Economy (Page 5)

AP Photo: The onsemi corporate logo is displayed at the company’s headquarters as semiconductor components used in automotive, industrial and artificial intelligence applications are shown in the foreground.

onsemi and Synaptics Incorporated announced Thursday that they have signed a definitive agreement under which onsemi will acquire Synaptics in an all-stock transaction valued at approximately $7 billion, according to a joint statement released by the companies from Scottsdale, Arizona, and San Jose, California. The acquisition represents the largest deal in onsemi’s history and is designed to accelerate the company’s expansion into what it calls “Physical AI”—artificial intelligence embedded directly into machines, vehicles, robots and industrial equipment.

Wall Street gave the two companies sharply different reactions. onsemi shares fell about 6% following the announcement as investors weighed the cost of the acquisition, while Synaptics stock surged roughly 13% as shareholders welcomed the premium being offered. Under the agreement, Synaptics shareholders will receive 1.350 shares of onsemi common stock for each Synaptics share they own, representing approximately a 19% premium based on the companies’ combined ten-day volume-weighted average share prices. Once completed, Synaptics shareholders are expected to own roughly 12% of the combined company on a fully diluted basis.

Strategically, the acquisition fills a significant gap in onsemi’s technology portfolio. The Arizona-based company has long been known for manufacturing silicon carbide, power-management chips and advanced image sensors used primarily in electric vehicles and industrial equipment. Synaptics brings technologies that complement those strengths, including Edge AI computing, human-machine interface solutions, and wireless connectivity platforms used in consumer electronics, automotive systems and industrial devices.

The combined company will span what onsemi describes as the four pillars of Physical AI: Power, Sense, Connected Compute, and Control. Synaptics also contributes its Astra Edge AI platform, which includes specialized artificial intelligence processors and neural processing units capable of running sophisticated AI applications directly on devices without relying on cloud-based computing.

“This transaction would add immediate connected compute capabilities, expand our software and ecosystem reach, and position onsemi to deliver greater value as customers increasingly seek intelligent systems,” onsemi Chief Executive Officer Hassane El-Khoury said in the announcement.

Beyond technology, onsemi believes the acquisition substantially expands its long-term growth opportunity. The company estimates the transaction will increase its total addressable market by approximately $30 billion, bringing its potential market opportunity to roughly $243 billion by 2030. The combined business is expected to compete more aggressively in automotive electronics, industrial automation, robotics, autonomous vehicles, smart manufacturing, and augmented and virtual reality applications.

Financially, onsemi projects the acquisition will become accretive to adjusted earnings per share within approximately 18 months after closing. Company filings also outline plans to generate approximately $200 million in annual cost synergies through operational efficiencies and integration.

The acquisition remains subject to several approvals before it can close. Boards of directors at both companies have unanimously approved the agreement, but the transaction still requires approval from Synaptics shareholders, regulatory clearance in multiple jurisdictions, and satisfaction of customary closing conditions. The companies expect the deal to close during mid-2027. As part of the agreement, onsemi will also appoint one Synaptics representative to its board of directors following completion of the merger.

The announcement arrives amid an accelerating wave of consolidation across the semiconductor and artificial intelligence industries. Chipmakers and software companies increasingly are acquiring specialized AI technologies rather than developing every capability internally. Recent transactions across the sector reflect growing competition to offer complete AI hardware and software ecosystems capable of powering next-generation intelligent devices.

For investors and businesses, the significance extends beyond another semiconductor merger. The combined company aims to deliver AI processing directly inside automobiles, factory automation systems, industrial robots, medical equipment and consumer electronics. Unlike traditional cloud-based AI that relies on distant data centers, Edge AI processes information locally on the device itself, enabling faster response times, improved privacy, lower latency and greater reliability.

As artificial intelligence increasingly moves from cloud servers into physical products used every day, onsemi is making its largest strategic investment yet on the belief that the next major chapter of AI will be driven not only by data centers, but by the intelligent machines operating throughout the real world.

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A side effect of the weight-loss drug craze is reshaping the cosmetic-surgery business, sending middle-aged Americans to the operating table years earlier than they once would have. According to a Fortune report published Wednesday, June 24, the phenomenon known as “Ozempic face” — the hollowed cheeks and sagging skin that can follow rapid weight loss on GLP-1 drugs — is driving a surge in demand for facelifts and fat-grafting procedures, particularly among Generation X.

The numbers point to a real shift. The American Academy of Facial Plastic and Reconstructive Surgery reported a 50% rise in fat-grafting procedures in 2024, with surgeons directly attributing much of the increase to patients seeking treatment for facial volume loss after taking weight-loss medications. Houston plastic surgeon Dr. Bob Basu told Fortune that the patient mix has changed dramatically: where facelifts were once mostly sought by people over age 60, he is now seeing far more patients in their 40s and 50s opting for surgical facial rejuvenation.

The cause is built into how the drugs work. Medications such as Ozempic and Wegovy produce rapid weight loss, and that loss doesn’t spare the face. Fat disappears from the cheeks, jawline and neck along with the rest of the body, leaving skin that once felt supported appearing loose, hollow and older. For many younger patients, the result is an aged appearance that fillers alone often cannot fully correct. As Dr. Basu explained, the significant volume loss frequently pushes patients toward surgery years earlier than they otherwise would have considered.

Generation X was already the dominant force in the aesthetics market before the GLP-1 boom, and the popularity of weight-loss drugs is accelerating that trend. According to the American Society of Plastic Surgeons, adults between the ages of 40 and 54 underwent nearly 11 million minimally invasive cosmetic procedures in 2024. They accounted for more than half of all neuromodulator injections, including Botox, Dysport and Daxxify, and represented nearly two out of every five surgical cosmetic procedures performed nationwide.

The economics also help explain the shift. Injectable treatments generally cost less upfront, with Botox averaging roughly $420 per session, but those treatments wear off within several months and require repeated visits indefinitely. Surgical procedures such as facelifts carry a much higher initial price tag, yet the results last significantly longer, making surgery more cost-effective over time for patients committed to maintaining their appearance.

For the medical aesthetics industry, the emergence of GLP-1 medications has created a powerful new growth engine layered on top of an already expanding market. Generation X drives spending on anti-aging treatments and beauty products and has reached its peak earning years. Industry analysts estimate the generation’s collective purchasing power will approach $23 trillion over the next decade, making it the highest-spending generation globally. Combined with rapid adoption of weight-loss medications, that financial strength has clinics, surgeons and medical spas expanding to meet rising demand.

The ripple effects extend well beyond plastic surgery. The explosive growth of GLP-1 medications has already transformed industries ranging from food manufacturers and beverage companies to fitness businesses and pharmaceutical suppliers. Cosmetic medicine is now becoming another major beneficiary, with physicians reporting increasing demand not only for facelifts but also for fat-transfer procedures, skin-tightening treatments and other facial rejuvenation services designed to restore lost volume after dramatic weight reduction.

Social media has accelerated the trend. Platforms including TikTok and Instagram have turned “Ozempic face” into a widely recognized phrase, with before-and-after videos and patient testimonials generating millions of views. That online exposure has increased public awareness of the side effect and prompted many people experiencing facial volume loss to seek consultations they may not otherwise have considered.

Medical professionals, however, continue to urge caution. Plastic surgeons emphasize that not everyone who loses weight on GLP-1 medications develops severe facial hollowing, and surgery is not always the appropriate solution. Many patients achieve satisfactory results with fillers, fat grafting or less invasive treatments, while others benefit simply from allowing their bodies time to stabilize after weight loss. Experts also stress that cosmetic decisions should be made in consultation with qualified, board-certified physicians rather than based on social-media trends or marketing campaigns.

For the business of beauty, however, the direction appears unmistakable. One of the world’s fastest-growing categories of prescription medications has unexpectedly created a booming new customer base for cosmetic surgeons. As millions more patients continue taking GLP-1 drugs to lose weight, the demand for procedures addressing facial aging may continue rising—turning an unwanted side effect into one of the fastest-growing segments of the global aesthetics industry.

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Treasury Secretary Scott Bessent is making a bold economic argument: America’s prosperity should be shared more broadly by getting more citizens invested directly in the stock market.

During a wide-ranging television interview, Bessent outlined what he described as one of the administration’s long-term economic goals — expanding market participation among households that currently own little or no stock.

The concern stems from a significant wealth gap in investment ownership.

According to various estimates, approximately 38% of American households have no direct exposure to the stock market. That means millions of families miss out on the long-term wealth creation generated by rising corporate profits, dividends, and capital appreciation.

Bessent argues that expanding ownership is one of the most effective ways to strengthen financial security over time.

At the center of that effort is the administration’s proposed Trump Accounts initiative, which would provide newborn children with an initial $1,000 government-funded investment account, supplemented by additional private-sector contributions.

Supporters believe such accounts could help create a generation of Americans with earlier exposure to investing and long-term wealth building.

The Treasury Secretary framed the proposal as part of a broader vision of encouraging ownership throughout society.

His argument is straightforward: when citizens own shares of American businesses, they have a direct stake in the country’s economic success.

The proposal arrives at a time when equity ownership has become increasingly important to retirement planning.

For many households, 401(k) plans, IRAs, pension funds, and brokerage accounts now represent the primary path toward long-term financial security.

Expanding access to those opportunities remains a goal shared by many economists across the political spectrum.

Bessent’s remarks also touched on broader economic policy.

He reiterated his belief that U.S. economic growth can accelerate in the coming years and expressed confidence in the resilience of the American economy despite ongoing concerns about inflation, interest rates, and labor-market conditions.

The Treasury Secretary also discussed his working relationship with Federal Reserve Chair Kevin Warsh, confirming regular meetings between the Treasury Department and the central bank.

While emphasizing the Federal Reserve’s independence, Bessent suggested that coordination and communication remain important during periods of economic uncertainty.

The investing proposal, however, generated the greatest attention.

Advocates argue that broader market participation could help reduce wealth inequality by giving more families access to the same long-term investment returns enjoyed by higher-income households.

Critics caution that stock investing carries risk and that encouraging inexperienced investors to enter the market without adequate financial education could expose them to significant losses during future downturns.

That concern is particularly relevant after several years of heightened market volatility.

Many Americans who entered markets during the pandemic-era boom experienced firsthand how quickly gains can disappear when economic conditions change.

Others point out that millions of families struggle to cover everyday expenses and may lack the disposable income needed to invest consistently regardless of government incentives.

