General Market News

Chicago Federal Reserve President Austan Goolsbee stated that inflation remains too high and is trending in the wrong direction, though some improvement has been seen in services inflation. The PCE price index reached 3.4% in May, its highest since October 2023, with both goods and services prices rising. Goolsbee praised new Fed Chairman Warsh's approach to reducing forward guidance on rate policy.

• The PCE price index stood at 3.4% in May 2024, the highest level since October 2023, with goods rising 0.4% and services up 0.5%, driven largely by energy (up 6.5%) and transportation services (up 0.8%)
• Markets expect approximately a 30% chance of a rate hike at the Fed's July 28-29 meeting, though Goolsbee declined to commit to a position on future rate moves
• Goolsbee endorsed Warsh's move to streamline Fed communications and reduce forward guidance, noting that 'clearly the problem's on the inflation side' between the Fed's dual mandate of price stability and employment

The semiconductor index (SOX) rally is meeting resistance near $14,472 after recent gains, with Elliott Wave analysis projecting potential pullbacks toward $12,000-$12,900 and possibly $10,870-$11,765. The index bottomed at $11,794 on June 9 and peaked at $14,655 on June 22, following previously forecasted patterns. Technical analysts are monitoring wave patterns to anticipate the next downward correction phase.

• SOX reached 6 out of 8 previously forecasted target zones, demonstrating Elliott Wave Pattern reliability in predicting market movements
• The index rallied from $11,794 (June 9) to $14,655 (June 22) but is now expected to enter a corrective phase with initial targets at $12,000-$12,900
• A five-wave decline pattern has been identified from the June 22 high, with resistance near the $14,472 gap level likely to trigger the next downward leg

The Fed's preferred inflation gauge, core PCE, rose to 3.41% in May 2026, marking a nine-month high and reversing two-thirds of the progress made since its October 2025 low of 2.75%. While business investment and income data remain strong, personal consumption growth collapsed to 0.5%, the weakest since Q1 2022, as households deplete savings amid surging energy costs. The conflicting signals complicate the Fed's rate decision, with markets divided on whether cuts are appropriate.

• Core PCE increased from 2.75% in October 2025 to 3.41% in May 2026, with headline PCE reaching 4.07% driven by energy costs up 24.26% year over year and gasoline expenditures rising $151 billion annually
• Personal consumption contributed just 0.5 to Q1 2026 GDP versus 3.5 in Q3 2025, while household savings rate fell from 6.2% in Q1 2024 to 3.9% in Q1 2026, indicating consumer strain
• Vanguard warns sticky inflation limits Fed cuts above a 3.5% neutral rate, while Goldman Sachs expects 50 basis points of reductions through 2026, creating uncertainty ahead of the July Fed meeting

Le Slip Francais, a French underwear maker that manufactures entirely in France, plans to list on the Euronext Growth Paris market on July 14 (Bastille Day). The company, founded 15 years ago as a patriotic response to fast-fashion competition, aims to raise €5 million in its IPO while generating €21.1 million in annual sales and €700,000 in net profit.

• The company started by selling male underwear in French flag colors as a tongue-in-cheek patriotic move, positioning itself against fast-fashion rivals like Inditex, H&M, and Shein
• Le Slip Francais has expanded from men's briefs to women's wear, pyjamas, and other clothing, proving resilient while competitors like Jennyfer and NafNaf faced liquidation or receivership
• The IPO targets €5 million in capital raising with trading set to begin on France's national day, July 14

Microsoft's Xbox is raising console prices by $100-$150 worldwide starting August 1, citing a global components crisis that has caused storage and memory costs to surge more than 2.5 times. The price increase affects the gaming industry amid broader supply chain pressures impacting consumer electronics, with rivals Sony and Apple also raising prices due to similar cost pressures.

• Xbox will increase prices by $100 for 512 GB models and $150 for 1 TB models, while discontinuing the 2 TB model entirely
• Console storage and memory prices have increased by more than 2.5 times, with Xbox expecting another doubling by fall 2027
• This marks Xbox's third price increase in approximately 18 months, following two increases in the prior year due to tariffs and competitive pressures

JPMorgan Chase named Doug Petno and Troy Rohrbaugh as co-presidents in a major executive reshuffle signaling preparation for CEO Jamie Dimon's eventual succession. Dimon, 70, has led the bank for over two decades, transforming it into the largest U.S. bank by assets. The appointments reignite speculation about who will ultimately replace the longtime leader.

• Troy Rohrbaugh was promoted to co-president and head of Consumer and Community Banking, with analysts viewing him as a leading succession candidate due to his broader experience across the bank
• Doug Petno will continue leading the Commercial & Investment Bank unit as sole CEO, a division that generated $78.5 billion in 2025, representing over 40% of the bank's total revenue
• Other key succession contenders include Mary Erdoes (CEO of Asset & Wealth Management overseeing $7 trillion in assets) and Jennifer Piepszak (COO who withdrew from succession consideration in January 2025)

The U.S. electric grid is projected to add 445 GW of capacity through 2030, equivalent to creating another system as large as PJM Interconnection, the nation's largest regional grid serving 67 million customers. This rapid expansion is driven by surging demand from data centers, electric vehicles, and heat pumps, but the grid has extremely limited capacity to absorb this growth.

