ADDX GO Market Morning Wrap - 26th June

Stock Market  

On Wednesday Eastern Time, U.S. major indexes closed mixed: the Nasdaq rose 0.31%, the S&P 500 ended flat, and the Dow fell 0.25%.  

 

Large-cap tech stocks were mixed, with NVIDIA surging over 4% to a new record high, reaching a market cap of $3.77 trillion and reclaiming the title of the world’s most valuable company.$NVDA   

Google gained over 2%, Microsoft and Apple edged up slightly, while Tesla dropped over 3%, Intel fell over 1%, and Netflix, Amazon, and Meta saw small declines.  

 

Stablecoin leader Circle plummeted nearly 11%. BP rose over 1%, spiking up to 10% intraday amid reports that Shell was in early talks to acquire rival BP, though a Shell spokesperson later denied any discussions.  

 

The S&P 500 and Nasdaq are just shy of record closing highs. Carson Group’s chief market strategist Ryan Detrick commented, “The market feels like it’s back to a normal bull run. We’ve navigated tariffs and Middle East geopolitical turmoil, and despite these concerns, stocks are rising because the U.S. economy is resilient, and everyone’s waiting for the S&P 500 to hit a new high.”  

 

The fragile truce between Israel and Iran held, with President Trump declaring victory, easing investor fears of disruptions to global oil supplies. The CIA claimed Iran’s key nuclear facilities were destroyed, requiring years to rebuild.  

 

In his second testimony, Fed Chair Jerome Powell reiterated no rush to cut rates, citing significant uncertainty from high tariffs but noting factors that could support cuts.  

 

Per CME’s FedWatch tool, markets price in a 25% chance of a Fed rate cut in July and 67% odds for a September cut.  

 

Concurrent’s chief investment strategist Leah Bennett said, “The stock market is in a tug-of-war between long-term tailwinds (like AI, robotics, cryptocurrencies, and other tech innovations) that should boost asset prices over time, and cyclical headwinds from potential policy missteps. For now, the former seems to be winning.”  

 

In April, the S&P 500 fell over 20% from its peak amid fears that U.S. tariff hikes could trigger a global recession. Despite these concerns, U.S. labor and inflation data have remained stable.  

Global Hotspots  

Trump Says U.S. Will Meet Iran Next Week  

On June 25, President Trump said the U.S. will hold talks with Iran next week, expressing “strong confidence” that military conflict between Israel and Iran has ended.  

 

CIA: Iran’s Key Nuclear Facilities Destroyed  

On June 25, the CIA released a statement confirming, based on reliable intelligence, that Iran’s nuclear program was severely damaged in recent U.S. strikes, with key facilities destroyed and requiring years to rebuild.  

 

Trump Denies Discussing Ukraine Ceasefire with Zelenskyy  

On June 25, Trump met Ukrainian President Zelenskyy in The Hague during a NATO summit. Zelenskyy posted on social media that they discussed a Russia-Ukraine ceasefire, but Trump denied this to the media, saying he plans to speak with Russian President Putin again “to see if we can end the war.”  

 

Trump: Next Fed Chair to Be Chosen from Three or Four Candidates  

Trump said he will select the next Fed chair from three or four candidates. On June 18, before the Fed’s rate decision, Trump again criticized Fed Chair Powell as “foolish” and “politicized,” saying rate cuts were “too late.” Trump, speaking at the White House, urged Powell to act and suggested he could do better himself at the Fed.  

 

Fed Proposes Lower Capital Requirements  

The capital requirement ratio for large banks will drop from 5% to 3.5%-4.5%, with bank subsidiaries aligning to the same range from 6%.  

Company News  

Jensen Huang: Robotics is NVIDIA’s Next Trillion-Dollar Opportunity  

On Wednesday, NVIDIA CEO Jensen Huang said robotics, alongside AI, is the chipmaker’s most promising market, with autonomous vehicles as the first major application. At the annual shareholder meeting, Huang said, “Our company has many growth opportunities, but AI and robotics are the biggest, representing trillion-dollar prospects.”

