The U.S. Census Bureau reported Friday that America’s advance goods trade deficit jumped to $105.8 billion in May, up a sharp $22.7 billion from April’s revised $83.0 billion and the widest monthly gap in more than a year. The figure came in the agency’s Advance Economic Indicators Report and badly missed Wall Street forecasts, which had centered near $85 billion.

The swing was driven by both ends of the trade ledger. Goods exports fell $11.8 billion to $207.7 billion in May, while goods imports rose $10.9 billion to $313.4 billion. A drop in exports paired with a jump in imports is the textbook recipe for a wider deficit, and it landed in a single month.

The May blowout interrupts what had been a steady narrowing. Through April, the Census Bureau had logged a goods deficit that fell to $82.4 billion, with exports hitting a record $219.7 billion. For the January-April stretch, the cumulative goods gap had dropped to roughly $330 billion from about $549 billion in the same span of 2025, as the tariff-driven import rush of early 2025 unwound.

May reversed that story. The wider deficit subtracts directly from gross domestic product, because imports count against growth in the national accounts. The reading matters for the second-quarter scorecard, and forecasters had already trimmed their Q2 GDP nowcasts before the release.

The numbers also reignite the tariff debate. Companies spent much of 2025 pulling shipments forward to beat duties, then pulled back, producing the wild monthly swings now showing up in the data. A one-month surge in imports suggests some firms restocked shelves and warehouses heading into summer, even as exports softened.

The trade balance carries weight beyond economists’ spreadsheets. A weaker export month points to softer foreign demand for American-made goods, feeding into factory output, shipping volumes and manufacturing payrolls. Importers, meanwhile, continue paying tariffs at the border that often work their way through to consumer prices.

Wholesale inventories rose 0.3% in May to $944.0 billion, while retail inventories climbed 0.6% to $832.2 billion, the Census Bureau said. Building stockpiles can indicate businesses expect steady sales, though it can also signal goods are accumulating faster than consumers are buying.

The advance report provides markets with an early, near-complete look at U.S. goods trade roughly three to four weeks after the month closes. The full report, including services, will be released in early July through the comprehensive FT-900 report published jointly by the U.S. Census Bureau and the Bureau of Economic Analysis. Because the United States typically runs a surplus in services, that report often narrows the overall trade deficit.

For now, the May reading serves as another reminder that America’s trade picture remains volatile and politically charged. The Trump administration has promoted tariffs as a tool to reduce the trade deficit and bring manufacturing back to the United States. A monthly deficit this large complicates that narrative and gives critics new ammunition to argue that tariffs continue disrupting supply chains without producing a lasting reduction in the trade gap.

The next advance goods trade report, covering June, is scheduled for release in late July. Until then, May’s results leave the trade story in familiar territory: long-term improvement mixed with sharp month-to-month swings that continue to reshape expectations for economic growth, manufacturing activity and U.S. trade policy.

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China Southern Airlines said in a stock-exchange filing Friday that it will purchase seven Boeing freighter aircraft valued at approximately $3.62 billion at list prices, giving the U.S. aircraft manufacturer one of its most significant wins in China after years of limited commercial orders. The agreement includes two Boeing 777F freighters and five next-generation Boeing 777-8F freighters, along with options to purchase three additional 777-8F aircraft.

The announcement ends a lengthy drought for Boeing in one of the world’s largest aviation markets. Chinese airlines had not publicly announced a major Boeing aircraft purchase since 2017, instead directing most fleet expansion toward Airbus as trade tensions between Washington and Beijing reshaped commercial aviation. Earlier this year, China Southern itself agreed to purchase 137 Airbus aircraft valued at approximately $21.4 billion at catalog prices.

For Boeing, the new order represents another milestone in Chief Executive Kelly Ortberg’s effort to restore production, improve deliveries and rebuild relationships with international customers following years of manufacturing challenges and regulatory scrutiny. Returning to China’s aviation market has remained one of the company’s highest strategic priorities.

The published value of the agreement comes with an important qualification. Although the aircraft carry an estimated list price of $3.62 billion, large commercial aircraft transactions almost always include substantial confidential discounts. China Southern received approval from the Hong Kong Stock Exchange to keep the final purchase price confidential, arguing that disclosure would weaken its negotiating position and reveal commercially sensitive information.

