Negotiations between the US and Iran remain deadlocked, as Tehran restructures its military, signaling preparations for a long-term regional conflict. General Mohammad Reza Naqdi of the Islamic Revolutionary Guard Corps stated in a Tuesday evening interview with state television that recent high-level military appointments by Supreme Leader Mojtaba mark a shift toward an "offensive strategy." Naqdi, also an advisor to the new Revolutionary Guard commander, emphasized the need to advance operations into enemy territory under favorable conditions, contrasting with the previous defensive and protective stance. This comes as US-Iran talks over the Strait of Hormuz show little progress, with both sides claiming control of the key waterway and demanding concessions unlikely to be met. Despite a lull in hostilities, durable peace brokered by nations like Pakistan and Qatar appears increasingly elusive.

The US Bureau of Labor Statistics reported on Wednesday that the core Consumer Price Index (CPI), excluding volatile food and energy categories, rose 0.2% month-over-month and 2.5% year-over-year, the lowest since March 2021. The overall CPI increased 0.1% monthly and 3.4% annually. The data suggests the energy price shock from the Iran conflict continued to fade in July, potentially giving the Federal Reserve more room to balance inflation pressures against recent hiring slowdowns when considering a rate hike at the September 15-16 meeting.

Cisco Systems Inc. provided a far stronger-than-expected quarterly revenue forecast, driven by its success in capturing a larger share of the networking equipment market for AI data centers. The company announced first-quarter fiscal revenue, ending in October, between $18 billion and $18.2 billion, surpassing the average analyst estimate of $16.8 billion. Earnings per share, excluding certain items, are projected at $1.32 to $1.34, also above the expected $1.17. Cisco also reported robust current earnings and a strong full-year outlook, noting that hyperscale cloud providers placed $4 billion in infrastructure orders this quarter, bringing the total to $9.3 billion for the fiscal year. Revenue from such customers was about $4 billion in the past fiscal year, and Cisco expects this to nearly double to $7.5 billion by fiscal 2027.

Alphabet Inc. launched its new Pixel 11 smartphone series on Wednesday, embedding its most advanced Gemini version at the core, weeks before Apple is expected to release a revamped Siri powered by Google's AI model. The lineup includes Pixel 11, Pixel 11 Pro, Pixel 11 Pro XL, and Pixel 11 Pro Fold, but Google's hardware pitch focuses on Gemini Intelligence, an AI suite designed to understand user actions on the phone and perform tasks across different apps.

Short sellers betting against SpaceX are rapidly exiting their positions as the newly listed company's stock rebounds from its post-IPO low. According to S3 Partners data, SpaceX's short interest fell to about 11% of its publicly traded shares on Wednesday, down sharply from a peak of 34% last week. This decline reflects bearish investors closing out positions and a significant increase in tradable shares after the first major lock-up period expired. "Short sellers who wanted to sell short have run out of ammunition," said Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners, noting limited capital available for any single trade.

As the yen approached the 160 mark against the US dollar on Wednesday, traders closely watched for potential intervention by authorities. The yen weakened 0.1% to 159.43 in New York trading, depreciating over 1% this month and erasing gains spurred by recent coordinated US-Japan intervention. The dollar-yen pair had neared a 40-year low of 164, prompting joint action, but the limitations of such moves are evident as favorable interest rate differentials caused the yen to give back much of its rebound, bringing it close to the critical 160 level again.