Nvidia and SK Hynix announce massive memory chip deal to fund SK Hynix Nasdaq listing (SKHY); addresses AI memory fabrication capacity crunch.

It's been a relatively calm weekend, with a pause in the fighting in the Middle East instead of an escalation. But that doesn't mean all is smooth sailing. Ukraine, in a far-reaching strike, hit an Iranian commercial vessel, while the Trump administration dealt with tariff lawsuits at home. Nvidia raced to secure more memory from SK Hynix in a deal that could reach $500 billion, which could serve as a catalyst for the stock that has fallen heavily over the last month. But one critical question remains: Why is chocolate still so expensive?

**Markets catch a breather on Middle East pause**

Investors had a calm weekend on the Middle East front, after a pause in the Iran war sent oil prices lower and stocks higher, giving investors a welcome break from renewed hostilities between Tehran and the U.S. But the relief came with caveats. Ukraine struck an Iranian commercial ship in the Caspian Sea, with President Volodymyr Zelenskyy saying the strike involved military cargo shipments related to Iran. Iran said the attack left one sailor dead and injured several others, and Tehran accused Kyiv of a hostile act.

**Tariff lawsuits loom**

The Trump administration is also facing legal challenges elsewhere, with lawsuits from two businesses over its new Section 301 tariffs, which were imposed last Friday over forced-labor claims. Experts told CNBC the duties may struggle to survive legal scrutiny.

**Britain's new PM takes a measured stance**

Across the Atlantic, Britain's new prime minister, Andy Burnham, said he is prepared to call out Trump if needed. "You have to defend your own national interest before anything else. That's what you're required to do if you're to do this job properly," Burnham said in a BBC interview.

**The Nvidia-SK Hynix deal**

For investors, though, the biggest deal of the day may still be in AI. Nvidia has secured what could be a $500 billion memory supply agreement with SK Hynix, potentially alleviating concerns as the memory market faces a global shortage.

**Valuations in the industrial sector**

The S&P 500 industrials sector is trading at a price-to-earnings ratio above 30, a level more often associated with high-growth names. Cinthia Murphy, director of research at VettaFi, said "it's as high as tech, so it really is a sector that has really had its moment in the sun and picked up a lot of attention."

In Asia, investors will be keeping an eye on China's industrial profits for June, which will provide a marker of the state of the world's second largest economy.

**Why chocolate remains expensive despite falling cocoa prices**

Cocoa prices are easing after a record-breaking rally, but don't expect cheaper candy just yet. The world's biggest chocolate makers are turning to social media-inspired products and other strategies to win shoppers back.

Prices reached record highs over the past two years, triggered by adverse weather conditions and poor cocoa harvests. Cocoa futures were last trading at $5,327 per metric ton and are down 34% over the past year. The commodity surged to almost $12,000 per metric ton at the end of 2024, compared to the typical range of $2,000 to $3,000 over the past two decades.