U.S. economy: Fed hawkish, PCE 4.1%, hiring 57K, consumer gloom, oil falls on Iran talks, AI stocks sink, Trump crypto coin loss; GM/Stellantis sales, OPEC+ output, Foxconn revenue, Samsung profit jumps, SK Hynix $28B US listing, easyJet takeover, Sky buys ITV, Microsoft cuts 4,800 jobs, Xbox cuts 3,200, US service sector growth dips, hedge funds dump chip stocks, S&P 500/Nasdaq gain, Toyota Texas plant, Walmart price cuts
Key Questions
What was the latest US PCE inflation reading and its significance?
The PCE inflation rate reached 4.1%, marking a three-year high. The Fed maintained rates with a hawkish tilt in response to persistent inflation pressures.
How did US job growth perform in June?
US job growth cooled sharply with only 57,000 jobs added and unemployment rising to 4.2%. This indicates a significant slowdown in hiring.
Why did oil prices fall recently?
Oil prices declined after positive progress in US-Iran talks in Doha. OPEC+ also pledged to increase output modestly despite falling prices.
What were the Q2 sales results for GM and Stellantis?
GM reported a 7% slip in Q2 sales while Stellantis saw a 6% increase. These figures reflect mixed performance in the auto sector.
How did AI demand impact tech companies like Samsung and Foxconn?
Samsung posted an 18-fold profit jump and Foxconn saw strong revenue growth due to AI memory and server demand. SK Hynix also plans a major $28B US listing tied to AI chips.
What major corporate job cuts were announced?
Microsoft is cutting 4,800 jobs and Xbox is reducing 3,200 positions. These moves come amid broader tech sector adjustments.
What deals were announced involving easyJet and Sky?
easyJet agreed to a $7.3B takeover by Castlelake and Sky is buying ITV for $2.1B. These transactions signal consolidation in the travel and media industries.
How did major stock indices perform amid chip stock volatility?
The S&P 500 and Nasdaq gained on a chip rebound despite hedge funds dumping chip stocks for the fourth week. Toyota also announced a $3.6B Texas plant expansion.
Fed held rates with hawkish tilt; PCE inflation at 4.1% (3-year high). US job growth cooled sharply in June (57K added, unemployment 4.2%). Oil fell after U.S.-Iran talks in Doha showed 'positive progress'; OPEC+ pledges to pump more despite falling prices; 7 OPEC+ countries agree to modest 188,000 bpd increase from August. GM Q2 sales slipped 7%; Stellantis Q2 sales up 6%. Foxconn Q2 revenue jumped on AI demand. Samsung posts 18-fold profit jump on AI memory demand. SK Hynix plans $28B US listing. Dollar near two-week lows. Nearly a million investors lost $3.8B on Trump crypto coin. ESM warns euro zone recession if US sell-off and new Middle East war hit simultaneously. Euro zone investor morale improves significantly in July. German industrial orders rose more than expected. easyJet agrees to $7.3B takeover; Sky buys ITV for $2.1B. Boeing's new 737 assembly line starts moving in Everett. World absorbed historic Iran oil supply loss but depleted stocks bring risks. German commercial property financing sentiment plunges. UN's Guterres warns AI outpacing oversight. New: Microsoft cutting 4,800 jobs; Xbox cuts 3,200 jobs; US service sector growth dips in June but employment rebounds; hedge funds dumped chip stocks for fourth week; SK Hynix launches $28B US listing; S&P 500 and Nasdaq gain on chip rebound; EasyJet agrees to $6.7B takeover by Castlelake; Trump announces Walmart price cuts; Toyota $3.6B Texas plant; Vertex to buy Crinetics in $10B deal; Comcast's Sky buys ITV; CISA uses Anthropic's Mythos; BRICS de-dollarization no longer fantasy.