U.S. stock markets are awaiting a significant speech from former President Trump. Tonight, after the U.S. markets opened, the three major indices collectively rose, with most large-cap tech stocks strengthening. Memory chip stocks saw a broad surge, with Seagate Technology PLC climbing over 9%. The catalyst was Morgan Stanley upgrading Seagate Technology PLC to "Top Pick" and raising its price target from $468 to $582. Analysts noted that investors are currently anticipating a press conference Trump is scheduled to hold with military officials, potentially seeking the latest signals on the evolving situation. Citing a recent U.S. media report, Xinhua News Agency reported that a White House official stated a proposed 45-day ceasefire between the U.S. and Iran is just "one of many options" currently under discussion. The official clarified that Trump has not yet approved the plan, and U.S. military operations against Iran continue. Additionally, the market is closely monitoring developments related to the situation in the Strait of Hormuz. According to the latest data from Bloomberg, shipping traffic through the Strait of Hormuz has risen to its highest level since the early stages of the U.S.-Israel-Iran conflict, with 21 vessels transiting over the weekend.
Memory Chip Stocks Experience Broad Rally On the evening of April 6, Beijing time, after the U.S. market opened, the three major indices collectively advanced. As of 22:15 Beijing time, the Dow Jones Industrial Average was up 0.25%, the Nasdaq Composite rose 0.49%, and the S&P 500 gained 0.35%. Most large-cap technology stocks traded higher, with Apple and Amazon rising over 1%, while Google, Meta, and the ADRs of TSMC saw modest gains. NVIDIA, Microsoft, and Tesla experienced slight declines. Memory chip concept stocks rallied across the board. Seagate Technology PLC surged more than 9%, Western Digital jumped over 5%, and SanDisk and Micron Technology both gained over 3%. Morgan Stanley announced the upgrade of Seagate Technology PLC to "Top Pick," citing a recovery in demand for the company's data center hard drives, accelerated storage expansion in AI servers, and expectations for improved gross margins. Analysis indicates that Seagate's significant technological barriers and strong customer relationships in the HDD market position it to benefit continuously from the increased storage demand driven by generative AI. This upgrade reflects institutional recognition of its mid-to-long-term earnings visibility and market share resilience.
Regarding the Middle East situation, citing a report from the Wall Street Journal on April 6, informed officials stated that the U.S. and regional mediators are pushing for a 45-day ceasefire agreement aimed at completely ending the war between the U.S. and Iran, although the likelihood of reaching a deal remains "slim." The report outlined that the proposed ceasefire would occur in two stages: an immediate halt to hostilities in exchange for the reopening of the Strait of Hormuz, followed by negotiations for a "broader agreement" within three weeks, including a permanent regional solution for navigation through the strait. Regional mediators have reportedly informed Iran that, despite public threats from former President Trump to bomb Iranian power plants, "he remains keen to reach a ceasefire" and that "the U.S. might even make compromises." Another major focus for the market is the press conference U.S. President Trump is scheduled to hold with military officials at 1 PM ET on Monday (1 AM Tuesday, Beijing time).
Latest Updates on the Strait of Hormuz On April 6, local time, Bloomberg reported that shipping traffic through the Strait of Hormuz has increased to its highest level since the conflict's onset, as more countries appear to have reached safe passage arrangements with Iran. The report stated that 21 vessels transited the strait over the weekend, marking the highest two-day total since traffic began declining in early March. Although the current number of transiting vessels remains significantly below pre-war levels (approximately 135), more countries have reportedly obtained passage permits. A senior crude oil analyst at Kpler in Singapore commented, "Iran is strengthening its control over the Strait of Hormuz while responding to requests from partner countries. Passage still depends on Iran's willingness, and the situation could change at any moment if the conflict escalates." To date, most vessels granted permission appear to be following routes directed by Tehran, sailing close to the Iranian coast. However, an increasing number of vessels are beginning to choose routes along the opposite shore. Iraq has informed Asian traders and refiners that, as its crude oil tankers have received exemptions from Iran, they are now able to transit the Strait of Hormuz, and buyers can proceed with their own shipments. This move is testing buyers' confidence in these security assurances. In a notice issued last Sunday, Iraq's State Organization for Marketing of Oil (SOMO), citing media reports, stated that Iraq's crude shipments are now "free from any potential restrictive measures." According to CCTV News, on April 6 local time, a senior Iranian government official stated that Iran has received a latest ceasefire proposal from the mediating country Pakistan and is currently reviewing its contents. The official emphasized that Iran will not accept deadlines or pressure to force a decision. Iran will not reopen the Strait of Hormuz in exchange for a "temporary ceasefire." Iran believes the U.S. is not yet prepared for a permanent ceasefire.
Iran: Petrochemical Facilities Attacked This evening, according to a Xinhua News Agency report, Iranian media reported on the 6th that petrochemical plants in Asaluyeh and South Pars in Iran's Bushehr Province were "attacked by enemy forces," with several explosions heard. The Tasnim News Agency, citing a Bushehr provincial official, reported that the U.S. and Israel had launched another attack on the area, damaging petrochemical production installations in Asaluyeh. The extent of the damage is under investigation, with no reports of casualties so far. The report stated that two companies supplying power, water, and oxygen to the petrochemical plants in Asaluyeh were attacked. On the 6th, Israeli Defense Minister Yoav Gallant issued a statement saying the Israeli military struck Iran's "largest petrochemical facility" located in Asaluyeh, southern Iran, describing it as a primary production base accounting for about half of Iran's total petrochemical output. He stated that the military had attacked another "major petrochemical facility" in Iran last week, and together, these two facilities "account for about 85% of Iran's exported petrochemical production." Gallant claimed that the petrochemical industry is a core engine financing Iranian military activities, and this Israeli attack constitutes a severe economic blow to Iran, causing losses estimated in the tens of billions of dollars. The Israeli military has been instructed to continue striking Iran's national infrastructure with full force. On the 6th, the Israel Defense Forces issued a statement saying that the Israeli Air Force conducted an attack in Tehran based on intelligence, resulting in the death of Asghar Bagheri, commander of the special operations unit (Unit 840) of the Islamic Revolutionary Guard Corps' Quds Force. The statement claimed Bagheri was killed in the previous day's attack. Bagheri had served as commander of the Quds Force's special operations unit since 2019 and held a series of important positions within the Quds Force, "participating in attacks against Israelis and Americans worldwide."
Comments