CME launches AI power cost futures as hedge funds circle

CME Group and GPU‑data firm Silicon Data announced the first futures contracts tied to AI compute, using Silicon Data’s daily GPU pricing indices. The contracts give traders, cloud providers and AI developers a way to hedge the volatile, multitrillion‑dollar cost of GPU rental, effectively turning compute into a new commodity.

AI‑focused firms have driven U.S. convertible‑bond issuance to its highest level since the pandemic, topping $13 billion this year. The hybrid debt gives investors bond security plus upside if AI stocks rally, but concentrates credit risk in a fast‑growing sector that may strain market depth.

Maersk's CEO says letting Iran levy transit fees in the Strait of Hormuz would create a dangerous precedent, encouraging other chokepoints to demand payments. The warning comes as the US and Iran negotiate reopening the Gulf, a move that could reshape global shipping costs.

A US‑Iran cease‑fire and the reopening of the Strait of Hormuz have sent oil prices to three‑month lows, loosening the energy‑driven inflation pressure the Fed was monitoring. With central banks meeting this week, the deal gives policymakers more wiggle room, though broader price forces remain sticky.

Kevin Warsh, the new Fed chair, is expected to skip the dot plot in the June 2026 outlook, a rare move that could blunt forward guidance. Analysts see this as a signal that the Fed may keep rates on hold amid rising inflation and strong job growth, leaving markets to adjust without a clear rate path.

The NFIB’s May Small Business Optimism Index slipped to 95.3, its lowest in years, as owners flag unpredictable fuel‑price hikes they can’t fully pass on. Hiring plans fell to a six‑year low and job‑opening fill rates hit the lowest since 2020, signaling tightening pressure on Main Street.

UniCredit has defended its voluntary takeover bid for Commerzbank, refuting claims of improper share‑lending and confirming full regulatory compliance. The offer, if successful, would merge Italy’s UniCredit with Germany’s Commerzbank, creating a pan‑European banking powerhouse that could reshape lending markets across the bloc.

SpaceX disclosed a $60 billion acquisition of AI technology, a move that could supercharge its Starship autonomy and put the company on a new competitive footing with other AI‑heavy firms. The deal signals intensified betting on AI to drive next‑generation rockets and could reshape industry dynamics.

Paris announced the DGSI is ending its Palantir contract, warning that reliance on U.S. AI tools creates a strategic vulnerability. The move redirects procurement toward domestic vendors and underscores a broader European push for digital sovereignty.

OpenAI investors pumped $7.6 million into ads to knock out New York Assemblyman Alex Bores, while Anthropic‑backed groups spent over $10 million to boost his campaign. The spending turn turns a Manhattan primary into a proxy war over AI regulation, signaling how deep tech money will shape future policy fights.