Aju Press - Asia News Hub

Journalist

Latest by

June Industrial Production Rises 2.3% with Triple Increases in Consumption and Investment Last month, industrial production increased by 2.3% compared to the previous month, driven by growth in both mining and service sectors, along with rising retail sales and facility investment, marking a 'triple increase' for the first time in three months.According to the National Data Agency's 'June Industrial Activity Trends' report released on July 31, the overall industrial production index reached 120.1 (2020=100), with mining (6.4%) and services (0.7%) both showing increases, resulting in a 2.3% rise from the previous month.Mining production was bolstered by increases in automobile (15.4%) and semiconductor (4.5%) manufacturing. The service sector saw growth primarily in finance and insurance (2.8%) and transportation and warehousing (2.0%).Retail sales, reflecting consumer sentiment, were also driven by automobiles. Durable goods, including passenger cars, rose by 12.6%, leading to an overall retail sales increase of 2.7% compared to the previous month.Facility investment improved by 5.8% from the previous month, with transportation equipment, particularly precision machinery and automobiles, increasing by 3.4%.Construction performance also saw a 4.1% increase from the previous month, with growth in both non-residential and residential building projects, including semiconductor factories.The coincident composite index, which indicates the current economic trend, rose by 0.5 points from the previous month, while the leading composite index, which forecasts future economic conditions, increased by 0.9 points.* This article has been translated by AI. 2026-07-31 08:24:00
YouTuber Shuka's Live Stream Misinterpreted as SK Hynix Purchase by Chairman Choi During a live broadcast, economic YouTuber Shuka captured a large purchase of SK Hynix shares, which was mistakenly reported online as a transaction by Choi Tae-won, chairman of SK Group. However, it has been confirmed that the two transactions were unrelated.On July 31, posts circulated on online communities and social media claiming that Shuka had witnessed Choi's purchase during his YouTube live stream, where he exclaimed, "Wow, someone just bought 3,600 shares in one go!"In the video, as the market was about to close, Shuka observed a large buy order for SK Hynix and expressed his astonishment, saying, "Wow, someone just bought 3,600 shares in one go! That's impressive! How much is that? I can't even calculate it!"Shortly after, the Financial Supervisory Service's electronic disclosure system reported that Choi had purchased 3,620 common shares of SK Hynix on the market, leading to the interpretation that Shuka had witnessed Choi's transaction in real-time.However, sources clarified that this interpretation was incorrect. A representative told Aju Economy, "Shuka's live broadcast took place on July 29, while the disclosure of Choi's stock purchase was made on July 30, indicating they occurred at different times."Additionally, the price at which the transaction mentioned in Shuka's broadcast was executed differed from the actual acquisition price reported in the disclosure, further confirming that they were not the same transaction.As a result, the claim that 'Shuka intuitively witnessed Choi's purchase of 3,620 shares in real-time' has been debunked.Meanwhile, according to the Financial Supervisory Service's electronic disclosure system on July 30, SK Hynix reported that Choi had purchased 3,620 common shares. Based on the closing price of 1,322,000 won on that day, the transaction was valued at approximately 4.785 billion won, although the actual acquisition cost may vary based on the intraday execution price.In response to the incident, netizens commented, "Real-time intuition? That's funny," "He could have bought more if he was doing well," "Tae-won," "Isn't he overextending himself given the current earnings?" "The market will definitely rise when it opens today," "The buy sidecar is confirmed for today," and "Is Choi Tae-won's average purchase price 1,398,000 won?" 2026-07-31 08:04:00
