Intel shares declined 4% in pre-market trading on Wednesday, following the announcement of a 34% increase in its foundry business losses, hitting $7 billion in 2023, up from $5.2 billion the previous year. This first detailed financial disclosure of the division’s performance comes amidst significant CHIPS Act funding. Despite current setbacks, Intel’s CEO Gelsinger envisions future profitability, linking the losses to earlier strategic and technological decisions, with an aim for a turnaround in earnings by 2030.

Gold Rallies on Inflation Hedge; Oil Up Amid Supply Fears

Amid rising inflation concerns and geopolitical unrest, gold prices continue their record-breaking streak, with spot gold reaching $2,286.24 per ounce, marking a significant safe-haven demand. U.S. gold futures also see a 1.1% rise. Concurrently, oil prices gain as U.S. crude inventories unexpectedly fall and global tensions escalate, particularly due to Ukrainian attacks on Russian oil infrastructure and Middle East conflicts. These factors collectively heighten worries about tightening oil supplies while supporting the demand for gold as a reliable hedge.

Treasury Yields Climb; Dollar Strengthens Amid Fed Outlook

The 10-year Treasury yield rises to 4.379%, reflecting market reactions to U.S. economic data and Fed rate cut expectations. Traders anticipate a 62% chance of a June rate cut, down from 70% last week. Federal Reserve Presidents Mester and Daly forecast cuts, but not immediately. The dollar strengthens, impacting major currencies, as robust U.S. economic data fuels expectations of reduced Federal Reserve rate cuts, with the market now expecting less than the Fed’s projected three cuts this year.

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