Overnight, the sharply hawkish shift in the Federal Reserve's decision and "Dot Plot" led to declines in U.S. stocks and gold. Warsh's performance was "much tougher" than market expectations. However, history shows that new Fed chairs typically adopt a hawkish stance at their first meeting to establish their hawkish credibility

Warsh's Hawkish Surprise? Historically, New Fed Chairs' First Meetings Have Been "Hawkish" on Inflation

The new Chairman of the Federal Reserve, Kevin Warsh, announced the establishment of a special task force to review the central bank's $6.7 trillion balance sheet. The FOMC kept interest rates unchanged. This move intensified market speculation about the balance sheet reduction process and the strength of policies, with Wall Street expecting a gradual shift towards a smaller balance sheet, which is a non-priority for the year

Wash's debut "drawing the sword": Establishing a special group to review the $6.7 trillion balance sheet, speculation arises over the Federal Reserve's "tapering" agenda

The Federal Reserve held rates steady but signaled a hawkish stance, triggering a double sell-off in US stocks and bonds. Trump stated his belief that new Chair Warsh will adhere to the inflation target. The US and Iran signed a memorandum of understanding, while crude oil inventories fell to a ten-year low. US retail sales in May hit a three-year high. In China, Pan Gongsheng, Wu Qing, and others spoke at the Lujiazui Forum on interest rate regulation, AI standards, and financial risks; the State Administration for Market Regulation cracked down on chaotic subsidies by food delivery platforms; and Shanghai released an action plan for offshore finance

Breakfast | June 18, 2026

The Federal Reserve kept interest rates unchanged, and the dot plot indicates a shift in expectations from a rate cut to one rate hike within the year. The three major U.S. stock indices fell, with most tech stocks declining, while gold and oil prices retreated

Zhitong Hong Kong Stock Early Knowledge | Federal Reserve's expectation shifts from rate cuts to rate hikes, Apple plans to raise product prices

Apple CEO Tim Cook confirmed that due to the surge in AI demand leading to a shortage of storage chips and rising costs, Apple plans to increase product prices. Although the company is trying to use its cash reserves to alleviate supply pressures, price increases are inevitable. Cook will hand over the CEO position in September and hinted that the industry needs to expand capacity to restore reasonable price levels

Apple CEO confirms price increase due to storage chip shortage

Elon Musk converted approximately 300 million Tesla options into restricted stock with voting rights, with an exercise cost of about $7.1 billion. This move increases his voting power in Tesla to around 20%, but the new shares cannot be sold until 2028

Elon Musk converts 300 million Tesla options into voting shares

SpaceX's stock price has fallen about 5% for the first time since its IPO, ending a nearly 50% rally, and its market value has once again fallen behind Amazon. Market participants believe this is noise, and if there is a significant drop, it may present a buying opportunity. Due to the limited float and the overall weakness of U.S. stocks, the stock price has been highly volatile. In the coming weeks, SpaceX is expected to be included in the Nasdaq 100 Index, which may create buying pressure

SpaceX's stock price has fallen for the first time since its listing, trailing behind Amazon again. Market participants suggest it may be a good opportunity to buy on the dip

Latin American assets declined broadly on Wednesday, driven by the Federal Reserve's hint at a possible interest rate hike and a strengthening U.S. dollar index. Both Latin American currencies and stock markets fell, with the Mexican peso suffering the largest drop of 1.2%. Investors are assessing Fed policy signals and details of the U.S.-Iran ceasefire agreement

Fed Hints at Possible Rate Hike, Latin American Assets Decline Broadly

The fifth listing standard of the STAR Market has been expanded to include artificial intelligence large model companies, providing institutional certainty for KNOWLEDGE ATLAS and MINIMAX-W as they prepare to 'return to A-shares.' Industry experts believe that if these two companies list on the STAR Market, it will enable domestic investors to directly price core assets of large models, accelerate the concentration of industrial resources among leading players, and foster resonance between the local capital chain and supply chain of domestic large models

Scope of STAR Market's Fifth Listing Standard Expanded to Include Large Model Companies, Accelerating Potential 'Return to A-Shares' for KNOWLEDGE ATLAS and MINIMAX-W

Apple's stock price rose 0.5% after hours, after the iPhone manufacturer announced in an interview plans to raise product prices to offset the costs of memory and storage chips. Apple CEO Tim Cook stated in the interview that Apple is ready to tap into its cash reserves to increase memory supply

Apple's stock price rose slightly after hours as Cook announced plans to increase product prices

At the New York close on June 17, U.S. Treasury yields fluctuated significantly amid the Federal Reserve's decision to hold rates steady and Chair Walsh's press conference. The 10-Year Treasury Yield rose 4.74 basis points to 4.4869%, dipping first before rallying during the session. The two-year U.S. Treasury yield climbed 13.28 basis points to 4.1843%, hitting a new high since February 2025. Traders are continuing to digest the outlook for Fed rate hikes

Based on the latest Federal Reserve projections, Citibank has pushed back its expectation for an interest rate cut from September to October. Chief Economist Andrew Hollenhorst noted that while weak employment data and cooling inflation still support a rate cut within the year, divergences within the Federal Reserve Board require more time to reach consensus, leading to an adjustment in policy expectations

Citi: Pushes Back Expected Timing of Fed Rate Hike by One Month to October

On June 18th, among the top trading volumes in the US stock market, Micron Technology rose against the trend by 2.2%, with Deutsche Bank significantly raising its target price to $1500 and maintaining a buy rating. SpaceX experienced its first decline since going public, dropping 4.95%. Stocks of major companies such as NVIDIA, Sandisk, Tesla, Microsoft, Apple, and Alphabet all saw varying degrees of decline

On June 18th, the top 20 trading volumes in the US stock market: Micron Technology rose against the trend by 2.2%, and Deutsche Bank significantly raised its target price

On June 17, the Magnificent 7 Index fell 2.38% to 210.21 points, while the Mega-Cap Tech Index dropped 1.56% to 432.59 points. Both indices experienced significant declines or failed rallies amid the Federal Reserve's decision to hold rates steady and Chair Kevin Warsh's press conference

The NASDAQ Golden Dragon China Index initially closed down 1.1%. Among popular Chinese stocks, Li Auto fell 3.4%, Alibaba dropped 3.1%, NIO Inc rose 0.2%, and Advanced Semiconductor Engineering gained 2%

Federal Reserve Chair Warsh: Has had breakfast with U.S. Treasury Secretary Bessent three times so far

Wall Street analyst Trip Chowdhry predicts Intel could reach a $5 trillion market cap, driven by AI inference and application growth. While Intel's stock has surged 483% in 2026 due to strategic turnaround efforts under CEO Lip-Bu Tan, including new foundry deals with Apple and Alphabet, the prediction remains highly speculative. Current consensus estimates suggest much lower EPS figures for 2026-2027, making the $1,100 share price target ambitious given the current valuation.

1 Unstoppable Stock to Buy Before it Soars 848% to Join Nvidia in the $5 Trillion Club, According to 1 Wall Street Analyst

After the Federal Reserve released its policy statement, US stocks edged lower, with the S&P 500 falling over 0.3% and the Nasdaq Composite Index dropping more than 0.2%. The US Dollar Index quickly climbed to 99.9866, while spot gold prices tumbled $28.59 per ounce to $4,352.16 per ounce

Following the release of the Fed's decision statement, the S&P fell over 0.3% and the Nasdaq dropped more than 0.2%. The US Dollar Index rose 0.3327 within five minutes to 99.9866. Spot gold declined $28.59 per ounce in five minutes to $4,352.16 per ounce

Federal Reserve Summary of Economic Projections (SEP): U.S. Real GDP is projected to grow by 2.2% in 2026, down from the 2.4% forecast in March

Federal Reserve Summary of Economic Projections (SEP): The U.S. Unemployment Rate is projected to be 4.3% in 2026, compared to the 4.4% projected in March

Federal Reserve Summary of Economic Projections (SEP): US core PCE inflation is projected at 3.3% for 2026, compared to the March projection of 2.7%. US PCE inflation is projected at 3.6% for 2026, compared to the March projection of 2.7%

Ahead of the Federal Reserve's rate decision statement, major U.S. stock indices edged higher, with the semiconductor and banking sectors outperforming. In the foreign exchange market, the U.S. Dollar Index inched up while non-U.S. currencies generally declined. Precious metals prices rose, with gold and silver gaining 1.1% and 1.8%, respectively. U.S. Treasury yields mostly fell, with the 10-Year Yield dropping 1.38 basis points to 4.4256%, and the gain in the two-year yield narrowing

At the VivaTech conference, ASML CEO Christophe Fouquet stated that the company is participating in Musk's Terafab project but must ensure there are no supply chain bottlenecks to support the construction of this large-scale wafer fab. He emphasized the massive demand for AI infrastructure and mentioned the possibility of space-based data centers. Influenced by this, ASML's stock price rose 6% on Wednesday, bringing its monthly gain to 30%

ASML CEO: Musk's Terafab Project May Face Supply Chain Bottlenecks

The Italian antitrust regulator has launched an investigation into Apple for potentially violating the interoperability obligations of the European Digital Markets Act. The regulator believes that third-party cloud services do not have equal access to iCloud, while Apple claims it has fulfilled its obligations and is prepared to address the concerns. This is the first investigation initiated by Italy under this act, and the results will be submitted to the European Commission

Italy's antitrust regulator launches investigation into Apple's cloud services

Amazon's Chief AI Executive Peter DeSantis predicts that the first small-scale quantum computers with commercial practical value will emerge in the next 5 to 7 years. He noted that thereafter, quantum computing will follow a development trajectory similar to Moore's Law, with scale expanding year by year. This statement provides Amazon's first timeline regarding the technology, positioned in the middle of industry predictions

Amazon AI executives predict that the first "commercially valuable" quantum computers will emerge within 5 to 7 years

J.P. Morgan Asset Management urges investors to continue holding high-risk assets such as equities in the second half of 2026. Despite inflationary pressures and the Federal Reserve keeping interest rates unchanged, the firm believes that the AI investment boom and consumer resilience will support continued expansion of the US economy, driving further gains in US stocks

J.P. Morgan Asset Management: AI Boom Expected to Drive Further Gains in US Stocks; Hold High-Risk Assets in Second Half of Year

Google announced that the first Google Home speaker equipped with the Gemini AI model will be launched next week, priced at $99.99. The device features a voice assistant with advanced natural language understanding and reasoning capabilities, supporting multi-command reception, complex question handling, and multi-turn conversation memory. In addition, the new speaker has a completely new design and supports a microphone mute function

Google starts selling Google Home speakers equipped with Gemini

This article focuses on four key aspects of the Federal Reserve's June decision statement and press conference: first, whether the target range for the federal funds rate will remain unchanged; second, whether there will be any changes to the officials' interest rate projections in the Dot Plot; third, the Fed's view on the U.S. economic situation, including inflation and employment; and fourth, the signals conveyed by Chair Kevin Warsh during the press conference

Key Focus Areas of the Fed's June Decision Statement and Press Conference

According to data from the Federal Reserve Bank of New York, the Secured Overnight Financing Rate (SOFR) was reported at 3.63% on the previous trading day (June 16, the opening day of the Federal Reserve's policy meeting), compared to 3.69% the day before. The effective federal funds rate on the previous trading day was reported at 3.63%, unchanged from 3.63% the day before

The U.S. Pending Home Sales Index rose 2.1% year-on-year in May, compared to the previous value of 3.3%

The U.S. Pending Home Sales Index rose by 3.8% month-on-month in May, exceeding the expected 1% and the previous value of 1.4%

Oracle's fiscal 2026 results highlight robust GPU demand, with data center utilization at 97.5%, benefiting Nvidia, which holds 80-90% of the AI accelerator market. Oracle plans to increase capital expenditure to $90-$95 billion in fiscal 2027, signaling sustained investment in AI infrastructure. This growth supports Nvidia's projected earnings surge and potential stock appreciation, as global AI spending rises significantly.

Oracle Has Fantastic News for Nvidia Stock Investors

Enron redux! Muddy Waters for clicks, or is SOFI just bad?

FSMOne's General Manager in Hong Kong, Chen Jialang, pointed out that the current cycle of interest rate cuts by the Federal Reserve has ended. Based on a target price-to-earnings ratio of 11 times, the target prices for the Hang Seng Index at the end of the year, 2027, and 2028 are approximately 25,000, 27,000, and 29,000 points, respectively. Analyst Li Xu is optimistic about Hong Kong stocks being supported by the inclusion of AI models in the index, the IPO market conditions, and the inflow of northbound capital. Chen Jialang believes that inflationary pressures will keep long-term bond yields high and recommends that investors prioritize short-term bonds and 5 to 10-year U.S. Treasury bonds, while being optimistic about investment-grade corporate bonds

FSMOne: The Federal Reserve's current interest rate cut cycle has ended, with a target price of approximately 27,000 points for the Hang Seng Index next year

U.S. retail sales rose 0.9% month-over-month in May, exceeding expectations. Although rising gasoline prices driven by the Iran conflict boosted gas station revenues, retail sales still grew 0.7% after excluding this factor, indicating resilient consumer demand

Quick Take on U.S. May Retail Sales

Following the release of U.S. retail sales data for May, the U.S. Dollar Index saw a slight short-term surge to 99.64. U.S. stock futures showed little volatility, with Nasdaq-100 futures rising approximately 0.6%. The yield on the 10-year U.S. Treasury note stood at 4.440%, while spot gold edged up in the short term to $4,327.37 per ounce

The overall funding situation in the Hong Kong stock market is weak. Semiconductor stocks strengthened due to foreign capital raising storage prosperity expectations; HSBC reached a new high in stock price due to interest margin logic, while the domestic banking sector performed poorly due to weak macro data and profit-taking. Resource stocks, especially in the oil sector, weakened, while gold is expected to rebound. Xiaomi's stock price is under pressure from consumer electronics and automotive delivery targets, but AI layout and repurchase plans provide support. The market is focused on the FOMC meeting and subsequent structural opportunities

Hong Kong Stock Review: Still Relatively Weak

The chairman of the China Securities Regulatory Commission, Wu Qing, expressed support for the launch of active ETFs on the Shanghai and Shenzhen stock exchanges to enrich investment products and tools. At the same time, the State Administration for Market Regulation is soliciting opinions on new regulations for food delivery platforms, prohibiting long-term large subsidies that disrupt market order. In addition, a Saudi mining company is inspecting CIDI to promote unmanned transportation cooperation in mining areas. As a result of this news, CIDI's stock price surged over 35%

Zhitong Hong Kong Stock Analysis | Active ETFs Stimulate Technology Strength Again, Observing the Federal Reserve's Operations in the Era of Wosh

The UK's Competition and Markets Authority (CMA) has introduced new regulations requiring Google to enhance the transparency and fairness of its search rankings, and to allow users to transfer their search data to third-party platforms. This move aims to promote market competition and improve service quality, as the CMA has previously determined that Google holds a strategic market position

The UK regulator has introduced new rules for Google Search aimed at promoting market competition

The State Administration for Market Regulation released the "Ten Guidelines for Regulating Subsidy Practices on Food Delivery Platforms (Draft for Comments)," aiming to curb irrational subsidy competition and maintain market order. Meituan, Taobao Instant Shopping, and JD.com Food Delivery all issued statements expressing firm support for the guidelines, promising to actively cooperate with regulators, fulfill their primary responsibilities, and promote a shift in the industry from price wars to healthy competition based on quality and service, thereby fostering high-quality development

State Regulates Subsidy Practices of Food Delivery Platforms; Meituan, Taobao Instant Shopping, and JD.com Food Delivery Express Firm Support

According to the Zhitong Finance APP, Li Auto-W announced that the company spent HKD 104 million to repurchase 1.9317 million shares on June 17, 2026, with a repurchase price of HKD 53.7-54.7 per share

On June 17th, Li Auto-W spent HKD 104 million to repurchase 1.9317 million shares

According to the Zhitong Finance APP, Xiaomi Corporation-W announced that on June 17, 2026, the company spent HKD 101 million to repurchase 4 million shares

On June 17th, Xiaomi Corporation-W spent HKD 101 million to repurchase 4 million shares

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AI Exclusive Card Arrives: WeChat Completes the Agent Closed Loop

According to the Zhitong Finance APP, Tencent Holdings announced that the company spent HKD 501 million to repurchase 1.118 million shares on June 17, 2026, with a repurchase price per share ranging from HKD 445.4 to HKD 453.6

On June 17th, Tencent Holdings Limited spent HKD 501 million to repurchase 1.118 million shares

The IEA's latest monthly report significantly downgraded its global oil demand forecast for 2026 to a year-on-year decrease of 1.1 million barrels per day, marking the largest drop since 2020. Despite weakening demand expectations, ongoing supply disruptions are accelerating inventory depletion, with global official reserves falling to their lowest level since 1990. The IEA predicts that as Middle East supplies recover and production increases in non-OPEC+ regions, the crude oil market will shift to oversupply in 2027, potentially opening a window for restocking

IEA Monthly Report: Iran War Severely Impacts Energy Consumption; Oil Demand Forecast for the Year Sees Largest Downward Revision in Six Years

Executives from top AI companies such as OpenAI, Anthropic, and Google attended the G7 summit in France to discuss cutting-edge AI risks, infrastructure, and sovereignty issues with leaders from various countries. This move signifies the growing influence of tech giants in geopolitics, with their voice significantly enhanced as AI becomes a core agenda

Trump gathers with leaders from various countries at the G7 summit, with executives from OpenAI, Anthropic, and Google in attendance

Tuhin Srivastava, CEO of AI inference infrastructure provider Baseten, revealed that its cloud service providers have notified the company of an approximately 94% increase in NVIDIA B200 GPU lease prices upon contract renewal in October. Meanwhile, the delivery lead time for purchasing 1,000 GPUs has stretched to 12–15 months. The combination of delivery bottlenecks and rising lease costs is driving a systemic increase in computing power expenses for AI inference

NVIDIA B200 Lease Rates Set to Double; New GPU Orders Backlogged Until Q2 Next Year

WeChat Pay beta-tests AI payments; SpaceX acquires AI coding tool Cursor in an all-stock deal | Daily News Recap

At the close of the Hong Kong stock market, the Hang Seng Index fell by 0.74%, while the Tech Index rose by 0.22%. In terms of individual stocks, KINGBOARD HLDG, KNOWLEDGE ATLAS, and HUA HONG GRACE had the largest gains; LI AUTO, LAOPU GOLD, and HAIDILAO saw declines of over 3.5%

Chinese medical device company Bestman Precision Instruments has withdrawn its IPO plan. The company submitted its listing application in February 2023, planning to issue 4 million shares at an offering price range of $4 to $6, aiming to raise $20 million. Based on the median of the proposed price range, its market value would have reached $95 million. Founded in 2001 and headquartered in Shenzhen, China, the company reported a book revenue of $3 million for the 12 months ending June 30, 2024. The company originally planned to list on NASDAQ under the stock code "BSME," with Benjamin Securities as the exclusive bookrunner for the transaction