While we’re all getting accustomed to operating in an environment in which dramatic changes come on a near-daily basis, that doesn’t mean it’s easy—and it also doesn’t mean we feel particularly confident about how well we’re managing it. In general, it takes finely honed leadership skills to weather today’s storms.

I talked to Tom Monahan, CEO of leadership advisory firm Heidrick & Struggles, about how CEOs can thrive while dealing with some of today’s most difficult challenges. An excerpt from our conversation is later in this newsletter.

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Last week was difficult, both for consumers and Wall Street. Inflation in May continued to climb, hitting 3.4% in the monthly report the Bureau of Economic Analysis released last week. May’s inflation rate is the highest since October 2023, and it seems pretty entrenched. The personal consumption expenditures index—minus volatile food and fuel prices, and the Fed’s favored inflationary metric—has increased 4.1% from a year ago.

Prices are likely to continue to rise for technology, with major manufacturers announcing large hikes last week. Apple’s laptops and iPads are going to be at least $200 more expensive, and Microsoft is raising prices for new Xbox consoles $100 to $150. The reason for the increase: Rapidly growing demand for AI memory chips. Apple CEO Tim Cook said earlier this month that the price hike was “unavoidable.” After the announcement Thursday, Apple’s stock dropped more than 5%, and has been slow to recover—and Forbes senior contributor Peter Cohan writes the company’s outlook depends on whether consumers will pay the higher prices. While Microsoft’s stock quickly recovered from the 6% drop after the price announcement, their long-term outlook in this consumer front may not be rosy: Forbes senior contributor Paul Tassi writes this month has seen the lowest-ever sales for Xbox consoles.

The growing cost of AI infrastructure—and the massive demand for memory chips—also weighed on global stock markets last week. Last week began in a slump as investors pondered whether memory chip maker Micron would show sustained demand in its earnings report. When it showed record-breaking earnings, markets rebounded a bit—but then stayed largely flat and overall down from a week prior. The selloff over AI costs and rapid rise and fall after SpaceX’s IPO earlier this month reportedly has led OpenAI to consider delaying its IPO, initially planned for later this year.

Last week, the future of energy—and all that will........

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