Key Updates in Finance and Tech: Powell Testifies, Microsoft and Apple Step Back, TSMC Revenue Soars, Samsung Workers Strike, Oracle Shares Rebound

Federal Reserve Chair Jerome Powell returned to Capitol Hill for a second day of testimony, where he emphasized the importance of closely monitoring the labor market as risks from inflation and unemployment become more balanced. Powell did not provide a timeline for potential interest rate cuts, which have been at 23-year highs since last July.

In other news, tech giants Microsoft and Apple have reportedly decided not to take observer seats on the board of OpenAI, a move seen as an effort to avoid scrutiny from antitrust regulators on their AI partnerships. This decision comes after recent antitrust concerns raised by the European Commission against both companies.

Taiwan Semiconductor Manufacturing Co. (TSMC) saw its shares rise in premarket trading after reporting a significant year-over-year increase in June revenue. The semiconductor maker attributed the growth to rising demand in AI technology.

Meanwhile, Samsung Electronics workers have extended their strike indefinitely over pay and vacation disputes. This marks the first strike in Samsung’s 55-year history and comes as the company recently overtook Apple as the world’s top smartphone provider.

Lastly, Oracle shares are looking to rebound after dropping 3% following reports that talks with Elon Musk’s xAI over a potential $10 billion server deal had ended. The deal would have expanded an existing agreement between the two companies, but xAI has decided to build out its own system instead.

Overall, U.S. stock futures are relatively unchanged as investors digest the latest developments in the tech and semiconductor industries.