ADDX GO Market Morning Wrap - 13th June

Stock Market

On Thursday, U.S. stocks opened lower but closed higher, with the three major indexes rising collectively. The Dow Jones and S&P 500 both hit at least 3-month closing highs.

 

At the close, the Dow Jones Industrial Average rose 0.24% to 42,967.62, its highest level since March 6; the S&P 500 Index gained 0.38% to 6,045.26, a new high since February 21; and the Nasdaq Composite Index rose 0.24% to 19,662.48.

 

Large tech stocks were mixed: Microsoft and NVIDIA rose over 1%, while Intel, Apple, and Amazon edged up slightly; Tesla fell over 2%, and Netflix, Google, and Meta dipped slightly.

U.S. fintech firm Chime surged over 37% on its first trading day, with an IPO price of $27 per share.

 

Boeing fell nearly 5% after an Air India Boeing 787-8 crashed shortly after takeoff earlier in the day—the first crash in the Boeing 787's history.$BA 

 

Oracle soared over 13%, hitting an all-time high after reporting better-than-expected earnings in after-hours trading the previous day. Its market cap reached $560 billion, exceeding Mastercard and Netflix.$ORCL 

 

Oracle CEO Safra Catz said on the earnings call that the company expects total revenue for fiscal 2026 to be at least $67 billion, up about 16.7% year-on-year, higher than the previous forecast of 15% growth.

Trump previously unveiled an AI infrastructure project called "Stargate," a $500 billion initiative initially involving three companies: SoftBank, OpenAI, and Oracle.

 

In addition to AI factors, a better-than-expected PPI report before the market opened also boosted U.S. stocks.

 

Data showed that the U.S. May PPI increased 2.6% year-on-year, in line with expectations; core PPI rose 3%, below the market forecast of 3.1%.

 

Analysts said this indicates tariffs have not yet caused higher inflationary pressure on consumers, further boosting expectations of a Fed rate cut in September. Similar to yesterday's CPI report, Trump again pressured the Fed to cut rates after the data release.

Global Hotspots

• U.S. to impose tariffs on steel home appliances from June 23. The U.S. Department of Commerce announced tariffs on various steel home appliances, including dishwashers, washing machines, and refrigerators, starting June 23.
• Global automakers sound production halt alarm due to rare earth shortage. Japan's Suzuki Motors announced that some automobile production lines in Japan temporarily stopped operation due to delayed rare earth-containing components from China. The Society of Indian Automobile Manufacturers also issued an emergency notice: India's top three automakers—Tata, Maruti Suzuki, and Mahindra—have only three days of rare earth magnet inventory. Ford paused production of its Explorer SUV in late May for the same reason.
• Trump says Israel may attack Iran.  On June 12 local time, President Trump said an Israeli attack on Iran is "highly possible." 
• India plane crash kills over 290, one survivor found. The survivor, Viswash Kumar Ramesh, was seated in 11A and is being treated in hospital. British media reported he is British.

Company News

• Airbus raises aircraft demand forecast despite trade tensions. Airbus upgraded its 20-year aircraft demand forecast, telling investors and suppliers the aviation industry will weather current trade tensions.
• GameStop bets on 'collectibles economy' to break through,closed down 22.45%. GameStop CEO Ryan Cohen said the company will focus on its "trading card" business. At the annual general meeting on June 12, Cohen said Pokémon trading cards and sports trading cards "align with our heritage," "fit our buy-sell-trade model, attract core customers, and deeply bind physical retail."GameStop closed down 22.45%. On the after-hours session of June 12, the company expanded the issuance size of its senior convertible bonds to $2.25 billion, up from the $1.75 billion announced on June 11.$GME 
• AMD claims new AI chips outperform NVIDIA. AMD CEO Lisa Su said the company's latest AI processors challenge NVIDIA's products, predicting the AI chip market will exceed $500 billion in three years.$AMD 

Forex & Commodities

WTI crude for July delivery fell 11 cents to settle at $68.04 per barrel, down 0.16%; Brent crude for August fell 41 cents to $69.36, down 0.59%.

 

COMEX gold rose 0.84% to $3,406.80 per ounce, trading between $3,358.50 and $3,419.80.

 

The U.S. Dollar Index fell 0.72% to 97.919.

Key Events

• Bulgaria set to join eurozone by early 2026. The EU Commission confirmed Bulgaria meets criteria for joining the eurozone on January 1, 2026, becoming its 21st member.
• ADNOC joins BP asset bid. Abu Dhabi National Oil Company (ADNOC) has entered the race to acquire high-value assets from BP amid takeover rumors.

Cryptocurrency

Major digital assets fell late Thursday.

 

Bitcoin dropped 1.6% to $106,952, 24-hour trading volume fell 1.1% to $51.87 billion.

 

Ethereum fell 3.5% to $2,699; XRP lost 3.3%, BNB fell 1.2%, Solana dropped 4.4%, Dogecoin and Cardano each slumped 4.9%.

 

Total crypto market cap fell 2.1% to $3.36 trillion, trading volume down 11.7% to $120.22 billion.

Key Events

• The U.S. Senate's stablecoin legislation is likely to pass next week. In this legislative game, Senate leaders are expected to veto two controversial clauses: one is a requirement from retailer groups to introduce a competitive mechanism for credit card payment systems, and the other is a clause proposed by the Democratic Party to ban Trump from profiting from cryptocurrency businesses.