Trump Announces Agreement for Complete Disarmament of Hamas, Gradual Israeli Withdrawal President Donald Trump announced that an agreement has been reached for all armed groups in the Gaza Strip, including the Palestinian militant group Hamas, to completely disarm.On July 30, Trump stated on social media platform Truth Social that the "Board of Peace" has achieved a historic agreement to fully disarm Hamas and all armed factions in Gaza.He described the agreement as a crucial step in implementing his "20-point Gaza Peace Plan."The disarmament will be carried out in phases. As Hamas and other armed groups lay down their weapons, Israeli forces will withdraw accordingly. Following this, an International Stabilization Force (ISF) and a newly formed Palestinian police will be responsible for maintaining order in Gaza.Control of Gaza will also transition from Hamas to a new Palestinian government. Trump stated, "The new government will work with the Board of Peace to govern the Gaza Strip."The disarmament will include not only various weapons but also military facilities such as tunnels and arms production sites. Recent negotiations have discussed the phased disposal of large weapons and small arms held by Hamas, as well as the dismantling of tunnels and arsenals.If the agreement is implemented, it could mark a significant step toward resolving the disarmament issue, which has been a major obstacle in Gaza peace negotiations.However, specific details of the agreement and its implementation require further confirmation. Reports prior to Trump's announcement indicated conflicting information regarding whether Hamas had finalized its approval of the agreement, and Israel has maintained that a complete disarmament must be verified before any further withdrawal can occur.Trump expressed gratitude to Egypt, Qatar, and Turkey for mediating the negotiations, emphasizing, "We will not allow the threats that occurred in Gaza on October 7 to be rebuilt."* This article has been translated by AI. 2026-07-31 07:52:00
Korea's Lee heads for Argentina after state visit to Chile SEOUL, July 31 (AJP) -President Lee Jae Myung called Thursday for South Korea and Chile to transform mounting global economic uncertainty into an opportunity for deeper cooperation, urging the two countries to modernize their two-decade-old free trade agreement and broaden collaboration from critical minerals to advanced manufacturing and defense industries. Speaking at a Korea-Chile Business Roundtable in Santiago attended by business leaders from both countries, Lee said the changing global economic order made closer partnerships between Asia and Latin America more important than ever. "South Korea and Chile should turn today's turbulent global economic environment into a new opportunity for shared prosperity," Lee said. Lee described Chile as South Korea's first free trade agreement partner and a strategic gateway linking the Asia-Pacific region with Latin America. While Chile has emerged as one of the world's largest producers of lithium and copper — minerals essential for electric vehicles and clean-energy technologies — South Korea has established global leadership in batteries, advanced materials, automobiles, semiconductors and artificial intelligence, making the two economies highly complementary, he said. "The two countries are ideal partners," Lee said. He cited the joint venture between South Korea's LS Group and Chilean state-owned copper producer Codelco as a model for future cooperation, expressing hope that similar partnerships would expand. "If we combine our strengths, we can create remarkable synergies not only in critical-mineral supply chains and value creation, but also in advanced manufacturing and the defense industry," Lee said. The president also stressed that the Korea-Chile FTA, which entered into force in 2004 as South Korea's first bilateral trade agreement, should be upgraded to reflect new economic realities. "Twenty years ago, expanding agricultural and mineral trade was the main focus. Now it is time to broaden our partnership into future industries," Lee said, pledging government support for businesses from both countries. The business forum brought together 11 executives from each side, including POSCO Group Chairman Chang In-hwa, LS Chairman Koo Ja-eun and Korea Zinc Chairman Choi Yun-beom. Chile also used the occasion to call for deeper economic integration. Deputy Foreign Minister Patricio Torres said countries with trusted institutions and stable rules should strengthen cooperation and diversify markets amid rising global uncertainty. He also voiced support for South Korea's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), saying membership would further reinforce the two countries' shared commitment to economic integration. Rosario Navarro, chairwoman of the Chilean Industrial Promotion Society, likewise urged both governments to accelerate negotiations to modernize the bilateral FTA, saying the agreement should be updated to reflect changing economic conditions. Lee Woo-hyun, chairman of the Korea-Chile Private Economic Cooperation Committee at the Korea Chamber of Commerce and Industry and vice chairman of OCI Holdings, said bilateral cooperation had already expanded beyond critical minerals into supply chains, artificial intelligence, digital industries and clean energy. Argentina visit shifts focus to lithium, Mercosur After concluding his Chile visit, Lee departed for Buenos Aires late Thursday to begin a three-day state visit to Argentina — the first by a South Korean president in 22 years. On Friday, Lee is scheduled to hold a summit with Argentine President Javier Milei, meet Buenos Aires Mayor Jorge Macri and attend a dinner with the Korean community. The presidential office said the visit aims to elevate cooperation with Argentina in economic security, particularly in critical minerals, energy and food supply. Argentina possesses the world's fourth-largest lithium reserves, and the two governments are expected to pursue a framework for long-term cooperation on lithium and other strategic minerals. As a founding member of Mercosur alongside Brazil, Argentina is also viewed as a key partner in Seoul's efforts to revive negotiations on a Korea-Mercosur trade agreement. The summit is also expected to cover cooperation in defense, science and technology, Antarctic research, culture and education, while restarting high-level bilateral consultation mechanisms to support broader government and business ties. Lee's meeting with Buenos Aires Mayor Macri will include discussions on support for the city's Korean community of about 23,000 people, the second-largest in South America. 2026-07-31 07:47:43
Retail Investors Struggle as KOSPI Declines for Third Consecutive Day ◆Aju Economy Major News▷Retail investors sell off as KOSPI and KOSDAQ drop amid market downturn- Despite Samsung Electronics' strong second-quarter performance, the KOSPI and KOSDAQ fell by 1.23% and 2.70%, respectively, marking three consecutive days of decline in the domestic stock market.- Samsung Electronics and SK Hynix surged early in the session on performance expectations but ultimately gave back their gains and closed lower, with individual investors net selling 1.4199 trillion won in the securities market.- Investor deposits have decreased by 21.55% to 109.593 trillion won compared to early June highs, and the balance of margin trading loans has dropped by 14.59% in just over a month, indicating a clear decline in individual investor sentiment.- Recently, brokerages have lowered their target prices for Samsung Electronics and SK Hynix, reflecting concerns about the AI semiconductor market.- Analysts suggest that the recent stock price adjustments are more influenced by a decline in investor sentiment rather than deteriorating performance, and they foresee a potential recovery in sentiment following the earnings announcements of large-cap stocks.◆Major Reports▷Semiconductors: End of Adjustment, Start of Rebound - The KOSPI's sharp decline in July is attributed to excessive adjustments due to short-term supply and demand distortions rather than fundamental deterioration, with analysts stating that the market has entered a phase where a rebound is possible.- The KOSPI has fallen 41% from its June peak, surpassing declines seen during the IMF crisis (-27%), the global financial crisis (-23%), and COVID-19 (-36%), indicating an oversold condition.- With big tech's memory demand fulfillment rate at only 60%, it is expected that a memory supply shortage will persist for at least the next three years as new production capacity expansion takes time.- Samsung Electronics and SK Hynix are seen as having superior performance competitiveness compared to Micron, while their valuations are significantly lower, suggesting that current stock prices are excessively undervalued.- Considering the potential for improved performance and increased shareholder returns in the second half of the year, a rebound in the semiconductor sector is imminent, with Samsung Electronics, SK Hynix, Samsung Electro-Mechanics, and LG Innotek identified as top picks.◆Key Announcements After Market Close (30th)▷Chey Tae-won purchases 4.8 billion won worth of SK Hynix shares▷Kumho Tire reports second-quarter operating profit of 182.2 billion won, up 4% year-on-year▷OncoCross signs contract for digital biobanking 'protein analysis service'▷POSCO Holdings reports second-quarter operating profit up 34%, driven by improvements in battery and infrastructure revenues▷HL Manpo reports second-quarter operating profit of 107 billion won, up 2.8% year-on-year▷SK Innovation reports second-quarter operating profit of 3.4873 trillion won, returning to profitability◆Fund Trends (as of 29th, excluding ETFs)▷Domestic equity funds: +53 billion won▷Overseas equity funds: +27.1 billion won◆Key Schedule for Today (31st)▷South Korea: Retail Sales (June), Industrial Production (June)▷Japan: Tokyo Core Consumer Price Index (July)▷China: Manufacturing and Services PMI (July), Caixin Manufacturing PMI (July)▷Eurozone: Consumer Price Index (July)▷United States: Consumer Sentiment Index (final July)* This article has been translated by AI. 2026-07-31 07:32:00