The debate highlights a larger question facing policymakers.

Should economic policy focus primarily on increasing wages and reducing living costs, or should it also prioritize expanding ownership of financial assets?

Bessent clearly believes both goals can work together.

His vision centers on creating what he describes as a broader ownership society, one in which more Americans participate directly in the wealth generated by businesses, innovation, and economic growth.

Whether households embrace that vision remains to be seen.

The challenge is not simply opening investment accounts.

It is convincing millions of cautious families that long-term investing remains worth the risk, even during uncertain economic times.

For now, the Treasury Secretary’s message is clear: America’s future prosperity should not belong only to Wall Street.

It should belong to Main Street investors as well.

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For a week, the chipmakers had been getting beaten up. On Thursday, June 25, one earnings report turned the whole mood around.

Micron Technology opened the day on fire, and it dragged the rest of Wall Street up with it. The memory maker’s blowout quarter, reported after Wednesday’s bell, did exactly what the market needed: it reassured nervous investors that the artificial-intelligence boom is still very much alive and spending. But the celebration came with a catch. Minutes before the open, the Commerce Department reported that its Personal Consumption Expenditures price index — the inflation gauge the Federal Reserve watches most closely — climbed at a 4.1% annual pace in May, the hottest reading since April 2023, a leftover sting from the Iran war working its way into prices.

So stocks rose, but they rose looking over their shoulder. The Dow Jones Industrial Average added about 0.65%, pushing up from Wednesday’s close of 51,848.90. The S&P 500 gained roughly 0.52% from 7,358.22, and the tech-heavy Nasdaq Composite managed about 0.24% from 25,476.64, held back even as chips soared because investors were trimming elsewhere. The small-cap Russell 2000 tacked on 0.37%. Not a stampede — but after the bruising semiconductor sell-off of the past several days, plenty of traders would take it.

Market movers

Micron was the whole story at the open, jumping roughly 18%. The numbers explain the excitement. The company earned an adjusted $25.11 a share, blowing past the $20.78 analysts polled by LSEG had penciled in, on revenue of $41.46 billion that more than quadrupled from a year ago and sailed past the $35.85 billion Wall Street wanted. Then came the part that really moved the stock: Micron told investors to expect around $50 billion in sales this quarter, far above the $43.58 billion forecast, with cloud-memory revenue up more than 300% to $13.77 billion. Analysts at Bank of America Global Research doubled down on their bullish call, saying the results point to a sturdier, longer memory cycle built on AI demand.

The relief rippled straight through the sector. Qualcomm climbed about 10% after using its investor day to nearly double its 2029 target for non-phone revenue to roughly $40 billion, from $22 billion, as it muscles into data-center chips and servers. The rest of the group rode the wave — Sandisk, Western Digital, KLA, Lam Research and Applied Materials all rose in sympathy.

It wasn’t only chips. Bio-Techne rocketed about 19.6% after agreeing to sell itself to drug giant Merck for $73 a share. The retail crowd kept its grip on Wendy’s, sending the burger chain up another 7% and leaving it roughly 32% higher on the week — a reminder that small investors, not just earnings, are still moving stocks. SpaceX, fresh off the largest IPO ever, rose 4.3% to $160.98.

Not everyone joined the party. Hertz Global Holdings slid about 6.1%, Dollar Tree dropped 3.6%, and dialysis company DaVita fell 3.3%. Daniela Hathorn, senior market analyst at Capital.com, summed up the turn nicely, saying Micron’s results gave the market fresh proof that the AI spending wave hasn’t crested — and that investors seem willing to look past short-term turbulence as long as the earnings keep coming.

The economic data underneath was murkier. Orders for big-ticket durable goods tumbled a steeper-than-expected 4.5% in May, to $332.1 billion, the Census Bureau said, snapping a two-month winning streak. And in a quieter headline, JPMorgan Chase named two executives to new co-president roles, the latest move in CEO Jamie Dimon’s slow-motion search for a successor.

Commodities and volatility

At the gas pump, the news kept getting better. Brent crude traded just under $74 a barrel and U.S. West Texas Intermediate sat around $70, both near pre-war lows, as oil moved freely again through the Strait of Hormuz. Gold caught its breath near $4,000 after slipping below that line on Wednesday for the first time in seven months. The Cboe Volatility Index, Wall Street’s fear gauge, which had spiked toward 19.5 during the week’s tech scare, drifted lower as nerves settled. Bonds were the one place the hot inflation print bit: after the 10-year Treasury yield tumbled below 4.5% a day earlier on cheaper oil, the stubborn price data gave traders a reason to pause.

The question now is whether the chip rally has the legs to carry through the close, with Qualcomm’s investor day, the final read on first-quarter growth, and Darden Restaurants earnings still on deck. One thing the morning made clear: Micron bought the bulls some breathing room, but that 4.1% inflation number keeps the Fed and Chair Kevin Warsh right in the middle of the story — and keeps the market honest.

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British budget airline easyJet has turned down a takeover, and the bidder is not backing off. On Monday, June 22, U.S. investment firm Castlelake made public a £4.74 billion (about $6.3 billion) offer to buy the carrier, taking its case directly to shareholders after easyJet’s board rejected three separate proposals this month. The airline, listed in London under the ticker EZJ, called the approach “opportunistic” and said it was not in the best interests of shareholders, accusing the American firm of trying to buy the company “on the cheap.”

Castlelake’s latest proposal, made on June 20, valued easyJet at 625 pence per share in cash, up from earlier rejected bids of 560 pence and 600 pence. The Minneapolis-based firm, which manages about $38 billion and is a major aviation investor, said it went public because of the board’s “unwillingness to engage meaningfully.” It already owns about 2.14% of easyJet through funds it manages, and framed its ambition as supporting the carrier as “a stronger, more resilient European airline under European control.”

The 625-pence offer represents a premium of roughly 57% to easyJet’s share price in late May, before Castlelake’s interest became known, and tops every published analyst price target issued since the airline’s April trading update. Castlelake argued the bid offers “compelling value” and would let shareholders judge its merits before a fast-approaching deadline.

easyJet pushed back on several fronts. The board said its share price had been temporarily depressed, partly by the hit to European travel demand from the Iran war, making the timing opportunistic. It also raised “considerable reservations” about Castlelake’s proposed ownership structure, which it called “opaque.” The airline said it remained focused on its medium-term targets and on growing its higher-margin holidays business, which has become a rising share of profit.

That structure is central to the fight. European Union rules require carriers like easyJet to stay majority-owned and controlled by EU nationals. To comply, Castlelake proposed taking a 49% stake, with the remaining 51% held by EU nationals and undisclosed others, and partnered with veteran aviation executives Peter Bellew and Mark Breen. easyJet countered that the arrangement was too unclear to form any basis for assessing the bid.

The clock is now the story. Under UK takeover rules, Castlelake faces a “put up or shut up” deadline of 5 p.m. on Friday, June 26, by which it must either announce a firm intention to make an offer or walk away for six months. The firm said its bid would be fully funded through a mix of committed equity and debt, with Goldman Sachs expressing confidence in arranging the money — though Castlelake cautioned there is no certainty a formal offer will follow.

Investors took notice. easyJet shares rose more than 5% in early Monday trading to around 530 pence, near their highest in years, and are up about 36% over the past month on takeover speculation. “There will be increased pressure on the board this week,” said Goodbody Stockbrokers analyst Dudley Shanley, though he noted some shareholders could be disappointed by the absence of an established European airline partner in the deal.

easyJet is one of Europe’s three largest low-cost carriers, behind Ryanair and Wizz Air. Founded in 1995 by British-Cypriot entrepreneur Stelios Haji-Ioannou and based in Luton, it employs more than 16,000 people and flew over 90 million passengers last year across 38 countries and more than 1,200 routes. Whether it stays independent now rests on a few days of pressure: Castlelake must decide by Friday whether to formalize its bid, and easyJet’s shareholders must weigh whether a board that keeps saying no is leaving money on the table.

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Every one of the nation’s largest banks would survive a severe economic downturn with enough capital remaining to continue lending, according to the results of the Federal Reserve’s annual stress test, providing another sign that the U.S. banking system remains resilient despite ongoing economic uncertainties.

The central bank reported that all 32 financial institutions subjected to this year’s examination successfully passed the test, maintaining capital levels above required minimums even under an extreme hypothetical recession scenario.

The exercise, required under post-financial-crisis reforms enacted through the Dodd-Frank Act, is designed to evaluate whether major banks could continue operating during periods of severe economic stress.

Each year, regulators subject banks to a series of hypothetical shocks and estimate potential losses across lending, trading, and investment portfolios.

This year’s scenario was particularly demanding.

The Federal Reserve modeled a severe global recession in which unemployment rises to 10%, residential home prices fall 30%, commercial real-estate values decline 39%, and corporate credit markets experience significant disruptions.

Banks with major trading operations were also required to absorb the hypothetical failure of their largest trading counterparties alongside a sudden market shock.

Even after projecting hundreds of billions of dollars in losses across the financial system, regulators concluded that every institution remained adequately capitalized.

The list included many of the country’s most recognizable financial institutions, including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley, as well as large regional banks and U.S. subsidiaries of foreign lenders.

The results carry important consequences.

Performance on the stress test influences the amount of capital banks must maintain through what regulators call the Stress Capital Buffer, a safeguard designed to ensure institutions can absorb losses during difficult economic periods.

This year, however, the Federal Reserve indicated that capital requirements will remain unchanged until 2027 as regulators continue evaluating proposed modifications intended to improve transparency within the testing process.

For everyday Americans, the significance goes well beyond banking regulation.

The purpose of the stress test is to ensure that banks can continue providing mortgages, auto loans, business financing, and consumer credit even during severe recessions.

When banks stop lending, economic downturns often become significantly worse.

That lesson was learned during the 2008 financial crisis, when weaknesses within the banking system amplified broader economic damage.

The annual stress test is intended to prevent a repeat of that experience.

Investors are also paying close attention.

Historically, successful stress-test results often pave the way for increased dividends and share repurchase programs. Banks that demonstrate strong capital positions frequently return more cash to shareholders in the weeks following the results.

Announcements regarding dividends and buybacks are expected in the coming days.

The timing is particularly noteworthy given ongoing concerns surrounding commercial real estate.

Office-property values remain under pressure as remote and hybrid work continue reshaping demand. Several high-profile office-building loan defaults have attracted attention in recent weeks, highlighting the challenges facing portions of the commercial property sector.

