Key Takeaways
- Apple (AAPL) and Intel (INTC) have reached a preliminary agreement for Intel to manufacture chips for Apple devices, sending Intel shares soaring by approximately 14%.
- Fitch Ratings projects Brent crude oil prices will spike to $100–$110 per barrel through July due to the ongoing closure of the Strait of Hormuz, before potentially retreating to $70 by September.
- The New York Fed raised its Q2 GDP Nowcast to 2.59%, up from a previous estimate of 2.52%, indicating resilient economic growth despite global volatility.
- A Ukrainian drone attack on a Russian air traffic control center in Rostov-on-Don forced the suspension of operations at 13 airports across southern Russia, disrupting thousands of civilian flights.
- Argentina has introduced a "Super RIGI" investment initiative, offering zero export duties and 30-year regulatory stability to attract large-scale international capital.
Tech Giants Reshape Supply Chains
Apple (AAPL) and Intel (INTC) have entered into a preliminary chip-making agreement that marks a significant shift in the semiconductor landscape. According to reports from the Wall Street Journal, the deal involves Intel manufacturing specialized components for Apple’s hardware, a move seen as a major validation of Intel’s "Foundry" business model. Following the news, Intel (INTC) shares surged 14%, while Apple (AAPL) saw a modest gain of 2%.
In a separate development in the technology sector, former President Donald Trump publicly endorsed Dell (DELL), telling consumers to "Go buy a Dell." The comment comes amid broader discussions regarding domestic manufacturing and the strengthening of U.S.-based hardware providers.
Energy Markets Brace for Hormuz Volatility
Fitch Ratings has significantly adjusted its near-term energy assumptions, citing the prolonged closure of the Strait of Hormuz. The agency predicts that Brent crude will remain elevated between $100 and $110 per barrel through the early summer months. However, Fitch anticipates an oversupply in European gas and oil markets will eventually drive prices down to $70 per barrel by September once supply routes stabilize.
Domestically, the U.S. Baker Hughes Rig Count for the week ending May 8 showed a total of 548 active rigs. While the gas rig count slipped by 1 to 129, oil-directed rigs rose by 2 to 410, suggesting that producers are cautiously increasing capacity in response to higher crude prices.
Geopolitical Tensions Disrupt Global Transit
Russian President Vladimir Putin confirmed today that an air traffic control center in Rostov-on-Don came under a Ukrainian drone attack. While Putin stated the incident "did not lead to any tragedy," the strike severely impacted the safety of civil aviation, leading to the closure of 13 regional airports. Over 14,000 passengers were reportedly stranded as flight schedules across southern Russia were paralyzed.
In the Middle East, the U.S. Navy continues to maintain a heavy presence, with the USS Truxton (DDG 103), USS Rafael Peralta (DDG 115), and USS Mason (DDG 87) actively operating in the region. Iranian President Masoud Pezeshkian remarked that while Iran seeks "friendly relations," the future world will have "no place for colonialism," highlighting the delicate diplomatic balance in the region.
Macroeconomic Outlook and Policy Shifts
The New York Fed updated its Q2 GDP Nowcast to 2.59%, reflecting a slight upward revision from the previous week. In the financial markets, the Fed’s Reverse Repo Facility took in $0.787 billion on May 8, continuing to provide a liquidity buffer for the banking system.
On the international front, Argentina is moving aggressively to attract foreign direct investment through its "Super RIGI" initiative. The program offers zero export duties and a 30-year guarantee of tax and customs stability for projects exceeding $200 million. Meanwhile, India has officially published new Labour Wage Code rules, signaling a major overhaul of the country's employment regulations to streamline industrial operations.
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.