economy
Wall Street recovers from Fed slump, and the next step for Amazon's AI chip ambitions
Every weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading.
TL;DR
- Stocks closed the week higher, recovering from Wednesday's Federal Reserve meeting losses.
- Crude prices fell as oil tankers exited the Strait of Hormuz.
- The AI chip sector is performing well due to rising memory and storage chip costs and imbalanced supply and demand.
- Companies like Sandisk, Western Digital, Applied Materials, Lam Research, and Qnity Electronics are seeing gains.
- Amazon is reportedly in talks to sell its custom chips to third-party data centers, potentially monetizing its chip business.
- Google has already started monetizing its custom silicon by supplying TPUs to Anthropic.
- Amazon's potential move to sell chips externally could compete with Nvidia.
- Upcoming earnings reports include FedEx, FedEx Freight, Micron, Carnival Corp, and Darden Restaurants.
- Key economic data releases include S&P Global Manufacturing and Services PMI, May PCE price index, jobless claims, first-quarter GDP, and consumer sentiment.