The biggest problem isn't caused by what you don't know, but by "what you're absolutely certain of, but the truth is quite the opposite." This is a huge problem facing the stock market right now; the market is genuinely questioning everything it knows. This is evident in major indices: the S&P 500 fell 1.6% this week, the Nasdaq Composite dropped 2.9%, and the Nasdaq 100 declined 2.7%, on track for its worst July performance in over two decades. Everything people were once certain of is crumbling. Driven by supply shortages and insatiable demand for artificial intelligence, chip stocks should have been unstoppable. Now, the Philadelphia Semiconductor Index has fallen 20% from its June 22 peak and entered bear market territory on Friday. This pain is also evident in Asian markets, with South Korea's KOSPI index falling over 25% and Japan's NI225 plunging 4% on Friday, entering technical correction territory. However, what's perhaps more worrying about this sell-off is the lack of a clear catalyst. Admittedly, we can point to a number of issues, including concerns about the chip sector's rapid first-half gains, the massive borrowing by large tech companies for huge capital expenditure plans, and the continued uncertainty surrounding the economic backdrop under the Fed's new policies. This helps explain the rotation currently occurring in the broader market. However, the stock market's capacity to withstand weakness in its largest and hottest stocks, such as chip stocks, is limited and will eventually become unsustainable. Jonathan Klinsky, chief market technical analyst at BTIG, fears a sharp correction similar to the summer of 2024, which could push the S&P 500 below its 200-day moving average (6983 points). Klinsky warns that if this materializes, the semiconductor sector will continue to weaken and fall further, while some of the recent "broad-based trading" and the "Big Seven" will stall and turn downwards. The market seems to be quietly moving in this direction, even though the headlines driving the decline don't look particularly alarming.

Iranian state television quoted the Iranian military as saying that Iran had carried out attacks on U.S. military assets and fuel tanks in Bahrain.

Russia said that Ukraine launched 370 drones towards Moscow and had shot down most of them.

National Hurricane Center: Tropical Storm Elida is moving northwest over open water.

European Mediterranean Seismological Center: A 4.2-magnitude earthquake occurred off the coast of Chiapas, Mexico; the focal depth was 1.0 kilometers.

The intelligence team of Faytuks Network, an open source intelligence news organization, said that in the past week, Iran has intensified its attacks on US military bases and the damage caused has also increased. While most missiles were intercepted and most Gulf bases suffered minor losses, this was not the case in Jordan. Despite the interceptions, Iranian missiles have been hitting targets in Jordan almost every night since the escalation of hostilities. This situation is worrying and may indicate that Jordan’s local air defense firepower has become saturated and there is a shortage of interceptor missiles, which will lead to a reduction in the number of interceptor missiles launched by each missile of the air defense force. Thereby reducing the interception success rate. The attacks on the Muwafak Sarti and Prince Hussein air bases in Jordan appear to be more serious, with many buildings damaged and craters appearing near the runways. TMeanwhile, Iran's attacks on other U.S. military installations have been mostly unsuccessful and have had limited impact on operations in the region. Mowafak Sarti Air Base in Jordan is a key node for the current US power projection in the Middle East. It is stationed with multiple fighter squadrons, including the main F-15 and the high-profile F-35. Due to its importance in combat operations in the region, The base has become the focus of Iranian attacks and has been subject to repeated missile attacks on an almost nightly basis. Satellite images show two new hit points near a hangar facility in the northern part of the base. The buildings appear to have been destroyed and their purpose is unclear. Prince Hussein Air Base (also known as H5 Air Base) is another Jordanian air base where US troops and fighter aircraft are stationed. It is also a key target of Iranian attacks in Jordan. Satellite images show that the base has suffered at least two missile hits in recent days. Although the number of attacks is limited, they will have an impact on base operations. A building suspected to be an aircraft hangar was destroyed by a missile. It was unclear whether any aircraft were inside the hangar at the time of the attack. Another Iranian missile also caused damage to the runway area of ​​the base. While the crater was not directly on the runway, but rather on its edge, the images showed burn marks indicating damage to the adjacent central area of ​​the runway.