--- title: "U.S. Stock Market Outlook | The three major stock index futures are mixed, global chip stocks face \"Black Tuesday,\" SK Hynix (SKHY.US) announces earnings after hours" type: "News" locale: "en" url: "https://longbridge.com/en/news/294062636.md" description: "On July 28th, before the US stock market opened, the three major stock index futures showed mixed results. Global chip stocks faced a sell-off, with the South Korean Kospi plummeting and triggering a circuit breaker, while Nvidia's massive trades sparked fears of an AI bubble. Fitch warned that an AI correction has become a major credit risk, and the market is concerned about crowded positions in the AI construction cycle and rising corporate debt" datetime: "2026-07-28T12:05:58.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294062636.md) - [en](https://longbridge.com/en/news/294062636.md) - [zh-HK](https://longbridge.com/zh-HK/news/294062636.md) --- # U.S. Stock Market Outlook | The three major stock index futures are mixed, global chip stocks face "Black Tuesday," SK Hynix (SKHY.US) announces earnings after hours ## Pre-Market Market Trends 1. As of July 28 (Tuesday), U.S. stock index futures showed mixed results before the market opened. As of the time of writing, Dow futures rose by 0.69%, S&P 500 futures increased by 0.02%, while Nasdaq futures fell by 0.89%. ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260728/1785239908864625.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) 1. As of the time of writing, Germany's DAX index fell by 0.15%, the UK's FTSE 100 index rose by 0.44%, France's CAC 40 index increased by 0.10%, and the Euro Stoxx 50 index dropped by 0.19%. ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260728/1785239858874133.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) 1. As of the time of writing, WTI crude oil fell by 0.98%, priced at $81.80 per barrel. Brent crude oil decreased by 1.44%, priced at $84.63 per barrel. ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260728/1785239887347078.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## Market News **Global chip stocks faced a "Black Tuesday": South Korea's Kospi plummeted triggering a trading halt, and Nvidia's "$750 billion deal" sparked fears of an AI bubble.** As investor concerns about the sustainability of the artificial intelligence (AI) boom intensified and market sentiment continued to deteriorate, global chip stocks experienced further sell-offs on Tuesday. South Korea's benchmark index, the KOSPI, fell over 10%, triggering a 20-minute trading suspension on the Korean Exchange. The Nikkei 225 index, which has a high weighting in chips, and Taiwan's weighted index (Taiex) both dropped by about 4%. This decline reflects growing worries about overcrowded stock positions during the AI construction cycle and rising corporate debt levels. Nvidia's (NVDA.US) new round of related transactions exceeding $750 billion further fueled concerns that AI demand may be artificially inflated. Meanwhile, advancements made by Chinese competitors in the technology sector have also added extra pressure to an already overvalued market. **Fitch issues the most direct warning: The correction in the AI market is becoming a major global credit risk.** Rating agency Fitch warned that the AI boom and the potential for a correction are becoming significant global credit risks, exacerbating concerns about soaring tech valuations and the unprecedented expenditures made in anticipation of uncertain future returns. So far, no other major rating agency has issued such a direct statement. In its third-quarter global risk outlook, Fitch stated that the credit environment remains primarily influenced by two short-term risks: the increasing vulnerability to adjustments in AI-related markets and the ongoing uncertainty related to U.S.-Iran conflicts. The rating agency reiterated recent warnings from global regulators that the AI boom is increasingly intertwined with economic growth and capital markets, particularly in the U.S., raising the risk of any large-scale sell-off Fitch stated: "The scale of investment in artificial intelligence is so large that the exposure of the economy and the entire capital market to this adjustment is quite significant." **Is the Fed's hawkish shift underestimated? Castle Securities bets against the trend that there may be an unexpected rate hike this week to strengthen anti-inflation credibility and break the " shackles" of forward guidance.