The chip index dropped 7.9% last week while Iran broke the ceasefire and struck two ships in the Strait of Hormuz. Oil barely moved. The Fed's Kashkari has swung to a rate hike. And the BIS just warned that sovereign debt, AI overinvestment and leveraged hedge funds are building systemic risk.

Mark covers the chip selloff and what it means for hyperscaler margins, why software stocks at 52-week lows could be a generational buy, the healthcare rotation, and what to watch on the ASX this shortened week — including RBA minutes, tax-loss selling season and U.S. payrolls on Thursday.

New episodes every weekday before the ASX open. Visit mpcmarkets.com.au/podcast for the full written Morning Call.

Micron's blowout AI earnings sent memory stocks surging 16% — but the consequences hit fast. Apple raised prices across MacBooks and iPads by up to $500, Microsoft hiked Xbox pricing, and every Mag Seven name traded lower. The chip boom is feeding the same inflation problem the Fed is already fighting.

KPMG now expects two rate hikes by year-end. May core PCE held at 3.4% YoY, GDP was revised sharply to 2.1%, and oil rebounded after an IRGC attack on a cargo ship in the Strait of Hormuz threatened the fragile US–Iran peace deal. In Australia, employment surprised massively to the upside at +40,300 jobs — ASX futures up 9 points at 8,755.

Covered today: Micron's $22bn in locked-in orders and what it means for hyperscaler margins, Apple and Microsoft passing costs through to consumers, the PCE inflation read and Fed hike outlook, the Hormuz incident and oil dynamics, commodities getting belted on the week, Australian employment and RBA minutes preview, plus the week ahead with non-farm payrolls brought forward for Independence Day.

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Micron Technology crushed Wall Street expectations overnight, reporting Q3 revenue of $41.5 billion (a $6.2 billion beat) with cloud memory up 307% year-on-year and core data centre up 653%. The stock surged ~13% after hours, dragging Nasdaq futures up around 2% and effectively reversing the session's losses. Qualcomm added to the momentum with positive CEO commentary.

In today's Morning Call, Mark Gardner covers:

— Why Micron's result matters for the broader AI trade and whether the rally can continue from here
— Oil hitting its lowest level since before the Iran war as 20 million barrels transit the Strait of Hormuz
— The commodity rout across gold, silver, copper and crude — and where the buying opportunities might be
— U.S. dollar strength and what's driving the move despite weakening consumer discretionary budgets
— Australia's May employment data due today and what it means for the RBA rate path
— Trim mean inflation coming in slightly higher than expected — rate hikes still on the agenda?
— Healthcare sector green shoots: why names like CSL, Telix and Vive are starting to turn
— JPMorgan and Goldman Sachs boosted dividends after passing Fed stress tests
— a2 Milk's positive update and Tourism Holdings' fresh takeover approach

ASX 200 futures pointed ~20 points higher at the close. SPI up around 0.2% to 8,810.

Listen to Bulls vs Bears every Friday for a deeper weekly dive — available at mpcmarkets.com.au/podcast