Stocks are ripping, while crude oil is sinking, to start the week. Gold and silver are trading higher, while the dollar is dipping. Treasuries are up a smidge, while cryptocurrencies are rallying broadly.
After weeks of pledged deals that failed to materialize, a lasting Middle East peace deal has seemingly emerged. Both the US and Iran have reportedly agreed to a 14-point memorandum of understanding that will end the conflict for 60 days to allow for detailed negotiations over Iran’s nuclear program. Meanwhile, the Strait of Hormuz will open to shipping traffic and the US will drop its blockade of Iranian oil exports if the deal is signed later this week as planned.
USO, FOX, ROKU (YTD % Change)
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In other news, Anthropic PBC shut down access to its most advanced Artificial Intelligence models after the US government said foreign nationals couldn’t have access to them. The government cited national security concerns for the move, which applies to people both outside and inside the US. Anthropic decided to disable the Mythos model to ensure compliance with the order. It’s unclear what this will mean for developers of other advanced “frontier” AI models.
Fox Corp. (FOX) said it will acquire the streaming company Roku Inc. (ROKU) for $22 billion to boost its reach in in live content and other programming. More than 100 million customers use Roku’s services and streaming devices. News of a potential deal leaked on Friday, extending the year-to-date gain in Roku stock to 32.4%. Fox stock is down 8.7% YTD.
Finally, ETFs and options targeting SpaceX (SPCX) will start trading this week – giving traders another way to profit in the wake of the firm’s mega-IPO last Friday. Lockup agreements covering slugs of SpaceX shares will gradually expire over the next few months, potentially putting downward pressure on the stock. But passive funds will have to start buying SPCX once it’s included in indices like the Nasdaq 100 later this month, giving it some offsetting support.
