Welcome to Markets Desk, here's what's moving right now.
Chipmakers are dragging the broader market lower today, with the Nasdaq one hundred off three quarters of a percent as AI hardware names pull back sharply. Optical interconnect and memory stocks are leading the retreat, with investors growing uneasy that the explosive pace of AI infrastructure spending may finally be hitting a ceiling.
That memory concern runs deeper than just one sector. Both Tim Cook and Elon Musk are sounding the alarm on an unprecedented shortage of memory chips, with Cook calling it a hundred-year flood and raising Apple prices accordingly. Musk called it the biggest price jump in anything he has ever seen, and that kind of consensus at the CEO level carries real weight with institutional investors trying to price supply chain risk.
Meanwhile, in the bond market, something notable is happening. Treasury yields are falling even as inflation remains elevated, and much of the credit goes to new Federal Reserve Chair Kevin Warsh, whose tough anti-inflation rhetoric is anchoring long-end expectations. Markets appear to believe he will hold the line, and that credibility is doing the work that rate hikes alone cannot.
That's the tape. Markets Desk, signing off the floor.