** The Federal Reserve will hold a monetary policy meeting on July 28-29 local time (this Tuesday and Wednesday) and will announce its interest rate decision on Wednesday. The market generally expects the Fed to keep the benchmark interest rate unchanged. However, Castle Securities predicts that the Fed will raise rates this week—this unexpected move will enhance the credibility of Fed Chairman Kevin Walsh in addressing inflation issues. Frank Flaherty, the company's head of macro strategy, stated in a report that a 25 basis point rate hike on Wednesday would reinforce Walsh's repeated commitment to restoring price stability, while also indicating that policymakers are no longer relying on clearly signaling every policy action to the market in advance. Flaherty noted, "The market may again underestimate the extent of the Fed's hawkish shift," and this week's rate hike "will clearly mark the end of the era of forward guidance," while further highlighting the Fed's independence. **South Korea commits to taking more measures to curb demand for leveraged ETFs.** Lee Eog-weon, chairman of the Financial Services Commission of South Korea, stated that if the latest restrictive measures do not achieve the desired effect, South Korea will be prepared to take further steps to curb investor demand for leveraged ETFs, including setting investment limits for individual investors. The Financial Services Commission stated in a release that if these measures, effective from July 31, do not sufficiently curb demand, regulators will consider tightening investment requirements further. The commission also mentioned that it is discussing accelerating the previously planned increase in the minimum trading unit. Lee met with investment industry management personnel on Tuesday to discuss the leveraged ETF issue. Proposed measures under consideration include requiring mandatory online training sessions, including simulated trading courses; and limiting individual investments in leveraged ETFs to a specific percentage of total investment assets. **The sluggish South Korean stock market drives retail investors to shift to U.S. stocks, with net purchases exceeding 50 trillion won this month.** Reports indicate that as the South Korean stock market continues to be sluggish, domestic investors are once again turning to U.S. stocks, with net purchases exceeding 50 trillion won this month. According to data from Seibro, the securities information portal of the Korea Securities Depository, from July 1 to 27, domestic investors net purchased a total of $3.58999 billion in U.S. stocks, approximately 5.5 times the net purchase amount for the entire month of June. As of the 23rd, the net purchase amount was only $2.53026 billion, but increased by $1.05973 billion in the following two trading days. Retail funds are mainly concentrated in the semiconductor and technology sectors. The product with the highest net purchases this month is the Direxion Daily Semiconductor Bull 3X ETF (SOXL.US), which tracks the Philadelphia Semiconductor Index, with a net purchase amount reaching $1.75919 billion. SK Hynix (SKHY.US) ADR has also continued to be popular, with the net purchase amount rising to $812.38 million as of the 27th **Oman proposes a management plan for the Strait of Hormuz to Iran: regional joint management with voluntary contributions from users.** According to reports, sources in the Gulf region stated that Oman has proposed to Iran the establishment of a joint regional mechanism to manage the Strait of Hormuz, with voluntary fees collected. The proposal put forward by Oman has received regional support. This plan is based on the model of the Strait of Malacca, where relevant parties using the strait voluntarily contribute for navigation safety, environmental protection, search and rescue operations, etc. According to this plan, Iran will not have sole control over the Strait of Hormuz. ## Individual Stock News **"The most profitable quarter in history" collides with a 30% drop in a single month! SK Hynix's earnings report may become the "life and death symbol" of the AI storage super cycle.** SK Hynix, which is set to release its first earnings report since its NASDAQ listing after the US market closes on July 28, is becoming the focus of investors' attention regarding its stock price reaction post-earnings announcement. Wall Street generally expects the company's second-quarter revenue to reach 84.12 trillion Korean won (approximately $57.6 billion), with a GAAP earnings per share (EPS) of 80,145.08 won and a Non-GAAP EPS of 70,975.39 won, equivalent to a GAAP EPS of about $4.87. The new storage upcycle driven by AI continues to unfold, and as a leading manufacturer of high-bandwidth memory (HBM), SK Hynix is experiencing one of its most profitable quarters ever. However, after a rapid rise earlier, SK Hynix's stock price has recently undergone a significant correction, dropping over 30% in the past month, and the market is closely watching whether this earnings report can restore confidence. **Is the AI "light asset" strategy effective? Apple (AAPL.US) surpasses NVIDIA to reclaim the global top spot, while SpaceX (SPCX.US) loses the value of a Tesla.