IBM crashes 25% as Trump scraps Hormuz toll

President Trump abandoned a proposed 20% fee on cargo transiting the Strait of Hormuz, opting instead for trade and investment commitments from Saudi Arabia, the UAE, Qatar, Kuwait and Bahrain. Shipping analysts warn the sudden policy flip could destabilize oil markets and set a precedent for other chokepoints.

IBM warned that AI‑driven capex shifts are cannibalising software budgets, slashing its Q2 revenue outlook to just 1% growth. The warning sent IBM shares plunging 25% and sparked a broader sell‑off in software stocks, highlighting a budget tug‑of‑war between infrastructure and traditional software.

They reported Q2 2026 record revenues, Goldman up 39% to $20.3B, JPMorgan up 27% to $58B, driven by soaring equities trading and investment banking linked to AI‑related capital flows. Their surge shows AI’s ripple effect beyond tech, creating new financing and trading opportunities across markets.

ASML lifted its full‑year 2026 revenue outlook to €43‑45 bn, a 19% upgrade, after a Q2 beat driven by AI‑chip demand. The Dutch lithography leader also announced a 30% boost to its low‑NA EUV capacity for 2027 and is scouting a further 30% increase for 2028. Shares jumped 6% pre‑market.

U.S. EV deliveries plunged 27% in Q1 2026 after a 46% drop in late 2025, prompting Ford, Nissan, Acura, Volkswagen and others to cancel or pause key electric models. The retreat reshapes dealer inventories but automakers still promise next‑gen EVs that are cheaper and longer‑range, betting on a future rebound.

JPMorgan Chase reported a historic $21.2 billion net income ($7.70 EPS), boosted by a $6 billion surge in stock‑trading revenue and a $4.6 billion gain on its Visa stake. CEO Jamie Dimon praised the resilient U.S. economy but flagged geopolitical turbulence, sticky inflation and swollen sovereign debt as "tectonic" threats.

Warren Buffett redirected all 9 million Class B Berkshire shares, worth about $6 billion, to four family‑linked foundations, omitting the Gates Foundation for the first time since 2006. He said the move follows a Wall Street Journal report on the foundation’s ties to Jeffrey Epstein, raising questions about donor vetting and future philanthropic flows.

June's CPI fell 0.4% month‑over‑month, trimming annual inflation to 3.5%, below the 3.8% consensus. The dip was driven by a 5.7% plunge in energy prices, but core inflation stayed flat at 2.6%, leaving the Fed likely to hold off on rate cuts and consider another hike in September.

Odds rose to 46.5% from 34% after Trump re‑imposes the Strait of Hormuz blockade, oil tops $75 a barrel, and Fed Governor Waller warns against delay. Higher oil and AI‑driven price pressures could force the Fed to act at its July 29 meeting.

Bank of America’s 2026 Private Bank study finds 23% of wealthy business owners now inherit their firms, up from 11% in 2024 and 5% in 2022. The shift means more wealth is staying within families, deepening concentration and boosting demand for private‑market investments. Succession planning gaps could reshape capital allocation across the economy.

Stripe and Advent International have lodged a joint $53 billion offer for PayPal, pricing shares at $60.50 each, a 28% premium. The bid, backed by roughly $50 billion of bank financing, would give both parties equal ownership if it closes, signaling a potential shake‑up in the payments landscape.

ChangXin Memory Technologies priced its Shanghai STAR‑Board IPO at 8.66 yuan per share, raising up to 66.6 billion yuan ($9.8 billion). The offering, the largest Chinese semiconductor IPO in years, aims to bankroll domestic AI‑chip production and reduce reliance on foreign tech.