OPENING CALL
Nasdaq futures were climbing on Wednesday after AI-bubble fears prompted a two-day slide in tech shares.
"Many tech stocks have become overstretched," said RGA Investments. "Investors are coming to the realization that earnings expectations for tech stocks are high, creating a more difficult bar to clear when earnings season re-starts in July, and we would characterize this pullback as a recalibration of expectations."
Investors are now turning their eyes to Micron's third-quarter results, set to be released after the closing bell.
Meanwhile, oil prices fell on signs that shipping activity through the Strait of Hormuz is gradually resuming, with international authorities reporting improved safety conditions.
"Although negotiations remain complex
and questions persist over the future governance of Hormuz, the market is increasingly pricing in a gradual normalization of Middle East energy flows," MUFG said.
Brent crude traded below $76 a barrel after closing yesterday at its lowest level since the start of the Iran war.
President Trump said he instructed the Justice Department to look into major oil companies, accusing them of "gouging" customers
by not lowering gasoline pump prices in line with falling crude costs.
The Federal Reserve will get another data point on the inflation picture on Thursday, with the PCE index.
Uncertainty regarding the persistence of inflation is likely to increase and U.S. inflation data could surprise to the upside, Erste Group said. "The extent to which the Fed will react to this remains to be seen."
The Fed's meeting last week signaled the prospect of tightening by year-end, prompting markets to bring forward expectations for rate rises. Market pricing on LSEG implies a 90% chance that the Fed will increase rates by 25 basis points in September.
Stocks to watch
Alphabet will be added to the Dow Jones Industrial Average beginning Monday, the index's operator, S&P Global, said late Tuesday. Moving out to make room: Verizon Communications.
Cerebras Systems said it expects its operating margins to remain negative and under pressure through the end of the year. Shares slumped nearly 14% premarket.
FedEx logged higher revenue in its latest quarter, but profit ticked down, knocking its shares in premarket trading.
Micron Technology is due to report earnings after markets close today. Micron shares slumped 13% yesterday amid a selloff in tech stocks.
Watch For:
U.S. New Home Sales for May; EIA Weekly Petroleum Status Report
Today's Top Headlines/Must Reads:
- As AI Companies Race for Power, Amazon and Google Have the Lead
- Life Insurers Aren't Just Investors in Private Credit. They're Major Lenders, Too.
- How a $45 Million Donation Brought Larry Ellison Deeper Into Trump's Circle
MARKET WRAPS
Forex:
The dollar rose , trading near a 13-month high, supported by expectations that the Federal Reserve could raise interest rates this year and the recent selloff in global tech stocks.
The greenback could continue to outperform other safe-haven currencies if risk aversion persists following a recent selloff in tech stocks, ING said.
The euro fell. The recent divergence in market expectations for Federal Reserve and European Central Bank policies is driving the euro's fall to a one-year low against the dollar, MUFG said.
Sterling rose
to a 10-month high against the euro, supported by hopes for swift leadership transition after Prime Minister Keir Starmer announced his resignation on Monday.
Bonds:
Treasury yields edged higher in early trade as investors continue to price in some possibility of a Federal Reserve rate hike this year.
Russell Investments has a neutral view on Treasurys , noting that valuations are near fair value in its mid-year 2026 global market outlook.
Longer-term Treasury yields could rise in the coming months amid uncertainty over inflation, Erste Group said.
Energy:
In early European trading, Brent crude was down 1.1%, while WTI futures fell 1.3%.
Metals:
Gold prices fell , extending the previous session's losses. "Limited support came from rising Treasury bonds as lower energy prices ease concerns about inflation," Saxo Bank said.
Iron
Iron ore rose in early trading. On the demand side, hot metal output has rebounded slightly, Nanhua Futures said. Meanwhile, easing tensions between the U.S. and Iran may allow Tehran to resume production and export steel billets.
TODAY'S TOP HEADLINES
As AI Companies Race for Power, Amazon and Google Have the Lead
Amazon's chief executive has said that power is the "single biggest constraint" in its cloud and artificial-intelligence business. This means investors tracking hyperscalers' AI race will also want to keep close tabs on how they plan to get their hands on more electricity.
Here, Amazon has an incumbent advantage. It is the world's largest cloud provider and has been building a lot of data centers over the past two decades. The company's operating, self-built data centers in the U.S. consume up to roughly 9 gigawatts of power, according to Aterio, a data provider. That is comparable with the generation capacity of North Dakota.
Rheinmetall Shares Slump After Reports That Germany Is Dropping Frigate Project
Rheinmetall shares fell sharply after media reports indicated Germany is abandoning plans to build a new warship model, sinking one of the biggest projects in the arms maker's pipeline.
Shares in Rheinmetall fell as much as 16% in European morning trading before bouncing back somewhat, meaning the stock shed more than one third of its value since the start of the year. Shares in rival TKMS, which is working on an alternative project, jumped 10% and took their year-to-date gains above 20%.
