Public Markets 3 Days

Last updated: July 13, 2026, 2:30 PM ET

Fed Signals Higher Rates Amid Persistent Inflation

Federal Reserve Governor Christopher Waller indicated a potential for higher interest rates if inflation does not show sustained signs of cooling, stating he needs to see "several months" of declining inflation data. He reiterated this stance, suggesting that policymakers in the near term to combat persistent core inflation and broad price pressures. Meanwhile, a panel assembled by former Fed Chairman Kevin Warsh to review the central bank's $6.7 trillion balance sheet.

Geopolitical Tensions Impact Markets and Commodities

Renewed hostilities between the U.S. and Iran and triggered a "risk-off" sentiment among investors, leading to a drop in U.S. stocks. yields rose to their highest levels since early 2025 amid speculation that the Federal Reserve might need to increase rates. Shipping activity through the Strait of Hormuz plummeted to its lowest point in a month following an Iranian attack and subsequent U.S. strikes, with little crude oil being transported. Dubai is planning a new port on the UAE's east coast to bypass the Strait of Hormuz as a strategic shift. Base metals also declined as the escalating U.S.-Iran conflict. Iran managed to export at least 57 million barrels of crude during a brief gap between U.S. naval blockades, highlighting the potential impact on the global oil market now that restrictions are re-imposed as tensions flare. Russia's crude output has fallen to its lowest in at least two and a half years due to Ukrainian attacks on its oil infrastructure, with refinery runs now at their lowest in over two decades.

AI Boom Fuels Investment and Corporate Strategy

Royal Bank of Canada is in the U.S. and Europe, anticipating that substantial fundraising for artificial intelligence will drive demand for hedging products. Meta is increasing its investment in a Louisiana data center project to over $50 billion, aiming for 5 gigawatts of compute capacity. Taiwan Semiconductor Manufacturing Co. reported a 36% surge in quarterly sales, meeting expectations and signaling. Intel plans to invest €5 billion in its Irish plant as demand for AI chips escalates, bolstering Dublin's position in securing advanced semiconductor manufacturing. However, financing the AI buildout, requiring hyperscalers to adopt more creative strategies. Investors are returning to Apple Inc. as concerns about artificial intelligence spending impact chipmakers and cloud-computing giants, with. Palantir CEO Alex Karp regarding the growing influence of AI startups. A letter signed by nearly 200 economists and tech leaders and calls for policymakers to better understand and address potential disruptions. Despite incentives, employers are finding that pushing staff to use AI.

Corporate Dealmaking and Market Activity

A coalition of a dozen states, led by California, has filed a lawsuit to block the proposed $110 billion acquisition of Warner