The aircraft will be acquired through China Southern Air Logistics and its cargo subsidiary, China Southern Airlines Cargo, with financing provided from the airline’s own resources. If the company exercises all three purchase options, the transaction’s estimated catalog value would increase to roughly $5.24 billion.

Deliveries will occur over an extended period, reducing the airline’s near-term financial burden. The aircraft are scheduled for delivery between 2027 and 2034, although the agreement remains subject to shareholder approval and authorization from relevant Chinese regulatory authorities before becoming final.

The order also reflects continued strength in the global air cargo market. Demand for dedicated freight aircraft has remained resilient as cross-border e-commerce, express shipping and international logistics continue expanding. Boeing’s 777-8F, the company’s newest large twin-engine cargo aircraft, is expected to become one of the industry’s flagship long-haul freighters over the coming decade.

Beyond the immediate financial value, the transaction carries broader strategic importance for Boeing. Re-establishing business with one of China’s largest airlines could create opportunities for future passenger aircraft sales in a market that has increasingly favored Airbus. Each wide-body aircraft produced also supports thousands of jobs throughout Boeing’s U.S. manufacturing network and its extensive supplier base.

The order also carries geopolitical significance. At a time when broader trade relations between the United States and China remain strained, a multibillion-dollar purchase of American-built aircraft demonstrates that commercial aviation continues to offer areas where business interests can outweigh political tensions. Industry analysts caution, however, that additional orders will depend heavily on the future direction of relations between the two governments.

For China Southern, the agreement supports the airline’s strategy of expanding its cargo operations to capitalize on continued growth in global freight demand. While analysts currently maintain generally neutral ratings on the carrier, the investment reflects management’s confidence in long-term cargo market expansion despite ongoing economic uncertainty.

Although the purchase alone will not restore Boeing’s former dominance in China, it represents the company’s clearest commercial breakthrough in the country in nearly a decade. After years of limited activity, a $3.62 billion order—with the possibility of additional aircraft—signals that Boeing may once again be gaining traction in one of aviation’s most important markets.

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The Office of the U.S. Trade Representative is set to launch the first joint review of the United States-Mexico-Canada Agreement (USMCA) on July 1, and automakers across North America are preparing for what many consider the biggest risk to the industry: potential changes to the agreement’s automotive rules of origin. Trade officials from the three countries will begin discussions to determine whether to extend the 2020 trade pact or move toward years of renegotiation.

For the North American auto industry, few events carry greater significance. Millions of vehicles and auto parts cross the borders of the United States, Mexico, and Canada every year, and the USMCA determines which products qualify for duty-free treatment.

Current requirements are already among the strictest in the world. To avoid tariffs, a qualifying vehicle must contain at least 75% North American content, satisfy a 40% to 45% labor-value requirement tied to workers earning at least $16 per hour, and source 70% of its steel and aluminum from North America. Any tightening of those standards would require automakers to significantly restructure supply chains that have evolved over decades.

The Trump administration is widely expected to advocate for stronger domestic manufacturing requirements as part of its broader effort to bring more production and industrial jobs back to the United States. Administration officials have repeatedly indicated they favor higher North American content thresholds for automobiles and automotive components.

Negotiations are already underway. The first bilateral discussions between the United States and Mexico concluded in late May, covering automotive rules of origin, steel and aluminum requirements, and broader economic security issues. Canada has not yet participated in those initial talks, as trade tensions between Ottawa and Washington continue.

Even before any agreement changes, uncertainty itself carries economic costs. Automakers typically make investment, sourcing and factory-location decisions years in advance. Suppliers, particularly smaller manufacturers, face growing challenges as compliance requirements become more demanding and documentation requirements continue expanding.

China also remains a major focus of the review. U.S. officials have expressed concern about increasing amounts of Chinese-made content entering North American supply chains. Lawmakers have also questioned Canada’s commercial relationship with Beijing, raising concerns that Chinese investment or components could circumvent existing trade rules. Several members of Congress have urged negotiators to prioritize restricting Chinese influence in North American manufacturing.

One important safeguard remains in place. Even if the three countries fail to reach agreement during the review process, the USMCA would not immediately expire. The agreement contains a 16-year sunset provision, meaning annual reviews would begin while the current framework remains in effect through 2036. Although that avoids an immediate disruption, years of uncertainty could still discourage long-term manufacturing investment.

