Banks Rally, QCOM Bets Big on AI

Banks in Focus After Fed Stress Tests

The Federal Reserve declared all major US banks well positioned to withstand a severe recession. The results landed tonight. JPMorgan moved immediately. The bank raised its quarterly dividend and announced a $50 billion buyback. State Street also lifted its dividend, from $0.84 to $0.92 per share. The bank stress tests clear the way for a wave of capital returns across the sector.

Not all financials thrived. Jefferies Financial Group missed badly. Q2 adjusted EPS came in at $1.03 versus an estimate of $1.16. Sales also fell short at $2.21B against a $2.30B forecast.

Qualcomm Goes All-In on Data Centers

Qualcomm held an investor day today. The chipmaker set a target of more than $40B in non-handset revenue by fiscal 2029. That is roughly double its prior target. It is targeting $15B from data center AI infrastructure alone. The CFO said the company has an opportunity to scale annual revenue to $100B. Handsets are set to fall to just one-third of chip revenues. This is a major strategic pivot away from smartphones.

Trump Probes Exxon and Chevron

President Trump said Exxon Mobil and Chevron are under investigation amid the surge in gas prices. The probe adds political pressure to the energy sector. Oil prices have already been rattled by the Hormuz Strait blockade, which has stranded nearly 1,200 cargo ships carrying $125B in goods.

Europe and Asia on Edge

South Korean chipmakers Samsung and SK Hynix saw sharp swings as volatility hit record highs amid AI demand doubts. The euro dropped to a one-year low as falling oil prices reduced pressure on the ECB. Venezuela is set to reveal a $240B debt pile — the world's largest restructuring.

Micron's earnings call tonight is a key read on AI memory demand heading into quarter-end.