** On Monday, Apple surpassed NVIDIA at the close, becoming the world's most valuable company for the first time since April 2025. The iPhone manufacturer closed with a market capitalization of $4.95 trillion, while AI chip giant NVIDIA's market cap was $4.77 trillion, a difference of about $180 billion. NVIDIA's stock price plummeted 5% on Monday, dragging its market cap down to $4.77 trillion. The entire AI chip sector faced pressure that day, primarily due to investors' concerns about the high costs associated with large-scale investments in AI infrastructure. Meanwhile, Apple's stock price rose 1%, increasing its market cap to $4.95 trillion, as the market eagerly awaits its highly anticipated earnings report to be released on Thursday. Since NVIDIA took the market cap crown from Microsoft in June 2025, it has remained at the top and briefly reached the $5 trillion market cap last October. Since the beginning of 2026, NVIDIA's stock price has only increased by 4%, while Apple's has risen by 24%. Apple has significantly outperformed the market, with the underlying logic being investors' approval of its restrained strategy in AI capital expenditures—Apple prefers to lease computing power rather than build its own infrastructure, which instills confidence in its financial discipline. **$14 billion investment in Texas data center park! Meta (META.US) teams up with asset management giant BlackRock (BLK.US) to ramp up the AI infrastructure arms race.** On Tuesday, Meta Platforms and the world's largest asset management giant BlackRock jointly announced that they will co-develop and operate a data center park located in El Paso, Texas, with an overall development cost of approximately $14 billion Recently, BlackRock has completed the pricing of a $12.5 billion bond specifically tailored for this data center, marking the near completion of the funding puzzle for this significant AI infrastructure project. According to disclosures from both parties, BlackRock's funds will hold 80% equity in the joint venture, while Meta will retain the remaining 20% ownership. To match this equity structure, Meta will receive an additional cash distribution of $1 billion. In terms of assets and capital contributions, Meta will contribute land and construction assets valued at approximately $2.3 billion; BlackRock will provide approximately $4.9 billion in cash. A significant portion of BlackRock's investment will be financed through bonds issued by its special purpose vehicle—specifically, the recently completed $12.5 billion debt financing. **Amazon (AMZN.US) is comprehensively adjusting its AI strategy, gradually phasing out multiple internally developed foundational models.** According to informed sources, Amazon is undergoing a comprehensive adjustment of its AI strategy, gradually phasing out several internally developed foundational models and restructuring related teams. The company will no longer disperse resources across various types of models covering text, images, and videos, but will instead concentrate engineering talent and limited computing resources on its highest-priority strategic projects to compete in cutting-edge technology. In this adjustment, Amazon is gradually halting the research and updates of most of its flagship models, including the high-end Premier model, the Omni model, the Reel model for video generation, and the Canvas model for image generation. Informed sources added that these models are currently in a "KTLO (Keep the Lights On)" state, meaning they are only maintained at a minimal operational level without significant functional iterations. **NVIDIA reportedly signs a $50 billion lease for a Texas data center, potentially paving the way for AI computing power expansion.