The consequences extend well beyond manufacturers. Stricter content rules or additional tariffs could increase vehicle production costs, raise prices for consumers, reduce automobile sales and potentially affect employment throughout the North American automotive supply chain. Previous studies by the U.S. International Trade Commission found that existing USMCA rules shifted some production back to the United States, although the broader economic impact has remained relatively modest.

Despite ongoing uncertainty, manufacturers continue investing heavily in Mexico. Foreign direct investment reached record levels during 2025, with billions of dollars in additional automotive and advanced-manufacturing projects announced entering 2026. Those investments suggest many companies continue making decisions based on long-term labor costs and regional manufacturing advantages rather than waiting for the review’s outcome.

Trade advisers are offering companies one consistent recommendation: understand every link in your supply chain before negotiations intensify. For an industry built on long planning cycles, integrated production networks and narrow profit margins, the decisions made over the coming weeks could shape North American automotive manufacturing for years to come.

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OpenAI, the company behind ChatGPT, unveiled its first custom chip on Wednesday in partnership with Broadcom, the two companies announced in a joint statement, a move that pushes the AI leader into designing the silicon that runs its own models and chips away at its heavy dependence on Nvidia. The processor, named Jalapeño, was delivered to OpenAI CEO Sam Altman and President Greg Brockman by Broadcom President and CEO Hock Tan, marking what the companies called an important step in OpenAI’s strategy to “build the full stack” behind its models and products.

The chip is built for a specific job. Jalapeño was designed for inference, the process of running pre-built AI models in response to user commands, rather than the more intensive work of training them. It is an ASIC (application-specific integrated circuit), a type of chip that industry experts say is less flexible than Nvidia’s GPUs but is also cheaper and can be tailored to specific AI tasks. In practice, that means it is purpose-built to serve products like ChatGPT and the company’s coding tools at lower cost.

The development speed was unusual, and AI itself helped. OpenAI said the chip was designed end to end in just nine months with help from its own AI models. President Greg Brockman said, “The degree to which our models have been able to accelerate it was very surprising to us.” The company described the effort as what may be the fastest ASIC development cycle ever achieved in high-performance semiconductors.

Early results carry a clear message to the market leader. The companies said Jalapeño provides better performance per watt than current state-of-the-art chips in early testing, a direct challenge to Nvidia’s dominance. Performance per watt has become one of the industry’s most important measurements because electricity is among the largest and fastest-growing costs of operating AI systems at scale. A more efficient chip can dramatically reduce the cost of delivering AI services.

The strategic logic extends beyond technology. OpenAI is one of the world’s largest buyers of Nvidia processors but competes with nearly every major AI company for access to those chips. Designing its own processors gives OpenAI greater control over its computing infrastructure while reducing reliance on outside suppliers. Even modest reductions in inference costs could significantly improve the economics of operating products used by hundreds of millions of people.

The partnership is also another major victory for Broadcom, which has quietly become one of the biggest beneficiaries of the AI boom by helping hyperscalers and frontier AI labs design custom silicon. Broadcom shares have climbed roughly 10% so far in 2026 and have increased nearly sevenfold since the end of 2022. CEO Hock Tan said the collaboration will enable “gigawatt-scale data centers” with Microsoft and other partners beginning in 2026, describing it as the beginning of a multi-generation roadmap.

The announcement is part of a broader shift taking place across the AI industry. Earlier this year, OpenAI reached agreements to use Amazon Web Services’ Trainium chips while also expanding partnerships with Advanced Micro Devices (AMD) and Cerebras, which completed its initial public offering in May. Together, those deals reflect a growing determination among leading AI companies to diversify beyond Nvidia for the most critical—and expensive—component of AI infrastructure.

The rollout will happen gradually. Initial deployments of Jalapeño are expected by the end of 2026, beginning with limited prototypes before expanding in the years ahead. The platform combines OpenAI-designed AI accelerators with Broadcom’s networking technology and Celestica’s board and rack systems to build complete AI computing platforms.

