Welcome to Markets Desk, your midday read on the stories moving money and markets.
The Federal Reserve is flagging a fresh inflation threat with real teeth. AI-driven demand for memory chips is rippling through the broader economy in ways policymakers say could complicate the rate path. If chip supply chains tighten further, input costs rise, and that pressure eventually reaches consumers — a dynamic the Fed clearly does not want to be caught flat-footed on again.
Shifting to energy markets, the Strait of Hormuz remains firmly under Iran's grip despite more than a week of sustained U.S. military bombardment. Commercial vessels are rejecting a U.S.-backed alternate corridor, spooked by Iranian drones and missiles. The longer-term picture is more nuanced — analysts suggest global markets could substantially reduce Hormuz dependence within a few years — but right now, the chokehold holds, and oil traders are watching every development closely.
On the portfolio side, Greg Abel's Berkshire Hathaway remains a story of remarkable concentration, with sixty-eight percent of holdings sitting in just five names. American Express draws particular attention for its premium customer base, which historically weathers economic stress better than mass-market lenders — a quality that aligns squarely with the Buffett-era discipline Abel has inherited.
That's the tape. Markets Desk, signing off the floor.
