$5 Trillion Rate-Hike Bet Unravels As Fed Holds Steady, Largest-Ever Interest Rate Trade Reverses

Today, reports have surfaced that Tesla is considering spinning off its China operations, a move to pave the way for a potential future merger with SpaceX. Tesla China responded to reporters, stating that the claim is "untrue".

The Bank of Japan (BOJ) held its policy rate at 1% on Friday, in line with market expectations. Last month, the central bank had raised its benchmark interest rate to the highest level since 1995. BOJ Policy Board member Hajime Takata dissented from the vote, advocating a 25 basis point rate hike. Takata argued that Japan has entered a new phase, and the BOJ needs to adopt flexible measures to address upside risks to prices and changes in overseas financial conditions. The BOJ stated that it will continue to raise rates based on economic and price developments as well as financial conditions. Core inflation is nearing 2%, financial conditions remain accommodative, and both significant downside risks to economic activity and major upside risks to prices have eased. In its latest economic projections, the BOJ cut its core CPI forecast for fiscal 2026 from 2.8% to 2.5%, while raising its fiscal 2026 GDP growth forecast from 0.5% to 0.6%. (Jinshi)

According to an official announcement, Bitget has launched U-denominated GRVT perpetual contracts, with a maximum leverage of up to 20x. Corresponding contract trading bots will also be rolled out simultaneously. For more details, please refer to Bitget’s official platform.

The U.S. Personal Consumption Expenditures (PCE) Price Index fell 0.1% month-over-month in June, marking its first month-over-month decline in four years, with the year-over-year growth rate dropping to 3.7%. Core PCE rose 0.1% month-over-month and 3.3% year-over-year, both indicating easing inflationary pressures. In the same period, U.S. personal consumption expenditures rose 0.3% month-over-month in June, personal income increased by 0.2%, and the savings rate fell to 2.7%, hitting a four-year low. Despite cooling inflation, the Federal Reserve (Fed) held interest rates steady at its July meeting. Markets are sharply divided over the Fed’s future policy path: JPMorgan Chase forecasts a 25 basis point (bps) rate hike in December, while noting a September hike remains possible if inflation reaccelerates; Goldman Sachs and Barclays expect no further rate moves this year, Bank of America projects three cumulative rate hikes starting in September, while Citigroup maintains its outlook for consecutive rate cuts in October, December, and January 2027. Data from the CME FedWatch Tool shows the market is pricing in a 65.2% probability of a September rate hike, down from levels seen before the policy meeting outcome was announced.

According to Bitget market data, South Korea’s KOSPI index surged 17% in early Friday trading, driven primarily by a new wave of investment in global semiconductor stocks. The index had fallen for three consecutive days prior, hitting its lowest level since April 7. Samsung Electronics’ share price rose over 26%, while SK Hynix gained more than 29%—both notching their highest single-day percentage gains on record. Combined, the two chipmakers account for over half of the KOSPI’s total market capitalization. On Thursday, the U.S. Philadelphia Semiconductor Index climbed 8%, Micron Technology jumped 18%, and Microsoft reported strong earnings, with its share price surging 15% to log its largest single-day gain in 18 years.

Tesla China today announced the in-vehicle software update of version 2026.14.13, covering Model 3, Model Y, Model S, and Model X. The update has been rolled out in batches since July 31, 2026, with a key upgrade being the "Doubao Large Model"—an intelligent voice assistant that can provide real-time information and hold smooth natural conversations. It supports multiple high-quality voice tones, paired with personalized roles including "Omniscient", "Music Lover", and "Storyteller". Access to this feature requires a subscription to Tesla’s Premium In-Vehicle Entertainment Service.