towards a peaceful outcome. Meanwhile, the Iranian news agency Mehr reported that the Pakistani Interior Minister arrived in Tehran for talks. Market News The Bank of Japan may consider an interest rate hike in September in response to inflation risks. According to insiders, after the Bank of Japan raised rates in June, it may consider another hike at the next policy meeting on September 17-18 due to rising inflation risks. Influenced by rapid growth in demand related to artificial intelligence, significant yen depreciation, and soaring oil prices, consumer prices in Japan may rise further. Previously, many financial market participants had anticipated that the Bank of Japan would hike rates approximately every six months. However, according to the minutes of a meeting released on Monday, some members of the policy committee stated during the Bank of Japan's recent policy meeting on July 30-31 that interest rate hikes should be accelerated. One member noted, "The pace of raising the policy interest rate could exceed market expectations," while another emphasized the need for the Bank of Japan to "accelerate the adjustment of its monetary easing measures." Erasing half of the intervention gains! The yen once again approaches 160, with Bassant declaring "at any cost" despite limited ammunition. U.S. Treasury Secretary Scott Bassant suggested a limitless approach to help Japan rescue the yen, a statement that may provoke skepticism among market participants regarding the actual firepower available. On Monday, the yen fell by as much as 1%, erasing half of the gains since the first U.S.-Japan joint intervention in 1998. Following the intervention on July 31, the yen had briefly approached 155 yen against the dollar, but has since fallen below 159. As of the time of writing, the USD/JPY exchange rate was hovering around 159. After that unusual action, Bassant stated, "We will support them at any cost to help the U.S. economy, American taxpayers, and stabilize the global economy." The issue is that, concerning intervention ammunition, Bassant seems constrained by its main specialized toolthe foreign exchange stabilization fund, which has a scale of less than $220 billion. In comparison, it is estimated that Japan alone used $53 billion for yen operations on July 30 (the day before the U.S.-Japan coordinated action). "The U.S. can influence public opinion through coordinated interventions with Japan, but cannot change the fundamental realities," stated Nathan Tuft, a senior portfolio manager at Manulife Investment Management. Regarding the capabilities of U.S. authorities, he noted, "Their financial resources are considerable but not unlimited." Trump speaks intensively on straits control, strategies on Iran, and communication with the Federal Reserve, intertwining Middle Eastern situations with domestic and foreign affairs. On Tuesday, U.S. President Trump made statements on multiple issues, reiterating U.S. control over the Strait of Hormuz, stating that they had cleared Iranian mines in that strategic waterway, and clearly articulated three strategic options he has on Iran: monitoring its worsening situation, implementing strong strikes, and enduring economic pressure, emphasizing that the U.S. controls a significant amount of Iranian funds and assets. In response to speculation about the prospects of U.S.-Iran negotiations, Trump also made compensation demands to Iran, covering casualties from past conflicts and family members of protesters suppressed over the past 50 years, instructing U.S. representatives to formally push these demands in all future negotiations, directly opposing Iran's previous claims for compensation. On the domestic front, Trump clarified that since the appointment of Federal Reserve Chair Walsh, there has only been one brief conversation between the two parties, denying the frequent communication purported by outsiders, coinciding with heightened market sensitivity regarding the independence and policy directions of the Federal Reserve, in an attempt to downplay the perceived direct interference of the White House in central bank decisions. Regarding security and immigration issues, Trump revealed that following credible assassination threats received after the NATO summit in early July, he secretly left Turkey on Air Force C-32A instead of using the older "Air Force One," while the government announced the revocation of over 175,000 visas for foreign nationals due to issues involving criminal activities, violations, and violent rhetoric against U.S. citizens. Additionally, Trump extended the shipping waiver under the Jones Act by 90 days, but limited its application to energy products and fertilizers, and publicly supported current FIFA