ECONOMIC WEEK AHEAD: June 29 - July 3

The S&P 500 closed Friday at 7,354.02, down 2.0% on the week, while the Nasdaq fell 4.5%. Apple and Microsoft raised their consumer product prices on Thursday, citing memory and storage chip costs that have more than doubled since last fall and are expected to double again by late 2027. The driver is demand for DRAM and NAND from AI data centers. Memory chip stocks have gone parabolic, extending their rally after Micron’s blowout earnings report on Wednesday (chart).

The price of a barrel of WTI crude oil fell to $69.23 on Friday, down 9% on the week and marking the lowest weekly close since February 27. Strait of Hormuz traffic continues to pick up, with Persian Gulf exports back to roughly 75% of prewar levels.