Key Takeaways
- The Trump administration is reportedly exploring the allocation of Chips Act funds to increase its ownership stake in Intel (INTC).
- UK 10-year gilt yields have surged by over 6 basis points to 4.708%, marking their highest level since June 2.
- The spread between US 30-year and 5-year bond yields has widened to 109 basis points, the broadest margin observed since 2021.
- A high-profile meeting between President Donald Trump and Russian President Vladimir Putin is confirmed to take place today in Alaska.
- Separately, a Russian missile strike resulted in a fire and at least one injury in Ukraine's Dnipropetrovsk region.
The financial world is abuzz with a mix of corporate strategy, shifting bond markets, and significant geopolitical developments. Reports indicate that the Trump administration is considering utilizing funds from the Chips Act to bolster its ownership stake in semiconductor giant Intel (INTC). This potential move could represent a substantial government investment aimed at accelerating the completion of Intel's long-delayed Ohio manufacturing complex and strengthening domestic chip production. Intel shares reportedly jumped over 7% following these reports, adding approximately $10 billion to its market value.
Meanwhile, global bond markets are showing notable movements. In the United Kingdom, the 10-year gilt yield has climbed by over 6 basis points, reaching 4.708%. This marks the highest level for the UK's benchmark bond yield since June 2, reflecting growing investor concerns or shifts in monetary policy expectations. Across the Atlantic, the spread between the US 30-year bond yield and the 5-year bond yield has expanded to 109 basis points. This widening margin is the largest seen since 2021, indicating a steepening of the yield curve.
On the geopolitical front, a highly anticipated meeting between President Donald Trump and Russian President Vladimir Putin is scheduled to occur today in Alaska. The Kremlin confirmed that President Putin's plane is expected to arrive in Alaska by 11:00 local time, where he will be welcomed by President Trump. This summit comes amidst ongoing international tensions, including the conflict in Ukraine, where a Russian missile reportedly caused a fire and injured at least one person in the Dnipropetrovsk region.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.