Top News Today: Stocks Surge After Trump Calls Off Iran Strike

Dow Jones06-12 04:42

MARKET WRAPS

STOCKS: Stocks surged as President Trump called off a threatened strike on Iran and SpaceX priced the largest initial public offering on record.

TREASURYS: Treasury yields fell, and the yield on the 30-year bond closed below the psychologically significant 5% level, registering its biggest fall since March, as the energy shock eased.

FOREX: The U.S. dollar fell sharply as energy inflation looked set to ease.

COMMODITIES: Oil futures settled lower after a choppy session as President Trump threatened, then cancelled, further strikes against Iran, raising hopes for a prompt end to the conflict.

HEADLINES

SpaceX IPO Draws at Least $5 Billion Order From BlackRock

Elon Musk's SpaceX is preparing to stage the largest public offering ever, selling $75 billion worth of shares in one fell swoop. Investors are showing up.

BlackRock put in an order to buy at least $5 billion worth of SpaceX shares, according to people familiar with the matter, and other large asset managers submitted similarly eye-popping orders. While such firms often buy large stakes in IPOs, orders of this size are multiples of those seen in traditional offerings.

To put it in context, the largest IPO of the year ahead of SpaceX was chip maker Cerebras, which raised $5.55 billion total in its offering.

Global Economy Could Slow to Half Its 2025 Pace if War Continues, Warns World Bank

The global economy could grow this year at less than half its 2025 pace if the conflict in the Middle East leads to a lengthy reduction in energy supplies and a sharp fall in equity prices, the World Bank said Thursday.

The conflict is now in its fourth month, with little sign of a lasting peace. The U.S. began a fresh wave of attacks on Iran on Wednesday, launching strikes against several targets on President Trump's orders.

In a twice-yearly report on the global outlook, the World Bank said it expects economic growth to slow to 2.5% this year from 2.9% last year, assuming that shipments of oil, natural gas and other raw materials through the Strait of Hormuz begin to return to normal from August.

SEC Seeks to Scrap Best-Price Rule

The Securities and Exchange Commission said it wants to scrap a 2005 rule that calls for trading platforms to execute buy and sell orders at the best possible price.

The agency on Thursday proposed the elimination of the trade-through rule, which forbids platforms from completing a trade at a price that is worse than the best available price across all U.S. exchanges, even if that means filling the order at a competing market.

According to the SEC, the rule made more sense when electronic trading systems were slower and more poorly connected than they are today.

Wholesale Prices Continued to Surge in May

Prices charged by American producers continued to charge higher in May, the Labor Department said Thursday, marking another month of elevated wholesale inflation.

The producer-price index rose by 1.1% last month, following an equal increase in April. Analysts polled by The Wall Street Journal were expecting a 0.7% increase.

Over the past 12 months, the PPI is up by 6.5%, the fastest wholesale inflation since 2022.

Amazon Says Its Data Centers Used 2.5 Billion Gallons of Water in 2025

Amazon said its global data-center operations withdrew about 2.5 billion gallons of water in 2025, as data center companies around the world face growing scrutiny over the environmental impact of artificial intelligence.

The company disclosed the figure in a blog post Thursday outlining its water-efficiency efforts. Amazon said water use at sites it owns and operates directly fell 2% from 2024 levels, even while it expanded its data-center footprint.

Amazon said its data centers used 0.12 liters of water per kilowatt-hour of electricity in 2025, which it said was more efficient than the industry average. The company said by the end of this decade it will return more water to communities than its direct operations consume.

Dana to Combine With Eaton's Mobility Business in $5.1 Billion Deal

Dana said it agreed to combine with Eaton's Mobility business in a $5.1 billion deal, aiming to create a more comprehensive supplier serving commercial- and light-vehicle markets.

The companies on Thursday said Eaton shareholders would own at least 50.1% of the combined company at closing, with Dana shareholders set to own about 49.9%. Under the deal's terms, Eaton would receive a cash distribution of roughly $1.1 billion, subject to adjustments.

The combination would integrate Dana's powertrain, thermal and sealing technologies with Eaton Mobility's commercial-vehicle transmissions, engine and emissions products, and advanced electrification capabilities, forming a company with approximately $11 billion in sales.

