Let's begin with a look at international markets.

On the evening of the 21st, US stock indices opened higher. The Dow Jones Industrial Average rose 0.36%, the S&P 500 gained 0.52%, and the Nasdaq Composite advanced 0.88%. The memory chip sector saw continued strength, with Micron Technology, SK Hynix, SanDisk, Western Digital, and Seagate Technology all climbing over 10%.

By the close, the Nasdaq was up 1.29%, the S&P 500 had risen 0.89%, and the Dow increased 0.74%. The Philadelphia Semiconductor Index surged 5.21%, marking its largest single-day gain since June 22nd. The memory sector staged a strong rebound, with SanDisk up over 14% and SK Hynix gaining more than 13%.

Industry reports indicate that the three major memory giants—Samsung Electronics, SK Hynix, and Micron Technology—are all implementing strategies to improve yields for HBM4. HBM4 is the sixth-generation high-bandwidth memory product, set to be integrated into products like Nvidia's upcoming AI accelerator chip, Vera Rubin, in the second half of the year.

Among the three companies, Samsung Electronics was the first to achieve mass production of HBM4, and as production lines shift to large-scale manufacturing, yield improvement has been significant. Some analysts suggest Samsung's HBM4 yield has already reached approximately 70%. While SK Hynix has not publicly disclosed specific HBM4 yield figures, the industry widely believes its yields have also entered a stable range. To optimize HBM4 processes and expand capacity, SK Hynix plans to introduce new production equipment and is currently negotiating equipment purchase orders with several suppliers for the second half of the year.

Micron Technology, with a smaller production scale compared to the two Korean memory manufacturers, is focusing intensely on accelerating yield improvements and capacity expansion. It is reported that the company has initiated significant equipment investments to simultaneously advance yield enhancement and production ramp-up.

In commodities, WTI crude oil futures settled 2.02% higher, while Brent crude futures gained 2.01%. COMEX gold futures rose 1.69% to $4,083.7 per ounce, and COMEX silver futures surged 4.23% to $59.065 per ounce.

Trump Warns of Imminent Strike on Iranian Nuclear Facility

On the 21st, former US President Donald Trump stated that the United States would "soon" launch a strike on Iran's underground nuclear facility at "Mount Gacho" south of Natanz, describing the planned action as "very severe."

Additionally, during a meeting at the White House with Lebanese President Michel Aoun, Trump warned that the US would take action if Yemen's Houthi rebels moved to block the Red Sea.

Iranian Military Issues Retaliation Threat

In the early hours of the 22nd, Iran's Khatam al-Anbiya Central Headquarters issued a statement declaring that any US attack on Iranian nuclear or sensitive sites would be viewed as an expansion of regional conflict. In such an event, all US and allied interests in the region would become targets for retaliatory strikes by Iran's armed forces.

Reports of Explosion at US Navy Fifth Fleet Headquarters

Iran's Tasnim News Agency reported on the 21st that an explosion occurred at the headquarters of the US Navy's Fifth Fleet in Bahrain. Separate reports indicated that alarms were sounded in Bahrain's capital, Manama, with residents advised to stay in shelters.

Yemen's Houthis Expand Maritime Threat

On the 20th, Yemen's Houthi rebels warned international shipping companies that vessels engaging in trade with Saudi Arabian ports could face military strikes, significantly broadening the scope of their previously announced maritime embargo against Saudi Arabia.

In emails sent to several shipping companies on the evening of the 20th, the Houthi-run Humanitarian Operations Coordination Center in Sana'a stated that the restrictions applied not only to vessels flying the Saudi flag but also to ships loading or unloading cargo at Saudi ports. The notice urged shipping companies to exercise "due caution" when planning voyages involving Saudi ports, warning that vessels participating in such trade could become targets "within the operational capabilities" of the Houthi forces.

Analysts Note Increased Investor Appetite

On July 21st, China's A-share market saw a powerful rebound across its three major indices, with a full-blown rally in technology and growth sectors. The STAR 50 Index surged over 10%, while the Shenzhen Component Index and the ChiNext Index soared 4.81% and 7.05%, respectively. Combined trading volume on the two exchanges expanded significantly to nearly 2.96 trillion yuan.

The previous consecutive days of declines had caused many popular tech stocks to retreat more than 20% from their highs. "After several days of shrinking volume and adjustments, the broader market has now stabilized, and the liquidity crisis in the semiconductor sector triggered by South Korea's leveraged ETFs has temporarily subsided," stated Hua Xiang, an analyst at Yong'an Futures. He noted that capital was highly concentrated in the semiconductor supply chain and AI-related sectors, with multiple stocks hitting their daily limit-up, while traditional heavyweight sectors like oil & gas, banking, and coal pulled back due to falling oil prices and capital outflows. Overall, the explosive surge in tech stocks effectively boosted market confidence, and the increased trading volume indicates that incremental funds are actively entering the market.

In related news, South Korea's President Lee Jae-myung addressed the issue of single-stock leveraged ETFs at a cabinet meeting on July 21st, stating that such products have drawbacks that exacerbate market volatility and that the government would take "bold and necessary" measures in response. Lee acknowledged that market participants have criticized policy shortcomings regarding leveraged investment products and that the government must quickly introduce supplementary measures to stabilize market expectations.

Looking ahead, Hua Xiang commented, "From the perspective of valuation and earnings alignment, the overall outlook for the CSI 500 Index is not pessimistic. After the index touched its annual moving average yesterday, technical buying emerged, showing an increased willingness of capital to enter the market. The sustainability of this rebound hinges on whether the rally can spread from the technology sector to blue-chip stocks. If effective rotation occurs, the pattern of a volatile upward trend for the broader market is likely to continue. However, if capital remains concentrated in the technology track, the risk of a pullback will rise after the mid-year earnings season concludes. Going forward, close attention should be paid to the mid-year financial results of listed companies and whether the momentum of the rally in overseas markets undergoes a shift."