MARKET WRAPS
STOCKS: Stocks fell as concerns about the sustainability of an AI rally in the tech sector offset relief at falling oil prices.
TREASURYS: Treasury yields fell alongside oil futures.
FOREX: The U.S. dollar ticked down against rivals but remained near 52-week highs due to rate expectations.
COMMODITIES: Oil futures fell to their lowest level since Feb. 27 as oil tanker traffic through the Strait of Hormuz increased.
HEADLINES
Trump Says Iranian Attack on Cargo Ship Was Violation of Ceasefire Deal
WASHINGTON-President Trump said Iran violated their ceasefire agreement by firing drones at a ship in the Strait of Hormuz, an attack that snarled shipping in the strategic waterway and threatened the main goal of the president's preliminary deal to wind down the war.
Trump said on social media Friday that Iran fired at least four one-way attack drones at ships transiting the strait a day earlier. The U.S. shot down three, he said, while the other hit a commercial cargo ship, he said.
"Obviously, this is a foolish violation of our Ceasefire Agreement," the president wrote.
Trump Threatens 100% Tariff on European Countries That Impose Digital Services Tax
President Trump on Friday threatened to greatly increase tariffs on European nations if they follow through on plans to impose new taxes on U.S. tech companies.
"Numerous European Countries have been discussing the imminent implementation of a Digital Services Tax on American Companies," Trump wrote on his Truth Social platform. "Please let this statement serve to represent that any Country that imposes such a Tax will immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America."
European countries for years have considered imposing taxes on large tech firms such as Amazon.com and Meta Platforms. Some nations such as France, Denmark and Portugal already have such levies. The U.S. has pushed back on those proposals in Europe and elsewhere, with Trump previously threatening tariffs on Canada and South Korea over alleged discrimination against American tech firms.
Consumer Sentiment Improves in June as Gasoline Prices Moderate
Consumer sentiment improved from recent record lows in June as gasoline prices moderated, according to the University of Michigan's monthly survey.
The Michigan consumer-sentiment index rose to 49.5, its final reading for June, after May's reading of 44.8. Economists polled by The Wall Street Journal had been expecting a reading of 49.
Expected business conditions over the next five years surged 16% as consumers' worries over long-term consequences of the Iran conflict appear to be easing, said Joanne Hsu, the survey's director. Still, sentiment remains in unfavorable territory at 13% below the February 2026 reading prior to the start of the Iran conflict, Hsu added.
Fed's Kashkari Says the Fed May Have to Raise Rates This Year
Minneapolis Fed President Neel Kashkari said inflation risks have led him to pencil in one rate hike by the end of the year.
"In March I had penciled in one rate cut by the end of the year. In June, I've changed that to one rate hike by the end of the year," Kashkari said Friday at the Aspen Ideas Festival in Aspen, Colorado.
Kashkari is a voter this year on monetary policy in the Federal Open Market Committee. His remarks come one day after the Fed's preferred inflation gauge came in at its highest reading since April 2023 as the conflict in the Middle East elevated energy prices. The core 12-month PCE inflation rate is up 3.4%.
Lawmakers Call for Federal Probe of Polymarket Over Deceptive Advertising
Two senators are calling for a federal investigation into Polymarket's social-media promotion of fake bets following The Wall Street Journal's reporting on the prediction market's deceptive marketing practices.
In a letter sent Thursday to Commodity Futures Trading Commission Chairman Michael Selig, senators John Curtis (R., Utah) and Adam Schiff (D., Calif.) said the allegations in the Journal's reporting "are deeply troubling and demand immediate scrutiny."
"The public-facing behavior alleged here does not resemble a sober financial market designed for hedging or price discovery," the senators wrote. "We remain concerned that the Commission is neither enforcing the law appropriately, nor is equipped to serve as a federal gambling regulator."
Volkswagen Deepens Cost-Cutting Overhaul
Volkswagen is working on a radical overhaul that will likely result in thousands of additional job losses beyond the 50,000 already agreed with unions, in the automotive giant's latest move to bolster its finances amid growing competition from China.
The project is aimed at making "the entire company more efficient and leaner," the German carmaker said Friday. The company's management team is expected to present details of the plan to its supervisory board early next month.
Volkswagen's statement followed a report by local business monthly Manager Magazin that the company wanted to double its job-cut target to 100,000 positions. Roles in North America and China would be trimmed as well as four factories in Germany, the report said.