The Federal Reserve’s decision to model a nearly 40% decline in commercial real-estate values underscores the seriousness with which regulators continue to view those risks.

Bank executives have long argued that stress tests are overly conservative and require institutions to hold more capital than necessary.

Regulators counter that strong capital buffers are precisely why the banking system has remained stable during recent periods of turmoil.

This year’s results will likely strengthen both arguments.

For banks, the clean sweep demonstrates the strength of their balance sheets.

For regulators, it validates the safeguards implemented after the financial crisis.

Either way, the message from the Federal Reserve was straightforward: even in a severe recession, America’s largest banks would remain open for business.

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The U.S. stock market split in two directions Wednesday as a sharp drop in oil prices and easing tensions with Iran lifted the Dow Jones Industrial Average even while technology stocks dragged the broader market lower ahead of a closely watched earnings report from memory-chip giant Micron Technology.

The day’s tone was set by energy markets. Oil prices fell sharply after President Donald Trump said Iran had informed him that commercial vessels would be allowed to pass freely through the Strait of Hormuz without tolls or additional charges. The comments reinforced growing optimism that the months-long conflict that has rattled global energy markets may finally be easing.

By the closing bell, the Dow Jones Industrial Average gained 182.06 points, or 0.35%, to finish at 51,848.90. The S&P 500 slipped 0.10% to 7,358.22, while the technology-heavy Nasdaq Composite declined 0.43% to 25,476.64.

The divergence reflected a market wrestling with two competing narratives. On one side, investors welcomed lower energy prices and easing geopolitical risks. On the other, traders continued reducing exposure to some of the year’s biggest technology winners ahead of the next round of corporate earnings.

Rick Gardner, chief investment officer at RGA Investments, described the recent weakness in technology shares as a healthy correction rather than a broader warning sign.

“Many of these stocks simply ran too far, too fast,” Gardner said, noting that investors appear to be recalibrating expectations before earnings season begins in earnest next month.

The Dow also received a boost from index-related news. S&P Global announced that Alphabet, Google’s parent company, will join the 30-stock average next week, replacing Verizon Communications. The move further increases the technology weighting within one of Wall Street’s most closely followed indexes and reflects the growing dominance of large-cap technology companies across the U.S. economy.

Market Movers

Wednesday’s biggest gains came from a mix of corporate announcements, earnings-driven trades, and renewed interest from retail investors.

Wendy’s surged approximately 23.7% after naming former Potbelly executive Steven Cirulis as chief financial officer and chief strategy officer. The announcement coincided with increased buying activity from retail traders targeting heavily shorted stocks.

Solar installer Sunrun climbed roughly 22%, while building-products supplier Builders FirstSource advanced about 9.7%.

On the downside, Hertz Global Holdings plunged 27.3%, extending a volatile stretch for the rental-car operator as investors digested recent financing moves and ongoing concerns about used-vehicle values.

AI chipmaker Cerebras Systems, which recently entered public markets, fell approximately 16.1%, while convenience-store operator Casey’s General Stores declined 6.8%.

Meanwhile, newly public SpaceX slipped 1.61% to close at $153.60, continuing the volatile trading pattern that has followed its record-setting market debut earlier this month.

Technology stocks remained under pressure throughout the session.

The semiconductor sector, one of the market’s strongest performers this year, has experienced a notable pullback. The VanEck Semiconductor ETF, widely viewed as a benchmark for chip stocks, has declined more than 5% over the past five trading sessions.

Investors are increasingly focused on Micron Technology, whose earnings report after the closing bell is widely viewed as one of the most important technology events of the week.

Micron recently reached an all-time high and has become a major beneficiary of the artificial-intelligence infrastructure boom. The company’s results are expected to provide fresh insight into demand for memory chips, one of the most critical components supporting AI systems.

Jay Woods, chief market strategist at Freedom Capital Markets, cautioned that expectations have become elevated after the stock’s remarkable run.

“When a stock rises this far, this fast, expectations become very difficult to satisfy,” Woods said.

Commodities and Volatility

Oil markets delivered the biggest macroeconomic development of the day.

Brent crude, the international benchmark, fell 4.33% to settle at $73.74 per barrel, while West Texas Intermediate dropped 3.92% to $70.34. Both benchmarks traded at their lowest levels since before the U.S.-Iran conflict escalated earlier this year.

For consumers and businesses, lower oil prices could provide meaningful relief.

Cheaper crude often translates into lower gasoline prices, reduced transportation costs, and less inflationary pressure across the economy. Industries ranging from manufacturing to logistics stand to benefit if energy prices continue moving lower.

Treasury markets also reflected the calmer geopolitical environment.

The yield on the 10-year Treasury note fell back below 4.5%, easing pressure on borrowing costs that have weighed on housing, commercial real estate, and corporate financing activity.

Gold moved lower as well.

August gold futures dipped below $4,000 per ounce for the first time in months, trading near $3,987, as investors reduced safe-haven positions amid signs of improving stability in global energy markets.

Politics remained part of the market conversation.

Appearing on CNBC, Senator Elizabeth Warren argued that Federal Reserve Chair Kevin Warsh faces a difficult path on interest rates as inflation concerns, economic growth, and political pressure continue colliding.

The Federal Reserve last week maintained its benchmark interest-rate range at 3.50% to 3.75%, signaling continued caution while offering little clarity regarding the timing of future rate cuts.

All eyes now shift to Micron.

A strong earnings report could reignite enthusiasm across the semiconductor sector and provide fresh momentum for technology stocks. A disappointing result, however, could deepen the recent pullback and raise new questions about valuations throughout the AI-driven technology rally.

For investors, Wednesday’s mixed finish captured the market’s current mood perfectly: relief over falling oil prices, optimism that geopolitical risks may be easing, and growing caution toward technology stocks that have already delivered extraordinary gains.

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Oil prices tumbled again, with U.S. crude falling below $70 a barrel and approaching levels last seen before the U.S.-Iran conflict began, as a growing number of tankers resumed passage through the Strait of Hormuz and diplomatic efforts continued reducing fears of a prolonged supply disruption.

The decline marks a dramatic reversal from the panic that gripped energy markets earlier in the conflict.

Brent crude, the global benchmark, slipped below $74 per barrel, while West Texas Intermediate dropped beneath $70. Both benchmarks now sit far below the wartime highs reached when traders feared a lengthy shutdown of Middle Eastern energy exports.

The Strait of Hormuz remains the world’s most important oil chokepoint.

Under normal conditions, roughly one-quarter of global seaborne crude oil passes through the narrow waterway connecting the Persian Gulf to international markets. Any disruption immediately affects energy prices worldwide.

At the height of the crisis, tanker traffic slowed dramatically as concerns over security risks mounted. Hundreds of vessels faced delays, shipping costs surged, and traders feared a prolonged interruption to global energy supplies.

Those fears are now easing.

Shipping activity has steadily improved, and exporters throughout the Gulf region are restoring operations closer to normal levels. Energy traders increasingly believe the worst-case scenarios that once dominated headlines are becoming less likely.

Diplomatic developments have contributed significantly to the recovery.

Negotiations involving regional governments and international mediators have helped reduce immediate tensions, while agreements designed to ensure safe maritime transit have encouraged shipping companies to resume operations through the strait.

The impact extends far beyond oil markets.

Lower crude prices generally translate into cheaper gasoline, lower transportation costs, reduced pressure on manufacturers, and potentially slower inflation. Businesses throughout the economy benefit when energy costs decline.

Consumers stand to gain as well.

Fuel prices often respond quickly to major moves in crude oil markets, and sustained declines could provide relief at the pump after months of elevated costs.

Not everyone believes the risk has disappeared.

Several analysts caution that current supply conditions are being supported in part by inventory drawdowns and strategic stockpiles rather than a complete recovery in production. Once those inventories are depleted, markets could again face tighter conditions.

Others point to continuing geopolitical risks throughout the region.

Tensions involving Iran, Israel, and various regional actors remain unresolved, and any renewed disruption could quickly reverse recent gains.

Even so, markets appear increasingly convinced that the immediate threat of a major supply shock has diminished.

That shift in sentiment has been enough to send oil sharply lower and restore a measure of stability to global energy markets.

For households, businesses, and investors, the message is straightforward.

After months of uncertainty, energy markets are beginning to price in a future that looks far less disruptive than many once feared.

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For years, warnings about artificial intelligence focused on factory workers, truck drivers, and warehouse employees.

The reality unfolding across corporate America in 2026 looks very different.

The workers increasingly finding themselves squeezed are middle managers — the supervisors, coordinators, and team leaders who sit between frontline employees and senior executives.

A recent Korn Ferry survey of approximately 15,000 professionals worldwide found that 41% of employees reported their organizations had reduced management layers over the past year. The trend has become so widespread that workplace analysts have given it a name: “The Great Flattening.”

At the center of the shift is AI’s growing ability to perform many of the tasks that traditionally justified large management structures.

Much of a middle manager’s role has historically involved collecting updates, coordinating projects, preparing reports, monitoring workflows, assigning tasks, and communicating information between executives and staff.

Increasingly, software can perform many of those functions automatically.

Modern AI systems can summarize meetings, track projects, generate reports, monitor performance metrics, organize workflows, draft communications, and provide executives with real-time operational visibility that previously required multiple layers of human oversight.

As those capabilities improve, companies are questioning whether they need as many managers as they once did.

The numbers suggest many organizations have already started answering that question.

A study by workplace-training firm Lepaya found management headcount at public companies declined 6.1% between 2022 and 2025, with major corporations including Meta, Amazon, Google, and Intel reducing management layers as they streamlined operations.

Research firm Gartner projects that through 2026, one in five organizations will use AI to flatten corporate structures, eliminating more than half of current middle-management positions.

Retail giants are moving in the same direction.

Target CEO Michael Fiddelke recently said the company had accumulated too many overlapping management layers that slowed decision-making and complicated operations.

Meanwhile, Walmart has largely frozen overall workforce growth while integrating AI tools across numerous business functions, particularly within white-collar roles.

The appeal for employers is obvious.

Fewer management layers can reduce costs, accelerate decision-making, improve communication, and create leaner organizations.

But the transition comes with risks.

The same Korn Ferry research found that 37% of employees whose managers were eliminated reported feeling less supported and less certain about organizational direction.

Nearly half of senior executives surveyed expressed concern about absorbing the additional responsibilities previously handled by middle managers.

Removing management positions does not eliminate the work those managers performed.

