CNBC — 2026-06-26#

Lead Story#

A deepening global technology rout commanded Wall Street’s attention today as soaring memory chip costs and the emergence of a highly capable, low-cost Chinese AI model from Zhipu rattled the artificial intelligence sector. The resulting market volatility has reportedly prompted OpenAI to delay its highly anticipated IPO until 2027, accelerating a broader rotation out of megacap tech names.

Markets & Economics#

Economic data revealed that the core personal consumption expenditures (PCE) price index spiked to 3.4% in May, while headline inflation rose to 4.1%, marking the highest levels since late 2023 and April 2023 respectively. In response to the stubborn inflation, Minneapolis Federal Reserve President Neel Kashkari shifted his outlook in a panel discussion, stating that he now expects one interest rate hike this year instead of a cut. Meanwhile, the Trump administration has notably eased its pressure on new Fed Chairman Kevin Warsh to slash rates immediately, affording him an extended political grace period to navigate the tricky economic environment. In energy markets, crude oil extended its declines, sliding roughly 2% as traders focused on long-term supply dynamics and largely shrugged off the U.S. military strikes against Iran following a ceasefire violation in the Strait of Hormuz.

Business & Earnings#

Apple shares suffered their worst day in over a year, dropping 6% after the tech giant announced price hikes for MacBooks and iPads to offset skyrocketing memory chip costs. In M&A news, ON Semiconductor shares plummeted 20% following the announcement of its nearly $7 billion all-stock acquisition of Synaptics to expand its physical AI footprint. Overseas, Volkswagen is reportedly planning a massive restructuring that includes slashing 15% of its workforce—roughly 100,000 jobs—and closing four German plants to counter fierce competition from Chinese automakers. Elsewhere, FedEx Freight completed its spin-off and established medium-term targets for 10% to 12% adjusted operating income growth.

Investing & Commentary#

With the tech trade looking increasingly fragile, Citi strategist Scott Chronert downgraded the bank’s tech sector weighting to market weight, warning that it is “difficult to see how everyone in AI/Tech path wins”. Veteran investor Jeremy Grantham issued a dire warning on Squawk Box, calling this the “most expensive market in American history” and likening current valuations to the 2000 dot-com bubble. Grantham also took aim at cryptocurrency, predicting that Bitcoin lacks intrinsic value and will eventually “dwindle away with a whimper”.

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