Morning Highlights: Supermicro Shares Jumped 20%, Yen Hits 40-Year Low

Supermicro shares rose more than 20% in after-hours trading following an upward revision to its forecast. The yen fell below 163 per dollar for the first time since 1986, despite warnings from Japanese authorities that they were prepared to intervene in the currency market. Read about these and other topics in our roundup of key events as of the morning of July 22.

Supermicro’s stock rose more than 20% in after-hours trading after the company reported a record order backlog and raised its profitability forecast, according to Yahoo Finance. In the fourth quarter of fiscal year 2026, new orders exceeded $60 billion.

The company expects its gross margin to rise to 15–17%, up from the previously forecast 8.2–8.4%, thanks to a more favorable sales mix and product portfolio. Despite these positive expectations, Supermicro’s stock is still down about 12% year-to-date.

The yen fell below 163 per dollar for the first time since 1986, despite warnings from Japanese authorities that they were prepared to intervene in the currency market, according to Bloomberg. Pressure on the exchange rate was exacerbated by rising U.S. Treasury yields, higher oil prices amid the war in the Middle East, and the persistent interest rate differential between the U.S. and Japan.

From late April through late May, Japanese authorities have already spent 11.73 trillion yen ($71.9 billion) to prop up the national currency, but investors are skeptical about the effectiveness of the new interventions. Analysts believe that without more decisive measures or a sharp decline in U.S. bond yields, the next benchmark for the market could be 165 yen per dollar.

U.S. President Donald Trump stated that generic drug manufacturers must move their production to the United States within two years; otherwise, a 100% tariff will be imposed on imports starting in August 2028, and it will rise to 200% a year later, according to Bloomberg. Experts estimate that this could lead to higher drug prices, reduced competition, and a shortage of affordable medications, which account for more than 90% of prescriptions in the U.S.

India—the largest supplier of generic drugs to the U.S. market—could be hit the hardest, the agency notes. Against this backdrop, the Indian pharmaceutical index NSE Nifty Pharma, which tracks the shares of the country’s 20 largest drug manufacturers, fell by nearly 2%, while shares of the sector leader, Sun Pharmaceutical Industries, dropped by 1.9%. Analysts note, however, that building new plants in the U.S. will take at least three years—longer than the deadline set by the administration.

Starting in January, Nike will cut thousands of online distributors in China, focusing sales on its own website, app, and official stores on the Tmall, JD.com, and Douyin platforms, according to CNBC. The company expects this move to standardize its product lineup and pricing, strengthen its brand, and return to growth in the region after years of declining sales.

At the same time, analysts warn that the strategy could lead to a temporary decline in revenue and point to a similar move by Nike in North America, which, in their view, contributed to a weakening of the company’s market position.

OpenAI has appointed Robin Vince, CEO of Bank of New York Mellon, and David Velez, CEO of Nubank, to the boards of its for-profit and nonprofit entities, according to Bloomberg. The company noted that their experience in financial services and technology will help OpenAI in its next phase of development.

Bloomberg notes that OpenAI is considering an IPO in 2027.

— Japan's broad-based Topix index rose 0.9%, while the Nikkei 225 rose 0.7%.

— Hong Kong's Hang Seng Index fell 1%, while mainland China's CSI 300 Index rose 0.1%.

— In South Korea, the KOSPI rose 4%, and the KOSDAQ rose 1.4%.

— Australia's S&P/ASX 200 rose 0.2%.

— Nasdaq Composite futures were down 0.4%, while S&P 500 and Dow Jones Industrial Average futures were down 0.1%.

This article was AI-translated and verified by a human editor