Prologis Rebuffed in $16.6 Billion Takeover Approach for U.K.'s Segro
Prologis, the world's largest owner of industrial real estate, said it made a 12.6 billion-pound ($16.63 billion) takeover approach for smaller U.K. peer Segro, which turned down the proposal.
The move marks the latest takeover attempt of a U.K.-listed company by a U.S. suitor as trans-Atlantic dealmaking expands across sectors, depleting the London Stock Exchange of some of its longest-standing members. Prologis's approach for Segro follows American bids for budget airline easyJet, ingredients maker Tate & Lyle, energy distributor DCC and asset manager Schroders earlier in the year.
Sixteen Airbus A380s to Undergo Inspection After Cracks Found on Airplane Wings
The European Union Aviation Safety Agency has ordered urgent inspections of 16 Airbus A380 planes operated by Emirates and Qantas, after cracks were found in a wing component on some aircraft.
Cracks were found during earlier inspections of the wing spars structure, a key component of the wing, EASA said in a directive effective Wednesday. EASA determined that they "could reduce the structural integrity of the wing."
Global AI Selloff Steadies as U.S. Tech Futures Edge Higher
U.S. stock futures were mostly higher in early European trade after a global tech selloff halted a boom in artificial-intelligence-related stocks.
Oil prices extended falls on signs that shipping activity through the Strait of Hormuz is gradually resuming, with international authorities reporting improved safety conditions.
Life Insurers Aren't Just Investors in Private Credit. They're Major Lenders, Too.
Insurance companies are exposed to the embattled private-credit industry in more ways than one, according to a new report by Clearwater Analytics, a portfolio-management software provider.
About one-quarter of the life insurers tracked by Clearwater that hold stakes in private-credit funds also lend money to them. The insurers typically lend $2 to the funds for each dollar of shares they own. This doubling down on the funds amplifies potential investment returns but also increases risks for the insurers, Clearwater said.
Trump Calls for Probe Into U.S. Gasoline Prices After Oil Falls
President Trump said he instructed the Justice Department to look into major oil companies, accusing them of "gouging" customers by not lowering gasoline pump prices in line with falling crude costs.
"The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil," Trump said in a social-media post early on Wednesday. "In other words, customers are being 'gouged,'" he wrote. He didn't name specific companies.
Around $125 Billion of Vessels, Cargo Remain Stranded in Persian Gulf, Allianz Says
Geopolitical uncertainty is now the top risk facing the shipping industry, as vessels and cargo valued at around $125 billion remain stuck in the Persian Gulf awaiting a resumption of transit through the Strait of Hormuz, according to Allianz Commercial.
The insurer said in an industry review Wednesday that the closure and reported mining of the strait are the latest in a series of recent disruptions to have hit shipping.
Landlords Win in Closely Watched Massachusetts Rent-Control Fight
The push in Massachusetts for one of the country's strictest rent-control measures has ended in court.
The state's Supreme Judicial Court on Tuesday struck down a ballot measure that would have let voters choose statewide rent control in November. The ruling marked a setback for the tenant advocates behind the proposal, which was the most expansive effort in years to repeal the state's three-decade ban on rent control.
Israel's Military Is Caught in a Political No Man's Land in Lebanon
TEL AVIV-Israeli troops stationed in Lebanon are increasingly caught between U.S. limits on Israel's military operations and domestic pressure to fight on against Iran-backed Hezbollah, leaving them in a no man's land that risks a resumption of the fighting that could derail the truce between Washington and Tehran.
On Tuesday, Israeli troops in southern Lebanon struck twice at what they said were Hezbollah militants threatening their positions around the Ali al-Taher ridge, home to what Israel says is an extensive underground Hezbollah fortress.
U.S.-Iranian Trash Talk Is Disrupting Peace Negotiations
As fragile U.S. talks with Iran got under way last weekend in Switzerland, President Trump tossed an unexpected grenade-a social-media threat to attack Iran if it didn't stop funding its allied Lebanese militia Hezbollah.
Mohammad Bagher Ghalibaf, the chief Iranian negotiator, was unaware, having left his phone outside the negotiating room. When an aide briefed Ghalibaf on the president's comment, he turned to chide his U.S. counterpart, JD Vance, people familiar with the matter said.
Trump Is Running Out of European Friends-Even on the Nationalist Right
ROME-In early 2025, politicians from Europe's nationalist right gathered in Madrid under the slogan "Make Europe Great Again." They cited President Trump's brand of conservatism as an inspiration and cast themselves as the continent's best bridge to the White House.
"We, the nationals of Europe, are the only ones who can talk to the new Trump administration," said France's Marine Le Pen, who celebrated Trump's election victory at the event with the likes of Italy's Matteo Salvini and Hungary's Viktor Orban.
