Everything from stocks to bonds to gold and silver have rallied since late Tuesday, while crude oil has dipped. The dollar is modestly weaker, while Bitcoin and other cryptos are stronger.
Late-day news that the US sent Iran a 15-point truce plan – and that the US could agree to extend the current partial ceasefire beyond Friday – sent risk assets higher overnight and this morning. But many obstacles to peace remain. That’s why US WTI and Brent crude futures are still trading around 32% higher than a month ago even after the recent pullback.
WTI, Brent Crude Oil Futures (1-Mo. % Change)
Source: TradingView
For one thing, Iran continued attacking its Persian Gulf neighbors in the last 24 hours. For another, countries like Saudi Arabia and the United Arab Emirates are urging President Trump to keep hammering Iran to further weaken its capabilities to wage war. Another 3,000 US troops from the 82nd Airborne Division are headed to the Gulf, adding to the 2,200-strong 31st Marine Expeditionary Unit that should arrive in the region at the end of this week.
Could SpaceX soon take the next step to becoming a public company? The Information reported the private space launch company controlled by Tesla Inc. (TSLA) CEO Elon Musk could file its Initial Public Offering (IPO) prospectus this week. SpaceX reportedly wants to raise as much as $75 billion, higher than earlier market expectations of $50 billion. The IPO could launch as early as June.
Finally, pharmaceutical giant Merck & Co. (MRK) said it would buy Terns Pharmaceuticals Inc. (TERN) for $6.7 billion. Merck is paying a 6% premium to where Terns stock closed yesterday. Terns is running clinical trials for a promising drug to treat leukemia, while Merck is trying to bolster its product line before patent protection expires on its blockbuster cancer drug Keytruda.
