Micron-Led Chip Rally Offsets Market Gloom Amid SpaceX Slide 

U.S. stocks retreated from record highs, pressured by a sharp sell-off in Big Tech and a 16% drop in SpaceX shares. SpaceX posted its third straight day of decline.

While optimism over potential peace talks with Iran and easing oil prices provided some support, rising Treasury yields and concerns that the Federal Reserve may keep interest rates elevated weighed on broader market sentiment. In contrast, semiconductor stocks were robust. Micron Technology was among the standout performers, climbing nearly 7% ahead of its quarterly earnings report, scheduled for release after Wednesday's market close. Other semiconductor stocks also advanced, with Advanced Micro Devices (AMD) gaining more than 2% and Intel rising 5%. Taiwanese semiconductor ADRs also outperformed, with UMC surging more than 14% and ASE Technology gaining 7%. 

Reference Sources

1. CNBC - S&P 500 closes lower as tech stocks slide; SpaceX notches 3-day losing streak
2. Economic Daily - 台積電ADR上漲逾1% 聯電狂飆14% 日月光也強勁

Lagarde Says China Should Be Part of Any Talks on FX Imbalances

European Central Bank President Christine Lagarde has called for any Group of Seven talks on currency valuations to include China.

Speaking in Brussels, Lagarde was questioned about comments from German Chancellor Friedrich Merz, who called for international talks on exchange rates as part of the European Union’s resolve to address its deepening trade deficit with China.

The International Monetary Fund has assessed that the Chinese currency has been consistently undervalued.

Speaking last week, Merz referenced the 1985 Plaza Accord, when finance ministers and central bankers from the US, Japan, Germany, France, and the UK met in the Iconic New York hotel to coordinate policies to engineer a weaker dollar.

Lagarde suggested a repeat of that approach might not be appropriate now.

Reference Sources

1. bloomberg - Lagarde Says China Should Be Part of Any Talks on FX Imbalances

Best way to combat AI cyber threats is with AI, Five Eyes security agencies say

Cybersecurity agencies from Australia, the US, Canada, the UK, New Zealand and Canada have issued a joint warning on the Cyber threat posed by artificial intelligence (AI).

The warning comes after the Trump administration decided to block foreign nationals from using a Much-Hyped AI model built by Tech company Anthropic, called Fable.

While AI would help us improve Cyber defence over time, it also accelerates the speed, scale, and sophistication of Cyber threats. Frontier AI models are anticipated to exceed current industry expectations, fundamentally transforming both offensive and defensive Cyber capabilities.

Cyber resilience is integral to advancing business continuity, market confidence, and long-term value.

The cyber chiefs of the Five Eyes intelligence partnership have warned that the West’s artificial Intelligence-Armed adversaries may succeed within months in developing attacks that could overwhelm the defences of governments and companies. For now, advances in commercial AI and their integration into their Militaries and spying capabilities appear to have outpaced those of Russia, China, and others.

But that lead may not last for long; the rare joint warning by the US-led alliance, which also includes the UK, Canada, New Zealand and Australia, said.

The statement acknowledged that the increasing skills of these so-called “frontier models” also gave Western nations an advantage in both defending their own critical infrastructure and developing offensive Cyber capabilities.

Reference Sources

1. theguardian - AI models that can take down governments and business months away, rare Five Eyes statement warns
2. ft - AI-powered threats may succeed ‘within months’, Five Eyes warns
3. abcnetau - Best way to combat AI cyber threats is with AI, Five Eyes security agencies say

The CommonWealth English daily news digest is a service curated by CommonWealth English team with the help of AI tools.  

Have you read?

• China’s Chip Toolmakers Challenge Japan
• US Lifts Iran Maritime Restrictions as New Talks Begin
• Amazon Sees Commercial Quantum Computing Arriving Within a Decade

Uploaded by Ian Huang