** Reports indicate that NVIDIA has signed a 15-year leasing commitment for a data center in Texas, with a contract value of approximately $19.6 billion; if the renewal option is exercised, the total value of the 30-year lease could reach $50 billion. The facility is being developed by Hut 8 (HUT.US), with a planned capacity of 1 gigawatt (GW), which will deploy hundreds of thousands of NVIDIA graphics processing units (GPUs), and power supply guarantees have been secured. Hut 8 disclosed last week that the contract value for its Beacon Point facility in Nueces County, Texas, during the 15-year base lease term is $19.6 billion (including a 3.0% annual rent escalation clause); if the client exercises all renewal options, the total value over 30 years will rise to $50.2 billion. At that time, Hut 8 did not disclose the identity of the tenant, only referring to it as an "existing investment-grade client," which will install computing equipment at the facility to support large-scale AI training and operations. Foreign media have confirmed that the tenant is indeed NVIDIA. Hut 8 was originally a Bitcoin miner but has since transformed into AI data center development. The facility is designed based on NVIDIA's DSX AI factory reference architecture, specifically built for gigawatt-level AI infrastructure. Hut 8 announced on July 20 that the Beacon Point facility has been fully commercialized for leasing. **Abandoning food and betting on personal care pays off! Unilever (UL.US) Q2 sales growth reaches a decade high, prompting an upward adjustment of its full-year performance guidance.** Benefiting from strong demand in key markets such as India, Indonesia, and Latin America, international consumer goods giant Unilever delivered its best quarterly sales performance in over a decade in the second quarter And it has also raised its full-year earnings guidance. Boosted by this positive news, Unilever's stock price surged to its largest intraday gain in two years. According to data released by the company on Tuesday, Unilever's underlying sales grew by 5.8% year-on-year in the second quarter ending June 30, significantly exceeding analysts' previous forecast of 4.3%. Overall revenue also climbed by 3.8% to €13 billion (approximately $14.78 billion). Notably, the company's product sales volume increased by 5.5% during the quarter, marking the highest growth in over a decade. As a result, Unilever has raised its full-year sales growth expectation from 2% to 3%. **Shaking off Amazon's low-price burden! United Parcel Service (UPS.US) focuses on high-margin business, strongly raising full-year revenue to $91.2 billion.** United Parcel Service has raised its full-year sales forecast, indicating that as the courier company shifts its business focus from low-margin e-commerce packages to more profitable parcels, it is benefiting from strong pricing power. The financial report shows that the company's revenue for the second quarter reached $22.8 billion, a year-on-year increase of 7.5%, exceeding expectations by $960 million; adjusted earnings per share were $1.76, higher than the expected $1.67. United Parcel Service stated in its quarterly earnings report on Tuesday that this year's revenue will reach approximately $91.2 billion, up from the previous expectation of $89.7 billion. This figure surpasses the average analyst expectation of $90.4 billion. The company expects adjusted earnings per share to be $7.22, also exceeding expectations. **Barclays (BCS.US) sees a significant increase in trading business but still lags behind Wall Street.** The latest financial report from Barclays Bank shows that pre-tax profit for the second quarter reached £3.3 billion (approximately $4.4 billion), up from £2.5 billion in the same period last year. Against the backdrop of increased market volatility, the trading business has become a highlight, with revenue in U.S. dollars increasing by 17% year-on-year. Bond trading income remained flat, but equity market revenue surged by 44%, which is a key area the bank is focusing on as it seeks to move away from its traditional debt expert positioning. However, this performance still pales in comparison to its American peers. According to Citigroup analyst data, U.S. counterparts saw commodity and bond trading revenue jump by 14%, while equity business revenue soared by 71%. Some of the gap stems from strategic choices. Under the leadership of CEO C.S. Venkatakrishnan, Barclays has aimed to control the scale of its investment banking division and prioritize more stable revenue sources such as hedge fund lending. Additionally, the bank plans to invest up to £300 million in the second half of this year to simplify its technology platforms and processes, which seems to put pressure on the stock price. As of the time of writing, the stock was down over 6% in pre-market trading. Chief Financial Officer Anna Cross stated that the related expenditures will effectively reduce costs in the long term. **Price increases + portfolio optimization, Coca-Cola (KO.US) Q2 revenue and net profit both exceed expectations.