AI demand fuels investors’ portfolios while oil posts biggest monthly decline

Hello, I’m Justina Lee writing to you from Singapore. Welcome to another edition of CNBC’s Daily Open.

AI remains the market favorite as investors continue to turn to semiconductor and technology names as companies race to build the next phase of the AI ​​ecosystem. Amazon Web Services is also expanding into forward-deployed engineering; This is an increasingly competitive corner of the industry, dominated by companies such as: OpenAI And anthropic.

China’s consumer outlook is also back in the spotlight after Nike announced a 12% decline in Greater China sales, even as the country’s factory activity shows signs of improvement.

Meanwhile, Brent crude recorded its biggest monthly decline since March 2020 as investors expected tensions in the Middle East conflict could continue to ease.

The artificial intelligence boom continues to reshape markets.

Investors have also poured money into semiconductor companies outside Nvidia, believing that building AI data centers will benefit a broader universe of chipmakers and infrastructure companies.

Intel, Micron and Advanced Micro Devices gained nearly $2 trillion in combined market value in the second quarter, making them among the most valuable U.S. tech companies and reflecting growing belief in the next phase of AI spending.

Meanwhile, Amazon Web Services It is strengthening its presence in forward deployed engineering, or FDE, to better compete with OpenAI and Anthropic. own FDE units earlier this year. FDE teams work with customers to accelerate technical transformation and tailor AI systems to specific business needs.

Beyond technology stocks, investors are also closely monitoring consumer demand. Sportswear giant Nike announced its quarterly earnings above estimates, helped by a customs duty refund of approximately $986 million. But analysts were concerned about growth in China after sales fell 12%; This underlined the challenges facing one of the company’s most important markets.

China’s manufacturing activity grew faster than expected in June, helped by high-tech production driven by global demand for AI-related products. But the recovery remains uneven.

Property investment and consumer goods production remained under pressure, raising questions about whether policymakers should step up support measures in the coming months. Goldman Sachs has warned that Beijing may face increasing pressure to step up fiscal spending and government borrowing in the coming months to boost growth.

In the Middle East, the prospect of new talks between Iran and the US in Qatar helped Brent crude oil post its biggest monthly decline since March 2020, as investor optimism grew that tensions in the Middle East conflict could continue to ease.

Brent crude futures for September delivery rose about 0.3% to $73.17 a barrel in early Asian trading on Wednesday. The August contract fell nearly 21% in June, its biggest monthly decline since March 2020. US West Texas Intermediate futures rose about 0.43% to $69.80.

Still, markets remained cautious. Mixed signals regarding Iran-US peace talks suggest investors view the recent détente as fragile.

The Middle East is not the only Trump-related headline that attracts investors’ attention.

Annual financial disclosure file released on Tuesday US Office of Government Ethics He came under scrutiny after disclosing hundreds of millions of dollars in revenue tied to crypto token revenues, as well as assets spanning hundreds of individual company shares.

—Justina Lee

Makarim was found guilty in a case linked to the purchase of Google Chromebooks for schools in the country education digitization program It lasted from 2019 to 2022.

Makarim, who was education minister from 2019 to 2024, was also fined 1 billion Indonesian rupiah ($55,870) and ordered to pay 809.6 billion rupiah in compensation. If he does not pay his debt, he will face another 5 years in prison.

—Lim Hui Jie