For businesses and consumers, the importance of Jalapeño is not that it will appear on store shelves, but that it could lower the cost of artificial intelligence itself. OpenAI argues that AI-assisted chip design can accelerate innovation while reducing computing expenses across the industry. Lower inference costs make advanced AI services more affordable and scalable as billions of users rely on them daily. By designing its own hardware, OpenAI is betting that controlling both the models and the chips powering them will be essential to driving down the cost of intelligence—and reducing dependence on the company that has dominated the AI hardware market for years.

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The University of Michigan reported Friday that its final June consumer sentiment index rose to 49.5, up from May’s record low of 44.8 but still the second-weakest reading since the survey began in the 1970s. Joanne Hsu, director of the university’s Surveys of Consumers, said the gains were broad-based across income levels, wealth groups and political affiliations as gasoline prices eased.

The rebound snapped a three-month streak of declining confidence, but the overall level continues to paint a cautious picture of the American consumer. Even after the improvement, sentiment remains about 13% below the February 2026 reading recorded before the Iran conflict began and nearly 20% lower than a year ago, when the index stood at 60.7.

Two key components of the survey improved together. The index of consumer expectations climbed to 50.7 from 44.1 in May, a gain of roughly 15%, while the current economic conditions index increased to 47.7 from 45.8. Hsu said expected business conditions over the next five years surged approximately 16%, reflecting easing concerns about the long-term economic fallout from the Iran conflict.

Much of that improvement followed the decline in fuel prices. Brent crude oil has retreated since the United States and Iran signed a 60-day memorandum of understanding that eased tensions and reopened the Strait of Hormuz, helping push gasoline prices lower across the country. Lower-income households, which spend a greater share of their budgets on fuel, recorded some of the strongest improvements in confidence.

Inflation expectations also moved lower, an important development for the Federal Reserve. Consumers now expect inflation over the next year to average 4.6%, down from 4.8% in May, while long-term inflation expectations declined to 3.4% from 3.9%. Although both readings remain elevated compared with pre-2025 levels, the decline suggests households are becoming somewhat less concerned about future price increases.

The report arrives at an important time for retailers, restaurants and other consumer-focused businesses heading into the second half of the year. Consumer sentiment near historic lows typically leads households to postpone major purchases, seek discounts and reduce discretionary spending. Even so, June’s modest improvement could help stabilize consumer spending if confidence continues recovering through the summer.

The cost of living remains consumers’ biggest concern. Throughout the spring, a majority of respondents continued citing higher prices as the primary strain on their household finances, with gasoline costs and tariffs remaining among the most frequently mentioned pressures. Those concerns continue weighing on industries ranging from grocery retailers to automobile manufacturers and other sellers of big-ticket items.

The survey also carries implications for Federal Reserve Chair Kevin Warsh and policymakers who continue holding the benchmark federal funds rate between 3.5% and 3.75%. Lower inflation expectations provide some encouragement that price pressures may continue easing, but historically weak confidence underscores the economic uncertainty many households continue to feel.

The University of Michigan’s survey, conducted by telephone, measures Americans’ views of their personal finances, business conditions and buying climate. Interviews for the June report took place between May 19 and early June, capturing a period when gasoline prices were beginning to decline.

The findings broadly align with the Conference Board’s consumer confidence survey, which has also shown Americans feeling somewhat better than they did in May but still remaining cautious about the economy. Together, the two widely followed surveys suggest consumers are experiencing modest relief without regaining the optimism seen before inflation accelerated.

For now, June represents a welcome improvement rather than a decisive turning point. Americans benefited from lower gasoline prices, and that relief was reflected in their outlook. Whether confidence continues improving will largely depend on the direction of energy prices, inflation and broader economic conditions throughout the summer.

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Federal Reserve Chair Kevin Warsh used his first meeting in charge of the central bank this past week to hold interest rates steady and to make clear how he plans to run the place: by borrowing the playbook of Alan Greenspan, the legendary Fed chief who refused to raise rates during the 1990s technology boom. Speaking to reporters after the Fed left its benchmark rate in a range of 3.5 to 3.75 percent, Warsh announced he is creating five internal task forces, including one to study whether artificial intelligence is already changing how productive the American economy is.

