Stocks are sliding and crude oil prices are climbing amid renewed geopolitical tensions. Gold and silver are falling, interest rates are rising, and the dollar is flatlining.
The Middle East conflict heated up in the last 24 hours – with the US and Iran trading drone, missile, and bomb attacks. The latest round of tit-for-tat strikes followed the downing of a US Apache helicopter near the Strait of Hormuz, reportedly by an Iranian drone.
Oil prices rose on the news, but both WTI and Brent futures prices still remain around or just above $90. Analysts say surging US exports, reduced Chinese energy demand, and the release of strategic government oil stockpiles are keeping prices from climbing well into the triple digits. But if the three-and-a-half-month-long war keeps dragging on, prices could rise further.
WTI Crude Oil Futures (1-Day Chart)
Source: TradingView
On the inflation front, the Consumer Price Index (CPI) rose 0.5% on the headline and 0.3% on the core in May. The former number matched forecasts, while the latter came in a bit lower than expected. Year-over-year inflation hit 4.2% though – the highest in three years.
Meanwhile, the buzz is building ahead of SpaceX’s (SPCX) Initial Public Offering (IPO). Institutional investors are reportedly asking for allocations of shares that total much more than the amount being sold (555.6 million shares at $135 a piece). Having an “oversubscribed” deal doesn’t guarantee the stock will continue to rocket after it starts trading, though. Institutional and retail investors have until Wednesday afternoon to request shares. The stock will then start trading on Friday.
On the subject of stock sales, Super Micro Computer Inc. (SMCI) became the latest publicly traded AI-related name to say it would sell more shares. The company wants to sell $7 billion in stock to buy AI server components, fund capital expenditures, and pay down debt. Alphabet Inc. (GOOGL) moved to sell almost $85 billion in equity recently, and Meta Platforms Inc. (META) was reportedly considering its own fundraise. Because selling more shares dilutes existing shareholders, SMCI slipped on the news.
