WS #10673

The dominant theme in this window is Apple's price hikes on Macs and iPads, explicitly attributed to the AI data center-driven memory crunch. CEO Tim Cook called it a 'hundred-year flood,' and the company warned of more increases to come. This is corroborated by CNBC, Bloomberg, Reuters, and multiple social media sources, making it high-significance. The move is a direct pass-through of the memory cost surge highlighted by Micron's record quarter (revenue quadrupled, gross margin 84.9%), which has driven Micron shares up ~17% premarket and lifted the memory sector (WDC, SNDK). However, Apple's price increases could dampen consumer demand for its products, creating a bearish counter-signal for AAPL. Meanwhile, the May PCE data showed core inflation at 3.4% (highest since Oct 2023) and headline at 4.1%, reinforcing the Fed's hawkish stance. Oil prices continue to fall, with Qatar issuing its first crude tender since the Iran war began, and Ukrainian drone strikes hitting Russian oil infrastructure. The Strait of Hormuz situation remains a complex counter-signal: Iran asserts control but oil prices are falling on increased supply expectations. Bitcoin has recovered to ~$61,000 but faces a large options expiry. The narrative arc is STABLE for inflation and ESCALATING for the memory/AI capex cycle, with Apple's price hikes being a key new data point.