Apple Reports 22% iPhone Growth but Shares Drop 8% in After-Hours Trading Apple reported strong third-quarter results, driven by robust sales of iPhones and Macs, exceeding market expectations. However, the company's stock fell nearly 8% in after-hours trading due to disappointing growth in its services segment, which includes the App Store and iCloud, and a fourth-quarter revenue outlook that fell short of projections.On July 30, Apple announced that its revenue for the third quarter of fiscal year 2026 (April to June) increased by 16.4% year-over-year to $109.4 billion, surpassing market expectations of approximately $108.7 billion and marking the highest revenue for a third quarter in the company's history.Net income rose to about $29.8 billion, a 27% increase from the previous year. Earnings per share (EPS) reached $2.02, exceeding the market forecast of $1.89.Sales of iPhones and Macs were the primary drivers of this growth. iPhone revenue was $54.3 billion, up 21.7% year-over-year, while Mac revenue increased by 28.7% to $10.4 billion.In contrast, revenue from services, including the App Store, iCloud, and Apple Music, grew by 12.1% to $30.7 billion but fell short of the market expectation of around $31.2 billion.Sales in Greater China, including mainland China, Hong Kong, and Taiwan, reached $18.8 billion, a 22.4% increase, recovering to double-digit growth. However, this figure was below the anticipated $19.7 billion.The increase in profits for the quarter was also influenced by tariff refunds from the U.S. government, which raised the profit margin on products sold by about 2 percentage points, contributing approximately $0.11 to EPS. Excluding the impact of tariff refunds, the actual profit growth was smaller than reported.Looking ahead, Apple’s revenue forecast for the fourth quarter is expected to grow by about 9% year-over-year, which is lower than the market's anticipated 12% growth.Apple CEO Tim Cook stated, “Some product supplies are unable to keep up with demand due to a shortage of advanced semiconductor production capacity,” particularly noting supply shortages in the Mac product line.Investors reacted more sensitively to the underwhelming growth in the services segment and the lower fourth-quarter outlook than to the strong sales of iPhones and Macs. Following the earnings announcement, Apple’s stock fell approximately 8% in after-hours trading.* This article has been translated by AI. 2026-07-31 07:28:00
President Yoon Proposes Expanding LS-Codelco Partnership to Advanced Manufacturing and Defense President Yoon Suk Yeol on July 30, local time, presented the joint venture between South Korea's LS Group and Chile's state-owned Codelco as a successful model for cooperation in critical minerals, suggesting its expansion into advanced manufacturing and defense industries.Speaking at a Korea-Chile Business Roundtable held at a hotel in Santiago, Yoon expressed hope that "the joint venture between LS and Codelco can be further expanded in the future."He emphasized that by joining forces, the two countries could create remarkable synergies across various sectors, including the supply and value addition of critical minerals, supply chains, advanced manufacturing, and defense.The event featured 11 representatives from major companies in both Korea and Chile. Notable attendees from Korea included Lee Woo-hyun, Chairman of OCI Holdings; Jang In-hwa, Chairman of POSCO; Koo Ja-eun, Chairman of LS Group; Choi Yoon-bum, Chairman of Korea Zinc; Ryu Jae-cheol, President of LG Electronics; Jung In-seob, President of Hanwha Ocean; Choi Soo-yeon, CEO of Naver; Jang Jae-hoon, Vice Chairman of Hyundai Motor; and Lee Dong-hoon, CEO of SK Biopharm.From Chile, attendees included Rosario Navarro, President of the Chilean Industrial Association, and Susana Jimenez, President of the Chilean Production and Commerce Confederation, along with executives from key sectors such as minerals, steel, automotive, agriculture, and forestry.Yoon described Chile as "South Korea's first free trade agreement partner and a key gateway connecting the Asia-Pacific region with Latin America." He stressed the importance of trust between nations and cooperation among businesses in the current transformative global economic landscape.He noted that trade between the two countries has quadrupled in the 20 years since the Korea-Chile Free Trade Agreement was signed in 2004, stating, "At that time, the main focus was on expanding trade in agricultural and mineral products, but now the scope of cooperation is broadening in various areas."Yoon added, "The two countries are transitioning from mere trading partners to strategic partners preparing for the future," and expressed hope for expanding new aspects of future cooperation based on a deep history of trust.He also highlighted the need to combine Chile's copper and lithium resources with South Korea's battery, advanced materials, automotive, semiconductor, and artificial intelligence