June 23
A selloff for heavyweight chip producers pressured US equity indices on Tuesday.
AI infrastructure companies, including semiconductor and memory chip producers, tanked on increasing skepticism that AI spending by hyperscalers will not meet returns. On top of that, SK Hynix slowed production of advanced AI chips to boost commodity DRAM capacity, a sign that demand for compute could slow. Micron, Lam Research, Sandisk, and Qualcomm plunged close to 10%, Tesla lost 5%, and Nvidia and Oracle slipped 3.5%. On the same note, SpaceX plunged 16% before rebounding as it issued bonds only one week after its IPO, adding to caution on colossal capital expenditure.
S&P Oil FX Gold 10Y CLZ6
S&P is down 1.25%. Tech Selloff Deepens | 11:35
Dollar index is up 0.33% to 101.36. Euro down to 1.1382, lowest since June 2025
10Y is 4.485%, lower by 3.1bp
2Y is 4.194%, lower today from 4.232% yesterday which was highest since Feb. 21, 2025
Gold is down $58
Crude oil is down 1.49%
The upcoming PCE inflation report, the Fed’s preferred gauge, will be closely watched this week.
Markets are currently pricing the probability of a rate increase in September at around 68%, up from 29% last week.
Good Riddance, Alan Greenspan | Naked
Cataloguing some of the less-well recognized ways that Alan Greenspan did tremendous harm to the financial system and citizens at large.
READ THE COMMENTS TOO
Greenspan was selling Congress and the press a financial encabulator
The encabulator is a fictional electromechanical machine created as a satirical example of technical jargon, first described in 1944 by John Hellins Quick. It has since become a humorous reference in engineering and technology, often used to illustrate the absurdity of overly complex language.
I love breaking the taboo against speaking ill of the dead.
When Franco died, I offered my condolences to a fellow grad student. He set me straight.
Today’s Peak Digest
Ukrainian drone strikes on Crimea, Iran nuclear/Hormuz deal progress and tanker traffic, COVID vaccine child deaths, obesity stats, China gold imports, US voter verification block, and UK policing controversies.
Debt Rattle
* Within five years, there may be at least 100 million humanoid robots, possibly even 1 billion. | Musk
* Support For UK Monarchy Hits Record Low. Elizabeth was popular. That was it.
* Keir Starmer Reveals How Much Labour Resembles American Democrats
* Rand Paul Subpoenas Fauci For Testimony in COVID Origin Probe
* Rand Paul can use Tulsi’s biolab material
We now have roughly forty years of increasing rates on a long-term basis in front of us | MTick
About five of those years have already occurred and there are 35 more to go, like it or not.
Conservatives asked for years where all that USAID money was really going. | VFox
Something structural shifted in Latin America when the Trump administration neutered USAID, and it can’t be ignored. Center-right and conservative presidential candidates have swept to victory in Bolivia, Chile, Honduras, Costa Rica, Peru, and Colombia since Trump ordered the cancellation of the bulk of USAID’s programs
The Sixth Republic?
Americans tend to insist that they still live under the same republic established by the Founding Fathers. The Constitution ratified in 1788 remains in force. Politicians still swear oaths to it. Schoolchildren still learn to revere it. Therefore, many conclude that the American republic remains essentially unchanged. But constitutional continuity and regime continuity are not the same thing.
One time, when I was on the last shuttle flight from Washington DC to New York, Greenspan was on the same plane. I debated whether I would be willing to die in a crash if it killed Greenspan too. I quickly concluded “yes”.
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Email: wkidder42@gmail.com
Text: 1 646 257 2130
Voice: Use WhatsApp +1 646 257 2130 at 1:00 AM