At a Glance

🕊️ Trump agrees to wait longer for Iran’s formal response; Iran sets up controlled shipping zone in Strait of Hormuz.

🛢️ **WTI crude slumps 5.66% to $98.26/barrel**, Brent drops 5.63% to $105.02/barrel.

📈 S&P 500 rises 1.08% to halt three straight losses; Philadelphia Semiconductor Index surges 4.5%.

📊 Nvidia beats earnings forecasts and rolls out $80 billion share buyback, yet stock dips roughly 1.5% in after-hours trading.

1. Market Outlook

Core Events

Trump stated he is willing to wait several more days to obtain Iran’s official stance, and reaffirmed the US will never allow Iran to possess nuclear weapons. Iran’s Revolutionary Guard warned fresh military strikes will trigger large-scale regional conflicts.

Iran officially launched a controlled navigation management mechanism over the Strait of Hormuz, requiring all passing vessels to obtain official approval from the newly-established regional maritime authority.

Fed meeting minutes revealed rising inflation concerns within policymakers during April’s policy meeting, with hawkish voices growing louder and more officials open to potential interest rate hikes.

Market Reaction

Easing geopolitical tensions triggered sharp declines in crude oil prices, with WTI crude breaking below the $100 mark. Major US stock indexes rebounded broadly, putting an end to the recent downward trend.

US 10-year Treasury yield falls nearly 10 basis points to 4.567%. Spot gold gains 1.35% while the US Dollar Index weakens moderately.

2. Overnight Market Performance

Easing US-Iran tensions drag oil prices sharply lower, risk assets rally broadly and US stocks reverse three consecutive days of losses.

US Equities

Dow Jones Industrial Average rises 645.47 points, or 1.31%, closing at 50009.35 S&P 500 gains 79.36 points, or 1.08%, closing at 7432.97 Nasdaq Composite climbs 399.65 points, or 1.55%, closing at 26270.36

💡 The S&P 500 successfully ends its three-day losing streak. Semiconductor sectors stage strong rebounds while leading financial stocks record notable gains. Nvidia delivers solid financial results but faces profit-taking pressure in after-hours trading, showing saturated short-term sentiment toward AI themes.

European Equities

Pan-European STOXX 600 index rises 1.5% to close at 620.29. German DAX and French CAC 40 rise 1.4% and 1.7% respectively.

💡 European markets see stronger gains than US markets. As the region is highly reliant on imported energy, falling crude oil prices deliver obvious positive impacts on European economic outlook.

Bond Market

US 10-year benchmark Treasury yield settles at 4.567%, down around 10 basis points within the session.

💡 Lower oil prices effectively ease market inflation worries, pulling short and medium-term bond yields lower. Long-term yields remain firm above the 5% mark amid persistent fiscal pressure.

Commodities

WTI June crude futures close down 5.66% at $98.26/barrel** Brent July crude futures close down **5.63%** at **$105.02/barrel Spot gold rises 1.35% to $4543.20/oz**, spot silver rises **2.92%** to **$75.8819/oz

💡 Crude oil prices record the biggest single-day drop in recent periods. Cooling inflation expectations and falling bond yields jointly push precious metals prices to rebound steadily.

Forex Market

US Dollar Index drops 0.21% to 99.10. EUR/USD rises 0.20% to 1.1627, GBP/USD rises 0.28% to 1.3431.

💡 Improved global risk appetite and falling US bond yields jointly weigh on the US dollar, while non-US currencies stage moderate repairs.

Cryptocurrency Market

Bitcoin hovers near the $77,000** level at **$77384.85, Ethereum trades at $2106.33.

💡 Overall risk sentiment recovers, yet mainstream crypto assets remain range-bound, with market capital flowing back toward traditional tech stocks in the short term.

3. Macro News

🕊️ Trump delays strike timeline waiting for Iran’s formal reply, Iran officially implements shipping control rules over Hormuz Strait Iran holds a sincere attitude toward peace talks while remaining highly vigilant against US strategic intentions, and issues clear warnings against further military conflicts.

🏛️ Fed April meeting minutes signal intensified hawkish tendencies More policymakers acknowledge the necessity of policy tightening if inflation stays above the 2% target level. The meeting was held ahead of recently released hot inflation data, meaning current market hawkish expectations will be further amplified.

🇪🇺 Market sources confirm June ECB rate hike is highly certain European inflation pressure still lingers, but secondary inflation spillover effects are limited, leaving room to pause further rate hikes in July. European economic resilience is weaker compared with the United States under high energy costs.

🇪🇺 EU reaches preliminary trade consensus with the United States The new deal helps avoid additional tariff hikes, while core divergences over non-tariff trade barriers remain unresolved, and follow-up institutional voting is scheduled for mid-June.

🇯🇵 Japanese long-term government bond auction gains strong market demand Bond yields drop sharply on active buying, but market analysts judge this is only short-term technical rebound, and multiple negative factors restricting Japanese debt trends have not been eliminated.

4. Global Corporate News

🚀 Nvidia releases upbeat quarterly guidance and launches large-scale repurchase plan The company sets second-quarter revenue guidance at $91 billion**, far exceeding market consensus expectations, and announces an **$80 billion stock repurchase program alongside dividend upgrades.

🇰🇷 Samsung reaches internal employee salary negotiation agreement The enterprise raises overall salary standards and sets performance-based bonus rules for the chip division, effectively easing factory strike risks and stabilizing global memory chip supply expectations.

💻 ASML CEO warns global chip supply shortage will last long-term Strong AI industry demand keeps semiconductor equipment and production capacity tight. The enterprise calls for unified industrial norms to standardize relevant export business layouts.

📱 Meta adjusts global organizational structure and optimizes staffing scale The company carries out moderate layoffs globally and transfers core human resources to AI business lines, marking a comprehensive strategic shift from metaverse layout to AI business focus.

🚀 SpaceX submits official IPO listing documents The company confirms stable revenue growth from Starlink business and clarifies medium-term orbital computing satellite deployment plans. Its internal incentive mechanism is closely linked to long-term interstellar exploration strategic goals.

5. Key Events to Watch Today

📊 Release of May PMI data across US, Eurozone, UK and Japan, observing changes in global business activity sentiment after oil prices pull back 📋 US weekly initial jobless claims data, tracking the latest resilience of the domestic labor market

🏠 US April housing starts and building permits data, grasping real estate market trends under high interest rates

🗣️ Public speech by Richmond Fed President Barkin, capturing latest policy leanings among Fed officials