Good morning. QQQs +65bps higher to start the day with investor focus on the Fed meeting this afternoon, where market is pricing >90% chance of a 25bps rate hike. Oil -2% on Saudi Arabia ramping up sales of crude outside SOH after shutdown of EW pipeline). Yields down 3bps.
In Tech, Semis +1.7% while Software -30bps as the conversation among investors has shifted in a more compute positive direction since Monday surrounding what an increasing focus on AI Safety looks like.
Lots to get to, so let’s get right to it…
SKHY/INTC/Memory: SK Hynix in talks with Intel about deal to make memory chips in US for the first time - Reuters
Reuters reports SK Hynix is in exploratory talks with Intel about producing memory chips in the U.S. for the first time, potentially by leasing part of Intel’s Ohio fab or forming a JV with Intel and cloud customers. A deal could help Intel monetize underused Ohio capacity and expand U.S. memory supply, though production of advanced DRAM/HBM could face pushback from Seoul over sensitive technology transfers.
SK Hynix responded “We would like to clarify that nothing has been finalized regarding cooperation with any specific companies mentioned in the article or memory chip production in the United States…SK Hynix is exploring various options to strengthen its global competitiveness, but no specific plans or arrangements have been finalized at this time. No decisions have been made regarding the two scenarios mentioned in the article”
Both Hynix/INTC +3%
A less positive take from TMTB Slack: