Corning just reported earnings: core revenue $4.74 billion, up 17% YoY; core EPS $0.78, up 30% YoY, both beat expectations. Then what? Pre-market plunged over 18%. The market voted with its feet faster than the earnings report itself.

English summary

What's the problem? Guidance. Q3 revenue guidance is $4.9-5.0 billion, analysts expected $4.99 billion. A slight miss — almost the difference between 'just hitting' and 'slightly below the psychological level.' But the market delivered a nearly 20% plunge. What does this mean? It means the U.S. stock market has become extremely jittery. The previous gains in AI hardware stocks raised investor expectations too high—so high that beating earnings is not enough; they must beat by a wide margin and provide strong guidance to stabilize the stock. Any slight miss triggers a crash. Don't expect any decent rally in the short term. The logic of short-term U.S. stock movement has completely changed. Be prepared for a long battle. Also, the Fed is about to meet. The result will be out at 3:00 am Beijing time on July 30, and market pricing shows the probability of a 25bp rate hike has climbed from about 10% two weeks ago to around 30%. This is one of the most divided decision moments in recent years. Under the shadow of rate hikes, high-valuation AI hardware stocks will only become more fragile.…