ADDX GO Market Morning Wrap - 12th June
Stock Market
US stocks opened higher but closed lower, with the three major indexes collectively falling. The S&P 500 and Nasdaq both ended their three-day winning streak.
At the close, the Dow Jones Industrial Average fell slightly by 1.1 points to 42,865.77; the S&P 500 dropped 0.27% to 6,022.24; and the Nasdaq Composite Index fell 0.5% to 19,615.88.
Most large tech stocks declined: Intel fell over 6%, hitting its largest single-day drop in two months; Amazon dropped over 2%, Apple fell 1.92%, with its total market value breaking below $3 trillion; NVIDIA and Google saw slight declines; Netflix rose over 1%, while Tesla and Microsoft edged up.
Oklo surged nearly 30%, hitting a record closing high, as the company reached a nuclear power agreement with the U.S. Air Force. Space technology firm Voyager Technologies Inc. (VOYG) soared over 82% on its first day of U.S. IPO.
Tthe U.S. May Consumer Price Index (CPI) rose 2.4% year-on-year, and core CPI increased 2.8% year-on-year, both lower than market expectations of 2.5% and 2.9%.
After the data release, U.S. President Trump posted on his social platform that the CPI figures were "very good numbers" and reiterated his previous call for the Federal Reserve to "cut interest rates by a full percentage point."
Tensions in the Middle East reversed market risk appetite. Salami, Commander of the Iranian Revolutionary Guard Corps, said Iran has prepared upgraded missiles for any combat and reiterated that Iran is ready to respond to any threat scenario.
Earlier in the day, Iranian Defense Minister Nasirzadeh stated that if conflict is forced, U.S. losses would far exceed those of Iran. He pointed out that in the event of any conflict, the U.S. must evacuate the region as all its bases are within Iran's strike range.
Global Hotspots
- U.S. Treasury Secretary hints at extending tariff moratorium. U.S. Treasury Secretary Besant said on Wednesday that the Trump administration is willing to extend the current 90-day tariff moratorium beyond July 9, provided that major U.S. trading partners show "sincerity" in ongoing negotiations.
- Protests continue, Los Angeles extends curfew. The Central Bureau of the Los Angeles Police Department in California said that due to the continuation of protests, partial areas in downtown Los Angeles will continue to implement a curfew from 20:00 on the 11th to 06:00 on the 12th local time.
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U.S. President and Vice President criticize Powell, claiming that his failure to cut rates is a dereliction of duty. Local time Wednesday, Trump posted on his social platform "Truth Social": "CPI data just came out, very good numbers! The Fed should cut rates by a full percentage point." Meanwhile, U.S. Vice President Vance echoed on social media platform X: "The president has been saying it for a while, but now it's more clear: The Fed's refusal to cut rates is a dereliction of duty in monetary policy."
- Singapore's semiconductor equipment exports to China soar. Singapore's exports of semiconductor or chip manufacturing equipment to China have soared in recent years, reaching $4.86 billion (about S$6.27 billion) last year, 345% higher than in 2018. It has surpassed the U.S. to become China's third-largest source of semiconductor manufacturing equipment imports, after only Japan and the Netherlands. Analysts believe Singapore will continue to benefit from the strong growth trend in China's imports in the short term.
Company News
- Meta launches new model V-JEPA 2. Meta introduced the new model V-JEPA 2, claiming it "achieves state-of-the-art visual understanding and prediction in the physical world, thereby enhancing the physical reasoning capabilities of AI agents." The company also released three new benchmarks to evaluate the ability of existing models to infer the physical world from videos. $META
- Meta launches AI video editing feature on AI app. Meta Platforms launched an AI video editing feature on its AI app. Recently, the company tested a new private messaging function on the social media platform Threads.
- Disney and Universal Studios sue AI company for copyright infringement. Disney and Universal Studios filed a copyright lawsuit against AI company Midjourney on June 11 local time, accusing Midjourney of pirating the copyright libraries of the two Hollywood studios to generate and distribute "numerous unauthorized copies" of their famous characters. $DIS
- NVIDIA plans to build over 20 AI factories in Europe, aiming to boost computing power 10-fold in two years. Local time on June 11, NVIDIA CEO Jensen Huang delivered a keynote speech at GTC Paris, announcing that NVIDIA is establishing AI technology centers focused on research in seven European countries and plans to build more than 20 large AI factories in Europe for training and supporting AI models. The ultimate goal is to establish a complete AI ecosystem in the region, enabling Europe's AI computing power to increase 10-fold by 2026. $NVDA
- NASA order boosts Voyager's debut. U.S. aerospace and defense enterprise Voyager Technologies (stock code: VOYG) saw its stock price surge on its first day of listing. As of the close, Voyager's stock price stood at $56.48, up 82.19% from its IPO price of $31. Based on the number of outstanding shares, the company's total market value exceeds $3.1 billion. Currently, Voyager is collaborating with NASA and has obtained a $217.5 million R&D grant to design the "Starlab" commercial space station, which is expected to replace the retiring International Space Station in 2030. $VOYG
Forex & Commodities
International oil prices rose significantly on the 11th.
WTI crude oil futures closed at $68.15 per barrel, up $3.17, or 4.88%. Brent crude oil futures closed at $69.77 per barrel, up $2.90, or 4.34%.
COMEX gold futures rose 0.9% to $3,373.5 per ounce; COMEX silver futures fell 0.76% to $36.365 per ounce.
The U.S. Dollar Index, which measures the dollar against six major currencies, fell 0.47% on the day, closing at 98.631 in late trading.
Key Events
- Escalating Middle East tensions prompt U.S. to order partial evacuation of staff from Iraqi embassy. The Trump administration is reducing staff at the U.S. embassy in Iraq and allowing military families to evacuate the Middle East in response to ongoing security concerns. WTI crude oil futures once surged 5.2%. Iraq is the second-largest oil producer in OPEC.
- ECB annual report: U.S. dollar's share in global foreign exchange reserves declines. The European Central Bank released its annual report titled *The International Role of the Euro* on June 11 local time. The report shows that the U.S. dollar accounted for 46% of global foreign exchange reserves in 2024, a slight decrease from the previous year. The report states that the proportion of gold in foreign exchange reserves has significantly increased to 20%, exceeding the euro to become the world's second-largest reserve asset.
Cryptocurrency
Major digital assets were mostly lower late Wednesday, with Bitcoin (BTC-USD) holding above $108,000.
Bitcoin fell 1.2% to $108,623, with its 24-hour trading volume dropping 15% to $50.6 billion.
Ethereum (ETH-USD) rose 1.1% to $2,806. XRP (XRP-USD) lost 0.4%, BNB (BNB-USD) was little changed, and Solana (SOL-USD) fell 0.1%.
Dogecoin (DOGE-USD) declined 0.4%, and Cardano (ADA-USD) dropped 0.7%.
The total market value of the cryptocurrency industry fell 0.7% in the past 24 hours to $3.43 trillion, with trading volume down 8% to $136.3 billion.
Key Events
- Chanos: I swapped MSTR for Bitcoin. James Chanos said he sold shares of "Bitcoin heavyweight" MicroStrategy (MSTR) to buy Bitcoin.
- A whale increases Ethereum short position to 40,000 ETH, now with floating loss exceeding $2.5 million. According to monitoring by on-chain analysis platform Lookonchain, address 0xcB92 injected an additional $3.37 million USDC to expand its ETH short position to 40,000 ETH, with a total value of approximately $114 million. The position currently has a floating loss of over $2.5 million, and will face liquidation if ETH rises to $2,938.2.
Market Events and Most Anticipated Earnings Releases