• The 445 GW of planned additions translate to roughly 191 GW at peak demand due to the intermittent nature of wind and solar power, matching PJM's 185 GW capacity
• The U.S. has only 26 GW of excess generating capacity above minimum reliability needs (about 3% of total capacity), with Texas and PJM having no spare capacity beyond next year
• Grid upgrade spending could exceed $1 trillion over the next decade as utilities face supply chain constraints, permitting delays, and uncertainty over demand growth rates

A federal judge ruled that a lawsuit challenging the Department of Justice's creation of a $1.8 billion 'Anti-Weaponization' fund will move forward. Judge Leonie Brinkema cited the DOJ's failure to provide written confirmation under penalty of perjury that the fund has been terminated, which would have been sufficient to dismiss the case as moot.

• The DOJ established a $1.8 billion 'Anti-Weaponization' fund that is now subject to legal challenge
• Judge Brinkema indicated she would have dismissed the lawsuit if the DOJ had provided a written declaration under penalty of perjury confirming the fund was discontinued
• The DOJ's refusal to provide such written confirmation allowed the lawsuit to proceed despite potential claims that the fund is no longer active

Two trains collided near the village of Bialosliwie in west-central Poland on Thursday, resulting in derailed carriages. Initial reports indicated a passenger train hit a freight train, but images suggest both were passenger trains. Two people were injured in the incident.

• Two people were injured in the collision, with 16 fire brigade teams dispatched to the scene
• Some train carriages came off the tracks following the collision near Bialosliwie in west-central Poland
• Initial reports conflicted about train types, with early accounts mentioning a passenger-freight collision but images appearing to show two passenger trains

The FCC is reviewing whether to renew licenses for eight Disney-owned ABC television stations and investigating the network's talk show 'The View,' with Chair Brendan Carr stating all options remain on the table. Disney has mobilized tens of thousands of viewers to submit comments supporting the network. Carr indicated the agency will follow facts and law regardless of public pressure.

• Eight Disney-owned ABC television stations face potential license non-renewal as part of the FCC review process
• Tens of thousands of viewers submitted comments this week in support of ABC after the network's public mobilization effort
• FCC Chair Brendan Carr dismissed Disney's response as a 'standard PR strategy' and pledged to base decisions on facts and law

Advisory firms must distinguish between open and closed AI models before deploying AI tools across operations. Open AI tools are widely available but unsuitable for sensitive client data, while closed AI models keep data proprietary but lack broader perspective. Firms need clear policies governing AI use now, as existing SEC regulations on client privacy, supervision, and fiduciary duty already apply even without AI-specific guidance.

• Open AI tools should only be used for general tasks like research and drafting, never for client names, account details, financial plans, or proprietary firm data
• Closed AI models provide data security and control but require firms to validate output accuracy and still need oversight for client-facing communications
• Firms must establish AI policies before deployment that specify approved tools, data input boundaries, required review processes, and oversight responsibility—paying for AI access does not automatically make it a closed model

A large fire broke out at Monroe Energy LLC's Trainer refinery in Pennsylvania on June 25, according to local media reports. The incident at this petroleum refining facility poses potential risks to operations and supply in the region. Further details about the cause, extent of damage, or injuries were not immediately available.

• The fire occurred at the Trainer refinery operated by Monroe Energy LLC in Pennsylvania
• No immediate information was provided about casualties, cause of the fire, or impact on refinery operations
• The incident could potentially affect fuel supply and energy markets in the region depending on the severity of damage

Iran's parliament speaker Mohammad Bagher Ghalibaf rejected U.S. claims that Iran's unfrozen assets under a temporary peace deal would be used to purchase American agricultural products. The dispute comes as President Trump faces Republican criticism over his handling of the Iran conflict and the memorandum of understanding that paused hostilities for peace talks.

• Trump and Treasury Secretary Bessent stated unfrozen Iranian funds would go into U.S.-controlled escrow to buy American corn, wheat, and soybeans, benefiting U.S. farmers
• Iranian officials deny being required to buy U.S. products, with Foreign Ministry spokesman stating purchases would be based on 'prices and quality' rather than U.S. conditions
• Separately, Iran is pushing to charge billions for security services in the Strait of Hormuz, through which 20% of global oil consumption passed before the U.S.-Israel war against Iran began in late February

The Democratic Republic of Congo has imposed a 21-day quarantine for travelers from Ebola-affected areas before international travel, responding to France's confirmation of its first imported case. The outbreak, caused by the rare Bundibugyo strain with no vaccine or treatment, has infected 1,118 people and killed 291. The new measures include mandatory health monitoring for contacts and healthcare workers, plus health declaration forms for all outbound passengers.

