Dow, S&P 500, Nasdaq futures rise as AI trade takes center stage

Bloomberg reports:

Oil declined after Israel and Iran agreed to end attacks against each other following an escalation of violence that threatened to derail efforts to end the war in the Middle East.

Brent (BZ=F) crude slipped toward $93 a barrel after closing slightly higher on Monday, while West Texas Intermediate (CL=F) was around $90. Israeli Prime Minister Benjamin Netanyahu said the country is holding fire against Iran for now, but will respond should Tehran attack again. Iranian media conveyed similar sentiment.

The flare-up in hostilities put wider negotiations to end the war in the Middle East at risk, prompting President Donald Trump to appeal for de-escalation. A fragile ceasefire remains in place, but the Strait of Hormuz is still effectively closed by a double blockade maintained by Tehran and Washington, choking off supplies of crude, fuels and natural gas to global customers.

Reflecting remaining risk in the region, an unladen oil tanker in the Gulf of Oman was disabled by US forces on Monday after it “violated” the blockade by attempting to sail to an Iranian port, US Central Command said on X. Israel’s military also intercepted a “suspicious aerial target” from Yemen.

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Reuters reports:

Asian stock markets eked out a rally on Tuesday and oil prices came off highs after Israel and Iran said they would halt attacks on each other for now, while ever-hopeful investors bought the ‌latest dip in semiconductor stocks.

South Korea’s Kospi (^KS11) climbed 3.4%, having sunk ‌more than 8% on Monday after a run ⁠of spectacular gains left valuations stretched and retail investors with extended margin positions.

Japan’s Nikkei (^N225) firmed 0.9%, after losing 3.9% the previous session, while MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.5%.

Chinese blue chips added 0.4% as ⁠trade data showed exports rose 19.4% in May and imports climbed 27.4%, with both beating median forecasts. The strength shows China’s success in finding new markets in the face of U.S. tariffs and other trade hurdles, even as domestic demand struggles.

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Bloomberg reports:

SpaceX’s initial public offering is well oversubscribed with multiple institutional investors placing orders for about $10 billion or more of shares, according to people familiar with the matter, as demand builds for a potentially record-setting debut.

Banks leading the offering by Elon Musk’s rocket, satellite and artificial intelligence company are expected to stop taking orders from institutional investors on Wednesday after the market closes in New York at 4 p.m., some of the people said, asking not to be identified as the information isn’t public.

Closing the order books gives banks time to gauge demand ahead of the listing and advise the company on pricing. SpaceX’s IPO is set to price June 11 and trade the following day. The company is offering 555.6 million shares at a fixed price of $135 each, which would raise about $75 billion, and value it at about $1.8 trillion.

Retail investors can still submit orders for SpaceX shares on some platforms beyond the Wednesday deadline. The company is allocating as much as 30% of the offering to retail, Bloomberg News has reported.

On Tuesday, Morgan Stanley is hosting about 300 institutional investors at the bank’s New York headquarters for meetings with SpaceX management including President Gwynne Shotwell and Chief Financial Officer Bret Johnsen, a person familiar with the plans said. The event will be hosted by the bank’s co-president Dan Simkowitz, said the person, who asked not to be named discussing private meetings.

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