technologies. "Chile is a key supply base for the global green industry, and South Korea has world-class competitiveness in advanced manufacturing," he explained.The successful project Yoon referenced is a precious metals recovery plant in Mejillones, Chile, operated by the joint venture PRM, in which LS MnM and Codelco hold 66% and 34% stakes, respectively. Completed in 2017, the plant processes anode slime, a byproduct of Codelco's copper refining process, to recover high-value metals such as gold, silver, palladium, and platinum. This project is cited as a representative example of cooperation that enhances local value by combining Chilean raw materials with Korean refining technology.Yoon expressed hope that South Korea and Chile could turn the current crisis in the global economic order into new opportunities for shared prosperity, stating, "The government will also provide unwavering support for our companies to lead the market together."Patricio Torres, Deputy Minister of Foreign Affairs of Chile, introduced South Korea as Chile's sixth-largest trading partner globally and third-largest in Asia as of 2025. He noted that trade between the two countries has grown at an average annual rate of 6.1% since 2020 and announced plans to send a large-scale public-private economic delegation to Korea in September, consisting of businesses, economic organizations, and relevant institutions.Torres suggested that the relationship should evolve beyond trade to focus on investment, innovation, and the creation of new value, proposing expanded cooperation in digital economy, renewable energy, AI, and robotics.Rosario Navarro, President of the Chilean Industrial Association, requested a swift conclusion to the modernization negotiations of the Korea-Chile FTA, reflecting areas such as the digital economy, trade facilitation, environment, intellectual property rights, and access to agricultural markets.Lee Woo-hyun, Chairman of OCI Holdings and head of the Korea-Chile Private Economic Cooperation Committee, remarked, "The two countries are special partners who gifted each other their first FTAs," expressing hope that this event would lead to new investments and business opportunities, marking yet another 'first.' He added, "OCI will expand future cooperation with Chile, which possesses abundant renewable energy resources and critical minerals, based on our global business experience from core materials for solar power to energy storage systems (ESS)," emphasizing that the combination of Chile's resources and South Korea's technology will create new growth opportunities.* This article has been translated by AI. 2026-07-31 07:28:00
South Korea and Chile Sign Military Vehicle Export Agreement, Expand Defense Cooperation South Korea and Chile have established a long-term cooperation framework in defense and maritime security, following a contract for the export of South Korean military vehicles to Chile. Kang Yu-jeong, the chief spokesperson for the Blue House, announced on July 30 (local time) that President Lee Jae-myung and Chilean President José Antonio Kast held a summit at the Moneda Palace in Santiago, welcoming the signing of the military vehicle export agreement and agreeing to continue discussions among relevant agencies. The two leaders expressed their commitment to establishing a mutually beneficial cooperation framework that extends beyond mere equipment trade to include maritime security and shipbuilding. President Lee began his official schedule by laying a wreath at the statue of Bernardo O'Higgins, a founding hero and the first leader of Chile, alongside his wife, Kim Hye-kyung. He then attended an official welcome ceremony at the Constitutional Plaza before engaging in the summit with President Kast. This visit marks the first by a South Korean president in 11 years, and both leaders agreed to reactivate high-level exchanges and intergovernmental consultative bodies. This initiative aims to inject new momentum into the strategic partnership established during the 60th anniversary of diplomatic relations in 2022. President Kast praised South Korea for its rapid economic growth, attributing it to its excellent human resources and industrial capabilities. He expressed hope for expanded cooperation with South Korea in Chile's digital transformation and future industry development. The two nations will also strengthen cooperation between their police and maritime police authorities. They agreed to jointly address organized crime and transnational crime, sharing information and experiences in eradicating illegal maritime activities and conducting search and rescue operations. The memorandum of understanding (MOU) on security cooperation signed during the summit includes provisions for protecting overseas citizens, exchanging criminal information, conducting joint