Michael Saylor: Bitcoin is digital capital, and MicroStrategy is converting it into digital credit.

According to market data from BIT (bit.com), semiconductor stocks in pre-market trading on US equities are broadly higher, with Marvell Technology (MRVL) up 5.7%, Intel (INTC) up 3.89%, Arm (ARM) up 3.71%, and Applied Materials (AMAT) up 6.53%. Optical communication concept stocks lead pre-market gains: Corning (GLW) up 5.4%, Applied Optoelectronics (AAOI) up 6.26%, Coherent (COHR) up 4.05%, Astera Labs (ALAB) up 6%, and Credo (CRDO) up 6.36%. The storage sector is also strengthening, with Seagate Technology (STX) up 5.43%, Western Digital (WDC) up 5.3%, SanDisk (SNDK) up 6.54%, and Micron Technology (MU) up 5.03%. Earlier, the US reported June unadjusted annual CPI at 3.5%, compared to the prior reading of 4.2% and market expectations of 3.8%.

Federal Reserve Chair Walsh expressed optimism about the overall economic situation. He noted that the labor market is generally stable, with almost no layoffs and nominal wages on the rise. The Fed chair took a more cautious stance on the boom in the artificial intelligence (AI) sector. He argued that while AI has spurred increased corporate investment, it has also introduced uncertainty into the economy. “We still do not know the extent to which the economy can benefit from the development of AI,” he said. “The new opportunities emerging in the economy also bring new challenges for policymakers. The Federal Reserve is closely monitoring how these changes impact inflation and the labor market.”

Traders have pushed back their bets on a Federal Reserve interest rate hike to October.

Federal Reserve Chair Walsh stated that AI opportunities pose a challenge to policymakers, adding that the central bank is monitoring the impact of AI on inflation and the labor market.

U.S. consumer prices fell for the first time in six years in June, while a key gauge of underlying inflation was flat, easing pressure on the Federal Reserve to raise interest rates. According to data released Tuesday by the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) dropped 0.4% from May and rose 3.5% year-over-year. The core index, excluding food and energy, was unchanged from May and rose 2.6% year-over-year. The report noted that as the most severe period of energy price shocks from Iran-related tensions began to subside, falling gasoline prices in June provided some relief for consumers. Ahead of the Fed’s meeting at the end of this month, officials are likely to welcome the data; however, renewed U.S.-Iran hostilities have pushed oil prices higher again, which could prolong the inflationary impact of the conflict. U.S. stock index futures rose and Treasury yields fell as investors scaled back bets on a July Fed rate hike. The data showed core inflation was restrained, mainly due to falling prices of goods such as apparel and used cars, while auto insurance premiums also dropped sharply.

According to monitoring by YuEmber, a crypto-based trader sold all 30,139 ETH, converting the holdings into 859 BTC valued at roughly $54.09 million. The short exchange rate stood at 0.0285, allowing the trader to repurchase a larger quantity of ETH once the exchange rate declines.