A global chip rally meets a night full of earnings. Here is what to watch heading into the US session.
Risk sentiment stays warm heading into the Wall Street open. Cooler US July CPI data is supporting rate-cut expectations, and Wall Street closed yesterday's session near a record after the AI-infrastructure rally.
Tonight's story is a memory and chip rally spreading around the world. Korea's Kospi has officially entered a bull market, YMTC passed Kioxia in NAND shipments for the first time, and Lenovo jumped on AI-server demand. The read-through flows straight to US-listed memory and AI-infrastructure names.
Not everything moves the same way, though. Cisco closed higher yesterday heading into its earnings, but the early reaction to that report has been cautious despite an upbeat outlook, a reminder that high expectations can trigger profit-taking.
News of a new Pershing Square (Ackman) stake. Watch
Tonight's Catalysts
The memory and chip rally goes global
The semiconductor rally is now genuinely cross-continental. YMTC overtook Kioxia in NAND shipments for the first time, while Korea's Kospi entered a bull market led by SK Hynix. For US investors, that is a read-through catalyst for Micron (MU) and Western Digital (WDC), two memory names that already rallied hard yesterday.
Cisco's FY27 guide gets tested
Cisco closed up 2.86% yesterday heading into its earnings, with a $7.5 billion AI-infrastructure target and FY27 revenue guidance of $72.2 to $73.4 billion. The report landed after the close, and the early reaction has leaned negative despite the strong-sounding guide, a sign that expectations were already high. Watch whether this level finds buyers once the regular session opens.
Netflix closed roughly flat yesterday, and tonight's spotlight comes from news that Bill Ackman's Pershing Square took a new stake. Activist-investor sentiment often adds short-term volatility. Watch opening volume as confirmation of direction.
Yesterday's Close Recap 📊
Wall Street closed near a record yesterday after a tame July CPI print. Memory names like Micron (+4.92%) and Western Digital (+3.69%) led with sharp gains, Nvidia added 3.03%, while Cisco closed slightly higher heading into its earnings.
Macro Note 📝
US July CPI eased and firmed the odds of a rate cut into the fall. Gold advanced in response, reflecting expectations of looser monetary policy ahead.
Conclusion
Tonight is a blend of momentum and caution. The global chip rally gives a tailwind to Micron, Western Digital, and Nvidia after their sharp gains yesterday, but earnings season demands vigilance. Cisco is the reminder that a good guide does not always lift the price right away.
The key tonight is discipline. Watch whether the memory names hold their post-rally momentum and how Cisco reacts once the session opens. Build your watchlist early so you are ready when the real moves begin.
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
Kholida Qothrunnada is a strategic content specialist and editor, a graduate in Communication Science with a concentration in Multimedia Journalism. She has over 4 years of experience working in national media as a reporter covering economics and business, including writing content on finance, fintech, stocks, and cryptocurrency.
