- The Federal Reserve (Fed) maintained interest rates at 3.5% to 3.75% as expected, but Fed Chairman Kevin Warsh's debut sent a hawkish signal, raising rate hike expectations on the dot plot, causing pre-market fluctuations in U.S. stock index futures.
- Apple (AAPL:US) CEO Tim Cook announced a price increase for products due to a significant rise in memory and storage chip costs. Meanwhile, reports suggest Donald Trump revealed that Apple will collaborate with Intel (INTC:US) to design and manufacture chips in the U.S.
- JPMorgan (JPM:US) warned that the rally in chip stocks might lead to self-reinforcing sell-offs and volatility risks, while Bridgewater founder Ray Dalio warned that the world is entering a long period of political danger.
Central Bank's Hawkish Turn and Macro Data Tug-of-War
In this Fed meeting, the decision was made to keep the federal funds rate unchanged at 3.5% to 3.75%. However, the new chairman Kevin Warsh's tough stance and the dot plot's hint of a rate hike within the year led to a significant market repricing. If high inflation pressures persist, the potential rate hike window could move up to October. Meanwhile, macro data shows that the initial jobless claims for the week ending June 13 were 226,000, slightly above the expected 225,000. The resilience of the labor market intertwined with tightening expectations makes the short-term macro trading environment more complex.
Supply Chain Cost Pressure and Chip Giants' Alliance
The global tech supply chain is undergoing dual adjustments of cost transfer and structural reshaping. Apple (AAPL:US) CEO Tim Cook clearly stated that to offset the significant rise in memory and storage chip costs, the company plans to increase the retail prices of its end products. On the manufacturing side, major news emerged as Donald Trump revealed that Apple has agreed to collaborate with Intel (INTC:US) to design and manufacture chips in the U.S., mentioning assistance to Intel in exchange for a 10% stake, which pushed Intel's pre-market rise. Additionally, memory giant SK Hynix (000660:KS) has delivered next-generation HBM4E DRAM samples to major clients, indicating intensified competition in high-end semiconductor technology.
Market Volatility Risks and Capital Giants' Moves
The continuous rise in the chip sector has triggered cautious vigilance among top financial institutions. JPMorgan (JPM:US) issued a warning that if valuations rise rapidly in the short term and trigger profit-taking, it could lead to self-reinforcing technical sell-offs and exacerbate overall global market volatility. In corporate governance, Tesla (TSLA:US) CEO Elon Musk converted 300 million options into voting shares, increasing his voting power to 20%, strengthening his internal control over the company. In contrast, Amazon (AMZN:US) founder Jeff Bezos expressed a different view on the impact of artificial intelligence, believing that AI technology will not cause mass unemployment but may lead to labor shortages due to increased efficiency.
Multinational Companies' Pricing Strategies and Performance Guidance Divergence
On the global corporate operations front, giants in various verticals are using price elasticity and regional expansion to tackle macro challenges. Oracle (ORCL:US) Korea plans to raise prices across all products by about 10%, demonstrating strong industry pricing power. On the consumer side, Starbucks (SBUX:US) is prioritizing expansion over profitability in the Indian market, planning to add 100 new stores annually to capture the emerging market. In contrast, enterprise service giant Accenture (ACN:US) reported third-quarter revenue of $18.7 billion, slightly below market expectations, and its fourth-quarter guidance is between $17.75 billion and $18.4 billion, indicating that corporate IT capital expenditure willingness remains cautious.
