Technology stocks sold off sharply worldwide on fears that the AI-driven rally has become overstretched. The Nasdaq 100 dropped 3.5% and chip stocks plunged around 8%, while investors fled to safe-haven assets — pushing the US dollar to its strongest level since November. Oil and gold both retreated, even as several details in the US-Iran negotiations remain unresolved.
Geopolitics
US-Iran: Trump and Iran are still at odds over the details of the deal. Trump insists Tehran has accepted “maximum-level” nuclear inspections, but Iran denies this. On the unfrozen funds, Trump said the money would sit in an escrow account to buy food and medical supplies from the US only — while Iran maintains it will use the funds freely.
🛢️ Trump said roughly 19 million barrels of oil are moving through the Strait of Hormuz, reiterating that Iran must not possess nuclear weapons. The US Senate voted 50–48 to pass a resolution limiting war powers against Iran, while Trump faces pushback from Republican senators over the agreement.
Lebanon: US Secretary of State Rubio announced direct talks with the Lebanese government, but Lebanon-Israel negotiations have stalled over disagreements on the troop-withdrawal mechanism. Hezbollah’s leader has called for Israeli forces to withdraw.
Iranian President Pezeshkian visited Pakistan, emphasizing a relationship built on mutual respect. Iran and Oman reached an agreement to form a joint committee overseeing the Strait of Hormuz. Meanwhile, a cyberattack disrupted Iranian banks linked to the IRGC, with suspicion falling on Israel.
North Korea: Kim Jong Un announced that North Korea will build two Choe Hyon-class warships per year over the next five years to strengthen its naval power.
Monetary Policy
Bank of Canada Governor Macklem voiced concern over food inflation, though he hasn’t yet seen broad-based pressure, and expects CPI to climb toward roughly 3%.
Bank of England member Taylor backed a rate cut, arguing the current wage picture more closely resembles 2011 than 2022.
🦅 In the US, the Fed’s Goolsbee reaffirmed a cautious stance on inflation. Fed Chair Warsh is set to testify before Congress on July 14, while the dollar strengthened to a multi-month high.
Macroeconomics
🏭 US manufacturing cut jobs at the fastest pace since the pandemic, reflecting mounting pressure in the industrial sector.
China retaliated against the US by adding 10 entities to its export-control list and barring 46 American companies from government procurement. Commerce Secretary Lutnick signaled possible action against imports of state-subsidized Chinese robots.
📉 MSCI postponed its review of Indonesia’s market status to November, warning it could downgrade the country from emerging to frontier market if reforms don’t progress.
Energy & Commodities
🛢️ Oil closed lower, with WTI settling at $73.21 (down 0.88%) and Brent at $77.08 (down 1.05%) as Middle East tensions eased.
📊 The API report showed US crude inventories fell by 765,000 barrels last week, while shipping traffic through the Strait of Hormuz recovered to nearly three times its prior level.
🥇 Spot gold dropped below $4,100 an ounce on the risk-asset sell-off and easing tensions.
Financial Markets
📉 The tech sell-off intensified: the Nasdaq 100 fell 3.5%, chip stocks plunged around 8%, and South Korea’s KOSPI entered a 10% correction from its peak. US stocks closed lower, with the S&P 500 down 1.4%, as investors eye Micron’s earnings as a test of AI demand.
🛡️ Safe-haven flows supported US Treasuries and pushed the dollar to its strongest since November, while Bitcoin fell 3%.
🚀 SpaceX priced its first bond offering at $25 billion, drawing demand of up to $89 billion — one of the largest corporate debt sales of the year.
📈 S&P Dow Jones Indices is set to add Alphabet and Honeywell to its index calculations.
Business & Industry
🤖 Cerebras reported 92% growth in core Q1 revenue and announced a 750-megawatt deal with OpenAI worth over $20 billion — one of the largest AI infrastructure agreements yet.
📦 FedEx beat Q4 expectations with revenue up 13% to $25 billion and forecasts fiscal-2026 EPS growth of up to 20%. Nike named David Denton as its new CFO.
💰 Blackstone plans to invest $30 billion in AI data centers in Japan, while Walmart acquired Vibe.co for $1.4 billion.
📱 Meta confirmed it’s moving ahead with plans for a prediction-markets platform and appointed Kunal Shah to lead WhatsApp, as over 20,000 US users reported issues accessing Facebook and Instagram.