Coaching employees, resolving conflicts, mentoring future leaders, communicating priorities, and translating executive strategy into day-to-day execution still need to happen.

In many organizations, those responsibilities are simply being redistributed to already stretched senior leaders or junior employees who may have little management experience.

Human-resources professionals say the uncertainty has contributed to increased employee anxiety and disengagement, including a growing phenomenon known as “doomjobbing” — workers quietly searching for new opportunities while remaining employed because they are uncertain about their future within the organization.

The shift may also reshape career advancement.

For decades, middle management served as the primary pathway toward executive leadership.

Employees learned how to manage teams, oversee budgets, handle performance issues, and develop leadership skills before moving into senior positions.

As those opportunities shrink, the traditional corporate ladder becomes narrower.

Research from the National Bureau of Economic Research suggests managers within flatter organizations often earn less than their counterparts in more traditional corporate structures while carrying broader responsibilities.

Not everyone believes middle management is disappearing entirely.

Many workplace experts argue the role is evolving rather than vanishing.

Instead of spending time on administrative coordination and reporting, future managers may focus more heavily on leadership, employee development, coaching, strategic planning, and relationship building — areas where human judgment remains difficult to automate.

Others warn companies could move too aggressively.

Anthropic CEO Dario Amodei has cautioned that widespread adoption of AI could lead to significant disruption across white-collar professions if organizations fail to carefully manage the transition.

Critics argue that eliminating management layers too quickly may create invisible costs through weaker communication, lost institutional knowledge, reduced mentorship, and declining employee engagement.

What is clear is that the transformation is no longer theoretical.

For millions of office workers, the question is no longer whether AI will change the workplace.

The question is what happens when the middle of the organizational chart — the traditional stepping stone to leadership — becomes increasingly difficult to find.

JBizNews Desk | New York
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Walmart said Tuesday it has agreed to acquire Vibe.co, a Paris-based platform that lets businesses buy and create streaming-television ads, as the retail giant pushes deeper into the fast-growing, high-margin business of selling advertising.

In a June 23 release, the company said Vibe.co’s self-serve connected-TV platform will fold into Walmart Connect, its commerce media business, making TV advertising more accessible and measurable for small and mid-sized businesses. Ryan Mayward, the senior vice president who runs Walmart Connect U.S., said the goal is to make TV advertising “more measurable and easier to activate for advertisers of all sizes.”

Terms were not officially disclosed, though one trade publication reported a price near $1.4 billion.

The deal reflects a quiet but profound shift in how Walmart makes money. Best known as one of the nation’s biggest retailers, Walmart is increasingly looking to become a major seller of advertising too. Grocery and general-merchandise sales carry thin margins; advertising is far richer. When Walmart sells ad space — on its site, in its app, on store screens, and now on streaming TV — the profits help keep shelf prices low while still growing earnings.

It is following the path Amazon blazed in turning ads into a profit engine.

Vibe.co fills a specific gap. Connected TV can reach huge audiences, but buying those ads has traditionally been complicated and costly, often putting it out of reach for smaller businesses. Arthur Querou, Vibe.co’s chief executive and co-founder, said the company was built to make streaming-TV advertising work more like paid social media — fast, measurable and optimized — and that joining Walmart lets it bring “performance TV advertising to one of the most powerful commerce media ecosystems in the market.”

Querou and co-founder Franck Tetzlaff are expected to join Walmart Connect.

The acquisition builds directly on Walmart’s $2 billion purchase of Vizio, which closed less than two years ago. Vizio gives Walmart a foothold in millions of living rooms and a stream of viewing data. Vibe.co gives it the tools to sell ads against that audience and prove they work.

Because Walmart can tie an ad to a later purchase through its “closed-loop” measurement system, it can offer advertisers something most media companies cannot: a direct link between a commercial and a sale.

The biggest target is small business. Many of Walmart’s third-party marketplace sellers are small and mid-sized brands that would never buy a national television commercial. By making streaming ads cheaper and easier to use, Walmart can sell advertising to those sellers and other small brands — a vast pool bigger media platforms often overlook.

For Main Street businesses, it could mean access to television-style advertising once reserved for large corporations.

For shoppers, the trend is double-edged. More sophisticated advertising means the products promoted on their televisions and phones are increasingly tailored to them, drawing on what Walmart knows about shopping habits and purchasing behavior. That can make ads more relevant, but it also extends the reach of a company that already tracks an enormous share of American consumer spending.

Roughly 280 million customers visit Walmart’s more than 10,900 stores and websites each week, creating a trove of consumer data few rivals can match.

The transaction is subject to antitrust review under the Hart-Scott-Rodino Act and is expected to close by the end of Walmart’s 2027 fiscal year, with no impact to sales or operating-income guidance.

It came a day after Walmart said it was consolidating its advertising operations into a single framework — a sign of how central the ad business has become to a company most Americans still think of simply as a place to buy groceries.

As retail media becomes one of Walmart’s key growth engines, deals like this show how the line between a retailer and a media company continues to blur.

JBizNews Desk | New York

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Apollo Global Management is again limiting how much money investors can withdraw from its largest private credit fund for individual investors, underscoring growing pressure inside one of Wall Street’s fastest-growing investment sectors.

In a regulatory filing published Monday, Apollo’s Apollo Debt Solutions fund said it would cap withdrawals at 5% of outstanding shares after investors requested redemptions equal to approximately 16.8% of the fund, or roughly $2.4 billion. It marks the second consecutive quarter that the fund has imposed withdrawal limits.

The fund, which manages roughly $26 billion in assets, is part of a rapidly expanding category known as private credit. These funds make loans directly to companies outside the traditional banking system and have become increasingly popular among wealthy individuals seeking higher yields than those available from conventional bonds.

Unlike publicly traded mutual funds or stocks, however, investors cannot redeem their money at any time.

Apollo Debt Solutions operates as a “semi-liquid” vehicle, allowing withdrawals only during specific quarterly windows and retaining the ability to limit redemptions if requests exceed predetermined thresholds.

That safeguard is now being tested.

Investors requested withdrawals totaling 16.8% of shares, up sharply from 11.2% the previous quarter. Under the fund’s structure, only a small portion of those requests can be honored immediately.

Apollo expects to process approximately $700 million in withdrawals while receiving roughly $300 million in new inflows, resulting in net outflows of about $400 million.

The redemption activity also revealed a geographic divide.

U.S.-based investors requested withdrawals equal to approximately 4.3% of shares, while international investors accounted for roughly 12.5%, suggesting concerns may be more pronounced among offshore investors.

The pressure comes despite relatively strong performance.

Since launch, Apollo Debt Solutions has generated a total return of approximately 8.1%, and Apollo says demand from large institutional investors such as pension funds and insurance companies remains healthy.

Still, concerns have emerged throughout the private-credit industry.

Investors have increasingly questioned portfolio transparency, underwriting standards, and exposure to sectors facing potential disruption from rapidly advancing technology. Particular attention has focused on lending to software companies and how those borrowers may be affected by the widespread adoption of AI-powered tools.

Apollo executives have signaled that redemption pressure may not be temporary.

Speaking at an investor conference last month, Apollo President Jim Zelter warned that redemption activity could continue as investors attempt to navigate withdrawal limitations and changing market conditions.

“I don’t think it was a one-shot,” Zelter said, suggesting the firm expects continued turbulence.

Apollo is not alone.

Partners Group, one of Switzerland’s largest private-markets firms, recently warned it could impose similar limits across several private-asset funds as redemption requests rise.

The broader issue stems from a structural challenge facing many private-credit products.

These funds promise investors periodic access to their money while holding underlying assets that are inherently difficult to sell quickly. When investor sentiment changes and redemption requests surge, managers often have limited flexibility.

Sunaina Sinha Haldea, global head of private capital advisory at Raymond James, recently warned that the era of simply packaging private credit for retail investors and expecting unlimited demand may be ending.

Industry analysts caution that weaker funds could face increasing withdrawal restrictions, declining investor interest, and reduced access to distribution channels.

The implications extend beyond Wall Street.

Private-credit investments have been aggressively marketed to affluent households and, increasingly, to everyday investors through financial advisers. The appeal has been relatively stable income and returns that often exceed traditional bond markets.

The tradeoff is now becoming more visible.

When markets become uncertain and investors want their money back, access can be limited.

For many investors in Apollo Debt Solutions, that reality is now front and center. Most of those who requested withdrawals this quarter will receive only a portion of their money and will have to wait until the next redemption window to try again.

It serves as a reminder that in investing, higher yields and immediate liquidity rarely come together.

JBizNews Desk | New York
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Shipping giant UPS is putting more money behind the part of its business it is betting its future on. On Monday, June 22, United Parcel Service announced a $48 million investment to build 27 temperature-controlled freight cross-dock facilities around the world, a direct play for the booming trade in drugs that must be kept cold, including GLP-1 weight-loss injectables.

“Our global cross-dock facilities strengthen our end-to-end cold-chain capabilities to ensure critical treatments are delivered safely and reliably to patients around the world,” said Kate Gutmann, the company’s executive vice president and president of international, healthcare and supply chain solutions.

The new facilities, spread across the Americas, Europe and Asia, are built to hold shipments at strict temperature bands — 2 to 8 degrees Celsius, 15 to 25 degrees Celsius, and frozen — during the riskiest moment in a drug’s journey: the handoff between air and ground transport. That transfer point is where so-called temperature excursions are most likely, and where a single lapse can ruin a shipment. Industry-wide, cold-chain failures are estimated to cost up to $35 billion a year, and the World Health Organization blames them for up to half of all vaccine waste.

The timing tracks a clear shift in medicine. A new generation of treatments — cell and gene therapies, mRNA platforms and GLP-1 drugs like those driving the weight-loss boom — must stay within tight temperature limits from factory to patient. Demand for shipping temperature-sensitive biologics is projected to grow about 8.3% a year through 2033, reaching roughly $39.1 billion, according to Growth Market Reports.

“Biologics and personalized treatments are driving better, more targeted care for patients,” said John Bolla, president of UPS Healthcare.

The cold-chain push is the clearest sign yet of how UPS is remaking itself. Under chief executive Carol Tomé, the company has deliberately walked away from low-margin volume, cutting shipments for Amazon, long its largest customer, by more than half. By the end of June, UPS will have shed about 2 million Amazon packages a day and some $5 billion in revenue in under two years. To replace it, the company is chasing higher-paying business in healthcare, small business and B2B.

