CNBC — 2026-06-18#

Lead Story#

Federal Reserve Chairman Kevin Warsh shocked markets in his inaugural FOMC meeting with a staunchly hawkish tone on inflation, bringing forward expectations of a rate hike and sending the 2-year Treasury yield soaring to 4.22%.

Markets & Economics#

The S&P 500 suffered its worst “Fed day” under a new chair since 1994 following Warsh’s firm commitment to price stability, though equities staged a partial rebound on Thursday. Mortgage rates jumped post-Fed in response to the tightening outlook as markets rapidly adjusted to the possibility of hikes rather than cuts. Meanwhile, an interim U.S.-Iran peace deal is set to reopen the Strait of Hormuz for 60 days, pushing international Brent crude futures down to $78.65 and U.S. gasoline prices back under $4 a gallon. Overseas, the Bank of England held its benchmark rate at 3.75% despite looming energy price hikes, while the Swiss National Bank kept rates at 0% and signaled readiness for FX intervention to cap a strengthening franc.

Business & Earnings#

Intel shares surged as much as 10% after President Trump posted on Truth Social that the company had secured a U.S. chip design partnership with Apple. SpaceX stock retreated about 6% to roughly $180, wiping out post-IPO gains for many recent retail buyers, even as the company added Sequoia’s Roelof Botha to its board. In executive moves, Pfizer announced the departure of CFO Dave Denton, tapping Cecile Guegan as the interim finance chief. Elsewhere, Alphabet-owned Waymo issued a software recall for nearly 3,900 robotaxis after instances of vehicles driving into closed freeway construction zones.

Investing & Commentary#

Jim Cramer declared Intel his top stock pick, arguing its AI-driven foundry business positions it to ultimately eclipse Nvidia. Conversely, UBS traders warned investors to “reduce risk meaningfully” in tech, citing severe concentration in the AI trade and potential data center bottlenecks. On the housing front, Opendoor’s CEO highlighted that first-time homebuyers are stuck in the current rate environment. In other analyst action, KBW upgraded CME Group to outperform, calling fears over the exchange’s perpetual futures risks “overblown”.

Also Worth Watching#

• Sen. Tim Scott on bipartisan housing bill: The Banking Committee Chairman expects the housing legislation to pass the Senate within the next two to three weeks.
• How this century-old NYC family business achieved the American Dream: Fourth-generation owners of M&S Schmalberg discuss surviving and thriving in the custom fabric flower industry.
• CME CEO Terry Duffy on suing CFTC: Duffy explains the company’s planned litigation over the controversial approval of perpetual futures contracts.
• Expect the Fed’s next move to be a cut next year: 3Fourteen’s Warren Pies argues against the rate hike narrative, projecting the central bank’s next action will be an eventual cut.
• WSJ: Apple CEO Tim Cook says tech giant to raise prices due to memory chip prices: Surging storage chip costs driven by AI data center demand are forcing Apple to pass expenses onto consumers.