Write to priscila.barrera@wsj.com
TODAY IN CANADA
Earnings:
Evertz Tech 4Q
Novagold Resources 2Q
Economic Indicators $(ET)$:
1330 Bank of Canada summary of monetary policy deliberations
Stocks to Watch:
Definium Therapeutics Prices Offering of Nearly 20.6M Shares at $34.00 Each; Expects Gross Proceeds of About $700M From Offering; Underwriters Have Option to Buy Nearly 3.1M Additional Shares; Offering All of the Common Shares; to Use Proceeds for R&D, Preparation Activities for Potential Commercialization of DT120 ODT if Approved; to Also Use Proceeds for Working Capital, General Purposes; JPMorgan, Jefferies Among Joint Lead Bookrunners for Offering; Expects Offering to Close on or About June 25; Focuses on Developing Therapeutics to Address Underlying Causes of Psychiatric, Neurological Disorders
Dye & Durham George Tsivin No Longer Serving as CEO or on Board; Subcommittee of Board to Assume Duties, Responsibilities of Office of the CEO; Transformation Committee Chaired by Tyler Proud, Includes Mary Filippelli and Angela Zhang; Search for Permanent CEO Underway; Previously Announced Strategic Process Continuing
Eldorado Gold Patrick Godin Elected to Board
Expected Major Events for Wednesday
08:00/GER: Jun ifo Business Climate Index
11:00/US: 06/19 MBA Weekly Mortgage Applications Survey
12:30/US: 1Q International Transactions
12:30/US: Annual U.S. International Investment Position
14:00/US: May New Residential Sales
14:30/US: 06/19 EIA Weekly Petroleum Status Report
23:01/UK: BRC Consumer Sentiment Monitor
23:01/UK: May UK monthly automotive manufacturing figures
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Wednesday
AGF Management Ltd - Class B (AGF.B.T) is expected to report $0.54 for 2Q.
Burcon NutraScience Corp (BU.T) is expected to report for 4Q.
Crown Crafts Inc $(CRWS)$ is expected to report for 4Q.
Culp Inc $(CULP)$ is expected to report $0.23 for 4Q.
Daktronics Inc (DAKT) is expected to report $0.20 for 4Q.
Evertz Technologies (ET.T,EVTZF) is expected to report $0.18 for 4Q.
HB Fuller Co $(FUL)$ is expected to report $1.14 for 2Q.
Jefferies Financial Group Inc $(JEF)$ is expected to report $1.16 for 2Q.
LiveOne Inc (LVO) is expected to report for 4Q.
Methode Electronics Inc (MEI) is expected to report $-0.20 for 4Q.
Micron Technology Inc $(MU)$ is expected to report $20.24 for 3Q.
MillerKnoll Inc (MLKN) is expected to report $0.45 for 4Q.
NovaGold Resources Inc (NG,NG.T) is expected to report $-0.02 for 2Q.
Paychex Inc $(PAYX)$ is expected to report $1.22 for 4Q.
Raymond James Financial Inc $(RJF)$ is expected to report.
Richtech Robotics Inc (RR) is expected to report $-0.06 for 2Q.
Roadzen Inc $(RDZN)$ is expected to report for 4Q.
Strata Skin Sciences Inc (SSKN) is expected to report for 1Q.
VivoSim Labs Inc $(VIVS)$ is expected to report for 4Q.
Worthington Steel Inc (WS) is expected to report for 4Q.
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ANALYST RATINGS ACTIONS
American Healthcare REIT Raised to Buy From Neutral by Citigroup
Apogee Therapeutics Cut to Hold From Buy by Deutsche Bank
Apogee Therapeutics Cut to Neutral From Buy by Citigroup
Apogee Therapeutics Cut to Neutral From Buy by UBS
Apogee Therapeutics Cut to Neutral From Outperform by Wedbush
Backblaze Raised to Buy From Hold by Craig-Hallum
CDW Raised to Overweight From Equal-Weight by Morgan Stanley
Darden Restaurants Cut to In-Line From Outperform by Evercore ISI Group
Five Below Cut to Peer Perform From Outperform by Wolfe Research
Home Depot Cut to Peer Perform From Outperform by Wolfe Research
IBM Raised to Overweight From Neutral by JP Morgan
Inspire Medical Systems Cut to In-Line From Outperform by Evercore ISI Group
Nike Cut to In-Line From Outperform by Evercore ISI Group
Primoris Services Cut to Sector Weight From Overweight by Keybanc
Ross Stores Cut to Equal-Weight From Overweight by Wells Fargo
Sabra Healthcare REIT Cut to Neutral From Buy by Citigroup
Synopsys Raised to Overweight From Neutral by Piper Sandler
Zions Bancorp Cut to Neutral From Outperform by Baird
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
June 24, 2026 06:02 ET (10:02 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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