U.S. stock indices ended Tuesday's session with mixed results, while the S&P 500 index secured its fifth consecutive day of gains. In a recent interview, former President Donald Trump stated that the U.S. is engaged in "intense negotiations" regarding the Iran war but provided no further specifics. He also mentioned he is due to receive a full briefing on the Pakistani Prime Minister's proposal for a "two-week ceasefire."
**U.S. Markets** At the close, the Dow Jones Industrial Average fell by 85.42 points, or 0.18%, to 46,584.46. The Nasdaq Composite rose by 21.51 points, or 0.10%, to 22,017.85. The S&P 500 gained 5.02 points, or 0.08%, finishing at 6,616.85. Broadcom Inc. (AVGO) advanced over 6%, and Intel Corporation (INTC) climbed 4%. The Nasdaq Golden Dragon China Index closed down nearly 1%.
**European Markets** Germany's DAX 30 index dropped 251.66 points, or 1.09%, to 22,916.42. The UK's FTSE 100 index declined by 86.39 points, or 0.83%, to 10,349.90. France's CAC 40 index decreased by 53.65 points, or 0.67%, to 7,908.74. The Euro Stoxx 50 index fell 59.11 points, or 1.04%, to 5,633.75. Spain's IBEX 35 index lost 116.75 points, or 0.67%, to 17,439.15. Italy's FTSE MIB index was down 221.44 points, or 0.49%, at 45,403.50.
**Asian Markets** Japan's Nikkei 225 index saw marginal gains, while South Korea's KOSPI index rose by 0.82%.
**Cryptocurrencies** Bitcoin increased over 1.3% to $69,729.66. Ethereum rose 1.7% to $2,140.88.
**Crude Oil** The May delivery light crude oil futures contract on the New York Mercantile Exchange rose 54 cents, settling at $112.95 per barrel, a gain of 0.48%. The June delivery Brent crude futures on the London ICE Futures Europe exchange fell 50 cents, settling at $109.27 per barrel, a decline of 0.46%.
**U.S. Dollar Index** The U.S. dollar index, which measures the greenback against a basket of six major currencies, fell 0.12% to settle at 99.857. By the end of New York forex trading, 1 euro could buy $1.1574, up from $1.1549 in the previous session. 1 pound sterling could buy $1.3251, up from $1.3241. 1 U.S. dollar could buy 159.73 Japanese yen, up from 159.63; 0.7988 Swiss francs, up from 0.7977; and 9.5065 Swedish krona, up from 9.4355. 1 U.S. dollar could buy 1.3899 Canadian dollars, down from 1.3914.
**Precious Metals** Spot gold rose 1.21% to settle at $4,706.32 per ounce. Spot silver settled at $72.992 per ounce.
**Macro News** **Source: Positive News Expected Soon from U.S. and Iran** Following the "two-week plan" proposed by Pakistani Prime Minister Shehbaz Sharif, sources indicate that positive news is anticipated soon from the U.S. and Iran, with a final agreement expected by the evening of the 7th local time. Earlier, Sharif stated on social media, "Diplomatic efforts aimed at peacefully ending the current Middle East conflict are advancing firmly and vigorously, with tangible success expected in the near term." To allow space for the diplomatic process, he requested a two-week extension of the "deadline" from former President Trump and simultaneously urged "Iranian brothers" to open the Strait of Hormuz for two weeks as a goodwill gesture. The Pakistani Prime Minister stated he asked the U.S. President to extend the deadline for Iran by two weeks and urged all warring parties to observe a two-week ceasefire to facilitate a complete end to the Iran war through diplomatic channels. He noted that diplomatic efforts for a peaceful resolution are progressing steadily and are expected to yield substantive results soon. He also called on Iran to open the Strait of Hormuz for the next two weeks as a goodwill measure.
**EIA: Oil Prices Could Remain Elevated for Months Even if Strait of Hormuz Reopens** The U.S. Energy Information Administration (EIA) stated Tuesday that oil prices could continue to rise in the coming months even if the Strait of Hormuz reopens. The agency now expects the average spot price for Brent crude this year to be $96 per barrel, up from a previous forecast of $78.84, and anticipates retail gasoline and diesel prices will continue to increase. The EIA indicated that even if the war ends, fully restoring oil shipments through the Strait of Hormuz could take months, during which prices would remain high until transport is fully resumed and Middle Eastern oil producers return to normal output levels. The EIA stated, "Just as we have never seen the Strait closed before, we have never seen it reopen. What exactly that will look like remains to be seen. We will maintain a risk premium on crude prices throughout the forecast period, as we expect uncertainty about future supply disruptions will keep prices above pre-conflict levels."
**Fed's Goolsbee: Stagflationary Shock from Iran Conflict Puts Fed in a Bind** Federal Reserve official Austan Goolsbee expressed concern that the Iran war could not only slow economic growth but also push inflation higher, placing the Fed in a difficult position with no clear "playbook" for how to respond. Goolsbee said, "My biggest worry right now is that we have to deal with an impending oil crisis, which will cause prices to rise in a stagflationary manner. Tariffs previously caused prices to spike, but they were expected to gradually come down. Now, a new shock is hitting before the previous effects have fully subsided."
**Corporate News** **Pimco Considers $14 Billion Debt Financing for Oracle Data Centers** According to informed sources, Pacific Investment Management Company (Pimco) is considering providing $14 billion in debt financing for Oracle Corporation (ORCL) data centers. If a final agreement is reached, the bond giant would become the primary backer for Oracle's data center campus in Saline Township, Michigan. Oracle plans to use the campus to serve OpenAI applications. Sources said the financing might be conducted via bonds, and Pimco could sell portions to other investors.
**Apple's Foldable iPhone Still on Track for September Launch** According to sources, Apple Inc.'s (AAPL) first foldable phone is still expected to debut as scheduled during the company's typical iPhone launch period later this year, alleviating concerns about significant production issues. The company plans to introduce the foldable model in September, alongside the iPhone 18 Pro and 18 Pro Max. A previous report from Nikkei had suggested Apple encountered engineering challenges during testing that could delay production and shipping plans. Following that report, Apple's stock fell as much as 5.1%. Although the complexity of the new display and materials might lead to initial supply constraints for several weeks, sources indicate Apple is currently making plans to launch the device around the same time as, or shortly after, the new non-foldable models. However, with the launch still six months away and full-scale production not yet underway, the timeline is not yet finalised.
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