Source: Charles Schwab, data from 6/22 – 6/26

Weekly Market Minute

“The goal of investing is not to minimize risk, but to maximize the probability of achieving your goals.”
— William Bernstein

🧭 This Week In the Markets

Image Source: Heather Ainsworth | Bloomberg | Getty Images

Persistent Inflation Accompanies Continued Economic Resilience

Personal Consumption Expenditures (PCE) inflation, the Federal Reserve’s preferred measure of inflation, increased to 4.1% annually in May, primarily reflecting higher energy prices, while core PCE rose 3.4% from a year earlier, its highest annual reading since October 2023. Despite elevated inflation, the U.S. economy remained resilient, with personal spending and personal income both increasing 0.7% in May. First-quarter GDP growth was also revised higher to an annualized 2.1%, and initial jobless claims fell to 215,000, signaling continued strength in the labor market.

Treasury yields declined during the week, with the 10-year Treasury yield ending below 4.4%, as concerns that elevated energy costs would lead to more persistent inflation retreated. The latest data suggests the Federal Reserve is likely to maintain its cautious approach to monetary policy as it continues working to bring inflation back toward its 2% target.

Oil Falls Below $70 as Supply Fears Subside

Oil prices declined this week as concerns eased over disruption in the Middle East. U.S. crude oil fell below $70 per barrel for the first time since the Iranian conflict began in March. Brent crude also retreated as more tankers resumed transiting the Strait of Hormuz and investors assessed expectations for recovering production from key regional exporters. The move comes as concerns over interruptions to global energy supplies have eased. While tensions in the region remain at risk, the recent pullback in oil prices suggests markets are placing less emphasis on a worst-case disruption scenario.

Rising Memory Costs Highlight AI Supply Chain Pressures

Demand for artificial intelligence infrastructure is placing increasing pressure on the global memory chip market, as data center investment continues to compete with traditional consumer electronics manufacturers for supply. The resulting increase in memory costs is prompting technology companies to raise prices on certain laptops, tablets, and other computing devices, with Apple recently announcing price increases on select MacBooks and iPads. Retailers and hardware manufacturers are also preparing for additional cost pressures. Industry analysts expect elevated memory pricing to persist through 2027, highlighting how the rapid expansion of AI infrastructure is reshaping semiconductor supply chains and creating ripple effects across the broader technology industry.

🏢 Corporate Earnings

• Micron Technology (MU) outperformed expectations, reporting earnings per share of $25.11 on $41.5 billion in revenue compared to analysts expectations of $20.78 and $35.8 billion, as continued strength in artificial intelligence drove robust demand for the company’s memory and storage products.

📊 Sector Performance

5-day closing price ($) and change (%)

Source: Select Sector SPDRs, data based on the Sector SPDR ETFs as of 6/26

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Source: Charles Schwab

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Sources: CNBC, CNBC, CNBC, CNBC
Corporate Earnings: Micron Technology

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