The timing was striking. Greenspan died Monday, June 22, at the age of 100, having run the Fed from 1987 to 2006, the second-longest tenure of any chair. His death has reopened a debate that now sits at the center of Warsh’s job: when a new technology promises to make the economy more efficient, should the Fed sit tight and let it run, or raise rates to guard against inflation?

Here is the idea Warsh is reviving, in plain terms. In the late 1990s, the internet was reshaping how companies worked. Greenspan bet that this surge in productivity meant the economy could grow faster without prices spiraling, so he held rates lower than many of his colleagues wanted. Inflation stayed tame, and history largely proved him right. Warsh is making the same wager about AI. He has argued that artificial intelligence could push productivity growth back up toward 3 percent a year, roughly a full point above its long-run average, which in theory would let the economy expand at 3.5 to 4 percent without overheating.

The problem is the backdrop could hardly be more different. Inflation right now is hot. The Consumer Price Index rose to a 4.2 percent annual rate in May, the highest reading since April 2023, pushed up in part by higher oil and gas prices tied to the war with Iran. Core prices, which strip out food and energy, were up 2.9 percent. That leaves Warsh in a bind: cutting rates is hard to justify with inflation this high, yet his whole framework argues against hiking into what he sees as a productivity boom.

There is some evidence on his side. Labor productivity has climbed 2 to 3 percent a year since 2024, up from about 1.5 percent in the prior decade. Treasury Secretary Scott Bessent, who backed Warsh for the job, pressed the case Tuesday, June 23, in a speech at the Economic Club of New York. Bessent said he believes AI could at least double productivity and that Greenspan was correct that the 1990s tech boom did the same. He predicted inflation would fall back toward target as the Iran conflict winds down and gas prices ease, and said the administration’s financial deregulation has unlocked roughly $3 trillion in new lending capacity.

Warsh is also changing how the Fed communicates. The statement accompanying this week’s decision ran about a third shorter than those under his predecessor, Jerome Powell, and carried a more hawkish tone. Warsh has long complained that markets lean too heavily on the Fed’s forward guidance and its “dot plot” of rate projections, treating forecasts as promises. He wants investors to read the economic data themselves. Jeffrey Roach, chief economist at LPL Financial, said the shift marks a return to the Greenspan era, when Fed statements were deliberately minimal and focused on actions rather than explanations.

Not everyone is comfortable with the comparison. Greenspan’s patience in the 1990s helped inflate the dot-com bubble, and his later years saw the loose lending that fed the 2008 housing crash. Alan Blinder, who served as Greenspan‘s vice chair, called the current moment full of eerie parallels and said he hopes it does not end the same way. The deeper worry is simple: the disinflationary tailwinds Greenspan enjoyed—cheap imported goods and a shrinking federal deficit—have reversed. And unlike in the 1990s, the productivity gains from AI have not yet clearly shown up in the official numbers. If Warsh holds rates low and those gains arrive late or never, critics warn he could repeat the Fed’s 2021 mistake, when it called inflation temporary and prices later surged past 9 percent.

For everyday Americans, this is not an abstract argument. The Fed’s rate decisions flow straight into mortgage rates, car loans, credit card bills and the interest paid on savings. Warsh’s bet will determine whether borrowing costs start coming down later this year or stay elevated. As Gargi Chaudhuri, chief investment strategist for the Americas at BlackRock, put it, the real question is no longer what the Fed did this week, but how its new chair frames inflation, AI and the path ahead. Greenspan made his bet and got lucky—or got it right. Whether Warsh can do the same, no one yet knows.

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Wall Street closed a bruising week on Friday, June 26, with investors continuing to dump many of the technology companies that have fueled the market’s historic rally over the past two years. The Nasdaq Composite fell for a fifth consecutive session, capping its steepest weekly decline in months, as mounting concerns over artificial intelligence valuations, persistent inflation, and higher interest rates drove money into more defensive sectors. The pressure intensified after the Commerce Department reported Thursday that the Personal Consumption Expenditures (PCE) price index — the Federal Reserve’s preferred measure of inflation — climbed 4.1% in May from a year earlier, its highest reading since April 2023.

By the closing bell, the Nasdaq Composite slipped 0.24% to 25,297.62. The S&P 500 eased 0.05% to 7,354.02, while the Dow Jones Industrial Average lost 44.51 points, or 0.09%, to 51,876.11.

