Market Highlights – Friday, July 24, 2026
Surge in AI Demand Boosts US Chip Giants
The ongoing demand for processors in data centers is propelling Intel to significant profit gains, as illustrated by their surprisingly optimistic outlook. The company announced an increase in investment to $20 billion this year, up from a previously planned $18 billion, according to CFO David Zinsner. Intel’s strategy relies on several long-term supply agreements, which provide the company with increased planning security. Zinsner emphasized that customers typically sign such contracts only if they are confident in the value of the investment.
In terms of financial performance, Intel reported a 25% increase in revenue for Q2, totaling $16.1 billion. Earnings per share (EPS) recovered to $0.42, a stark contrast to a loss in the previous year’s quarter. For the current quarter, Intel anticipates revenues between $15.8 and $16.8 billion and an EPS of $0.38. “AI is driving unprecedented demand for computing power,” stated CEO Lip-Bu Tan, noting that the quarter showcased the highest revenue growth in over 15 years. Following this announcement, Intel’s stock surged by 12% in after-hours trading.
Rising Brent Prices Fuel Market Volatility
Oil prices continue their upward trajectory, marking a prospective weekly gain. Brent crude has peaked to $100.50 per barrel despite a slight decrease today, while WTI crude dropped by 0.4% to $91.82. The rise in Brent prices, which reached a two-month high of $102 overnight, is largely attributed to attacks on Saudi tankers in the Red Sea by Iranian-allied Houthi militants. These events have raised concerns about the security of two essential shipping routes critical to global oil supply.
Currency Market Updates
In Asian forex trading, the Dollar has gained slightly against major currencies, trading at 163.76 Yen and 6.7750 Yuan. Its position against the Swiss Franc edged upwards to 0.8167. The Euro, meanwhile, remains mostly unchanged at 1.1384 against the Dollar but has shown a slight increase against the Swiss Franc, resting at 0.9297.
Asian Markets Experience a Downturn
The surge in oil prices above $100 is adversely impacting Asian equity markets. The MSCI index for Asian stocks outside Japan has fallen by 1%, while Japan’s Nikkei index decreased by 3.0%, and South Korea’s Kospi reported a 3.7% loss. Growing tensions in Iran and fears of a new inflation shock have created uncertainty among investors. Nigel Green, CEO of deVere Group, noted that markets are just starting to grasp the implications of having two major shipping routes threatened in the same month. Consequently, there is heightened speculation regarding an impending interest rate hike by the US Federal Reserve.
Japan’s Industrial Production Shows Strong Growth
Japan’s industrial production has surged significantly in July, marking the strongest increase in over a decade, according to recent surveys. While the manufacturing Purchasing Managers’ Index (PMI) decreased slightly to 54.7 from 54.8 in June, it remained well above the growth threshold of 50. Notably, new orders observed the most robust growth in five years.
Japan’s Core Inflation Remains Below Central Bank Target
In Japan, the core inflation rate for June has stayed below the Bank of Japan’s target for five consecutive months. Core consumer prices increased by 1.6%, affected by government fuel subsidies that mitigated rising commodity costs amid ongoing conflicts in the Middle East.
SAP Faces Challenges in Cloud Sector
Following a strong start to the year, SAP’s cloud segment has shown signs of slowing growth. Revenue in this key division increased by 24% to €6.28 billion, meeting expectations but down from a 27% increase earlier in the year. Overall, SAP reported an 11% revenue growth to €9.88 billion, though its operating profit of €2.74 billion fell short of analysts’ forecasts, attributed to investments in artificial intelligence and corporate restructuring.
DAX Struggles to Maintain Weekly Gains
The DAX is battling to sustain its weekly gains, having lost 1.6% in its most recent trading session, which wiped out a prior increase of 1.3%. This decline is largely driven by rising oil prices hitting six-week highs. As the week closes, investors are shifting focus to consumer sentiment, which may show improvement according to experts.
Upcoming Highlights to Watch
A significant event on the horizon is Volkswagen’s upcoming earnings report. Analysts suggest that despite challenges such as plummeting sales in China, VW likely managed to maintain revenue and operational profit levels similar to last year.
As the market landscape remains dynamic, staying informed about these developments will be crucial for investors navigating the complexities of global finance.
