ADDX GO Market Morning Wrap - 19th June

Stock Market  

Amid renewed warnings from the Federal Reserve about the inflationary risks posed by tariffs, coupled with the upcoming US stock market closure during a critical geopolitical event, the three major US indices surged and then retreated overnight, closing near flat.  

 

The S&P 500 Index fell slightly by 0.03% on Tuesday, closing at 5,980.87 points; the Nasdaq Composite Index rose 0.13%, closing at 19,546.27 points; the Dow Jones Industrial Average dropped 0.1%, closing at 42,171.66 points.  

Large-cap tech stocks were mixed, with Intel rising over 3%, Tesla up over 1%, and Apple, Microsoft, Nvidia, and Netflix seeing slight gains; Google and Amazon fell over 1%, while Meta saw a slight decline. Circle surged nearly 34%, marking its largest single-day gain since its IPO, with its stock price approaching $200, hitting a new high.  $CRCL 

 

After maintaining policy rates unchanged for the fourth consecutive time, Fed Chair Powell stated at a press conference that price increases driven by tariffs will become more evident in the coming months, and the Fed needs to be confident that inflation is declining before starting to cut rates.  

 

Powell noted that the scale, duration, and transmission cycle of tariff impacts are highly uncertain, which is why maintaining the current policy stance while continuing to monitor developments is the most appropriate approach at this stage.  

 

Compared to the Fed’s largely expected remarks, investors are more concerned about Middle East issues, especially given the US market closure on Thursday.  

 

As the US continues to deploy military aircraft and carrier strike groups to the Middle East, President Trump informed senior aides on the evening of June 17 that he has approved an attack plan against Iran but has not yet issued a final order, pending Iran’s decision on whether to abandon its nuclear program.  

 

Sources also revealed that Iran’s heavily fortified Fordow nuclear facility could be a target for US strikes. Military experts widely believe only the most powerful bunker-busting bombs could destroy it.  

Global Hotspots  

• Federal Reserve Keeps Benchmark Rate at 4.25%-4.50%, Unchanged for Fourth Consecutive Meeting. The Federal Reserve announced it will maintain the federal funds rate target range at 4.25% to 4.50%, marking the fourth consecutive meeting with no rate change.  
• US Media: Trump Privately Approves Attack Plan on Iran but Has Not Issued Final Order. According to the Wall Street Journal, three sources revealed that on Tuesday evening, President Trump told senior aides he has approved an attack plan targeting Iran but has not yet issued a final order, to assess whether Iran will abandon its nuclear program.  

Company News  

• Gilead’s Star HIV Prevention Drug Approved by FDA, Faces Policy Headwinds. Gilead Sciences announced on Wednesday that its highly anticipated HIV-1 capsid inhibitor, Lenacapavir (brand name Yeztugo), has received FDA approval for pre-exposure prophylaxis (PrEP). Unfortunately, a policy package under review in Congress includes cuts to funding for the President’s Emergency Plan for AIDS Relief (PEPFAR) and the Global Fund to Fight AIDS, Tuberculosis, and Malaria.  $GILD 
• Bill Gates’ Nuclear Power Company Completes New Funding Round, Nvidia’s VC Arm Joins. TerraPower, founded by former world’s richest man Bill Gates, announced on Wednesday that it has completed a new $650 million funding round. The company disclosed that, in addition to continued investments from founder Gates and South Korea’s Hyundai Heavy Industries, Nvidia’s venture capital arm, NVentures, has become a new shareholder.  
• Waymo Plans to Introduce Robotaxi Service in New York City, Further Expanding Operations. On Wednesday, Alphabet’s self-driving taxi (Robotaxi) company Waymo announced that its taxi service will return to New York City next month. Affected by this news, Uber and Lyft’s stock prices dipped in the short term.  
• Nippon Steel Completes Acquisition of U.S. Steel. On Wednesday local time, Nippon Steel Corporation and United States Steel announced that the two companies have finalized a historic partnership, concluding an 18-month acquisition deal. Under the agreement, to secure support from U.S. officials, Nippon Steel committed to investing approximately $11 billion in U.S. Steel over the next three years.

Forex & Commodities  

International oil prices rose on June 18.  

 

The NYMEX WTI crude oil futures front-month contract settlement price rose $0.23, closing at $73.5 per barrel, up 0.31%; the London Brent crude oil futures front-month contract rose $0.25, closing at $76.7 per barrel, up 0.33%.  

 

COMEX gold futures fell 0.67%, closing at $3,383.90 per ounce. COMEX silver futures dropped 1.15%, closing at $36.725 per ounce.  

 

The US dollar index, which measures the dollar against six major currencies, rose 0.09% during the session, closing at 98.906 in late trading.  

Key Events  

• Over 40% of Surveyed Central Banks Plan to Increase Gold Holdings in the Next Year, Gold Prices to Remain High in the Short Term. The World Gold Council released the *2025 Global Central Bank Gold Reserves Survey*, showing that over 95% of surveyed central banks believe global central banks will continue to increase gold holdings in the next 12 months. Nearly 43% of central banks plan to increase their own gold reserves within the next year.  

Cryptocurrency  

Major digital assets fell on Wednesday, with Bitcoin (BTC-USD) hovering above the $104,000 level.  

 

Bitcoin fell 1% to $104,092, with the cryptocurrency’s 24-hour trading volume dropping 14.1% to $48.72 billion.  

 

Ethereum (ETH-USD), the second-largest digital asset by market value, dropped 1.5% to $2,498.  

 

XRP (XRP-USD) lost 2.2%, BNB (BNB-USD) fell 1.4%, and Solana (SOL-USD) declined 2.9%. Dogecoin (DOGE-USD) slumped 2.1%, and Cardano (ADA-USD) dropped 4.3%.  

 

The total market value of the cryptocurrency industry decreased 1% in the past 24 hours to $3.23 trillion, with trading volume falling 21.4% to $109.09 billion.  

Key Events  

• Cryptocurrency Bill Nears Completion. David Sacks, the cryptocurrency czar in the United States, stated that the cryptocurrency bill is very close, and the stablecoin bill will create demand for the dollar.  
• BBVA Advises Wealthy Clients to Invest in Bitcoin. An executive from Spain’s BBVA bank stated on Tuesday that the bank recommends wealthy clients allocate up to 7% of their portfolios to cryptocurrencies. This is another sign that some banks are gradually embracing a sector long shunned by mainstream finance due to risk concerns.  

Market Events and Most Anticipated Earnings Releases