The weekly performance painted a much sharper picture. The Nasdaq tumbled 4.6%, its worst five-day stretch in months, as investors aggressively reduced exposure to high-priced AI and semiconductor stocks. The S&P 500 lost nearly 2%, while the Dow bucked the trend, rising 0.6% as institutional investors rotated into healthcare, industrial, financial, and other value-oriented sectors viewed as better positioned if interest rates remain elevated.

Adding to investor caution, a New York Times report said OpenAI is leaning toward delaying its long-anticipated initial public offering until next year amid increasingly volatile conditions across AI-related stocks. The report renewed debate over whether investors are becoming more selective after months of soaring valuations and massive spending on artificial intelligence infrastructure.

The weakness spread well beyond U.S. markets. In Asia, South Korea’s Kospi plunged so rapidly Friday that trading was temporarily halted after triggering an exchange circuit breaker. The index ultimately closed down 5.8%, underscoring how concerns surrounding the global technology sector have rippled through markets worldwide.

Market movers

Micron Technology stood out as one of the week’s few winners. After reporting blockbuster quarterly earnings Wednesday evening, the memory-chip manufacturer beat Wall Street expectations, raised its outlook, and reaffirmed that demand for high-bandwidth memory used in AI servers continues to accelerate. Bank of America Global Research said the results reinforce the long-term strength of AI-driven memory demand.

Some of the market’s largest companies faced much heavier selling. Apple dropped 6.13% Thursday while Microsoft declined 3.23% after announcing price increases on several major consumer products, including the iPhone and Xbox, citing rising component and memory costs. Their declines weighed heavily on the broader Magnificent Seven, which collectively accounted for much of the week’s weakness in the Nasdaq.

SpaceX, trading under ticker SPCX, gained roughly 1.5% Friday ahead of its scheduled addition to the Russell 1000 Index after the market close. The stock has remained highly volatile since its June 12 debut, soaring above $200 before retreating toward the $150 range.

Meanwhile, JPMorgan Chase announced that Doug Petno and Troy Rohrbaugh have been named co-presidents, marking another significant step in CEO Jamie Dimon’s long-anticipated succession planning.

Commodities and volatility

Gold climbed about 1.1% Friday to approximately $4,092 an ounce as investors sought traditional safe-haven assets following the week’s technology selloff and renewed inflation concerns.

Oil prices moved sharply lower. Brent crude and West Texas Intermediate each fell more than 3.5% as commercial shipping continued moving through the Strait of Hormuz without major disruption and diplomatic efforts under the U.S.-brokered memorandum of understanding reduced fears of an immediate supply shock. Both benchmarks have now retreated to their lowest levels since before the Iran conflict escalated in late February.

Economic data continued sending mixed signals. The Commerce Department reported headline PCE inflation increased 0.4% during May and 4.1% over the past year, while core PCE, excluding food and energy, rose 3.4%, its highest annual pace since October 2023. Personal income and consumer spending each increased 0.7%, indicating households continue spending despite higher prices.

Separately, University of Michigan consumer sentiment director Joanne Hsu said long-term expectations for business conditions improved sharply during June as concerns surrounding the Iran conflict eased.

The latest inflation figures leave the Federal Reserve in a difficult position. Chair Kevin Warsh, who left interest rates unchanged at 3.50% to 3.75% during the June 16–17 policy meeting, has continued signaling that another rate increase remains possible later this year if inflation fails to moderate. Supporting that cautious approach, durable goods orders fell 4.5% in May while weekly jobless claims declined to 215,000, pointing to a labor market that remains resilient.

The week ahead

Markets will be closed on Friday, July 3, in observance of the Independence Day holiday, making next week’s June employment report, scheduled for Thursday, July 2, the market’s primary focus.

Investors will closely examine payroll growth, wage gains, and unemployment for fresh clues about whether the labor market is finally beginning to cool—or whether continued economic strength will give the Federal Reserve additional reason to keep interest rates higher for longer. After one of the most difficult weeks for technology stocks this year, the next round of economic data could determine whether the AI-driven selloff deepens or whether buyers step back into one of Wall Street’s biggest growth trades.

JBizNews Desk
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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.

JBizNews Desk
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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.

JBizNews Desk | New York
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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.

JBizNews Desk | New York
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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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