The U.S. naval blockade of Iran and the threat of further military action have pushed Brent crude to a four-year high of $126/barrel. This standoff is creating significant economic pressure, from the war's direct cost to rising consumer gas prices in states like California.
Major technology firms including Microsoft, Alphabet, and Meta are dramatically increasing their capital expenditure projections, now totaling over $720 billion. This spending surge is dedicated to building out data centers and compute capacity to support the intense demand for AI services.
While the AI spending boom is universal among Big Tech, investor reactions are divergent. Companies like Alphabet and Amazon, which demonstrated strong growth in their cloud and AI-related businesses, saw their stocks rise, while Meta's stock fell as investors questioned its high CapEx amid a less clear strategy.
Federal Reserve Chair Jay Powell's announcement that he will remain on the Board of Governors after his term as chair expires has created political controversy. The move, criticized by the Treasury Secretary as a violation of institutional norms, overshadowed the Fed's decision to hold interest rates steady.
Two major market disruptors faced significant setbacks. Bill Ackman's Pershing Square USA fund stumbled in its public debut, falling 18%, while Saudi Arabia's Public Investment Fund is ending its $5 billion financial backing of the LIV Golf league.
Keep pulling the thread on Donald Trump.