Healthcare is the centerpiece. UPS crossed $3 billion in quarterly healthcare revenue for the first time in early 2026 and has set a target of $20 billion in annual healthcare revenue. Tomé has singled out the rise of drugmakers shipping GLP-1 medicines straight to consumers, rather than to distributors, as a fresh opening.

The pivot has been painful elsewhere: UPS eliminated roughly 48,000 positions and closed 93 buildings in 2025, and plans to cut about 30,000 more jobs and shut additional sorting centers this year. First-quarter 2026 revenue slipped 1.4% to $21.2 billion, though adjusted earnings of $1.07 a share still beat Wall Street.

Analysts are watching whether the trade-off pays off. Barclays equity analyst Brandon Oglenski has noted that UPS expects roughly flat domestic operating income this year despite the steep volume decline — a far better outcome than past downturns, when profits fell much faster than volumes.

The new cross-docks, backed by UPS’s acquisitions of healthcare-logistics firms including Bomi Group, Frigo Trans and Andlauer Healthcare Group, are meant to lock in specialized, high-margin work that ordinary parcel rivals cannot easily copy.

The bet is straightforward: as everyday package delivery grows slower and more crowded, the medicines that need careful handling become the prize. UPS reports its next quarterly results in late July, when investors will look for proof that healthcare and other premium segments are filling the hole left by Amazon. Monday’s $48 million is small against the company’s roughly $89 billion in expected annual revenue, but it points squarely at where UPS believes its growth now lives.

JBizNews Desk
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American manufacturers cut jobs in June at the fastest pace since 2009 — outside the early-pandemic collapse of 2020 — even as their factories produced goods at the strongest rate in years.

The contradiction emerged from a survey released Tuesday by S&P Global, whose flash U.S. Manufacturing Index climbed to 55.7 for June, up from May and above the 54.8 consensus estimate, even as job cuts ran near their highest level since 2009 excluding the pandemic collapse.

“Most worrying was the further fall in employment, notably in the manufacturing sector,” said Chris Williamson, chief business economist at S&P Global Market Intelligence, adding that “factory job cuts are running at the highest since 2009 if the pandemic is excluded.”

How can production rise while payrolls shrink?

Much of June’s strength came not from rising demand but from stockpiling. Manufacturers built inventories at a pace approaching the survey’s all-time high — surpassed only by the 2025 tariff-driven inventory surge — as companies rushed to protect themselves from supply-chain disruptions and cost spikes tied to the Middle East conflict.

Factories were busy filling warehouses, not necessarily responding to stronger customer demand, while continuing to reduce staffing to control costs.

The squeeze comes from prices.

Input costs remain historically elevated, with manufacturers citing higher steel and aluminum prices, tariffs, and petroleum-related inflation linked to the conflict. Facing those pressures and an uncertain demand outlook, many companies chose to trim headcount rather than expand payrolls.

Williamson said the data point to an economy “struggling to grow much faster than a 1% annualized rate” in the second quarter — sluggish by recent standards.

The weakness is not confined to factories.

The services sector expanded only modestly, posting a flash reading of 51.3, with the survey citing customer resistance to higher prices and continued weakness in consumer confidence.

Meanwhile, the broader labor market has shown additional warning signs. Lucid Motors announced its second major layoff of the year on Monday, cutting approximately 1,500 workers, or about 18% of its workforce, as demand in the electric-vehicle sector cools.

Outplacement firm Challenger, Gray & Christmas reported more than 97,000 announced U.S. job cuts in May alone.

It is important to keep perspective. According to official Bureau of Labor Statistics data, manufacturing employment has actually increased by approximately 23,000 jobs in 2026, with strong gains in four of the year’s first five months.

The S&P survey measures hiring direction among roughly 800 surveyed companies rather than precise employment totals, and one month does not establish a trend. Some of the decline also reflects automation, with manufacturing-technology hiring increasing modestly over the past year.

Still, June’s reading represents a sharp reversal at an awkward moment.

Companies remain caught between stubborn inflation — with energy costs elevated by the war — and a Federal Reserve under Chair Kevin Warsh that is weighing potential rate increases or, at minimum, delaying rate cuts until geopolitical conditions stabilize.

Higher borrowing costs would make expansion and hiring even more expensive for manufacturers.

For workers, the message is unsettling.

Factory jobs have long provided a pathway to middle-class wages without requiring a college degree. When manufacturers stop adding shifts or begin trimming staff, the effects ripple through entire communities. Local restaurants, suppliers, trucking companies, and retailers often feel the impact as well.

The one bright spot was confidence.

Williamson noted that “brighter news out of the Middle East has helped restore some confidence among US businesses in June.”

If that stability holds and energy prices continue easing, some of the pressures driving job cuts could fade.

For now, however, June’s report delivers a clear warning: a factory sector that looks strong on the surface while quietly shedding the workers who keep it running.

JBizNews Desk | New York

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Asia’s biggest oil buyers, having stocked up aggressively during the four-month war that choked off Persian Gulf crude, are now in no hurry to resume buying from the Middle East—even as the Strait of Hormuz reopens and tankers begin moving again.

The reluctance is one reason oil prices have kept falling rather than spiking, and it points to a lasting change in how the world’s energy trade is wired.

The U.S. Energy Information Administration recently cut its 2026 global demand forecast, saying high prices and reduced availability have curbed consumption, particularly in Asia. EIA Administrator Tristan Abbey said any return to pre-conflict trade flows must account for “the partial restructuring of the global oil market that has already occurred.”

The clearest example is India.

According to a Bloomberg report, Indian refiners currently hold enough crude to last about two months, leaving them in no rush to buy Middle Eastern cargoes now able to flow through the reopened strait. Middle Eastern producers have approached Indian buyers to resume long-term contract volumes, but the buyers have been reluctant, and the Indian government has not yet authorized Indian tankers to sail to the Persian Gulf to load those cargoes.

India’s hesitation reflects a broader shift that took place during the conflict.

Historically, India was one of the largest buyers of Gulf crude because of its proximity to the region. But when tanker traffic through the Strait of Hormuz became unreliable, refiners rapidly diversified supply sources and turned heavily toward Russian oil, aided by sanctions waivers and discounted pricing.

Russian crude flows to India averaged approximately 1.76 million barrels per day in May, about 63% higher than in February, according to shipping data.

The wartime demand collapse across Asia was dramatic.

Chinese seaborne crude imports fell by roughly 3.6 million barrels per day between February and April. Major declines were also recorded in Japan, South Korea, and India.

Combined crude imports into China and Japan fell by roughly 40%, representing nearly 6 million barrels per day of reduced demand. Because Gulf producers normally supply about 60% of Asia’s imported crude, refiners were forced to slash processing rates, draw down inventories, and secure alternative supplies from Russia, the United States, and Atlantic Basin exporters.

Now the market faces a very different problem.

More than 60 million barrels of delayed crude shipments aboard nearly three dozen supertankers are expected to head toward Asia in the coming weeks as the Strait of Hormuz returns to normal operations.

But many refiners are already well supplied.

The combination of full storage tanks and a fresh wave of incoming cargoes is weighing on prices rather than lifting them.

Oil markets have responded accordingly.

Brent crude has fallen sharply from its wartime highs as fears of a prolonged disruption faded. Major banks have also reduced their forecasts.

Morgan Stanley now expects Brent to average around $80 per barrel during the fourth quarter, down from an earlier forecast of $100. Goldman Sachs has cut its fourth-quarter outlook to $80 from $90, while predicting tanker traffic through the Strait of Hormuz will fully normalize by the end of July.

The decline represents a dramatic reversal from the fears that dominated markets when the conflict began. At the height of the crisis, some analysts warned that oil could reach $200 per barrel if Gulf exports remained disrupted.

Instead, one of the worst supply shocks in modern energy history has produced the opposite result.

For consumers, the reason is simple: Asia already has the oil it needs.

The stockpiles accumulated during the conflict, combined with softer demand and alternative supply routes, have reduced the urgency to purchase additional barrels from Gulf producers.

The larger story is who gained and lost market share.

During the disruption, Russia and the United States stepped into the gap left by Gulf exporters. Traders increasingly believe some of those gains could prove permanent if Asian refiners continue prioritizing supply diversification rather than returning to old buying patterns.

The next major signal for oil markets may come from China, the world’s largest crude importer. Many analysts view a return to China’s pre-war import pace of more than 10 million barrels per day as the event most likely to tighten global supplies and support higher prices.

Until then, Gulf producers are finding that reopening shipping lanes does not automatically bring customers back.

After months of scrambling to secure energy supplies, Asia’s refiners have inventories, alternatives, and time on their side. Their patience is quietly reshaping global oil flows—and helping keep energy prices lower than many expected.

JBizNews Desk | New York
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U.S. stock futures were mixed early Wednesday, with the Dow Jones Industrial Average pointing lower while the S&P 500 and tech-heavy Nasdaq 100 edged higher, as technology shares attempted to recover from Tuesday’s global selloff and President Donald Trump opened a new front in his battle against inflation by ordering a probe into gasoline prices.

In a Truth Social post early Wednesday, Trump accused major oil companies of failing to pass lower crude prices on to consumers and said he had directed the Justice Department to investigate potential price gouging. “Gasoline prices better start going down a lot faster than what I’m seeing!” Trump wrote, though he did not identify specific companies.

As of early trading, Dow futures slipped 0.1%, while S&P 500 futures gained 0.1% and Nasdaq 100 futures climbed 0.5%, signaling a cautious attempt by investors to buy back into technology shares after Tuesday’s sharp decline.

The previous session was dominated by a selloff in semiconductor stocks that rippled across global markets. The S&P 500 fell 1.44%, while the Nasdaq Composite dropped 2.21%. The Dow managed to outperform, slipping just 0.09% as investors sought safety in defensive names including Walmart and IBM.

The latest market narrative remains tied to the aftermath of the U.S.-Iran conflict. Oil prices, which surged when fighting disrupted traffic through the Strait of Hormuz, have reversed sharply as shipping routes reopen. Brent crude has fallen below $76 per barrel, retreating to levels last seen before the conflict escalated.

That decline has not yet fully reached consumers at the pump, fueling Trump’s criticism. Energy analysts noted that retail gasoline prices typically lag movements in crude oil due to refining, transportation, and tax costs. Karen Young of Columbia University’s Center on Global Energy Policy described Trump’s comments as largely political pressure, noting that pump prices often take weeks to reflect lower crude costs.

