Markets closed on June 17 with a mixed performance: the Dow Jones Industrial Average extended its winning streak to four days, adding 320 points, while the Nasdaq and S&P 500 indices edged lower.
Among the top 20 stocks by trading volume on June 17, SpaceX continued its rally for a third consecutive day, with its market capitalization briefly surpassing that of Amazon and Microsoft during the session.
Most popular US-listed Chinese stocks declined on June 17, with Baidu Inc (NASDAQ: BIDU) falling over 3% and XPeng Inc (NYSE: XPEV) dropping more than 4%.
A review of commodities showed oil prices tumbling to three-month lows, aluminum prices edging higher, and gold prices advancing.
European stock markets rose, buoyed by optimism stemming from the prospect of reopening the Strait of Hormuz.
Key Macro Developments
Reports indicate that under the terms of a US-Iran agreement, Iran would be permitted to begin selling oil immediately.
Iran is expected to receive broad economic benefits from the deal, including the immediate ability to sell oil and access to a $300 billion development fund.
Tehran is reportedly seeking "full guarantees" regarding access to funds as part of the US-Iran agreement.
Swiss officials have stated that a provisional US-Iran agreement is scheduled to be signed this Friday in Bürgenstock.
Rising living costs are forcing many Americans to tap into their retirement savings for emergency expenses.
A Russian warship fired warning shots at a British yacht, an incident the UK government views as isolated.
Corporate News Highlights
SpaceX shares have surged 49% since its public listing, bringing its market value close to that of Amazon.
Apple is reportedly planning to launch AirPods with integrated cameras and a foldable iPhone model next year.
Mobileye aims to introduce a self-driving taxi service in the United States by 2027.
US Commerce Secretary has sent a letter to Anthropic, warning of potential restrictions on the use of its top-tier AI models.
Goldman Sachs has advised on mergers and acquisitions deals totaling over $1 trillion this year, setting a record for the fastest pace to reach that milestone.
The market capitalization of SpaceX has now exceeded that of Microsoft, making it the fourth-largest publicly traded company in the US.
Following a 17% surge that pushed its value past Microsoft's, some experts suggest SpaceX is currently significantly overvalued.
With its market cap surpassing Amazon's, SpaceX now ranks as the fifth-largest company globally by that measure.
Analyst Commentary and Further Insights
Several major Wall Street banks have lowered their oil price forecasts, citing a faster-than-expected restoration of oil supply from the Gulf region.
Wells Fargo has raised its year-end target for the S&P 500 index as the signing of a US-Iran deal appears imminent.
Overnight headlines featured SpaceX's 49% post-IPO surge, Lutnick's warning to Anthropic, and Apple's plans for camera-equipped AirPods and a foldable iPhone next year.
In the US bond market, Treasuries maintained their gains, supported by falling oil prices and a strong 20-year bond auction.
The US dollar weakened ahead of the Federal Reserve's policy decision, while the Japanese yen held steady following the Bank of Japan's rate hike.
Crude oil prices recorded their longest losing streak of the year, with the US-Iran deal bolstering expectations for increased supply.
The US Treasury's 20-year bond reopening saw a yield of 4.927%, with demand stronger than anticipated.
Long-dated bonds led gains in European debt markets as the prospect of a US-Iran deal pushed oil prices even lower.
The new governor of the Bank of France stated there is no inherent hawkish or dovish bias, and policy decisions will be data-dependent.
A prominent figure in options trading suggested that SpaceX options trading volume could eventually surpass that of Nvidia and Tesla.
Traders on prediction markets are betting that Anthropic may soon regain access to Fable 5 usage rights.
The CEO of Shell stated that oil prices are likely to remain elevated even if conflict with Iran subsides.
Retail investors received minimal allocations of SpaceX IPO shares, leaving them with a difficult decision to hold or sell.
An exploration is underway into whether computing power could become the new oil, as industries attempt to turn AI compute into a tradable commodity.
European natural gas prices extended their decline, with Citigroup analysts suggesting further downside is possible.
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