European Regulator Calls for Amgen's Tavneos to Have Authorization Revoked
The European Medicines Agency has called for Tavneos, a medication owned by Amgen and licensed in Europe by CSL's Vifor, to have its marketing authorization revoked.
The regulator said Friday that its human-medicines committee has reviewed the medicine and found that its benefits are no longer proven to outweigh the risks in treating adults with two rare inflammatory conditions of the blood vessels.
The review was kicked off after the agency said it received information raising questions about the data integrity of the main study that supported Tavneos getting marketing authorization in the first place.
BHP Splits Americas Role in Executive Reshuffle
Incoming BHP Group Chief Executive Brandon Craig will split his recent role overseeing the company's Americas operations in two, sharpening focus on North and South America as growth engines for the world's most valuable miner.
BHP on Friday named innovation chief Jessica Farrell as North America president, effective July 1, and said Farrell will be acting president of the company's South America business until that role is filled.
As part of the executive reshuffle, Chief Operating Officer Edgar Basto will assume the newly created position of chief enterprise performance officer in September, adding duties including strengthening contractor safety to his role.
ON Semiconductor Joins 'Edge AI' Market With $7 Billion Acquisition. The Stock Plummets.
ON Semiconductor agreed to buy internet-of-things company Synaptics as it vies to bring artificial-intelligence from data centers into the physical world. Wall Street isn't impressed.
Synaptics shareholders will receive 1.35 shares of Onsemi stock for each Synaptics share in the all-stock deal, representing an enterprise value of around $7 billion.
Onsemi shares dropped 19% to $95.67 in early trading Friday, putting the stock on pace for its largest single-day decline since October 30, 2023. Shares had surged 119% this year despite sluggish revenue growth because valuations across the semiconductor industry have soared.
TALKING POINT How to Build a Retirement That Actually Fits Your Life
The stock market will provide.
That seems to be the mantra of millions of people saving for retirement. And, with stocks still near record highs after several stumbles this year, you might feel the same way.
You shouldn't. The market doesn't always provide. To fund a sustainable retirement, you will have to provide.
Most advice on this topic is backward, say Edward McQuarrie and William Bernstein, authors of a book to be published next March, "Retirement: How to Save Enough, Invest It Well, and Make Your Money Last."
Forget about saving rates and spending rules for a moment. To reach your goal, you have to know who you are and where you want to end up. Do you hate to spend? Are you afraid of dying broke? Are you comfortable with the thought of ending up the richest person in the graveyard? Then you should underspend without any shame.
On the other hand, does saving for tomorrow feel like deprivation today? If you have assets left over at the end of your days, would you feel you missed out on living life to the fullest? Then you're going to need everything to go your way, say McQuarrie and Bernstein.
--Jason Zweig, The Wall Street Journal
Expected Major Events for Monday
01:00/JPN: May Steel Imports & Exports Statistics
08:30/UK: May Monetary & Financial Statistics
08:30/UK: May Bank of England effective interest rates
08:30/UK: May Money and Credit - Lending to Individuals, Lending to Businesses, Broad Money and Credit
08:59/JPN: Jun Monthly Economic Report
14:30/US: Jun Texas Manufacturing Outlook Survey
17:59/UK: Jun Adzuna UK Job Market Report
19:00/US: May Agricultural Prices
23:01/UK: May Zoopla House Price Index
23:01/UK: Jun Shop Price Monitor
23:30/JPN: May Labour Force Survey
23:50/JPN: May Preliminary Industrial Production
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Monday
AeroVironment Inc $(AVAV)$ is expected to report $0.67 for 4Q.
Carver Bancorp Inc (CARV) is expected to report for 4Q.
Concentrix Corp (CNXC) is expected to report $0.72 for 2Q.
Elite Pharmaceuticals Inc (ELTP) is expected to report for 4Q.
Lyra Therapeutics Inc $(LYRA)$ is expected to report for 1Q.
TECSYS Inc (TCS.T) is expected to report for 4Q.
Powered by Onclusive and Dow Jones.
We offer an enhanced version of this briefing that is optimized for viewing on mobile devices and sent directly to your email inbox. If you would like to sign up, please go to https://newsplus.wsj.com/subscriptions.
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
June 26, 2026 16:48 ET (20:48 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments