On August 13, the US Department of Labor released the latest July inflation data, showing a continuous cooling trend in overall inflation which fully matched market expectations. Official data shows that the year-on-year growth of US July CPI fell to 3.4%, while core CPI slowed to 2.5% year-on-year. The core inflation indicator excluding energy and food continued to decline, confirming the gradual easing of sticky inflation in the United States.

The improvement of inflation data reversed market concerns about inflation rebound and provided critical data support for the Federal Reserve’s monetary policy adjustment. Following the data release, global financial markets responded positively. The three major US stock indexes closed higher collectively, with the Nasdaq leading the gains. Technology and AI concept stocks rebounded sharply, and the memory chip sector achieved outstanding performance, driving sharp rises in the share prices of overseas chip enterprises such as SK Hynix and Seagate.

Meanwhile, the US dollar index retreated slightly, and US treasury bond yields fluctuated downward, promoting the valuation repair of global risk assets. Stock and foreign exchange markets in emerging markets rebounded synchronously. Institutional analysts pointed out that the driving logic of US inflation has undergone fundamental changes. Supply-side inflation pressure caused by oil prices and tariffs has faded, and current inflation is mainly driven by demand expansion from the booming AI industry.

This structural change enables inflation to decline steadily over a longer cycle. Market expectations for the Federal Reserve’s September interest rate cut have risen significantly, warming global monetary easing expectations. In the follow-up period, global capital markets will continue to benefit from loose liquidity expectations, and growth-oriented assets such as technology and innovation tracks are expected to maintain a sustained repair trend, driving overall vitality recovery in global financial markets.