Stock Market Impact: Wall Street futures declined sharply; Dow futures down 281 points (0.6%), S&P 500 futures down 51 points (0.7%), Nasdaq 100 futures down 328 points (1.2%). Technology sector led losses, with the Philadelphia Semiconductor Index (-1.9%). Individual tickers: INTC -2.13%, ORCL -2.84%, GOOGL +0.26%, QCOM -5.67%, NVDA -0.22%, MU -1.41%, AVGO -1.12%, SMCI -7.62%, SOX -1.93%.
Listed Companies and Sectors: Semiconductor companies Intel, Nvidia, Micron, Qualcomm fell in pre‑market trading. Oracle’s upcoming earnings could test AI enthusiasm. Super Micro Computer announced a plan to raise $7 billion in equity‑related sales to fund new hardware purchases.
Investment Flows: No specific FDI/FPI measures mentioned; however, heightened geopolitical risk and oil‑price volatility may affect capital flows.
Interest Rates, Inflation, and Liquidity: Markets await U.S. CPI data for May. Forecasts: headline CPI 4.2% YoY (up from 3.8% in April), month‑on‑month 0.5% (down from 0.6%). Core CPI projected 2.9% YoY (up from 2.8%) and 0.3% MoM (down from 0.4%). A hotter CPI could increase expectations of Federal Reserve rate hikes before year‑end.
Fiscal or Monetary Policy: Potential Fed rate‑hike expectations reinforced by robust employment data and anticipated higher inflation.
Geopolitical Context: U.S. conducted strikes on Iranian targets in retaliation for an attack on a U.S. helicopter near the Strait of Hormuz. Iran responded by attacking U.S. bases in Kuwait and Bahrain; five missiles intercepted over Jordan. Israel continued operations in southern Lebanon against Hezbollah. These actions keep the Strait of Hormuz largely closed to tanker traffic, sustaining elevated oil prices.
Commodities: Brent crude futures remained near flat, trading above pre‑war levels.
