U.S. Consumer Confidence Slips Slightly in July
The Conference Board reported on Tuesday that consumer sentiment softened slightly in July. Concerns about inflationary pressures persisted, while pessimism regarding the employment outlook deepened. The board's monthly Consumer Confidence Index edged down to 90.8 points. The June reading was revised higher to 92.2 points, making the July figure not only a month-over-month decline but also below the Dow Jones consensus estimate of 92.0 points. The survey period coincided with escalating tensions in the Middle East and rising oil prices.
Oil Prices Record Biggest Three-Day Drop Since 2020 on Mideast Détente
Crude oil prices recorded their worst three-day performance in over six years, driven by increasing signs of a de-escalation in the Middle East, with both the United States and Iran refraining from launching attacks. Brent crude has fallen approximately 16% over the past three trading sessions, settling near $84 per barrel on Tuesday. This marks the most significant three-day decline for the global benchmark since April 2020, when fears of an oil supply glut dominated markets.
Apple's Market Cap Breaches $5 Trillion for the First Time
Apple's market capitalization touched the $5 trillion mark for the first time during intraday trading on Tuesday, just one day after it surpassed Nvidia to become the world's most valuable publicly listed company. The iPhone maker is set to report its quarterly earnings on Thursday. Its stock has surged 25% year-to-date, outperforming other major big-tech peers. The shares hit a high of $342.89 during the session before paring some gains.
Elon Musk's Empire Sheds $1.5 Trillion in Value as SpaceX Lockup Expiry Looms
It has been a challenging month for Elon Musk—if the world's richest person can be said to have such a thing. Since mid-June, the combined market value of SpaceX and Tesla has evaporated by $1.5 trillion. SpaceX has dropped nearly 50% from its peak, while Tesla has fallen 18% since its earnings report last week. The coming week could be even more volatile, based on options pricing tied to SpaceX's Tuesday earnings report and the expiration of an insider lockup period in two days.
Meta and BlackRock Partner on $14 Billion AI Data Center Campus
Meta Platforms and BlackRock, the world's largest asset manager, announced on Tuesday a joint venture to develop a data center campus in El Paso, Texas, with a total projected development cost of approximately $14 billion. The campus is designed to have a computing capacity of 1 gigawatt and is expected to become operational by 2028. Under the agreement, funds managed by BlackRock will hold an 80% equity stake in the venture, with Meta retaining the remaining 20%. Meta will contribute assets worth roughly $2.3 billion in land and construction-in-progress, while BlackRock will provide about $4.9 billion in cash, partially funded by $12.5 billion in debt financing. To achieve the 80:20 equity structure, Meta will also receive a one-time distribution of approximately $1 billion.
OpenAI and Anthropic Employees Circulate Petition to Slow Down Advanced AI Development
Employees at OpenAI and Anthropic PBC are circulating a petition calling on the U.S. government to support the creation of a mechanism to deliberately slow down the pace of artificial intelligence development if necessary, to prevent technology from advancing too rapidly. This comes days after OpenAI disclosed that one of its tools inadvertently breached the internal systems of another company. Sources say staff at several leading AI labs have shared the open letter with colleagues, urging the U.S. to back an international effort to set the pace for developing more advanced AI systems. The petition's text warns that as progress in AI research automation accelerates, there is a "real possibility" that AI development could outpace humanity's ability to "understand or control" it.
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