President Infantino regarding personnel arrangements, stating that he successfully presided over the most successful World Cup ever, with a change in leadership being a significant mistake. The "chip inflation" era has begun, with AI-driven demand causing memory prices to skyrocket, making computers and phones even more expensive. The explosive growth in demand for artificial intelligence is driving memory chip prices to soar, leading to a phenomenon referred to by institutions as "chip inflation," which has developed into a structural trend with no signs of easing in the short term. Data shows that the producer price index for electronic components and accessories rose by nearly 30% year-on-year in June, marking the largest annual increase since records began in 1966, easily surpassing peak levels from the early 1980s PC era and during supply crises amid the pandemic. Major tech companies are signing multiyear supply agreements with suppliers to secure computing power resources, preempting memory production capacity, forcing traditional PC and smartphone manufacturers to compete for increasingly scarce supply, further translating cost pressures downstream. Reports indicate that a leading smartphone manufacturer is considering introducing new memory chip suppliers to cope with soaring costs; however, this requires regulatory approval, reflecting current supply chain realities. The historical pattern of memory prices dropping by about 90% every five years over the past sixty years no longer applies in the AI economy, with memory prices increasing by more than five times in the past year, signaling a complete reversal of decades-long downward trends, placing significant pressure on cloud services, end-user devices, and even corporate hardware procurement costs. Market expectations are shifting from initial concerns that companies would cut technology spending due to rising costs to the present focus on companies increasing investment to avoid future procurement gaps, with analysts describing this mindset as a "fear of missing out" on purchases. The U.S. CPI data to be released on Wednesday is highly anticipated, with institutions estimating the impact of the current chip price increases on overall CPI to be relatively limited, but specific segments like PCs might face around a 10% year-on-year price rise, with end consumers feeling a more direct impact. Reports suggest that OpenAI is repurchasing $7 billion of employee stock in preparation for a potential IPO, maintaining a valuation of $852 billion. According to an insider, OpenAI has completed a transaction to assist employees in selling around $7 billion worth of company shares as part of preparations for a potential initial public offering (IPO). Two insiders noted that this acquisition deal involves OpenAI repurchasing shares from current and former employees, rather than seeking participation from external investors as in the pastOpenAI has previously invited investors like Thrive Capital and SoftBank Group to purchase company stock held by employees. Insiders revealed that this transaction values the startup at $852 billion, consistent with its valuation during the most recent funding round. Anthropic meets with investors on the eve of its IPO, facing multiple challenges while downplaying competitive pressures. Reports indicate that AI giant Anthropic (market cap $965 billion) is engaging with potential investors, aiming to boost market confidence ahead of what could be the largest IPO in history. The company plans to go public in September or early October, though specific pricing and timing arrangements have yet to be announced. Currently, Anthropic is facing a slew of new challenges, including the proliferation of low-cost AI systems, tensions with the Trump administration, and opposition to data center construction throughout the U.S. In recent IPO preparatory meetings, investors have raised questions regarding the impact of these factors on the companys growth, reflecting the significant uncertainty surrounding AI competition outcomes and financial stability. Company executives have downplayed the competitive threats posed by low-cost AI systems during meetings, emphasizing a strong focus on delivering cutting-edge AI models. Meanwhile, Anthropic disclosed to some investors plans to further expand into healthcare and biology AI applications. Q2 global gas turbine orders soar 71%, setting a record! Major banks declare that gas turbines have entered a "super cycle," with leaders scheduling production through 2030. JPMorgan Chase stated that driven by a significant increase in electricity demand, global gas turbine orders reached a historical high during the April to June quarter. Analysts including Phil