Recent data shows a cooling of inflationary pressures in the US. The June Consumer Price Index (CPI) rose 3.5% year-over-year, while the core CPI increased by 2.6%. On a monthly basis, CPI fell 0.4% and core CPI remained flat. All four readings came in below expectations. The Producer Price Index (PPI) also declined, dropping 0.3% month-over-month and rising 5.5% year-over-year, further indicating a moderation in price pressures at both the consumer and producer levels.

In other economic news, US retail sales for June edged up 0.2% month-over-month, with the control group rising 0.5%. The July Empire State and Philadelphia Fed manufacturing indices posted strong readings of 15.6 and 41.4 respectively, significantly surpassing forecasts. These figures suggest that domestic demand and industrial activity in the US remain resilient.

Initial jobless claims fell to 208,000, below the expected 217,000, while continuing claims dropped to 1.805 million. This data indicates that broader labor market pressures remain contained.

Performance of Key Indices

Weekly Index Movements

For the week of July 13th to 17th, the S&P Oil & Gas Exploration & Production Select Industry Index climbed 7.33%. In contrast, the Nasdaq 100 Index declined 4.13%, and the S&P 500 Index fell 1.55%. Among the 11 sectors within the S&P 500, five posted gains for the week. The S&P 500 Energy sector led the way, rising 4.97%, while the S&P 500 Information Technology sector was the biggest decliner, dropping 3.78%.

Investment Strategy and Market Dynamics

The primary shift in US equity markets last week involved a transition away from a singular focus on crowded AI-related trades. The market is now rebalancing its focus toward corporate earnings validation and navigating geopolitical shocks. This shift is driven by a dual narrative. On one hand, the better-than-expected cooling in June inflation data caused market expectations for a July interest rate hike to drop from 43% to 16%. Concurrently, robust retail, manufacturing, and employment figures suggest the economic growth trajectory has not significantly faltered, painting a macroeconomic picture closer to a "soft landing" than a recession.

On the other hand, escalating US-Iran tensions, disruptions to shipping traffic in the Strait of Hormuz, and a rapid rise in oil prices have increased energy and transportation costs. This has dampened overall market risk appetite, leading high-valuation, high-crowding, and highly-leveraged AI hardware and semiconductor stocks to enter a period of valuation adjustment.

Investment Products Overview

The Bosera S&P 500 ETF (513500) is a domestic fund that tracks the US S&P 500 Index. Utilizing the ETF structure, which offers low management costs and efficient trading, it enables domestic investors to access the growth potential of US equities. Investors may also consider the Bosera S&P 500 ETF Link Fund (Share Class A: 050025, Share Class C: 006075). The S&P 500 Index is widely recognized as a benchmark for the US stock market, covering over 500 leading companies across 11 sectors. These are predominantly large-cap stocks, representing approximately 80% of the total US equity market capitalization.

The Bosera Nasdaq 100 ETF (513390) is a domestic product tracking the US Nasdaq 100 Index. According to data from Nasdaq, the Information Technology sector constitutes 57.87% of the index, making it the primary component. The index also includes exposure to consumer services, consumer goods, and healthcare sectors. Its top ten holdings consist of high-quality, technologically advanced companies.

All information in this report is sourced from publicly available data. No guarantee is made regarding its accuracy or completeness. Under no circumstances shall the information or opinions expressed herein constitute actual investment results or specific investment advice for any investor.

Unless otherwise stated, data is sourced from Wind, with a cut-off date of July 17, 2026.

All rights to this report are reserved by Bosera Asset Management Co., Ltd.

Investing involves risk. Please choose carefully.

The Bosera S&P 500 ETF (513500) carries a medium-high risk rating. Subscription fees: When subscribing for fund shares, the agent may charge a commission, inclusive of fees levied by stock exchanges and registration and settlement institutions, not exceeding 0.5%. Redemption fees: When redeeming fund shares, the agent may charge a commission, inclusive of fees levied by stock exchanges and registration and settlement institutions, not exceeding 0.5%.

The Bosera S&P 500 ETF Link A (RMB) (050025) carries a medium-high risk rating. Subscription fee rates: For subscription amounts below 500,000 RMB, 1.20%; for amounts between 500,000 RMB and 1 million RMB, 0.80%; for amounts between 1 million RMB and 5 million RMB, 0.30%; for amounts of 5 million RMB or more, a flat fee of 1,000 RMB per transaction applies. Redemption fee rates: For holding periods under 7 days, 1.50%; for periods between 7 days and 2 years, 0.50%; for periods between 2 and 3 years, 0.25%; for periods of 3 years or more, 0.00%.

The Bosera S&P 500 ETF Link C (RMB) (006075) carries a medium-high risk rating. Subscription fees: The C-class RMB share class of this fund does not charge a subscription fee. Redemption fee rates: For holding periods under 7 days, 1.50%; for holding periods of 7 days or more, 0.00%.

The Bosera Nasdaq 100 ETF (513390) carries a medium-high risk rating. Subscription fees: When subscribing for fund shares, the subscription agent may charge a commission not exceeding 0.5%, inclusive of fees levied by stock exchanges and registration institutions. Redemption fees: When redeeming fund shares, the redemption agent may charge a commission not exceeding 0.5%, inclusive of fees levied by stock exchanges and registration institutions.

Dear Investor,

Funds carry risks; investment requires caution. Publicly offered securities investment funds are long-term investment instruments. Their primary function is to diversify investments and reduce the specific risks associated with investing in a single security. Unlike financial instruments like bank deposits that offer fixed return expectations, when you purchase a fund product, you may share in the investment gains or bear the losses from the fund's investments.

Before making an investment decision, please carefully read the fund contract, prospectus, fund product summary, and other legal documents, as well as this risk disclosure statement. Fully understand the risk-return characteristics and product features of this fund, carefully consider all risk factors, and based on your own investment objectives, investment horizon, experience, and asset situation, fully assess your risk tolerance. Make a rational and prudent investment decision after understanding the product and considering the suitability advice.

In accordance with relevant laws and regulations, Bosera Fund provides the following risk disclosures:

1. Based on different investment objects, funds are categorized into stock funds, hybrid funds, bond funds, money market funds, fund of funds, commodity funds, etc. Investing in different types of funds yields different return expectations and involves varying degrees of risk. Generally, the higher the expected return of a fund, the greater the risk you assume.

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4. Special product risk disclosure:

The product you purchase can invest in overseas securities. In addition to general investment risks similar to those of domestic securities investment funds, such as market volatility risk, this fund also faces special investment risks associated with investing in overseas securities markets, such as exchange rate risk.

5. The fund manager commits to managing and utilizing the fund's assets with honesty, credit, diligence, and responsibility, but does not guarantee that the fund will be profitable or promise a minimum return. The fund's past performance and its net asset value do not predict its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Bosera Fund reminds you of the "buyer beware" principle in fund investment. After making an investment decision, you bear the investment risks arising from changes in the fund's operation status and net asset value. The fund manager, custodian, sales agency, and related institutions do not make any promises or guarantees regarding fund investment returns. The investment scope of this fund includes stocks legally issued and listed (including those on the SME Board, ChiNext, Sci-Tech Innovation Board, and other boards approved by the CSRC). Specific risks of Sci-Tech Innovation Board stocks include liquidity risk, delisting risk, and investment concentration risk.

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