Wall Street Insights Morning Briefing FM-Radio | July 16, 2026

• Trump reiterated his desire for lower interest rates, stating that holding rates steady is preferable to hiking—and expressing deep respect for Fed Vice Chair Philip Jefferson (referred to here as 'Wash'). He claimed the U.S. "should have the lowest interest rates in the world," and added that he had given Jefferson some time, emphasizing his high regard for him. On inflation, Trump said, "Oil prices will swing like a roller coaster for a while," and predicted oil would fall to $55 per barrel once Iran’s situation stabilizes. Regarding U.S.-Iran tensions, Trump asserted that Iran wants to meet and is “very eager” to reach a reconciliation. • The Fed’s 'third-in-command': Rates are at a favorable level; there’s reason to believe inflation has peaked. New York Fed President John Williams stated that although AI-driven demand poses upside pressure on inflation, the current monetary policy stance remains "favorable"—sufficient to guide inflation back to the 2% target. "There are encouraging reasons to believe inflation has peaked and should gradually decline over the coming quarters." • Fed Governor Lisa Cook: Inflation risks now outweigh labor-market risks; action will be taken if inflation fails to cool. Cook warned that the AI investment boom—combined with supply shocks from tariffs and Middle East conflicts—is elevating inflation risks above employment risks. Although June’s CPI posted its largest month-on-month decline in six years, current inflation remains nearly double the 2% target. Cook explicitly stated: "If I don’t see signs of inflation receding, I am prepared to act." • Kevin Hassett: Data do not justify rate hikes; Wash will lead the Fed to make the 'right decision.' Kevin Hassett, Director of the White House National Economic Council, noted that June’s CPI recorded its steepest monthly drop in over six years, and argued that economic data do not support further hikes—instead, he expects the Fed to gradually pivot toward rate cuts. He expressed confidence in incoming Fed Chair Philip Jefferson’s judgment. Jefferson, however, cautioned that a single data point does not signal "mission accomplished," underscoring ongoing policy tension between the White House and the Fed. South Korean brokerages plan to tighten investment rules for single-stock leveraged ETFs, potentially raising minimum margin requirements fivefold. Korean securities firms have reached consensus to raise the minimum margin requirement for single-stock leveraged ETFs—from 10 million KRW to 50 million KRW—a fivefold increase—aimed at curbing excessive retail leverage and mitigating concentrated liquidity pressure at market close. The industry will also implement targeted risk warnings, investor education initiatives, and measures to disperse intraday rebalancing trades. ASML Q2 results beat expectations across the board; full-year guidance raised again; Low-NA EUV capacity to increase by 30% in 2027. ASML raised its full-year 2026 net sales forecast to €43–45 billion, up sharply from its prior range of €36–40 billion. ASML disclosed that Intel has officially deployed High-NA EUV tools for partial mass production of its Ultra 3 processors at its Oregon facility. ASML’s European-listed shares rose nearly 8% in early trading. • Wall Street turns collectively bullish: ASML’s surging capacity renders the 'memory peak' thesis obsolete! ASML’s Q2 results and upgraded full-year outlook both exceeded expectations—and the company unveiled, for the first time, a large-scale expansion plan for 2027–2028. Wall Street analysts turned broadly bullish, citing sustained AI-driven demand for EUV tools and HBM investments, upward revisions to 2028 earnings forecasts, and a forceful rebuttal of the 'memory peak' narrative. • Report: ASML plans to raise lithography tool prices; TSMC objects. Surging AI chip demand bolsters pricing power. Analysts note that ASML’s key customers—including TSMC, Samsung, and SK Hynix—are reporting strong financial performance, making the current market environment "conducive to price increases." The CFO stated that productivity gains in Low-NA EUV tool manufacturing provide "substantial room" for future price hikes.

ASML’s Q3 profit of €4.96 billion far exceeds expectations; full-year outlook raised; orders booked through 2030; expansion plans under review | Earnings Insights

Artificial intelligence infrastructure investment continues to intensify, pushing order demand for chip equipment giant ASML further into the future. ASML announced its third-quarter results on Wednesday, reporting net profit significantly exceeding market expectations—and once again raising its full-year guidance. This marks the company’s third consecutive quarter of upward revisions to its outlook. More notably, certain customers have already signaled purchase intentions for equipment deliveries as far out as 2029 and even 2030, while ASML’s existing supply plans for 2027 and 2028 are already insufficient to meet current market demand. Faced with an increasingly tight supply-demand gap, CEO Christophe Fouquet stated that the company is evaluating whether to expand its 2028 production capacity beyond the previously announced 30% increase—to keep pace with surging demand. The market’s reaction to these results and forward-looking statements will serve as a key near-term barometer for sentiment across the semiconductor sector. Earlier this week, chip stocks suffered a global sell-off after Broadcom CEO Hock Tan likened industry investor sentiment to that of a casino—sparking concerns about the sustainability of the AI boom.

European Shares Edge Higher as ASML's AI Demand Outlook Boosts Tech

15 hours ago

European shares rose as ASML's strong AI demand outlook boosted the technology sector, while oil prices climbed due to vessel strikes in the Strait of Hormuz.

reuters

2026-10-14

European Shares Edge Higher as ASML's AI Demand Outlook Boosts Tech

European Shares Edge Higher as ASML's AI Demand Outlook Boosts Tech

FAQ