** Thanks to increased sales of concentrate, optimized product pricing, and improved sales mix, Coca-Cola Company achieved growth in both profit and revenue in the second quarter. The beverage giant announced on Tuesday that its earnings per share for the quarter were $1.03, a year-on-year increase of 16%. Excluding one-time items, adjusted earnings per share were 97 cents, higher than the consensus expectation of 93 cents Revenue for the quarter grew by 7% to $13.4 billion, exceeding analysts' expectations of $13.17 billion. The main driver of revenue growth came from a 4% year-on-year increase in sales of concentrates (products sold to bottling partners), while pricing and product mix factors contributed an additional 2% increase. CEO Henrique Braun stated that the consumer market landscape is vibrant, and customer demand continues to evolve. Looking ahead, Coca-Cola has raised its full-year adjusted earnings per share growth forecast from the previous 8%-9% to 9%-10%. ## Important Economic Data and Event Forecast Beijing time 20:15: U.S. ADP weekly employment change for the week ending July 11. Beijing time 20:30: U.S. June wholesale inventory month-on-month preliminary value. Beijing time 22:00: U.S. July Conference Board Consumer Confidence Index. Beijing time the next day 04:30: U.S. API crude oil inventory change for the week ending July 24. ## Earnings Forecast Wednesday morning: SK Hynix, Seagate Technology (STX.US), NXP (NXPI.US), Visa (V.US), Ford Motor (F.US) Wednesday pre-market: Nomura (NMR.US), Deutsche Bank (DB.US), UBS (DB.US), New Oriental (EDU.US), Procter & Gamble (PG.US), UMC (UMC.US) ### Related Stocks - [SKHY.US](https://longbridge.com/en/quote/SKHY.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVD.US](https://longbridge.com/en/quote/NVD.US.md) - [NVDS.US](https://longbridge.com/en/quote/NVDS.US.md) - [NVDQ.US](https://longbridge.com/en/quote/NVDQ.US.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [NVDD.US](https://longbridge.com/en/quote/NVDD.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [07788.HK](https://longbridge.com/en/quote/07788.HK.md) - [07388.HK](https://longbridge.com/en/quote/07388.HK.md) - [07709.HK](https://longbridge.com/en/quote/07709.HK.md) - [EWY.US](https://longbridge.com/en/quote/EWY.US.md) - [NVDB.US](https://longbridge.com/en/quote/NVDB.US.md) - [NVDG.US](https://longbridge.com/en/quote/NVDG.US.md) - [NVDO.US](https://longbridge.com/en/quote/NVDO.US.md) - [NVDW.US](https://longbridge.com/en/quote/NVDW.US.md) - [NVYY.US](https://longbridge.com/en/quote/NVYY.US.md) - [NYYY.US](https://longbridge.com/en/quote/NYYY.US.md) - [DIPS.US](https://longbridge.com/en/quote/DIPS.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [USD.US](https://longbridge.com/en/quote/USD.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [SSG.US](https://longbridge.com/en/quote/SSG.US.md) - [SOXS.US](https://longbridge.com/en/quote/SOXS.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) - [03121.HK](https://longbridge.com/en/quote/03121.HK.md) - [09388.HK](https://longbridge.com/en/quote/09388.HK.md) - [AAPL.US](https://longbridge.com/en/quote/AAPL.US.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [BLK.US](https://longbridge.com/en/quote/BLK.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [HUT.US](https://longbridge.com/en/quote/HUT.US.md) - [UL.US](https://longbridge.com/en/quote/UL.US.md) - [UPS.US](https://longbridge.com/en/quote/UPS.US.md) - [BCS.US](https://longbridge.com/en/quote/BCS.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) - [BTX.US](https://longbridge.com/en/quote/BTX.US.md) - [BIT.RT*.US](https://longbridge.com/en/quote/BIT.RT*.US.md) - [BDJ.US](https://longbridge.com/en/quote/BDJ.US.md) - [BSTZ.US](https://longbridge.com/en/quote/BSTZ.US.md) - [BIT.RT.US](https://longbridge.com/en/quote/BIT.RT.US.md) - [ULVR.UK](https://longbridge.com/en/quote/ULVR.UK.md) - [BARC.UK](https://longbridge.com/en/quote/BARC.UK.md) ## Related News & Research - [Mark Cuban and Michal Burry warn the AI boom is dangerously reliant on Nvidia](https://longbridge.com/en/news/294232031.md) - [Tech coalition warns against sweeping artificial intelligence limits](https://longbridge.com/en/news/293799635.md) - [SK Hynix record profit, AI demand strong despite earnings miss](https://longbridge.com/en/news/294184403.md) - [Some Investors Believe SK Hynix Could Be the Next Big AI Stock. 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