TL;DR

Intel drops on Trump’s CEO demand; jobless claims rise; Waller leads Fed chair race.

Highlights

• Intel shares fell up to 5% after President Trump demanded CEO Lip-Bu Tan’s resignation over China ties1.
• U.S. initial jobless claims rose to 226,000; continuing claims hit 1.97 million, highest since 2021219.
• Fed Governor Christopher Waller is now the frontrunner to succeed Jerome Powell as Fed Chair; Treasury Secretary Bessent withdrew from consideration314.
• Treasury’s $25B 30-year bond auction saw weak demand (4.813% yield, 2.1bps tail) ahead of a record $100B bill sale6.
• Bank of England cut rates by 25bps to 4% after a narrow vote, citing weak labor data and persistent inflation7.
• Fortinet plunged 20% after issuing a weak revenue outlook and receiving multiple downgrades4.
• Apple announced a $100B increase in U.S. investment, raising its total to $600B and prompting analyst target hikes10.
• S&P 500 edged higher, but market breadth continued to thin; fewer than half of constituents are above key moving averages20.
• OpenAI launched GPT-5 with a sharply cheaper API and expanded context window13.
• Firefly Aerospace surged 56% in its Nasdaq debut after an $868M IPO9.
• Palantir hit a $409B valuation after a Deutsche Bank upgrade, extending a 135% YTD rally16.
• Ripple acquired stablecoin platform Rail for $200M to expand digital payments11.

Commentary

The session saw notable pressure in the semiconductor sector, with Intel shares dropping after President Trump publicly called for CEO Lip-Bu Tan’s resignation over alleged China ties1. This move, combined with ongoing political scrutiny and tariff threats, adds uncertainty for chipmakers, despite the administration signaling no new tariffs on U.S.-made semiconductors and a likely 90-day extension of the China trade deadline5. Meanwhile, Apple ’s expanded $100B U.S. investment was met with analyst target hikes, supporting large-cap tech sentiment10.

Labor market data showed further signs of cooling, as initial and continuing jobless claims both rose for a second week, with continuing claims at their highest since 2021219. This, along with weak demand at the Treasury’s 30-year bond auction (resulting in a higher yield and a steepening curve), suggests investors are becoming more cautious on both growth and long-duration risk6. The upcoming $100B bill sale will be closely watched for signs of liquidity stress or shifting demand6.

Central bank policy remains in focus. Fed Governor Christopher Waller has emerged as the leading candidate to succeed Jerome Powell, with a dovish tilt that could influence rate expectations if confirmed3. The Bank of England’s 25bp rate cut, driven by soft labor data and persistent inflation, highlights global monetary policy divergence and could impact currency and fixed income markets7.

Equity indices remain near highs, but breadth continues to narrow, with fewer than half of S&P 500 constituents trading above key moving averages20. Volatility remains subdued, but single-stock moves are pronounced: Fortinet fell 20% on weak guidance4, while Palantir and Firefly Aerospace rallied strongly on AI and space sector enthusiasm, respectively916. OpenAI’s GPT-5 launch and Ripple’s Rail acquisition further underscore the ongoing momentum in AI and digital assets1113.

Traders should monitor late-session moves in semiconductors, Treasuries, and tech, as well as any updates on Fed leadership or China trade negotiations.