As data centers gobble up memory chips, other industries that need the components, including electronics companies like Apple and medical device makers, are asking for government help.
Shares in semiconductor companies plunged in South Korea and Europe, adding fresh doubts to the durability of the artificial intelligence trade.
Income growth is accelerating — supporting consumer spending — while inflation is rising even beyond the energy-price shock. Why it matters: That combination, shown in new data out Thursday morning, creates a complex reality for Kevin Warsh's young Federal Reserve chairmanship . - It's good news for the economy's underlying resilience, but it raises fresh questions about whether interest rates are exerting as much downward pressure on demand as Fed officials may believe. What they're saying: "The U.S. consumer is not cracking," Olu Sonola, an economist at Fitch Ratings, wrote Thursday morning, adding that the oil price shock has not derailed consumer spending. - "Headline inflation may be nearing a peak as energy prices fall, but…
The Iran war 's economic consequences risk outlasting the conflict itself. Why it matters: Any swift ceasefire or arrangement allowing safe passage through the Strait of Hormuz won't undo supply shocks that could linger for months — and in some cases, years. What they're saying: Oil markets "have so far faced logistics disruptions, not true supply destruction," Matt Bauer, a commodity strategist at Ned Davis Research, wrote in a client note on Friday. - "But attacks on South Pars and Iran's retaliation raise the risk that the conflict is shifting toward physical damage of production capacity." "The direct attacks on energy infrastructure illustrate the war's long-lasting consequences," says Kyle Rodda, a senior financial market…