• France confirmed an imported case in a humanitarian doctor who boarded a flight from Kinshasa without symptoms but fell ill mid-flight, triggering the tightened travel restrictions
• The Bundibugyo Ebola strain driving the outbreak has no available vaccine or treatment, making containment more critical than typical Ebola responses
• All international passengers must now complete health declarations verified by airlines, and anyone from affected provinces must spend 21 days outside the area before traveling abroad

Italy's Domyn will launch a fully open-source frontier AI model with over 400 billion parameters within a year, supported by the European Commission's AI Grand Challenge. The initiative aims to reduce Europe's dependence on foreign-hosted AI systems amid growing concerns over U.S. and Chinese control of AI infrastructure. Domyn will leverage Europe's EuroHPC supercomputing network to train the model from scratch, making it freely available for local deployment.

• The model will exceed 400 billion parameters, ranking among the largest open-source AI systems, and be fully reproducible for governments and companies to run on their own infrastructure at no cost
• European Commission support grants Domyn access to the EuroHPC public supercomputing network, which CEO Sharka describes as an underappreciated strategic asset that eliminates need for massive infrastructure spending
• CEO Sharka expects first government data-sharing agreements within weeks following meetings with EU heads of state, as Domyn gathers institutional data for training

A private hospital near Paris is struggling to cope with France's record heatwave, as patient rooms with large mid-20th century windows overheat while only the waiting room has air conditioning. Staff report that heat exhaustion is reducing care quality, while hospital leadership cites financial constraints as barriers to installing comprehensive cooling systems. The situation highlights France's broader infrastructure challenges in adapting to climate change, with debate ongoing about expanding air conditioning despite energy consumption concerns.

• Medical staff are moving patients to the air-conditioned waiting room because patient rooms are too hot, with nurses reporting they are 'tired, sleep badly,' leading to 'reduced' levels of care
• The hospital cools only its most fragile patients (such as dialysis patients) but lacks funding to air-condition the entire facility without sacrificing other investments
• Air conditioning remains contentious in France, with the far-right supporting nationwide installation while the left warns it will increase energy use and worsen climate pressures

The Chan Zuckerberg Initiative's Biohub will launch a fourth funding round through its Rare As One Network this fall, targeting patient-led organizations working on rare pulmonary and immune diseases and rare cancers. The program has committed over $150 million across three previous cycles and is expanding its partnership with Every Cure to use AI for drug repurposing opportunities.

• Rare As One has engaged more than 320,000 patients and 26,000 researchers through 94 patient-led organizations, with two-thirds building research infrastructure and over half contributing to clinical trial development
• The expanded partnership with Every Cure will connect advocacy groups with AI-identified opportunities to repurpose existing medicines for diseases lacking treatment options
• The initiative is part of a broader $500 million Virtual Biology Initiative to build predictive cell models and accelerate drug discovery using artificial intelligence

A new plain-language AI workflow tool has been developed that could significantly reduce cloud computing energy consumption and operational costs. The technology aims to optimize AI processing efficiency by simplifying how users interact with cloud-based AI systems. This development addresses growing concerns about the environmental and financial impact of AI infrastructure.

• The tool uses plain-language interfaces to streamline AI workflows, potentially reducing unnecessary computational overhead
• Cloud energy consumption from AI operations has become a major cost and sustainability concern for organizations
• Simplified workflow management could make AI systems more accessible while simultaneously cutting resource usage

Belgium issued a rare 'red alert' for extreme heat as temperatures reached up to 40 degrees Celsius (104 degrees Fahrenheit), significantly impacting livestock farmers. The heatwave is reducing both milk and meat production as cows and pigs suffer from heat stress, with one farmer reporting daily losses of €150-200, representing 10-15% of income. While farmers employ cooling measures like fans, production continues to decline, and experts expect such extreme weather events to become more frequent.

• Heat stress is causing cows to eat less and be less active, reducing milk production, while pig growth is down approximately 150 grams per day, cutting meat output
• One Belgian farmer reports the heatwave costs him €150-200 daily, equivalent to 10-15% of his income, despite using artificial cooling systems
• Farmers expect heatwaves to become more regular, requiring greater investment in cooling infrastructure that may need to reduce inlet temperatures by as much as 8 degrees Celsius

U.S. markets showed significant sector rotation on June 25, 2026, with the Dow Jones hitting a record high (+1.48%) while the Nasdaq fell (-0.18%). Micron surged 15% on strong AI-driven earnings, but Apple dropped nearly 5% after announcing price hikes due to rising chip costs, dragging down other tech stocks. PCE inflation data met expectations, providing support for equities.

• Micron crushed earnings estimates and secured $22 billion in customer commitments, driven by AI-related memory chip demand, pushing its market cap briefly above $1.4 trillion
• Apple's price increases on MacBooks and iPads due to rising semiconductor costs pressured margins across major tech companies, with Alphabet, Meta, Nvidia, Amazon and Microsoft all declining 1-2%
• Core PCE inflation rose 3.4% year-over-year (matching forecasts), the highest since October 2023, but in-line results kept the Fed's hawkish rate outlook from escalating further