Buehler from JPMorgan released a report on Monday indicating that global gas turbine orders in the second quarter were approximately 38 gigawatts (GW), representing a 29% increase over the first quarter and a 71% year-on-year increase. Analysts pointed out that the U.S. remains the largest market, accounting for nearly half of the order share. According to JPMorgan data, Siemens Energy AG secured the largest order size in the second quarter at approximately 12.5 GW, followed by GE Aerospace (General Electric Co.) with orders of 11.3 GW, and Mitsubishi Power Ltd. in third with orders of 5.3 GW. JPMorgan analysts further noted that rising demand is pushing costs higher. A combined cycle gas turbine scheduled for delivery in 2031 is expected to cost three times more than the delivered units last year. Individual Stock News NVIDIA Corporation (NVDA.US) partners with six Wall Street giants, targeting to raise over $500 billion to create a new asset class of AI chips. NVIDIA Corporation announced a memorandum of understanding with Apollo Global Management Inc (APO.US), Blackstone Inc. (BX.US), BlackRock, Inc. (BLK.US), Bruker Corporation Field Asset Management (BAM.US), Goldman Sachs Group, Inc. (GS.US), and KKR (KKR.US) to mobilize over $500 billion in third-party capital to fund the construction of data centers and procurement of NVIDIA Corporation hardware for super-scale enterprises, AI labs, and various clients. The initiative aims to transform AI chips and computing infrastructure into mortgagable asset classes similar to commercial real estate and toll roads, utilizing institutional credit, insurance funds, and private capital for client financing, avoiding the need to occupy their balance sheets. NVIDIA Corporation CEO Jensen Huang stated, "This is indeed the first time technology chips have become an investable asset class," as these assets possess profitability, longevity, interchangeability, and flexibility. Wall Street giants believe that computing power has evolved into a key asset class driving global economic growth. Blackstone President Gray remarked that AI computing power will be viewed as "financable assets," with demand far exceeding supply; BlackRock, Inc. CEO Fink likened the project to the birth of mortgage-backed securities in the 1970s, calling it "the next future of financial engineering." This initiative comes amid global market volatility in July, when investors questioned whether tech giants' AI investments could yield returns, and rating agencies like Moody's Corporation warned that unprecedented capital expenditures were squeezing free cash flow and amplifying debt burdens. NVIDIA Corporation's action challenges the traditional perception of GPUs as rapidly depreciating hardware, attempting to convert them into long-term infrastructure that banks will recognize. However, skeptics may question whether AI chips can maintain their value with new generations of chips being rolled out. BlackRock, Inc. CEO Fink emphasized that some funds have already raised capital and need to be put into operation quickly to ensure the U.S. maintains global leadership in the AI sector. SK Hynix (SKHY.US) plans to increase NAND capacity in China by 50%. Reports indicate that SK Hynix's NAND subsidiary Solidigm has restarted construction on the second phase of its NAND flash production base in Dalian, China, this year, with production expected to expand local capacity by approximately 50%. The factory broke ground four years ago but had been halted for a long time due to sluggish memory markets. SK Hynix plans to introduce semiconductor manufacturing equipment as early as November and officially commence production in the first half of next year. It is reported that the new production line will have a wafer input capacity of about 50,000 wafers per month. Due to the surge in demand for enterprise-grade solid-state drives driven by AI data center proliferation, NAND prices have increased nearly tenfold within a year. From $15 billion to $20 billion! Reports suggest that Intel Corporation (INTC.US) plans to raise the scale of its stock issuance, riding the wave of equity financing in the AI era. Insiders revealed that Intel Corporation is planning to expand its stock issuance, raising its target fundraising amount from the previously announced $15 billion to approximately $20 billion, an increase of one-third. Insiders state the issuance is expected to be priced at around $95 per share or higher. This price represents a discount of about 6.5% compared to last Friday's closing price. One insider noted that if the overallotment option is exercised, the issuance amount may exceed $20 billion. Insiders also revealed that this share offering has attracted over $100 