Suspected Sonic Labs-Related Address Transfers 11.78 Million S Tokens to Binance, Valued at Approximately $5.55 Million

U.S. stocks opened lower on Wednesday, amplifying market pressure ahead of the Federal Reserve’s interest rate decision later in the session. Negative sentiment was driven primarily by a sharp rise in oil prices, after Donald Trump told Fox News in an interview that the U.S. would launch a strong strike against Iran in response to a recent attack targeting personnel in the Middle East. The 10-year U.S. Treasury yield edged up to 4.62%, approaching its year-to-date high. The 2-year U.S. Treasury yield—more sensitive to Fed policy decisions—rose by around 3 basis points to 4.3%, also near its year-to-date peak. Traders widely hope the Federal Reserve, led by Chair Powell, will signal that it views the oil price shock from tensions with Iran as temporary and will not rush to raise interest rates this year. However, some argue that a single rate hike would be reasonable, and would help calm the long end of the yield curve by demonstrating the Fed’s resolve to curb inflation.

Economist Claudia Sahm stated that unless inflation makes more substantial progress, the post-meeting statement will likely signal an upcoming interest rate hike. After Fed official Christopher Waller’s June meeting, the Federal Open Market Committee (FOMC) released a statement far shorter than its usual convention, ditching previous verbose, formulaic language and centering only on a simple core line: “The Committee will achieve price stability.” Sahm noted that while Waller is dismissive of forward guidance, she expects this statement to provide clearer clues about the Federal Reserve’s policy direction. Specifically, she anticipates wording along these lines: “Despite recent improvements, inflation remains above the Committee’s 2% target, partly due to supply shocks from Middle East conflicts and tariffs, as well as strong growth in artificial intelligence (AI)-related demand. If inflation stays high while the labor market remains stable, appropriate policy tightening may be needed soon to achieve price stability.” Sahm also believes the statement will frame the labor market outlook more optimistically, describing conditions as “broadly consistent with the goal of maximum employment.”

Serenity’s report states that the U.S. government will take a 1% equity stake in GlobalFoundries (GFS) and provide $300 million in funding to the company under the CHIPS Act to accelerate research and development of co-packaged optics (CPO) and silicon photonics technologies. Serenity views this move as positive for Sivers Semiconductors (SIVE) and Lumentum (LITE). Serenity points out that the CHIPS Act funding is explicitly focused on the CPO and silicon photonics fields, and only two listed laser suppliers—Sivers and Lumentum—were named in GlobalFoundries’ previous presentation materials. Meanwhile, Sivers’ laser arrays have recently been incorporated into the CPO reference design of GlobalFoundries’ SCALE platform. Serenity believes that the U.S. government is accelerating the development of its domestic CPO industry chain, a strategic initiative with significance comparable to its earlier support for Intel’s foundry business.

U.S. White House National Economic Council Director Hassett: We expect Federal Reserve Chair Walsh to make the right decision.

Market news: OpenAI CEO Sam Altman spoke to reporters after meeting with US Republican Senator Ted Cruz. The two sides discussed new artificial intelligence models, with Altman expressing support for an AI safety bill, though he did not disclose specific details.

According to Politico, U.S. Republicans raised the debt ceiling by $5 trillion last year. Now, they are already considering how to avoid falling back into a "fiscal cliff" during Trump’s term. Independent forecasting agencies project that the U.S. will reach "X Date"—the final deadline to avert a U.S. debt default—between next summer and early 2028, a period that coincides with the intensification of the presidential primary season. Two sources familiar with the matter said that to avoid high-stakes negotiations with Democrats, White House officials have privately proposed raising the U.S. debt ceiling of $41.1 trillion via a partisan spending bill that many Republicans hope to pass ahead of the November midterm elections. If Republicans lose control of either chamber of Congress in the upcoming midterms, this move could save Trump significant trouble, as Democrats will in any case demand concessions in bipartisan negotiations to prevent an unprecedented national debt default—with the total national debt currently nearing $39.7 trillion.