China International Capital Co (CICC) says global AI-related chains have sold off sharply since mid‑late June, with Korea hardest hit where high leverage, crowding and retail exposure amplified the decline. Drivers include amplified positioning risk, macro shocks (re‑pricing of Fed rate hikes and renewed Strait of Hormuz disruption pushing oil), and renewed froth concerns (eg. cloud compute rentals, falling token spend). CICC notes the tech run-up before the 2000 crash saw at least four large, p

CITIC Securities says having missed this round’s rate-hike window, US equity valuations face near-term pressure regardless of whether the Fed hikes in September; medium-to-long term, realized rate hikes could relieve valuation suppression. The Productivity and Employment Task Force’s positive tilt toward AI supports a durable US AI narrative. At the July 29 FOMC the Fed held for a fifth meeting; three voters supported a 25bp increase, signaling publicized internal divisions and a market split of short-end dovishness versus long-end hawkishness. Rising inflation expectations are capping the dollar and may open a window for Japan MOF FX intervention. Strong growth in CSP cloud businesses partially eases concerns about the sustainability of AI’s large capex. Rate-sensitive sectors, high-valuation/low-growth segments and small caps are under pressure; the next potential liquidity pivot is Jackson Hole at end-August or the September policy meeting.

Lebanese military says five soldiers were wounded in an Israeli airstrike on Kafr Kila in the southern Bent Jbeil area.