Oil Is Flowing

Amazon (NASDAQ:AMZN) shares are climbing 2.1% after Bloomberg reported the company is in talks to sell its custom-built AI chips for use in other companies’ data centers, a move that would mark Amazon’s entry into the competitive AI hardware market as a supplier. The company notes that Trainium already powers workloads for Uber (NYSE:UBER), OpenAI, and Anthropic, a customer base that has driven more than $225 billion in revenue commitments and left the chip largely sold out.

The Federal Reserve held rates steady at 3.25% at its June meeting, marking Kevin Warsh’s first decision as Fed Chair, but the updated dot plot signaled a notably more hawkish path forward than markets had been pricing in. Policymakers now project a slower pace of rate cuts, with median estimates showing rates holding above 3% all the way through 2029, a timeline that pushes back against hopes for a quicker return to easier monetary policy. The shift raises real questions for markets going forward, particularly around how long high-multiple growth stocks can keep outrunning a rate backdrop that just got less accommodative, and whether market leadership broadens out or stays concentrated in the handful of AI names that have carried this rally so far.