U.S. Jobless Claims Rose Last Week

U.S. jobless claims rose last week but remained in a range suggestive of a healthy labor market.

The number of people who filed for unemployment benefits rose to 229,000 in the week through June 6 higher than the 225,000 reported a week earlier, the Labor Department said Thursday. Economists surveyed by The Wall Street Journal expected 220,000 new claims.

Continuing claims, which scale with the total size of the unemployed population, was 1.8 million in the week through May 30, versus a revised 1.77 million a week earlier. The data on continuing claims lag the initial-claims data by a week.

Nvidia, Amazon Back Neura Robotics' $1.4 Billion Fundraise

Germany's Neura Robotics said it secured up to $1.4 billion in funding to build a physical artificial intelligence platform, backed by Amazon, Nvidia and the European Investment Bank.

The robotics company on Wednesday said the funding aims to scale production to several million robots by 2030 as demand for physical AI expands across manufacturing, logistics, healthcare and consumer applications.

The company, which reports an order backlog exceeding $1 billion, said it received backing from technology and financial players, including Tether, Amazon, Nvidia, Qualcomm Technologies, Bosch, Schaeffler and the European Investment Bank.

TALKING POINT Charles Schwab Fires Latest Shot in ETF Fee War, Cutting Expenses to Near-Zero

Charles Schwab's asset-management unit cut fees today on four equity index exchange-traded funds, a move that comes amid increasing investor demand for ETFs. It's a case of cheap funds getting even cheaper.

The operating expense ratios for Schwab U.S. Mid-Cap ETF and Schwab U.S. Small-Cap ETF are dropping to 0.03% from 0.04%. The operating expense ratio for Schwab International Small-Cap Equity ETF is falling to 0.06% from 0.08%. And Schwab Emerging Markets Equity ETF is also decreasing to 0.06%. It was previously 0.07%.

The company says that 16 of Schwab Asset Management's 24 market-cap weighted, index equity and fixed income ETFs are now offered at only three basis points (0.03%).

"Schwab is proud to leverage our growth and efficiencies to drive down costs for investors to better help them achieve their investment goals," said Nicohl Bogan, director of product strategy and development at Schwab Asset Management. "With today's fee reductions, building a diversified, index-based portfolio is more cost-effective than ever before with Schwab index ETFs."

Although the changes are small, the fee cuts will add up for investors who hold the funds long term. Schwab pointed to what it said were the cost-saving benefits for investors looking to build diversified portfolios; an investor with $10,000 would incur annual fund expenses of just $3 to $8 for a portfolio of stocks and bonds using the company's index ETFs.

ETFs are hot. Schwab's move comes amid increasing investor demand for ETFs. So far this year, investors have poured $830 billion into ETFs, putting asset flows on pace to exceed $1 trillion by the end of June, according to data from asset manager State Street. Index ETFs have been an investor favorite, but actively managed ETFs have also been attracting new assets: $320 billion so far in 2026.

--Andrew Welsch, Barron's

Expected Major Events for Friday

04:30/JPN: Apr Revised Industrial Production

06:00/UK: Apr Index of Production

06:00/UK: Apr UK trade

06:00/UK: Apr Index of services

06:00/UK: Apr Monthly GDP estimates

06:00/GER: May CPI

06:45/FRA: May CPI

08:00/ITA: 1Q Labour Cost Index

08:30/UK: May Bank of England/Ipsos Inflation Attitudes Survey

08:30/UK: Jun Agents' Summary of Business Conditions

11:30/UK: May NIESR Monthly GDP Tracker

12:30/CAN: 1Q Industrial capacity utilization rates

12:30/CAN: Apr New motor vehicle sales

14:00/US: Jun University of Michigan Survey of Consumers - preliminary

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Expected Earnings for Friday

Children's Place Inc $(PLCE)$ is expected to report $-2.15 for 1Q.

Environmental Tectonics Corp (ETCC) is expected to report for 4Q.

Pure Bioscience Inc (PURE) is expected to report for 3Q.

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This article is a text version of a Wall Street Journal newsletter published earlier today.

 

(END) Dow Jones Newswires

June 11, 2026 16:42 ET (20:42 GMT)

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