Morning Brief: U.S. Launches New Strikes on Iran, Tech Stocks Under Pressure Again, Bitcoin Falls Below $62,000 Key Snapshot

Key Snapshot

⚔️ U.S. military conducts new strikes on Iran after Trump says Iran shot down a U.S. Apache helicopter; oil falls over 3%.

📉 Nasdaq down 0.97%, tech stocks pressured again; money rotates into consumer, value and defensive sectors.

📊 U.S. April trade deficit narrows to $55.9 billion; oil product exports hit record high.

🚀 SpaceX draws over $250 billion in subscriptions, far exceeding $75 billion target; becomes largest IPO in history.

I. Market Outlook

Core Events

The U.S. launched new strikes on Iran Tuesday, after Trump said Iran shot down a U.S. Apache helicopter in the Strait of Hormuz, with the U.S. delivering a strong response. Iran’s foreign minister warns foreign forces near Iranian territory risk accidents or clashes. The EIA says global oil inventories are falling at a record pace, heading to the lowest since at least 2003.

Market Reaction

Nasdaq down 0.97%, tech stocks under pressure again; Dow up 0.17%. WTI crude settles 3.40% lower at $88.20/bbl. Spot gold down 1.59% to $4,261; silver down 4.15%.

Exclusive Insight

U.S. strikes on Iran come just one day after Trump’s “stop firing” call — revealing a “talk and fight” strategy to pressure Tehran into negotiations. Oil fell instead of rising as markets priced the strikes as a “limited response,” not escalation. SpaceX’s $250 billion demand signals the largest IPO ever — investor enthusiasm for the “Musk narrative” has outpaced fundamentals.

II. Overnight Market Action

Summary

U.S. strikes Iran but oil falls; tech stocks slide again; money rotates to defensives.

— U.S. Equities: Dow +0.17% to 50,872.11; S&P 500 -0.26% to 7,386.65; Nasdaq -0.97% to 25,678.82.

💡 Monday’s rebound fades; AI winners sold off again. Flows shift to consumer, value and defensive names. S&P tumbled 2.2% intraday, breaking Friday’s low, before paring losses.

— European Equities: STOXX 600 -0.5% to 618.64.

💡 European stocks extend losses; U.S. strikes on Iran heighten geopolitical uncertainty, while ECB hike expectations keep valuations in check.

— Fixed Income: 2-year yield -3.1 bps to 4.127%; 10-year yield -1.8 bps to 4.532%.

💡 Intraday equity selloff sparks safe-haven buying; Treasury yields fall across the curve. Markets cautious ahead of CPI.

— Commodities: Spot gold -1.59% at $4,261.25/oz; silver -4.15% at $65.3628/oz. WTI July crude -3.40% at $88.20/bbl; Brent August -2.97% at $91.45/bbl.

💡 Oil drops despite tensions; markets view U.S. strikes as limited, not escalatory. Gold sinks to $4,261 on real rate expectations + strong dollar. Silver leads metals lower, down over 4%.

— FX Market: EUR/USD +0.07% to 1.15435; DXY -0.09% to 99.95; USD/JPY -0.12% to 160.37.

💡 Dollar eases from 100. Yen weakens to 160.37, breaking Friday’s low; intervention risks rise.

— Crypto Assets: Bitcoin -2.6% at $61,812.2; Ethereum -3%+ at $1,652.

💡 Bitcoin drops to $61,812, hit by tech selloff + hike fears. Risk sentiment fades.

III. Macro Headlines

⚔️ U.S. launches new strikes on Iran after Trump says Iran shot down a U.S. Apache helicopter

Iran’s foreign minister warns foreign forces near Iranian territory risk accidents or clashes.

Insight: Strikes one day after Trump’s ceasefire call reveal a “talk and fight” strategy. Oil fell as markets saw a limited response. The real risk is Iranian retaliation.

📊 U.S. April trade deficit narrows to $55.9 billion; oil product exports hit record high

China goods deficit down $2.6B to $12B; both imports and exports decline.

Insight: Record oil exports show the U.S. filling global supply gaps. The narrower China deficit reflects weaker demand, not stronger exports — a red flag.

📈 EIA: Global oil inventories falling at record pace, heading to lowest since at least 2003

Insight: The EIA’s warning is a key medium-term support for oil. Even with a U.S.-Iran deal, replenishing stocks will take time. 20-year lows mean any supply shock will be amplified.

🇯🇵 Nikkei: BOJ to hike to 1% in June, possibly again in October

Insight: A June hike to 1% would be the highest since 2007. With yen at 160, the BOJ is forced to hike instead of intervene. Another October move implies the tightening cycle is just beginning.

IV. Corporate News

🚀 SpaceX draws over $250B in investor demand, far above $75B target

Over-subscribed 3.5–4x, set to be largest IPO on record.

— $250B demand is rare in IPO history. Enthusiasm for the “Musk narrative” has outpaced fundamentals. Pricing at $135, $750B valuation; debut performance in focus.

🤖 After OpenAI IPO announcement, Altman outlines “Three Goals”: automated AI research, economic acceleration, AGI

Insight: Altman’s agenda is more aggressive than Anthropic’s “pause AI research.” OpenAI positions itself as an “AGI leader,” not an “AI safety guardian” — a stark contrast.

💰 Broadcom partners with Apollo, Blackstone on AI financing platform; $35B deal closes with Anthropic as first client

Insight: A new model for AI infrastructure funding — private capital directly financing AI compute. Broadcom evolves from a “chip firm” to an “AI financier,” upgrading its business model.

V. Key Focus Today

📊 U.S. May CPI: After strong payrolls, CPI will be the “decider” for hike expectations. A hot print would fully price a Fed hike.

🏛️ Bank of Canada Policy Rate: Will the BoC follow the Fed amid rising hike expectations?

📊 U.S. May Government Budget: Deficit size affects Treasury supply expectations.

📈 Oracle Earnings: Bellwether for enterprise software demand; watch cloud growth and AI-related revenue.