Market Overview
Closing figures for June 24 show the three major U.S. stock indices ending lower, with the Nasdaq Composite dropping over 2% as a sell-off in tech shares rippled through global markets.
Among the top 20 stocks by trading volume on U.S. markets, Micron Technology Inc saw a sharp decline of 13%, driven by risk-off sentiment from investors, with market attention turning to its earnings report scheduled for release after the market closes on Wednesday.
Most popular U.S.-listed Chinese stocks closed lower, with Alibaba Group Holding Ltd and Pinduoduo Inc falling approximately 2% and Taiwan Semiconductor Manufacturing Company dropping over 6%.
Commodities Summary: Oil prices moved lower, while gold and base metals saw broad declines amid selling pressure across financial markets.
The tech stock sell-off spread to European equities, dragging down markets, with shares of Puma SE also experiencing a decline.
Macroeconomic Developments
The U.S. Senate passed a resolution aimed at limiting former President Trump's war powers regarding Iran.
Former U.S. President Trump stated that unfrozen Iranian funds would remain under U.S. control.
Trump indicated the U.S. is working towards reaching a fair agreement with Iran.
Trump mentioned that International Atomic Energy Agency inspectors would visit Iran at an appropriate time.
Shifting focus to mid-term elections, Trump touted the end of war and an imminent economic takeoff.
The U.S. Secretary of State announced that the U.S. will engage directly with the Lebanese government.
The Trump administration is set to provide $17.5 billion in loans to promote the construction of large-scale nuclear power plants in the United States.
The President of Iran stated that the Iran-U.S. memorandum of understanding does not address missile issues.
The leader of Lebanon's Hezbollah asserted that Israel must completely withdraw from all Lebanese territory.
Cuba's Foreign Minister criticized the U.S. for tightening sanctions against Cuba.
Oman, in coordination with the International Maritime Organization, is opening a temporary shipping lane in the Strait of Hormuz.
The International Maritime Organization announced the initiation of a plan to evacuate stranded seafarers in the Strait of Hormuz.
Corporate News
SpaceX raised $250 billion through the bond market, with subscription demand indicating cautious market sentiment.
Shares of SpaceX closed nearly 1% higher, ending a three-day losing streak.
Despite the share price decline, some Tesla Inc shareholders are betting that a merger with SpaceX is CEO Elon Musk's ultimate plan.
FedEx Corporation reported strong profitability in its freight business last quarter, with both revenue and profit exceeding expectations.
Cerebras Systems Inc, in its first earnings forecast since going public, projected a decline in gross margin, leading to a 10% drop in its share price in after-hours trading.
Shares of Alphabet Inc rose in after-hours trading as it is set to replace Verizon Communications Inc in the Dow Jones Industrial Average.
A $7 billion private credit fund under Morgan Stanley restricted redemptions, capping repurchases at 5%.
Hong Kong-based hedge fund Ovata is closing, with its founder and most staff joining ExodusPoint Capital Management.
Revenue from Goldman Sachs Group Inc's equities trading business in the second quarter is reportedly set to exceed $5 billion, setting another industry record.
Analyst Commentary
Baird forecasts Tesla Inc's Q2 deliveries to reach 392,900 units and suggests a potential merger with SpaceX.
Deutsche Bank AG raised its forecast for short-term U.S. Treasury yields.
U.S. Bond Market: Treasury prices held gains amid the stock market decline, with market focus on SpaceX's bond issuance.
Cooling expectations for interest rate hikes boosted U.S. Treasuries, with strong demand at a two-year Treasury auction.
The pass rate for the CFA Level I exam fell to 39%, while the number of candidates reached its highest level since before the pandemic.
The U.S. Dollar Index hit its highest level since November as traders increased bets on Federal Reserve rate hikes.
The awarded yield on a U.S. two-year Treasury note auction reached its highest level in over a year.
The Governor of the Bank of Canada warned that excessive investment in the U.S. poses a global financial risk.
The Vice President of the European Central Bank stated that inflation is expected to remain elevated for a longer period.
UBS Group AG believes the Federal Reserve will not raise interest rates in the near term.
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