CNBC — 2026-06-25#

Lead Story#

Micron’s blockbuster quarter fundamentally reshaped the AI narrative today, crushing estimates with a massive 84.9% gross margin and signaling that the memory supply crunch won’t alleviate until at least 2028. This unprecedented pricing power sent the chipmaker soaring over 16%, but effectively functioned as a tax on the rest of the tech sector, sinking shares of mega-cap hyperscalers and consumer electronics giants alike.

Markets & Economics#

The Federal Reserve’s preferred inflation gauge, the core PCE price index, accelerated to a 3.4% annual rate in May, marking its highest level since October 2023. In a live interview from the Cboe floor, Chicago Fed President Austan Goolsbee warned that inflation is still trending the wrong way and endorsed new Fed Chair Kevin Warsh’s pivot away from forward rate guidance. In energy markets, oil wiped out its wartime gains, with WTI dropping below $70 a barrel as over 20 tankers finally exited the Strait of Hormuz following a U.S.-Iran diplomatic agreement.

Business & Earnings#

The memory chip shortage is already hitting consumers, with Apple hiking prices on MacBooks and iPads by up to $300, and Microsoft lifting Xbox console prices by up to $150. In the C-suite, JPMorgan Chase announced a major step in Jamie Dimon’s succession plan, elevating Doug Petno and Troy Rohrbaugh to co-presidents while consumer head Marianne Lake heads for the exit. Elsewhere, Darden Restaurants reported a mixed fiscal fourth quarter, as strength at LongHorn Steakhouse offset weaker same-store sales at Olive Garden.

Investing & Commentary#

The AI trade continues to broaden out, with Fundstrat’s Tom Lee hiking his S&P 500 year-end target to 8,000, citing strong 2027 EPS growth from energy infrastructure, onshoring, and tech. For investors looking beyond mega-caps, Ritholtz Wealth Management’s Josh Brown highlighted Citizens Financial Group as a top regional bank play, pointing to its industry-leading 35% expected earnings growth and a flawless technical breakout. Meanwhile, the “meme stock” crowd has found a new darling in Wendy’s, sending shares surging on massive retail inflows.

Also Worth Watching#

• Chevron CFO: Gas prices will drop as Middle East normalizes: Chevron CFO Eimear Bonner responded to President Trump’s criticism of Big Oil, noting that the company is growing production and expects prices at the pump to fall given the lag behind crude declines.
• Speaker Johnson sends housing bill to White House: House Speaker Mike Johnson transmitted a bipartisan affordable housing bill to the White House following a meeting with President Trump, who abruptly canceled a planned signing ceremony a day earlier.
• Bond ETF inflows surge 60% in hunt for yield: BlackRock’s Steve Laipply called the massive inflows into fixed-income ETFs “shocking,” as investors lock in high real yields amid elevated stock volatility.
• Asian investors stick with U.S. despite trade rhetoric: Former House Majority Leader Eric Cantor stated that Asian capital continues to favor U.S. markets for their rule of law, looking past the Trump administration’s combative tariff noise.