 

He added, “We’re working toward a future with billions of robots, millions of autonomous vehicles, and hundreds of thousands of robotic factories, all powered by NVIDIA’s technology.”  

 

Oil Giants in $80 Billion Megamerger Talks? Shell Denies  

Reports of Shell negotiating to acquire BP sparked market ripples, with BP spiking nearly 10% intraday. Shell’s spokesperson later dismissed the rumors, stating no talks are underway, and BP’s gains faded.  

 

Intel Layoffs Hit: Shuts Down Auto Unit, Outsources Marketing to Accenture and AI  

Intel announced in a memo this week that it will shutter its automotive business, laying off most of the unit’s employees.

 

The company said, “We’re refocusing on core client and data center portfolios to strengthen supply and meet demand. As part of this, we’ll phase out the automotive business under the Client Computing Group, ensuring a smooth transition for customers.”  

 

Micron Technology Q3 Adjusted Operating Income of $2.49 Billion Beats Expectations  

Micron’s Q3 adjusted operating income was $2.49 billion, above estimates of $2.13 billion; operating cash flow was $4.61 billion, slightly below the $4.68 billion forecast; adjusted EPS was $1.91, beating the $1.60 estimate; adjusted gross margin was 39%, above the 36.8% forecast; adjusted revenue was $9.3 billion, topping the $8.85 billion estimate.

 

Q4 guidance projects adjusted revenue of $10.4-$11 billion, adjusted gross margin of 41%-43% (vs. 39.2% expected), and adjusted EPS of $2.35-$2.65.  

Forex & Commodities  

International crude futures settled up nearly 1%.

 

WTI crude August contract rose 0.85% to $64.92/barrel. Brent crude August contract gained 0.8% to $67.68/barrel.  

 

COMEX gold futures rose 0.4% to $3,347.3/ounce. COMEX silver futures gained 1.38% to $36.225/ounce.  

 

At the New York close on June 25, the U.S. dollar index fell 0.28% to 97.70, with most non-U.S. currencies rising.  

Key Events  

EIA: U.S. Crude Inventories Fell 5.84 Million Barrels Last Week  

EIA data showed a 5.836-million-barrel drop in U.S. crude inventories, exceeding the expected 0.797-million-barrel decline.  

 

Fed Proposes Easing Enhanced Supplementary Leverage Ratio for Large Banks  

The Fed outlined plans to relax key capital rules, proposing reforms to ease the enhanced supplementary leverage ratio requirements for large banks.  

Cryptocurrency  

Major digital assets rose Wednesday, with Bitcoin (BTC-USD) holding above $107,000.  

 

Bitcoin gained 2.2%, with 24-hour trading volume down 12.2% to $51.87 billion.  

 

Ethereum (ETH-USD) rose 0.2% to $2,433.  

 

XRP (XRP-USD) gained 0.3%, BNB (BNB-USD) rose 0.9%, Solana (SOL-USD) advanced 0.9%, Dogecoin (DOGE-USD) climbed 1.8%, and Cardano (ADA-USD) fell 1.7%.  

 

The crypto market cap rose 1.5% in the past 24 hours to $3.3 trillion, with trading volume down 18.9% to $109.63 billion.  

Key Events  

Crypto as Mortgage Collateral? U.S. Housing Regulator Orders Fannie, Freddie to Prepare  

On Wednesday, FHFA Director Pulte posted on social media, “After thorough research and in line with President Trump’s vision to make the U.S. the ‘crypto capital,’ I’ve directed Fannie Mae and Freddie Mac to prepare for recognizing cryptocurrencies as assets in mortgage applications.”

 

This marks a potential major shift in U.S. mortgage asset evaluation standards, aligning with Trump’s goal to mainstream crypto.  

Market Events and Most Anticipated Earnings Releases