Finance

Following cooler-than-expected July Consumer Price Index and Producer Price Index readings, traders have significantly scaled back their bets for a September interest rate hike. Recent economic numbers, including an unexpected drop in retail sales and weak job growth data, have fueled expectations that the central bank will keep rates unchanged. Investors will closely analyze the Federal Reserve's upcoming July meeting minutes and the Jackson Hole conference for definitive policy direction.

Strong earnings and high revenue growth from companies like Anthropic have bolstered confidence in the tech sector, showing that the immense spending on artificial intelligence remains sustainable. Major hardware and infrastructure players like Microsoft, Sandisk, and Micron have seen upward momentum as institutions continue to back AI capital expenditure. Concurrently, analysts have highlighted hidden off-balance-sheet spending on data centers and advanced chips that totals trillions across Big Tech.

Global crude prices have held relatively steady despite heightening tensions and stall negotiations in the Middle East that have left the strategic Strait of Hormuz heavily congested. Brent crude remained fluctuated around $88 per barrel as an influx of hidden oil supplies continues to offset geopolitical risk. Market experts indicate that global oil prices are staying capped because overall demand has structurally declined compared to previous trends.