QtrendsIBM shares suffered their worst-ever single-day drop, crashing 25% after an earnings warning. New Fed Chairman Kevin Warsh delivered his first congressional testimony. Bank earnings season revealed Goldman Sachs' SpaceX IPO fees and JPMorgan's AI-driven job cuts. US inflation cooled sharply to 3.5% in June, driven by falling gas prices. Oil prices rebounded as the US launched new airstrikes against Iran, threatening to reverse the inflation relief at the pump.
IBM shares plunged 25% in their worst single-day drop on record after the company issued a surprise second-quarter earnings warning. The profit warning cited hardware segment struggles, with analysts noting that hardware is 'eating everyone's lunch.' Multiple outlets reported the crash as an unprecedented event for the tech giant, with CNBC confirming it as the worst trading day in IBM's history.
New Federal Reserve Chairman Kevin Warsh delivered his first congressional testimony, drawing significant attention from financial markets. Key takeaways from the testimony focused on the central bank's policy outlook and economic assessment. Warsh notably signaled openness to outside input, asking for advice during the hearing. The testimony comes at a critical time as markets digest mixed economic data and shifting rate expectations.
Second-quarter bank earnings reports revealed several major developments, including Goldman Sachs' involvement in SpaceX IPO fees and JPMorgan's implementation of AI-driven job cuts. Wall Street has set a very high bar for corporate earnings this season, with early results suggesting companies may meet elevated expectations. The bank earnings serve as an important bellwether for the broader market's health.
Annual US inflation fell to 3.5% in June, down sharply from May's multi-year high, driven primarily by falling gas prices. The cooling was more than expected, offering some relief to consumers and policymakers. However, analysts warn the relief may be temporary, as renewed conflict with Iran threatens to push energy costs back up. NPR reported that Americans continue to feel the cumulative effects of elevated prices despite the monthly improvement.
Oil prices jumped as the United States launched new airstrikes against Iran, escalating military conflict in the Middle East. The strikes come as the Trump administration abandoned a planned Strait of Hormuz transit fee. Analysts warn that U.S. motorists could face $4 gasoline again, threatening to reverse the recent inflation relief at the pump. AI and tech stocks simultaneously sank, creating a mixed picture for markets.