operations, enhancing the apprehension and extradition of fugitives, and sharing South Korean policing systems. Through the MOU on maritime safety and security cooperation, the two countries will establish a framework for collaboration and information sharing in combating maritime crimes, including illegal fishing and vessel traffic control. The government aims to enhance maritime surveillance and law enforcement capabilities in the Pacific region through these efforts. The participation of South Korean companies in Chile's infrastructure projects will also be expanded. President Lee requested the Chilean government’s support for the smooth completion of the Chacao Bridge, the longest four-lane suspension bridge in Latin America, which is being constructed by a consortium led by Hyundai Engineering & Construction. President Lee expressed hope that South Korean companies would continue to contribute to the development of Chile's infrastructure, including water resources and transportation. President Kast acknowledged South Korea's industrial and technological capabilities and agreed on the need for expanded cooperation. New areas of collaboration in artificial intelligence (AI) and science and technology were also proposed. The two leaders agreed to share policies and experiences related to AI and identify collaborative projects applicable in industrial settings. Cooperation in astronomy and Antarctic research, currently underway in Chile's Atacama Desert, will also be expanded. The plan is to broaden the scope of joint research by combining Chile's research infrastructure with South Korea's scientific and technological capabilities. President Lee expressed gratitude for Chile's support of South Korea's Antarctic research activities since the establishment of the King Sejong Station and requested continued attention and cooperation to ensure the safety of researchers. The two leaders also agreed to closely cooperate for the success of the 2028 Fourth United Nations Ocean Conference, which will be co-hosted by South Korea and Chile. This conference aims to advance international ocean governance, focusing on marine environmental conservation and sustainable use of resources. Trade, investment, and cooperation in critical mineral supply chains were also key topics during the summit. The leaders agreed to reactivate the Korea-Chile Free Trade Agreement (FTA) Free Trade Committee for the first time in a decade, expanding economic cooperation beyond goods trade to include investment and advanced industries. Based on the MOU on mineral resource partnership, the existing intergovernmental consultative body will be elevated to a ministerial level and formalized, with an emphasis on information exchange, technological cooperation, and personnel exchanges regarding critical minerals such as copper and lithium. The two leaders will promote cultural and human exchanges, including K-pop, K-dramas, K-beauty, and K-food, while also increasing interest in Chilean wine, natural environment, and literature in South Korea. President Lee requested support for the safety and stable living conditions of the Korean community in Chile. Kang, the chief spokesperson, noted that President Lee invited President Kast to visit South Korea at a mutually convenient time, to which President Kast responded that he looks forward to continuing discussions on the development of bilateral relations during his visit.* This article has been translated by AI. 2026-07-31 07:24:20
Amazon's AWS Grows 37%, Shares Rise 8% After Earnings Report Amazon reported strong second-quarter results, exceeding market expectations, driven by robust growth in its cloud business. Despite a shift to negative free cash flow due to significant investments in artificial intelligence (AI), shares of Amazon Web Services (AWS) surged nearly 8% in after-hours trading.On July 30, Amazon announced that its second-quarter revenue reached $200.6 billion, a 20% increase from the same period last year, surpassing market estimates of approximately $196.5 billion. Operating income also rose by 43% to $27.5 billion.The growth was led by AWS, which reported revenue of $42.2 billion, marking a 36.7% increase year-over-year. This is the highest growth rate in 18 quarters, significantly exceeding the market's expectation of around 31%.Amazon CEO Andy Jassy stated, "The annual revenue run rate for our AI and semiconductor-related businesses has also surpassed $25 billion each."Net income reached approximately $62.6 billion, more than triple the $18.2 billion reported in the same quarter last year. However, this surge in net income was largely influenced by a pre-tax valuation gain of $53.4 billion from investments, including Anthropic. Earnings per share (EPS) stood at $5.75, well above the market forecast of $1.82.Amazon also announced plans to