The S&P 500 Index ($SPX) (SPY) today is up +0.99%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.61%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +2.16%. September E-mini S&P futures (ESU26) are up +0.99%, and September E-mini Nasdaq futures (NQU26) are up +2.10%.
Stock indexes are sharply higher today as geopolitical risks recede. President Trump on Wednesday night signed a preliminary deal to end the US-Iran war, which sent crude oil prices to a 3.5-month low, eased inflation expectations, and sparked risk-on sentiment in asset markets. The slump in crude prices has also pushed bond yields lower, as the 10-year T-note yield is down -6 bp to 4.43%.
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Chipmakers are climbing today to lead the broader market higher, led by a +7% jump in Intel after President Trump said the chipmaker will work alongside Apple to design and produce semiconductors domestically. On the negative side, IT service stocks are retreating today, led by a -15% plunge in Accenture after its disappointing Q4 revenue forecast. Also, today’s decline in crude oil prices to a 3.5-month low is weighing on energy-producing stocks.
Today’s US economic news was supportive of stocks after weekly initial unemployment claims fell -4,000 to 226,000, close to expectations of 225,000. Also, the June Philadelphia Fed business outlook survey rose by +10.7 to 10.3, stronger than expectations of 10.0.
Stock market moves may be exaggerated and more volatile than usual today due to the expiration of June options, futures, and derivatives during the quarterly event known as triple witching. The event will take place today, with US markets closed on Friday for the Juneteenth holiday.
WTI crude oil prices (CLN26) are down more than -3% today at a new 3.5-month low after President Trump signed a memorandum of understanding in Paris Wednesday night, formally extending the US-Iran ceasefire for 60 days that allows the Strait of Hormuz to reopen and starts a further round of negotiations to permanently end the war. The…
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