By Stephen Culp
NEW YORK, June 15 (Reuters) – U.S. stocks rallied on Monday and crude prices dropped after the U.S. and Iran announced they have reached a deal to end the war and reopen the Strait of Hormuz, the closure of which has rattled markets worldwide and sparked fears of systemic inflation.
I will go into more detail on today’s market moves below. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.
1. The Dow Jones Industrial Average touched an intraday record following a preliminary agreement to end the Middle East war
2. Israel’s Prime Minister Benjamin Netanyahu is on a collision course with President Donald Trump following the peace deal
3. SpaceX said its underwriters exercised the “greenshoe” option to purchase more shares, sending total IPO proceeds to $85.7 billion
4. Fox strikes $22 billion deal to buy Roku in push to expand advertising, streaming capabilities
5. While there are no signs of global slowdown yet as a result of the Middle East war, risks remain high, according to International Monetary Fund chief Kristalina Georgieva
6. Chipmaker Nvidia will raise $20 billion through a U.S. bond issuance, to fund massive capital requirements to produce cutting-edge AI chips
Today’s Key Market Moves
• STOCKS: All three major U.S. stock indexes gain; Nasdaq logs biggest one-day percentage gain since March 31; Dow, Europe’s STOXX 600 both reach record closing highs
• SECTORS/SHARES: Tech leads advances as chips surge
• FX: U.S. dollar touches 10-day low against the euro and sterling
• BONDS: U.S. Treasury yields drop to one-month low
• COMMODITIES/METALS: Crude futures slide to three-month low, gold jumps
Today’s Talking Points
* Global shippers cautious on Strait of Hormuz traffic
Shippers in Asia and Europe said it would take weeks to rebuild confidence in resuming transit through the Strait of Hormuz and regular traffic would only resume once safety is assured.
There were no significant visible tanker crossings on Monday aside from one LNG carrier as shippers await details on the deal, including the removal of mines.
* Trump tariff threats spark jitters as G7 leaders convene in France
The leaders of the Group of Seven nations began arriving in France on Monday, where they will evaluate the next steps following the U.S.-Iran peace deal and seek common ground on the war in Ukraine, among other issues.
The summit will likely be clouded by unease arising from fresh tariff threats from Trump at a time when global leaders are increasingly wary of the U.S.
* Britain announces social media ban for under-16s
British Prime Minister Keir Starmer said he would ban social media sites for children younger than 16 years of age, and impose restrictions on gaming and streaming platforms.
YouTube, Facebook and X will be covered by the ban, which is supported by a majority of parents and politicians.
What could move markets tomorrow?
• Developments in the Middle East
• Energy market moves
• Social media posts from Trump
• G7 developments
• Bank of Japan’s expected 25 bps rate hike
• U.S. housing starts/building permits (May)
• U.S. import/export prices (May)
• Italy CPI (May)
• Euro zone labor costs/wages (Q1)
• Brazil retail sales (April)
• Japan trade (May)
• Japan machinery orders (April)
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Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
(Reporting by Stephen Culp; Editing by Nia Williams)
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