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Market news: Explosions were heard in Kyiv, the capital of Ukraine.On July 28th, Apple (AAPL.O) surpassed Nvidia (NVDA.O) to regain the title of the worlds most valuable company by closing price, for the first time since April 2025. Nvidias stock price fell nearly 5% on Monday, reducing its market capitalization to $4.77 trillion, as investors expressed concerns about the enormous costs of building AI infrastructure, leading to a general decline in the AI chip sector. Meanwhile, Apples stock price rose 1%, reaching a market capitalization of $4.95 trillion, ahead of its highly anticipated earnings report after the market closes on Thursday. Nvidia had held the title of the worlds most valuable company since dethroning Microsoft in June 2025, and briefly touched a $5 trillion market capitalization last October. So far in 2026, Nvidias stock price has only risen 4%, while Apples has risen 24%. Apples outperformance is attributed to its cautious approach to AI capital expenditures, favoring leased computing power over self-built infrastructure—a strategy that has resonated with investors.According to the New York Post: Israeli Prime Minister Netanyahu will provide US President Trump with intelligence on Irans "Gazelle" nuclear facility.A U.S. Senate aide said the Senate is expected to begin voting on the Russia sanctions bill as early as Tuesday (during Ukrainian President Zelenskys visit to the U.S.).According to two Senate aides, Ukrainian President Volodymyr Zelensky will meet with the full U.S. Senate on Tuesday evening local time.

After A Fed Rise, The U.S. Banks Stress Index Might Deteriorate

Aria Thomas

Jun 17, 2022 11:09

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An indicator of credit risk in the U.S. banking sector may be exhibiting symptoms of strain as the Federal Reserve's aggressive rate rise path heightens economic pain forecasts.


According to Refinitiv data, the so-called FRA-OIS spread, which measures the difference between the U.S. three-month forward rate agreement and the overnight index swap rate, jumped to 29.50 basis points on Thursday, its widest level since May 23. The value was -11.66 basis points earlier in the week.


Widely regarded as a barometer for banking sector risk, a wider spread indicates that interbank lending risk has increased.


The recent increase in the margin between forward rate agreements and overnight index swap rates is worrisome, according to J.P. Morgan Asset Management global market analyst Jordan Jackson. "As the Fed becomes more hawkish, recession fears increase, hence boosting the underlying credit risk."


The Federal Reserve hiked interest rates by 75 basis points on Wednesday, its largest rise since 1994. Markets have been rocked by the prospect of more dramatic tightening, and fears of a future recession have intensified.


This month, the central bank also started letting bonds to expire off its more than $8 trillion balance sheet without replacing them, a procedure known as quantitative tightening that Jackson warned may possibly deplete the financial system's liquidity.


As the world's biggest holder of U.S. government debt lowers its market presence, this sentiment is shared by other investors who are concerned that market conditions may deteriorate.


"Now that quantitative tightening has formally begun, reserve draining has been rather steady over the last several months," Jackson said, adding that he expects the FRA-OIS disparity to become much wider.


Wall Street also perceives an increase in the likelihood of default by large banks.


On Thursday, credit default swap (CDS) spreads for JP Morgan, Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), and Bank of America (NYSE:BAC) were nearing two-year highs.


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