Overseas markets found firmer footing after Tuesday’s turmoil. South Korea’s Kospi surged more than 3%, recovering part of the prior session’s steep decline, while Japan’s Nikkei 225 slipped 0.88%. Europe’s Stoxx 600 traded little changed as investors weighed growth concerns against falling energy prices.

Market movers

FedEx tumbled roughly 6% in premarket trading after delivering better-than-expected quarterly results but issuing a cautious outlook. The shipping giant cited higher transportation expenses and uncertainty surrounding trade policy, a warning that drew attention because FedEx is widely viewed as a barometer of global economic activity.

Cerebras Systems dropped about 11% after reporting its first earnings as a public company. The AI chipmaker posted strong revenue growth but larger-than-expected losses and warned that margins would remain below those of rivals including Nvidia.

Micron Technology rose approximately 5% ahead of earnings scheduled after Wednesday’s closing bell. Investors are closely watching the memory-chip producer for fresh evidence that demand tied to artificial intelligence remains robust after a year-long rally in semiconductor shares.

Elsewhere, Intel and Qualcomm each gained about 2% following Tuesday’s selloff, while Alphabet advanced after news it will join the Dow Jones Industrial Average next week. Homebuilder KB Home climbed roughly 3% after surpassing revenue expectations.

Commodities and volatility

Oil remained the market’s most closely watched commodity. WTI crude traded near $73 per barrel, while Brent crude hovered below $76, reflecting expectations that energy supplies will continue to normalize as shipping traffic resumes through the Persian Gulf.

In fixed-income markets, the 2-year Treasury yield remained near its highest level since early 2025 as investors continued to price in the possibility that the Federal Reserve, under Chair Kevin Warsh, could resume rate hikes later this year. Higher yields have created additional pressure on richly valued technology companies.

Investors now turn their attention to Micron’s earnings report, which many view as the next major test of the AI investment boom. Economic data due Wednesday include new-home sales, building permits, and earnings from payroll processor Paychex. Later this week, markets will receive the Fed’s preferred inflation measure, a report that could help determine the next move for interest rates.

For now, Wall Street appears caught between two powerful forces: optimism surrounding artificial intelligence and lingering concerns over inflation, rates, and consumer costs. Wednesday’s mixed futures suggest investors are willing to buy the dip—but not without caution.

JBizNews Desk | New York
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Two of Wall Street’s biggest banks have been pulled into a federal inquiry involving Iran. According to officials familiar with the matter, the U.S. Department of Justice is examining whether JPMorgan Chase and Citigroup played a role in processing funds linked to a business network associated with Iranian Supreme Leader Mojtaba Khamenei. The investigation was first reported by Bloomberg News on June 18. Both banks and the Justice Department declined to comment, and no charges have been filed.

The review is part of a broader Justice Department examination into alleged money laundering and corruption involving entities tied to Khamenei. Investigators are examining large money transfers between firms connected to his network and the role that U.S. correspondent banks may have played in processing those transactions. Officials cautioned that the existence of an inquiry does not imply wrongdoing by any institution and noted that such reviews often conclude without enforcement action.

The figure at the center of the inquiry has become one of the most influential people in Iran. Khamenei became supreme leader in March 2026 following the death of his father during the Iran conflict. He was sanctioned by the United States in 2019. Prior reporting has described a business network spanning shipping interests, overseas bank accounts and real-estate holdings across Europe and the Middle East.

Part of the scrutiny reportedly involves financier Ali Ansari, whom the United States sanctioned in October 2025 for alleged support of Iran’s Islamic Revolutionary Guard Corps. U.S. authorities allege that shell companies were used to acquire luxury hotels and commercial properties across Europe. Ansari’s legal representatives have denied any connection to Khamenei.

For the banks, the inquiry raises compliance questions. Large global institutions such as JPMorgan and Citigroup process trillions of dollars in international payments and are required to maintain extensive anti-money-laundering and sanctions-screening programs. A federal review could examine whether those controls functioned as intended and whether additional safeguards are needed.

The timing is notable. The inquiry surfaced as Washington and Tehran pursue diplomatic negotiations and as regulators continue warning financial institutions about Iranian sanctions-evasion techniques, including the use of shell companies, third-country intermediaries and digital assets. For now, the likely response from the banking sector will be enhanced monitoring and cooperation with investigators as authorities continue tracing the transactions in question.

JBizNews Desk
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A global retreat from technology stocks that forced the Korea Exchange to halt trading Tuesday rolled through Wall Street and stayed there into the close, dragging the tech-heavy Nasdaq to a second straight loss while the rest of the market wobbled. The selling started with memory-chip makers and spread across the artificial-intelligence trade, as investors questioned whether the months-long run in chip stocks had outpaced what the companies can actually earn. Adding fuel was a research note from Bank of America warning of up to three interest rate hikes this year — a sharp break from the cuts traders had been counting on from the Federal Reserve under Chair Kevin Warsh.

By the closing bell, the damage was lopsided. The Nasdaq Composite sank about 2.2%, or roughly 580 points, to 25,587.04. The S&P 500 fell about 1.4% to around 7,365, giving back an early attempt to hold steady. The Dow Jones Industrial Average finished essentially flat, down just 45.87 points, or 0.09%, to 51,666.84, cushioned by steadier non-tech names. The small-cap Russell 2000 slipped 0.96% to 2,975.48, dropping back below the 3,000 mark it had crossed for the first time only a day earlier.

Market movers

Memory-chip maker Micron Technology led the rout, dropping more than 10% in its worst day since June 5, a day ahead of its quarterly results. The pain ran across the sector: Nvidia fell 3.2% to $201.97 and Taiwan Semiconductor dropped 5.2%, while Marvell Technology lost about 8% and Sandisk sank roughly 11%. The VanEck Semiconductor ETF, which tracks the global chip industry, fell 6.5%. Alphabet slid about 2%, extending a 5% drop the day before tied to the departure of two senior AI researchers.

Oracle fell about 2% after disclosing in a regulatory filing that it cut roughly 21,000 jobs — nearly 13% of its workforce — over the past year. AMC Entertainment plunged nearly 24% after the theater chain announced plans to raise $200 million by selling stock to pay down debt.

There were pockets of green. IBM rose more than 4% after JPMorgan upgraded it to “overweight,” and Accenture gained nearly 2% after boosting its share buyback by $2 billion. With money rotating into safer corners, Walmart and Johnson & Johnson each added about 2%. And SpaceX, which had briefly erased all of its post-debut gains, clawed back in the afternoon to finish slightly higher, snapping a brutal three-day slide.

Analysts pinned the swoon on more than valuations. Anna Macdonald, investment strategy director at Hargreaves Lansdown, said strong results from Broadcom had failed to deliver the upgraded outlook investors wanted, triggering a selloff that began in U.S. chipmakers and fed through to Asia overnight.

Commodities and volatility

Oil kept sliding as traders weighed Monday’s U.S.-Iran agreement on a 60-day roadmap toward a final deal, which eased fears of a supply shock. West Texas Intermediate crude traded near $73 a barrel. Gold, normally a refuge when stocks fall, dropped about 1.8% to roughly $4,127 an ounce as investors raised cash. The mood showed clearly in the CBOE Volatility Index, Wall Street’s “fear gauge,” which jumped nearly 13% to 19.51.

In the bond market, yields stayed elevated, with the 10-year Treasury near 4.50% and the 2-year Treasury at its highest level since early 2025, reflecting renewed concern about potential rate hikes. Bitcoin hovered near its low for the year.

The day ahead

The earnings spotlight swings to delivery giant FedEx, reporting after Tuesday’s close, alongside Cerebras Systems, posting its first results since its May IPO. The bigger test comes Wednesday night, when Micron reports and offers the clearest read yet on whether demand for AI memory chips can justify the prices investors have paid.

Later in the week, investors will focus on the government’s release of May PCE inflation data and a final estimate of first-quarter GDP on Thursday, both of which could shape expectations for the Federal Reserve’s next move.

JBizNews Desk | New York

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Standing outside 10 Downing Street on Monday, Keir Starmer announced he will step down as Britain’s prime minister and leader of the governing Labour Party, ending a turbulent run less than two years after a landslide election win. Starmer said he had informed King Charles III of his decision and would stay in office until Labour chooses a successor, with nominations opening July 9 and the contest completed by the summer recess on July 16. “I have heard the answer of my parliamentary party,” he said, acknowledging he had lost its confidence.

His exit sets up a familiar scene: another handover at the top of British government. Whoever wins is set to become the United Kingdom’s seventh prime minister in a decade — a churn that has defined the country’s politics since the 2016 vote to leave the European Union.

The clear front-runner is Andy Burnham, the popular mayor of Greater Manchester, who returned to Parliament by winning a June 18 special election in suburban Manchester. With former Health Secretary Wes Streeting dropping out and backing him, Burnham could take the Labour leadership uncontested and enter office in late July. A Labour MP under former Prime Ministers Tony Blair and Gordon Brown, Burnham built his reputation as mayor by steering growth into once-blighted post-industrial areas.

The timing is striking. Starmer’s resignation landed on the eve of Tuesday’s 10th anniversary of the Brexit referendum, and the reckoning over that vote is again front and center. The pressure that toppled him built for months: Labour was hammered in May’s local elections by the rising anti-immigration Reform UK party, led by Nigel Farage, and Starmer’s approval ratings had sunk to record lows as voters complained they had felt no real change.

That stalled progress is rooted partly in the economy. A new analysis drawing on Bank of England corporate data, led by Stanford economist Nicholas Bloom, estimates Brexit reduced UK GDP by 6% to 8% by 2025, with investment down 12% to 18%, and productivity and employment each off 3% to 4%. Bloom tied the damage to elevated uncertainty, reduced demand, diverted management time, and misallocation from a protracted Brexit process. Britain’s official forecaster, the Office for Budget Responsibility, assumes Brexit will permanently cut both imports and exports by about 15%.

Not every economist agrees on the size of the hit, and the figure is genuinely contested. The OBR’s official working assumption is that Brexit leaves UK output about 4% lower than it would have been — a number it reached by averaging earlier studies rather than producing its own research. Economist Jonathan Portes puts the realistic range at 4% to 5% of GDP, or roughly £120 billion to £150 billion a year, calling Brexit a “slow-burning drag” rather than a catastrophe. Others argue the costs have been overstated, noting that UK growth since 2016 has matched France and run at double the rate of Germany.

For ordinary Britons, the effects show up in prices. A weaker pound after the referendum pushed up import costs, with consumer prices estimated to have risen about 2.9% as a direct result. The promised upside has been modest: new trade deals with Australia, New Zealand, India, and Japan are trivial next to UK-EU trade, which was worth about £856 billion last year.

The backdrop for Burnham, should he take over, is an economy still under strain. The Bank of England held its key interest rate at 3.75% on June 18, declining to raise it even as inflation stayed elevated, lifted partly by higher energy prices from the recent U.S.-Iran conflict. That leaves Britain’s next leader facing the same knot that frustrated his predecessors: weak growth, stubborn prices, and a public running short on patience.

Whether Burnham can break the cycle — or simply becomes the seventh name on a long list — will hinge on whether he can lift growth in a way voters actually feel. That, more than any leadership contest, is the test that has defeated nearly everyone who has held the job since 2016.

JBizNews Desk | New York

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Some of the biggest names in fuel retailing are being accused of using artificial intelligence to quietly inflate what Californians pay at the pump. In a proposed class-action complaint filed Monday, June 22, in federal court in Sacramento, a group of California drivers alleged that gas station operators including BP, Marathon Petroleum, Walmart, 7-Eleven, Albertsons and Alimentation Couche-Tard’s Circle K used a shared AI pricing tool to “coordinate high prices and wring more money from the pockets of consumers.” The companies have not yet responded to the claims.

At the center of the suit is software from Kalibrate Fuel Systems, a fuel-pricing technology firm. According to the complaint, the defendants — which together operate more than 1,700 filling stations across California — fed the tool confidential data and let it automatically adjust prices based on what nearby competitors were charging. The drivers argue that routing pricing decisions through a single common algorithm let rivals effectively set prices in lockstep without an old-fashioned smoke-filled-room agreement.

“Defendants have conspired to put an end to competition, joining an AI-powered trust to ensure that no matter where a driver turns, the price for gasoline is artificially high,” the complaint states.

The alleged cost to consumers is steep. The suit claims the tool pushed gasoline prices up by as much as 22 to 30 cents a gallon, and diesel by as much as 33 cents, in areas where a high share of stations used it. Because of the size of California’s market, every additional penny per gallon costs the state’s drivers roughly $134 million a year, according to figures cited in the filing. The alleged inflation came on top of pump prices that had already surged during recent energy-market volatility.

The case leans on two legal hooks. It accuses the operators of violating California’s primary antitrust law, the Cartwright Act, and of running afoul of Assembly Bill 325, a state law that took effect January 1 and was written specifically to address algorithmic price-fixing concerns. The lawsuit is among the first major tests of AB 325, making it a closely watched case for businesses using automated pricing systems.

The defendants are heavyweight, publicly traded companies, which raises the stakes well beyond California’s gas stations. BP and Marathon Petroleum are among the largest fuel suppliers in the country. Walmart and Couche-Tard are major retailers. Albertsons and 7-Eleven operate fuel stations alongside their core businesses. Kalibrate, the software vendor, sits at the center of the alleged scheme, though the complaint focuses primarily on the retailers using the technology. None of the companies has publicly commented on the allegations, which remain unproven.

The lawsuit follows growing regulatory scrutiny of fuel pricing. In May, California’s Division of Petroleum Market Oversight, an independent watchdog within the California Energy Commission, issued subpoenas to some station owners over elevated gasoline prices. The legal theory also mirrors arguments increasingly advanced by federal antitrust regulators, who have contended that competitors using a common pricing algorithm can form what is known as a “hub-and-spoke” conspiracy even without direct coordination among themselves.

For businesses, the case is a warning shot about a rapidly expanding technology. Pricing algorithms that analyze market conditions and competitor data have become common across retail, real estate, hospitality and fuel sales because they can optimize margins in real time. But lawmakers and regulators are increasingly questioning where optimization ends and unlawful coordination begins. California’s case could help shape how courts nationwide approach AI-driven pricing systems.

The drivers are seeking unspecified damages on behalf of California consumers who purchased fuel at affected stations. Whether the lawsuit ultimately succeeds may depend on a question courts are only beginning to address: when an algorithm sets the price, who bears responsibility for the outcome? The answer could have implications far beyond the gas pump, reaching industries across the economy that now rely on AI to make pricing decisions.

JBizNews Desk
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The largest pension fund in the United States is about to change how it invests roughly $600 billion. Starting July 1, 2026, the California Public Employees’ Retirement System (CalPERS) will run its money under a new model called the Total Portfolio Approach, a shift its board approved on November 17, 2025, and one that Chief Investment Officer Stephen Gilmore has spent more than a year championing. CalPERS says it is the first public pension fund in the country to make the move.

The change matters far beyond Sacramento. CalPERS pays retirement benefits for millions of California public workers, including teachers, firefighters, police officers and government employees. Its investment performance helps determine how much taxpayers and local governments must contribute to fund those pensions. Stronger returns can ease pressure on public budgets, while weaker performance can increase future funding obligations.

For years, CalPERS relied on a traditional investment framework known as strategic asset allocation. Under that system, the board established target allocations for stocks, bonds, private equity, real estate and other asset classes, and investment teams generally stayed within those predetermined buckets.

The Total Portfolio Approach breaks down those barriers.

Instead of focusing on whether individual asset classes meet target allocations, investment teams will evaluate opportunities based on how much they improve the entire portfolio. Managers will compete for capital across all investment categories, with funds directed toward opportunities believed to offer the best overall risk-adjusted returns.

To measure success, CalPERS will use a reference portfolio consisting of 75% equities and 25% fixed income investments. That benchmark is slightly more aggressive than the fund’s previous allocation structure and is designed to create room for investments that may generate higher long-term returns.

Investment staff will have flexibility to deviate from the benchmark but must remain within an overall risk budget of 400 basis points, or 4 percentage points. The board plans to review that risk limit every four years as part of its regular planning process.

Gilmore estimates the strategy could add approximately 50 to 60 basis points annually to investment performance. While that may sound modest, even half a percentage point of additional return can translate into billions of dollars over time for a fund of CalPERS’ size.

He has described the initiative as both a performance strategy and a cultural shift, emphasizing portfolio-wide decision-making rather than rigid allocation targets.

Gilmore brings extensive international experience to the role. He joined CalPERS in July 2024 after leading the New Zealand Superannuation Fund, where the sovereign wealth fund generated average annual returns exceeding 12% over a decade. He previously held senior positions at Australia’s Future Fund and the International Monetary Fund.

While the Total Portfolio Approach has become increasingly common among sovereign wealth funds and large institutional investors overseas, it remains relatively uncommon among U.S. public pension systems, which often operate under tighter governance structures and greater political scrutiny.

David Miller, chair of the CalPERS Investment Committee, said the board approved the shift as part of its effort to strengthen the fund’s long-term financial position and help reduce future costs borne by employers and taxpayers.

The change emerged from CalPERS’ latest Asset Liability Management Review, a process conducted every four years to assess whether expected investment returns are sufficient to meet future pension obligations. The fund currently assumes a long-term annual return of approximately 6.8%.

Not everyone is convinced the strategy will deliver the promised benefits.

Critics note that the effectiveness of total portfolio investing is difficult to measure because institutions implement the approach differently. Comparisons between funds can be challenging, making it difficult to determine whether better results come from the strategy itself or from favorable market conditions.

Some observers also point out that research supporting the model relies on a relatively limited sample size. Gilmore has acknowledged that investors should be cautious about drawing broad conclusions from any single study.

The model’s flexibility is its primary attraction, but it also concentrates more responsibility in the hands of investment staff and senior leadership. That increased discretion could lead to stronger performance—or amplify mistakes if major investment decisions prove unsuccessful.

For California’s public workers, taxpayers and government employers, the goal is straightforward: generate better long-term returns while maintaining disciplined risk management.

Whether the experiment succeeds may take years to determine.

The clock starts July 1.

JBizNews Desk — California

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The American job market showed surprising resilience this spring. According to the U.S. Bureau of Labor Statistics, whose Job Openings and Labor Turnover Survey for April was released Tuesday, June 2, the number of open positions rose to 7.6 million — a jump of 731,000 from March and the highest level in nearly two years, since May 2024. The figure blew past the 6.8 million that economists surveyed by Dow Jones had expected, pushing the number of available jobs back above the total of unemployed workers.

The internals were more mixed than the headline suggests. Hiring actually slowed, with companies bringing on 5.12 million workers, down 419,000 from March, while total separations eased to 5.0 million. Within that, quits held about steady at 3.0 million and the quits rate slipped to 1.9%, its lowest in years — a sign that fewer workers feel confident enough to leave a job voluntarily. Layoffs and discharges stayed contained at 1.7 million, a rate of 1.1%, with retail trade actually shedding fewer jobs than the month before.

The surge in openings was narrow. Nearly all of it came from one category: professional and business services, which added 668,000 postings. Some economists read that as evidence pushing back on fears that artificial intelligence is gutting white-collar demand. Health care and social assistance added about 89,000 openings. Financial activities went the other way, with openings falling 134,000, and most other industries changed little.

Beneath the numbers is a split between big and small employers. According to Indeed’s Hiring Lab, openings at the very largest establishments — those with 5,000 or more workers — stood about 81% above their pre-pandemic level, by far the strongest of any group. But those giants account for less than 5% of all openings. The roughly 90% of postings tied to employers with fewer than 1,000 workers have been comparatively flat since mid-2024, meaning the typical small business is holding steady rather than booming.

Economists described a “low-hire, low-fire” market that is stable for now but vulnerable. “For now, the labor market remains mostly stable,” said Matthew Martin, senior U.S. economist at Oxford Economics, who warned that the Iran war could test hiring as household spending and uncertainty weigh on firms. Noah Yosif, chief economist at the American Staffing Association, cautioned that one report does not make a trend.

The data matters for businesses because a steady job market underpins consumer spending, which drives most of the U.S. economy, and for the Federal Reserve, which watches JOLTS for signs of slack. Under new Chair Kevin Warsh, the Fed has shifted its worry from labor weakness to inflation driven by tariffs and soaring energy costs, and is widely expected to hold rates steady. The next read arrives soon: the BLS is scheduled to release the May JOLTS figures on June 30, which will show whether April’s rebound in demand held up.

JBizNews Desk
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NEW YORK — Shoppers enter an Aldi supermarket, the discount chain known for its private-label products and low prices.