billion in subscription demand, indicating strong market interest in Intel Corporation's financing plans. Details including the scale and price of the issuance are still under discussion and may change. An Intel Corporation spokesperson declined to comment. Stock price soars! Fermi (FRMI.US) secures its first AI data center lease, locking in $6.5 billion for a 15-year term. On August 10, Fermi, which focuses on developing AI super-scale data centers, announced that its Project Matador site in Carson County, Texas has signed its first binding customer lease with AI cloud provider TensorWave. Following this news, Fermi's stock price surged 16% in pre-market trading on Tuesday. According to Fermi's statement, the lease is between Fermi's subsidiary Fermi Campus 1 LLC and TensorWave's subsidiary TensorWave TEX1, LLC. The initial phase covers a facility supported by a total power capacity of 222 megawatts, expected to generate approximately $6.5 billion in total contract revenue over the 15-year initial term. The lease includes rights for expanding two additional data centers, and if fully executed, the collaboration will extend across three phases to exceed 650 megawatts. The facility is expected to commence phased deliveries in the second half of 2027 and, once fully delivered, is anticipated to support tens of thousands of next-generation AMD Instinct GPUs for large-scale AI training and inference. The lease also includes options for two five-year renewals, making the potential lease term extendable to 25 years. Anthropic signs a $9.1 billion power-focused deal with mining firm Riot (RIOT.US). Insiders revealed that AI company Anthropic PBC has reached an approximately $9.1 billion agreement with Bitcoin mining firm Riot Platforms, which has recently begun offering AI data center computing power externally. This deal highlights Anthropic's (which owns the AI model Claude) efforts to secure ample computing power to meet its clients' growing demands. Meanwhile, Riot announced its Q2 2026 earnings after market close on Monday, with revenue exceeding expectations but losses exceeding market predictions. Earlier on Monday, Riot disclosed that it has signed a 20-year power supply agreement providing 191 megawatts (MW) of power capacity from its facility in Rockdale, Texasenough to power around 143,000 homesfor a "leading edge AI company." Insiders say that this company is Anthropic. Following this news, Riot's stock price jumped 16% in pre-market trading on Tuesday. Reports suggest that Amkor Technology (AMKR.US) is planning to sell its Chinese business stake, potentially valued at $1.5 billion. According to insiders, global outsourced semiconductor packaging and testing (OSAT) giant Amkor Technology is considering a strategic adjustment of its Chinese business, including options for selling part of the stake. The company, headquartered in Tempe, Arizona, has hired advisory firms to assist with the preparation for the separation of this business unit and gauge initial interest from potential buyers. It is reported that Amkor Technology may retain a minority stake in the business, which has an overall valuation between $1 billion and $1.5 billion. Morgan Stanley (MS.US) launches U.S. Innovation Infrastructure Initiative, aiming to leverage $15 trillion in capital. Morgan Stanley announced the launch of its "U.S. Innovation Infrastructure Initiative," committing to generate approximately $15 trillion in financing, capital raising, and related investment activities over the next decade, focusing on strategic industries such as artificial intelligence, semiconductors, cybersecurity, and energy infrastructure. On August 10, Morgan Stanley released a statement indicating that as part of a new initiative, the firm will assist companies in capital raising, financing, consulting, and other related activities over the next decade. The initiative will revolve around three core areas: first, innovative platforms and strategic industries, including artificial intelligence, semiconductors, and cybersecurity; second, infrastructure construction serving the innovative economy; and third, capital supply targeting entrepreneurs and high-growth companies. Key Economic Data and Events Preview 20:15 Beijing Time: U.S. ADP weekly employment change for the week ending July 25. 22:00 Beijing Time: U.S. total annualized sales of existing homes for July. 00:00 next day Beijing Time: EIA releases the Monthly Short-Term Energy Outlook report. 04:30 next day Beijing Time: U.S. API crude oil inventory change for the week ending August 7. Earnings Forecast Wednesday morning: CoreWeave (CRWV.US), Super Micro Computer, Inc. (SMCI.US), Lumentum (LITE.US). Wednesday pre-market: Nebius Group (NBIS.US).