increase its AI investments, raising its capital expenditure forecast for the year from $200 billion to $220 billion, aimed at expanding infrastructure for data centers, AI servers, and semiconductors.However, the large-scale investments have negatively impacted cash flow. Over the past 12 months, free cash flow turned from a $18.2 billion profit to a $7.6 billion loss.Jassy noted, "Even with a $220 billion investment, it will be challenging to secure enough capacity to meet this year's demand," predicting that supply shortages will continue into 2027.Looking ahead, Amazon's third-quarter revenue outlook fell short of market expectations, with projections between $197 billion and $202 billion, lower than the anticipated $204 billion.Despite this, investors remained focused on AWS's strong growth. Amazon's stock rose 3.9% during regular trading and increased by about 8% in after-hours trading following the earnings announcement.* This article has been translated by AI. 2026-07-31 07:20:10
U.S. Stocks Surge as Microsoft Soars 15%, Boosting Nasdaq by 2.78% U.S. stock indices surged on July 30, driven by a more than 15% jump in Microsoft shares, which eased concerns over artificial intelligence (AI) investments and attracted strong buying interest in semiconductor stocks that had recently declined.The Dow Jones Industrial Average closed up 613.92 points, or 1.19%, at 52,208.06. The S&P 500 rose 121.48 points, or 1.66%, to finish at 7,437.63, while the tech-heavy Nasdaq Composite soared 679.24 points, or 2.78%, to close at 25,122.18. Among the 11 sectors of the S&P 500, seven posted gains, with technology stocks leading the way with a 5.2% increase.Microsoft was the primary driver of the market's rise, with its stock experiencing its largest single-day gain in 18 years. The company's market capitalization increased by approximately $450 billion in one day, marking the largest single-company increase in U.S. stock market history.The surge followed Microsoft's announcement of better-than-expected revenue and positive growth projections for its cloud business, along with lower-than-anticipated capital expenditures. This raised investor confidence that the company could maintain its revenue and cash generation capabilities despite significant AI investments. Concerns over 'AI overinvestment,' which had intensified due to large-scale AI investments by Alphabet and Tesla and deteriorating cash flows, also eased somewhat.Semiconductor stocks rebounded sharply, with the Philadelphia Semiconductor Index climbing 8.2%. Micron Technology surged 18%, SanDisk jumped 26%, and AMD rose 13%. The recent decline in semiconductor stocks, driven by concerns over AI investment burdens and advancements by Chinese semiconductor firms, attracted a wave of bargain hunting.In contrast, Meta Platforms faced a decline as AI investment pressures resurfaced. The company's free cash flow for the second quarter plummeted 91% year-over-year to $784 million, impacted by substantial investments in data centers and AI infrastructure.Concerns over potential interest rate hikes from the U.S. Federal Reserve persisted, with the yield on 30-year Treasury bonds soaring to 5.2444%, the highest level in nearly 19 years. The yield on 10-year Treasury bonds also rose to around 4.67%.However, market fears regarding interest rate hikes eased slightly compared to the previous day. According to the CME FedWatch Tool, the market's expectation for a rate hike at the September Federal Open Market Committee meeting dropped to 59%, down from 82% a week earlier.Economic indicators released that day also helped alleviate some rate hike concerns. The Personal Consumption Expenditures (PCE) price index for June rose 3.7% year-over-year, slowing from 4.1% in May. The core PCE price index, excluding volatile food and energy prices, recorded a 3.3% increase.In the second quarter, the U.S. gross domestic product (GDP) grew at an annualized rate of 1.5%, falling short of the market forecast of 2.1%. However, consumer spending increased by 3.2%, and business investment in equipment rose by 15.2%, indicating relatively robust domestic demand.International oil prices fell amid concerns over recent surges and efforts to enhance safety in Middle Eastern shipping routes. Brent crude settled at $89.03 per barrel, while West Texas Intermediate (WTI) closed at $83.59.After the market close, Amazon reported its earnings, rising about 8% in after-hours trading. Amazon Web Services (AWS) saw a 37% increase in second-quarter revenue, reaching $42.2 billion, significantly exceeding expectations. In contrast, Apple reported revenues and net income that surpassed market forecasts, but its services segment fell short of expectations, leading to a roughly 4% decline in after-hours trading.* This article has been translated by AI. 2026-07-31 07:12:00