Texas Instruments' huge investment and geopolitical risks affect interest rate decisions

Texas Instruments (TXN-US) announced that it will invest more than $60 billion in the United States to expand its chip factory. This move not only responds to the government's domestic manufacturing policy, but also shows its active layout in the global semiconductor competition, especially under the pressure of Chinese competitors, the determination to strengthen the United States' manufacturing capabilities has become more obvious.

In addition, the nuclear power company supported by Bill Gates and Altman recently raised more than $1 billion, showing confidence in the market potential of small modular reactors. These technologies are seen as solutions to future electricity demand growth, especially in the context of a 25% increase in U.S. electricity demand, and the government's support for new nuclear power plants is also increasing.

These trends not only reflect the capital flow trends in the fields of technology and energy, but also indicate that the United States will play a more important role in the global supply chain in the future, especially under the dual drive of promoting sustainable energy and high-tech manufacturing.

US President Trump's fierce criticism of Federal Reserve Chairman Powell has made the market nervous about the upcoming interest rate decision meeting. Trump advocated a 2 percentage point cut in interest rates and questioned the drag of high interest rates on the economy.

At the same time, geopolitical risks have been exacerbated by the conflict between Israel and Iran. The potential blockade of the Strait of Hormuz could cause Brent crude oil prices to soar to $120-130 per barrel, and tanker insurance costs have also risen, showing market concerns about energy supply.

These factors have jointly affected market sentiment, and investors have sought safe-haven assets amid uncertainty, reflecting the fragility and risks of the current economic environment.

The major US stock indexes rose slightly after opening on Wednesday, and the market focused on the upcoming interest rate decision of the Federal Reserve (Fed), which is expected to keep interest rates unchanged for the fourth consecutive time and emphasize the need for a clearer understanding of government policies and the impact of the situation in the Middle East.

However, the sluggish situation in the real estate market cannot be ignored. Although the start rate of single-family homes has increased slightly, the number of building permits has dropped sharply, indicating that economic uncertainty has increased and construction costs have been pushed up by rising tariffs.

At the same time, although the number of initial unemployment claims fell slightly, it still showed a weak labor market. Increased layoffs and unstable economic environment reduced employers' willingness to recruit.

In the field of technology, Meta (META-US)'s poaching of OpenAI has attracted attention. Despite offering a signing bonus of up to $100 million, OpenAI's outstanding employees have not accepted the invitation, showing the company's competitiveness in the field of AI.

Overall, while facing multiple challenges, the market still needs to pay close attention to the Fed's policy direction and its potential impact on the economy.