AI Circle Daily
https://aicircle.news/archive/2026-07-24?category=finance&lang=en
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As the US-Iran war escalates, oil surged past $100, triggering a sharp equity selloff on Thursday. The market could no longer ignore the geopolitical risk.
Take: Classic double whammy: inflation fear meets war premium. Cash and commodities are king; don't catch falling knives in equities.
The 10-year Treasury yield rose to its highest since January 2025 as surging oil reignited inflation fears and jobless claims unexpectedly fell.
Take: The market is pricing in a potential Fed hike. Higher long-end rates crush growth stock valuations—tech is the first to bleed.
As oil prices rip higher, investors are increasingly betting the Fed will hike rates in September. Implied probabilities have jumped sharply.
Take: If the Fed actually tightens, it's a nightmare for global risk assets. All eyes on whether oil can be contained.
President Trump announced a new wave of tariffs on 60 trade partners, escalating trade tensions after legal setbacks earlier this year.
Take: Tariff hikes will feed into higher import costs, adding to inflation worries. Trade war fears are back on the table.
Tesla's stock suffered its worst drop in a year after Elon Musk's 'spend as fast as we can' comment spooked investors about unchecked capital expenditure.
Take: The market fears runaway spending more than growth. The 'capex race' among tech giants is turning toxic for shareholders.
Intel reported blowout earnings with the fastest revenue growth in nearly 15 years, driven by AI demand. The stock rallied sharply.
Take: Intel's comeback adds a new twist to the AI chip story. But sentiment is bifurcated—don't chase the rally blindly.
Oracle signed a 10-year, up-to-$7 billion contract with the U.S. Department of Defense to supply on-premises software.
Take: A massive government deal locks in recurring revenue for Oracle. It also signals defense IT spending remains robust, a positive for the software sector.
Japan's June core CPI rose 1.6% YoY, the first increase in four months, driven by higher oil prices and in line with expectations.
Take: Mild inflation gives the BOJ no rush to exit easing. Yen remains under pressure.
ServiceNow beat earnings, but the launch of OpenAI Presence reignited fears of AI disruption in enterprise software, sending shares lower.
Take: Every OpenAI product launch reshapes software valuations. ServiceNow's moat is being questioned.
Allianz agreed to acquire HSBC's Singapore insurance business for $2.09 billion, expanding its Asian presence.
Take: A clear sign of foreign appetite for Asian insurance. HSBC streamlines, Allianz doubles down on Asian wealth management.