U.S. stocks closed higher with the Dow Jones Industrial Average climbing 300 points, as investors monitored the latest developments in Middle East tensions. Among the top 20 stocks by trading volume, Intel and AMD were reported to be planning price increases for CPU products. Most popular U.S.-listed Chinese stocks advanced, with JD.com rising 8.3%, while Silicon Motion Technology fell 6.5%. Oil prices declined after Iran announced it would allow “non-hostile” vessels safe passage through the Strait of Hormuz. Gold futures in New York rose 2.3%. Major European stock indices closed broadly higher.
The White House stated that negotiations with Iran “are still ongoing.” With half of the five-day deadline elapsed, U.S.-Iran interactions remain a mix of talks and military posturing: a 15-point proposal faces obstacles, and the Strait of Hormuz has become a focal point of contention. The White House insists talks with Iran continue, while Tehran claims it has rejected a U.S. ceasefire proposal. Key points of the U.S. proposed 15-point ceasefire agreement include dismantling major nuclear facilities and reducing missile stockpiles. Former President Trump announced appointments to the President’s Council of Advisors on Science and Technology, including Jensen Huang and Mark Zuckerberg. The U.S. House Speaker stated that American forces “will not engage in ground combat” in Iran. Republicans rejected a counteroffer from Senate Democrats regarding funding for the Department of Homeland Security. The Pentagon plans to temporarily allocate over $1 billion to purchase additional missile interceptors. Iran’s president stated that the country’s leadership is highly unified on the issue of war. Iran’s foreign minister clarified that Tehran is exchanging messages with the U.S. through mediators but is not engaged in direct negotiations. An Iranian military source warned that if provoked, Iran may open additional fronts. Iran’s military claimed it is searching for U.S. troops who have fled from bases in the Middle East. Iran’s military also stated it shot down a U.S. F-18 fighter jet. Iran declared that parties associated with hostile forces are not permitted passage through the Strait of Hormuz. Israeli Prime Minister Netanyahu stated that military operations against Iran are fully underway. Pakistan offered to mediate negotiations regarding the U.S.-Iran conflict, while conflicting signals emerged from Trump and Tehran. The Kremlin said Russia has expressed concerns to the U.S. regarding the Bushehr nuclear power plant. The impact of energy price shocks is becoming evident, with the French central bank lowering growth forecasts and raising inflation expectations. Italy is considering revising down growth projections, citing the economic impact of the Iran conflict.
The U.S. Postal Service announced a temporary 8% price increase on certain products due to rising transportation costs. Meta and Google were found liable in a social media addiction lawsuit. Arm’s stock surged 15% following the launch of its AI chips. Reports suggest SpaceX is preparing to file for an IPO, sparking a rally in space-related stocks. SpaceX is reportedly aiming to raise $75 billion in its IPO, which would set a global record. Constellium reported strong 2025 earnings and is targeting further growth in the Brazilian market. Baker Hughes will provide technology for an offshore liquefied natural gas project in Texas. Micron launched a cash tender offer to repurchase up to $5.4 billion in notes. Disney canceled plans to invest $1 billion in OpenAI and is reevaluating its investment in Epic Games. Intel and AMD shares jumped on reports of a potential 15% increase in CPU prices. JetBlue’s stock surged 18% amid speculation of a potential merger with another airline. Energy hedge funds, tired of frequent policy shifts, are developing trading strategies that ignore presidential statements.
Morgan Stanley expects the U.S. dollar’s rally to be short-lived, citing narrowing interest rate differentials with Europe and potential economic drag from the Iran conflict. Oil prices resumed their upward trend as the U.S. and Iran remain divided on how to end the war. A Federal Reserve governor attributed the upward revision in interest rate expectations to inflation data. A European Central Bank official stated it is too early to discuss the timing of rate hikes. An analyst who previously warned of AI-induced economic collapse now cautions against abandoning expectations for interest rate cuts. Wait times at U.S. airport security checkpoints hit record highs due to funding shortages affecting TSA staffing. Investment experts emphasize that markets “urgently need clear information” to navigate the Iran conflict. Morgan Stanley noted that war-induced market volatility has reduced liquidity in U.S. Treasuries. Arab mediators described Iran negotiations as difficult but not broken down.
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