Fed official: Current rates curb inflation; mixed US stock trends; OpenAI IPO delayed to 2027.

Iran's Revenue from the Strait of Hormuz

Iran anticipates an annual revenue of $40 billion from the Strait of Hormuz. The country has proposed a joint fee system with neighboring Gulf states for the strait's usage, while also expressing interest in global maritime management models.

U.S. Economic Updates

Inflation and Consumer Spending

In May, the U.S. PCE inflation rate surpassed 4% for the first time in three years, reaching 4.1%. This increase is attributed to strong consumer spending and rising energy prices due to Middle Eastern conflicts. Economists predict that inflation will remain elevated for some time.

Unemployment Rate Projections

Analysts expect the U.S. unemployment rate to rise to 4.7% by the end of the year, as initial jobless claims have shown a slight increase since early May, indicating a cautious hiring environment.

GDP Revision

The U.S. Q1 GDP growth rate was revised up to 2.1%, driven by a surge in business investment. However, consumer spending remains a concern, with a decline in private domestic sales indicating potential weaknesses.

U.S.-Iran Tensions

Recent Attacks

Iran's Revolutionary Guard attacked a Singapore-flagged cargo ship in the Strait of Hormuz, testing a recent ceasefire agreement with the U.S. The attack caused damage but no casualties, raising concerns about maritime security in the region.

Federal Reserve Insights

Inflation and Monetary Policy

Chicago Fed President Austan Goolsbee noted some improvement in service sector inflation, although overall inflation remains a concern. The Fed's monetary policy is expected to adapt to these inflationary pressures.

Future Inflation Expectations

New York Fed President John Williams stated that inflation is projected to return to target levels by 2028, with significant risks still present. He anticipates a decline in the unemployment rate to 4% by then.

U.S. Stock Market Performance

The major U.S. indices closed mixed, with the Nasdaq down 0.46% and the Dow up 0.14%. Notable movements included:

Tech Sector Dynamics

Chip stocks surged, with SanDisk rising over 21% and Micron Technology gaining over 15%. However, major tech companies like Apple and Microsoft saw declines, with Apple dropping 6.1%, marking its largest fall since April 2025.

Apple and Microsoft Price Increases

Apple’s Global Price Hike

Apple announced a global price increase for its Mac and iPad products, with hikes up to $300 due to rising storage costs. The company cited unprecedented demand for memory and storage driven by AI data centers.

Microsoft Xbox Price Adjustment

Microsoft also announced price increases for Xbox consoles, effective August 1, due to rising component costs.

OpenAI's IPO Plans

OpenAI is considering delaying its IPO until next year, reflecting uncertainties in the market. The company aims for a valuation of $1 trillion but faces challenges following recent market performances.

Google Finance Launch

Google has officially launched its AI financial information service, Google Finance, aimed at enhancing mobile market engagement in stock trading information.

Hong Kong Stock Market Activity

On June 25, net sales from southbound funds reached HK$8.874 billion. Notable net purchases included Jiantao Group and SMIC, while Alibaba and Tencent faced significant net sales.

Upcoming Economic Data

The U.S. will release the final Michigan Consumer Sentiment Index for June at 22:00. New stocks such as Li Bang Pharmaceutical and Haiguang Chip will begin dark pool trading at 16:15.