Aldi planted its flag in one of the country’s toughest retail markets on Friday, June 19, opening its first Midtown Manhattan store with a morning ribbon-cutting. Chris Daniels, an Aldi regional vice president, said New Yorkers will quickly see why so many shoppers “already choose ALDI for their weekly grocery trip.”

The opening is more than a single store. It is a marker of how aggressively the discount grocer is expanding — and how hard it is squeezing rivals Walmart and Costco on price.

Aldi runs a no-frills, limited-selection model built almost entirely on private-label products. About 90% of what it sells is its own brand, which gives the company tight control over costs and lets it undercut traditional supermarkets. The Midtown store will be open daily from 9 a.m. to 9 p.m., hours aimed at working shoppers.

The Manhattan move also highlights an edge Aldi holds over Costco. Aldi’s small-format stores fit into dense city neighborhoods where Costco’s warehouse model cannot go, letting Aldi chase urban shoppers the membership clubs struggle to reach.

The expansion is moving fast. Aldi plans to open 180 new U.S. stores in 2026 and is pushing west into Colorado for the first time. Those openings are part of a larger goal to add 800 stores by the end of 2028, one of the most ambitious growth plans in American grocery.

Price is the other front. Aldi rolled out summer-long price cuts on more than 400 products, pitching the reductions as a way for shoppers to save a combined $100 million. Chief Commercial Officer Scott Patton has said the company leans on its private-label lineup and rapid store growth to keep prices low, arguing that more stores actually help it cut prices further by spreading costs.

The pressure is forcing the whole industry to respond. Kroger has told investors it plans widespread price reductions. Stop & Shop recently finished lowering everyday prices across more than 350 stores. Food Lion has run multi-week savings events with loyalty discounts. Across the board, grocers are racing to convince budget-strained shoppers their carts won’t break the bank.

That is a tall order for traditional supermarkets. Research from AlixPartners found only about 13% of shoppers who regularly visit traditional grocery stores believe those chains offer low prices — a perception problem discounters like Aldi and Walmart have spent years turning to their advantage.

For shoppers, the upshot is real savings on staples like milk, eggs, bread, and produce. In price checks across major chains this year, Aldi has repeatedly landed at or near the bottom on basics — the everyday items families buy week after week.

For suppliers and private-label manufacturers, the boom is a mixed bag. Aldi’s growth means bigger orders and higher volumes, but the relentless focus on low prices keeps pressure on margins up and down the supply chain. Farmers and food producers watch closely as the chains adjust orders to match shifting demand.

Aldi’s U.S. business is led by chief executive Atty McGrath, who took the top job in 2025. Under his watch, the company has tied its low-price message directly to its expansion: the more stores it opens, the more buying power it gains, and the more it can pass savings to customers.

What comes next is a wave of new store openings and likely fresh rounds of price matching from Walmart and Costco. Analysts will be watching market-share data in the coming quarters to see whether Aldi’s push is pulling shoppers from its larger rivals.

The bigger picture is straightforward for American families: more competition on price is good news at the checkout. As Aldi pushes into new markets and the big chains fight back, the savings war is playing out one grocery cart at a time.

JBizNews Desk | New York
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When a Federal Reserve official speaks about the economy, the expectation is usually that everyone hears the message at the same time — through a public speech, a press conference, congressional testimony or a published interview.

This week, one of the Fed’s most powerful officials instead spoke behind closed doors.

Michelle Bowman, the Federal Reserve’s Vice Chair for Supervision, attended a private, invitation-only dinner hosted by Bank of America for select clients in New York on Wednesday evening, just hours after the central bank announced its latest interest-rate decision. According to people familiar with the gathering, Bowman was the featured guest at the event.

The dinner immediately raised questions because of both who attended and when it occurred.

In a statement, Bowman said she did not discuss monetary policy and has “consistently complied with all applicable FOMC and ethics rules.” The Federal Reserve’s rules do not prohibit officials from attending private events, and there is currently no indication that any confidential information was shared.

Still, the controversy is less about what was said and more about who had access.

Private client dinners are a longstanding part of Wall Street culture. Major banks routinely host exclusive gatherings for large investors, corporate executives and wealthy clients. The value of those events often comes not from formal presentations but from direct access to influential decision-makers.

For Bank of America, securing the appearance of the nation’s top banking regulator offered a powerful attraction for clients. For attendees, it provided face-to-face access to someone who helps oversee the financial institutions that control trillions of dollars in assets.

That access is precisely why critics are concerned.

Unlike a private-sector executive, Bowman is a public official. She helps write and enforce regulations affecting the largest banks in the country, including Bank of America itself. She also participates in decisions that influence borrowing costs across the American economy.

The timing of the event amplified those concerns.

The Federal Open Market Committee (FOMC) operates under a communications blackout period surrounding each policy meeting. During that period, Fed officials avoid public commentary on monetary policy and economic conditions to ensure that markets receive information fairly and simultaneously.

The dinner occurred during that sensitive window, shortly after the Fed’s latest rate announcement.

Supporters of the current rules argue that attending a private dinner is not the same as delivering private policy guidance. They note that regulators routinely meet with bankers, investors, consumer groups and businesses to understand how regulations affect the economy.

Bowman herself has repeatedly argued that direct engagement with the banking industry is an important part of effective supervision and policymaking.

Critics, however, see a broader issue.

A public speech places every investor, saver, borrower and business owner on equal footing. A private dinner attended only by selected clients of one major bank does not.

Even if no policy information changes hands, critics argue that the appearance of preferential access can erode confidence in the fairness of financial regulation.

The controversy also lands at a politically sensitive moment.

Appointed by President Donald Trump and elevated to the Fed’s top regulatory role last year, Bowman has become one of the leading advocates for easing certain banking regulations. She has supported reviewing capital requirements, streamlining supervisory processes and reducing regulatory burdens on financial institutions.

Her critics, including Sen. Elizabeth Warren, have accused her of being too close to the banking industry. Warren and other Democrats have previously questioned whether Bowman has given excessive weight to complaints from bank executives when shaping regulatory decisions.

Against that backdrop, a private appearance before clients of one of the country’s largest banks inevitably attracts scrutiny.

For ordinary Americans, the issue may seem distant, but the implications are not.

The Federal Reserve influences mortgage rates, auto loans, credit-card interest, savings-account yields and countless other financial products that affect household budgets. It also oversees the banking system where Americans keep their money.

Public trust in those institutions depends heavily on the belief that regulators serve the broader public rather than any particular group of financial insiders.

That is why questions surrounding access matter.

If large investors and major banking clients appear to have opportunities unavailable to ordinary citizens, confidence in the system can weaken even when no rules are technically broken.

This week’s event was especially notable because it came during the first major policy cycle under new Federal Reserve Chair Kevin Warsh, whose leadership is already being closely watched by markets and lawmakers.

Whether the Fed chooses to review its policies regarding private meetings remains unclear.

For now, Bowman maintains she followed all applicable rules, and there is no evidence she violated any Federal Reserve guidelines.

The larger debate is whether those guidelines are sufficient in an era when public confidence in institutions is increasingly tied not only to what officials do, but also to how it looks when they do it.

JBizNews Desk | Washington

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The Justice Department on Friday, June 19, refused a federal judge’s order to state, in a sworn written filing, that it has truly abandoned a controversial $1.8 billion “anti-weaponization fund,” calling the demand “unnecessary” and warning that compelling testimony from senior executive-branch officials “implicates serious separation of powers concerns.” The refusal, filed in federal court in Alexandria, Virginia, leaves open the possibility that the taxpayer-funded program could be revived and keeps a politically charged standoff between the administration and the courts alive.

The fund was announced in May to compensate people who say they were wrongly targeted by the government — what supporters call victims of “lawfare” — during the Biden administration. It grew out of a legal settlement ending a lawsuit President Donald Trump had filed against the IRS, under which Trump agreed to drop a $10 billion claim against the agency and two related civil claims, worth about $230 million, tied to the Russia investigation and the 2022 search of his Mar-a-Lago home. Critics, including the watchdog group Citizens for Responsibility and Ethics in Washington, called it a “jaw-dropping act of presidential corruption” and argued it was illegal because Congress never approved the money.

The program quickly became a political problem, even within Trump’s own party. Republicans on Capitol Hill objected, and the dispute threatened to tangle up the GOP’s immigration agenda. Under that pressure, Acting Attorney General Todd Blanche announced at a June 2 congressional hearing, “We’re not moving forward with the fund — period.” But he declined to put that promise in writing, telling the panel he was “not committing” to formally abandoning it. Democratic senators including Sheldon Whitehouse and Dick Durbin have framed the plan as a misuse of taxpayer money.

That gap — a verbal promise but no binding document — is what landed the matter before U.S. District Judge Leonie Brinkema. She had already issued an order indefinitely blocking the fund, said the spoken assurances weren’t enough, and gave Blanche, Treasury Secretary Scott Bessent and Associate Attorney General Stanley Woodward a week to sign sworn statements that the fund was dead. Her doubts grew after Trump, days after Blanche’s testimony, publicly said he still wanted the fund, which the judge pointed to as reason to question the department’s claims.

On Friday, the department said no. In the filing, Justice Department lawyer Andrew Block argued that the Acting Attorney General had already testified the fund was “not going forward, period,” that government counsel had twice signed briefs reaffirming the point in court, and that all those statements were made “against the backdrop of serious penalties for falsity.” Forcing senior officials to swear to it on the judge’s command, the department argued, would cross constitutional lines.

Opponents aren’t satisfied. They note the department has not formally rescinded the May settlement that created the fund, which they argue means it could still proceed or be rebuilt in another form. A separate watchdog suit in Washington, D.C., made the same case; there, U.S. District Judge Richard Leon dismissed the challenge as moot given the government’s repeated promises, but issued a warning to the administration as he did so. A bipartisan group of 35 former federal judges has separately asked a court in Miami to reopen the underlying settlement and review whether it was proper.

A tax thread keeps the fight tied to the IRS. Blanche has said he will not withdraw a memo that bars the IRS from reviewing the past tax returns of Trump, his family and his businesses — a restriction that stays in place regardless of what happens to the fund itself.

For now, the money is frozen and the legal questions are unresolved. The core issue is whether a president can set aside public funds to pay people he believes were wronged by the previous administration, and whether a spoken pledge to drop the idea is enough to satisfy a court. With the department declining to sign on the dotted line, Judge Brinkema will now decide whether the case can be closed or the fight goes on.

JBizNews Desk
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