ADDX GO Market Morning Wrap - 28th June
Stock Market
On Friday Eastern Time, the major U.S. stock indexes continued their recent rally, with the Nasdaq and S&P 500 hitting record highs. Economic data reinforced expectations of Federal Reserve rate cuts, but the U.S. termination of trade talks with Canada dampened risk sentiment.
The Dow rose 432.43 points, or 1.00%, to 43,819.27; the Nasdaq gained 105.55 points, or 0.52%, to 20,273.46; and the S&P 500 climbed 32.05 points, or 0.52%, to 6,173.07.
Most largecap tech stocks advanced, with Google and Amazon up over 2%, NVIDIA and Meta up over 1%, and Apple and Intel slightly higher; Tesla and Microsoft saw minor declines. Nike surged over 15%, marking its largest singleday gain in four years.$NKE
On Friday, President Trump announced an immediate end to all trade negotiations with Canada in response to Canada’s digital services tax on U.S. tech companies.
Trump stated that new tariffs on Canada would be announced within a week, causing U.S. stocks to pare gains midsession, with the S&P 500 briefly turning negative.
On Truth Social, Trump called Canada’s tax a “direct and blatant attack” on the U.S., accusing Canada of mimicking the EU. “In light of this shocking tax, we hereby terminate all trade negotiations with Canada, effective immediately. Within the next seven days, Canada will be informed of the tariffs to be paid for trade with the U.S.”
The Commerce Department’s PCE report showed May core PCE inflation slightly above expectations, while consumer income and spending data significantly underperformed.
Another report from the University of Michigan confirmed a sharp rise in June consumer sentiment to a fourmonth high, with inflation expectations improving as concerns about economic prospects and personal finances eased.
CME’s FedWatch tool indicates a 76% likelihood of the Fed’s first rate cut in September, with a 19% chance in July. Additionally, Commerce Secretary and Treasury Secretary Besant stated the U.S. is close to finalizing trade agreements with several countries, aiming to complete talks with a dozen nations by early September.
Global Hotspots
Trump: U.S. to Immediately End Trade Talks with Canada
On June 27, President Trump posted on Truth Social that Canada’s digital services tax on U.S. tech firms is a “direct and blatant attack,” mimicking the EU. He announced the immediate termination of all trade negotiations with Canada and plans to impose tariffs within seven days.
Ukraine Claims Attack on Russian Airbase, 4 Planes Hit
On June 27, Ukraine’s Armed Forces reported a precision strike on Russia’s “Marinovka” airbase in Volgograd Oblast, conducted by special operations, security services, and other defense units to weaken Russia’s air strike capabilities.
Preliminary reports indicate four planes were hit, with damage to the aircraft repair area. Russia has not yet responded.
Trump Considers Bombing Iran Over Uranium Enrichment
On June 27, President Trump stated he hopes Iran accepts international inspections to verify it isn’t restarting its nuclear program, adding he may consider bombing Iran over uranium enrichment.
Trump Halts All Efforts to Lift Iran Sanctions
On June 27, Trump posted on Truth Social that Iran’s Supreme Leader Khamenei falsely claimed victory in the war against Israel. Trump noted three Iranian nuclear facilities were destroyed and claimed to know Khamenei’s location, but said he would not allow Israel or U.S. forces to eliminate him.
Company News
Meta Seeks $29 Billion Financing for AI Data Center Expansion
Meta is reportedly raising $29 billion to fund its AI business, turning to private capital firms to finance data center construction in the U.S. Sources say negotiations with firms like Apollo Global Management, KKR, Brookfield, Carlyle, and PIMCO are progressing.
Musk: Tesla Model Y Achieves First Fully Autonomous Delivery
On Friday, Musk announced a Tesla Model Y SUV drove autonomously from its Austin factory to a customer’s home without remote control, reaching speeds up to 72 mph.
Tesla’s AI and autonomous driving head, Ashok Elluswamy, noted this delivery, a day ahead of Musk’s 54th birthday on June 28, met Musk’s timeline.
Forex & Commodities
WTI crude futures fell 0.26% to $65.07/barrel, down nearly 12% weekly.
Brent crude futures dropped 0.52% to $66.34/barrel, also down 12% weekly.
COMEX gold futures fell 1.85% to $3,286.1/ounce, down 2.92% weekly. COMEX silver futures dropped 2.06% to $36.17/ounce, up 0.41% weekly.
At the New York close on June 27, the dollar index fell 0.04% to 97.26, with most nonU.S. currencies rising.
Key Events
OPEC+ Considers Continued Production Increases
Media reports on Friday suggest OPEC+ will announce another 411,000barrel/day output increase for August at its July 6 meeting, led by Saudi Arabia to recapture market share. Oil prices dipped over 1% on the news.
Since April, eight key OPEC+ nations have boosted output by 1.37 million barrels/day, recovering 62% of prior cuts (2.2 million barrels/day).
Cryptocurrency
Major digital assets fell late Friday.
Bitcoin dropped 0.6% to $106,934, with 24hour trading volume up 3.5% to $46.35 billion.
Ethereum (ETHUSD) fell 1.1% to $2,412.
XRP (XRPUSD) lost 1.7%, BNB (BNBUSD) fell 0.1%, Solana (SOLUSD) declined 0.5%, Dogecoin (DOGEUSD) slumped 1.3%, and Cardano (ADAUSD) dropped 0.9%.
The crypto market cap fell 0.7% in 24 hours to $3.26 trillion, with trading volume down 1.1% to $99.97 billion.
Key Events
Trump: Bitcoin Eases Pressure on the Dollar
President Trump stated that cryptocurrencies are a powerful industry, with Bitcoin easing pressure on the dollar. At a press conference, he called Bitcoin “a great thing for America” and praised the crypto industry for creating jobs.