Market Report.
Wall Street fell yesterday.
📈 Rising Treasury yields pressuring growth stocks: The 10-year Treasury yield climbed toward 4.5%, increasing discount rates on future earnings for expensive tech/growth names in the NASDAQ 100. This added to the downside pressure on rate-sensitive sectors, even as the broader market, as Dow Jones, held up better on cyclical names. Lingering rate-hike odds from prior data also played a role.
🌍 Now let’s move on to the usual review of the state of the world and its consequences on markets.
🗣️ Vice President JD Vance said negotiations between the U.S. and Iran had made great progress despite what he described as “a little bit of threatening” and “a little bit of whining.” He confirmed the talks in Bürgenstock, Switzerland, were continuing.
🇺🇸 Vance announced that Iran had agreed to permit International Atomic Energy Agency inspectors back into the country. He called it a major milestone for the American people and the first step in permanently ending a nuclear weapons program in Iran.
🕊️ Vance said the U.S. wants a regional ceasefire, with Hezbollah to stop firing at Israel, and Israelis to live in peace.
👤 Meanwhile in the US, when asked about Israeli Prime Minister Benjamin Netanyahu’s statement that his forces would not be leaving Lebanon, President Trump responded: “We are going to take a look at it. I am a problem solver; I can solve problems fast, including with Bibi.
🧲 Iran’s foreign minister, Abbas Araghchi, separately said the talks had yielded major progress.
🤝 Vance detailed an arrangement involving Jared Kushner and the Qataris under which any unfrozen Iranian assets would go to benefit American farmers and feed the Iranian people. He described it as a classic Trump deal, good for Americans, good for the Iranian people, and a contribution to regional security architecture.
Iran’s crude oil sanctions have been lifted.
💼 The U.S. Treasury Department authorized Iranian oil sales through August, issuing a temporary 60-day general license. Treasury Secretary Scott Bessent said the move follows productive talks between Tehran and Washington in Switzerland.
📜 The license allows the production, delivery, and sale of Iranian oil, including the import of Iranian oil and refined products into the United States. Payment can be made to Tehran in dollars. The authorization expires on August 21 unless renewed.
⚓ The U.S. Navy lifted its blockade of Iran’s ports and coastal areas on June 18. Iranian supertankers have switched on their transponders and are departing the Persian Gulf loaded with oil. Before the blockade, Iran typically loaded more than 1.5 million barrels per day for export, mostly to China. Loadings dropped to just 260,000 barrels per day in May.
🚢 Transits rose to 35 on Saturday before dropping to 17 on Sunday amid confusion over whether the strait was open or closed. Traffic remains far below prewar levels of more than 100 vessels per day. Under the agreement, Iran must allow ships to transit Hormuz toll-free for 60 days. After that period, Tehran is to discuss with Oman and Gulf states how the strait will be administered, leaving open the possibility that tolls could be imposed later.
More ammunition for the war.
🏛️ President Trump has summoned senior Pentagon officials and top executives from major U.S. defense contractors to the White House on Wednesday, June 24, to address dangerously low missile stockpiles and ramp up munitions production. The meeting is expected to be tense, with CEOs preparing for pressure to accelerate output significantly.
⏱️ The urgency follows the Iran war, which heavily depleted U.S. inventories. At least 45 percent of Precision Strike Missiles, roughly 50 percent of THAAD and Patriot interceptors, and large numbers of Tomahawk cruise missiles were drawn down. Replenishing these stockpiles to pre-war levels will take two to three years or more for key systems under current production schedules.
🧩 The meeting builds on earlier actions. In January 2026, Trump signed an executive order directing defense contractors to prioritize production and stockpiles over stock buybacks. In March, after another White House meeting, companies agreed to quadruple production of advanced weaponry. In mid-June, Trump invoked the Defense Production Act to accelerate munitions manufacturing.
🏭 Industry leaders have expressed willingness to grow output but stress the need for stable, long-term congressional funding and contracts to justify major investments.
China is decoupling from the US industry
🚫 China has announced sanctions on 10 American military-related companies in response to recent U.S. restrictions that prevent certain Chinese tech firms from defense contracts.
📦 The Chinese Commerce Ministry stated that exports of “dual-use” items, which can be used for both military and civilian purposes, would be blocked to these companies.
🎯 This move aims to protect China’s national security and counters the U.S. government’s expansion of its military company list. The sanctioned firms include military drone manufacturers and rare earth mining companies.
💰 Additionally, China’s Finance Ministry has prohibited government entities from purchasing products from 46 American companies, including Lockheed Martin, Raytheon, and General Dynamics.
🇺🇸 The U.S. Defense Department recently added Chinese firms like Alibaba and Baidu to its military-linked list, preventing them from obtaining U.S. military contracts.
Ukraine threatens Belarus.
⏳ President Volodymyr Zelenskyy of Ukraine has given Belarus’s leader, Alexander Lukashenko, a week to remove signal relay stations in Belarus used by Russian forces for drone navigation in attacks on Ukraine.
📣 Zelenskyy stated that if Lukashenko ignores this demand, Ukraine will take action. Lukashenko, who is allied with President Putin, has dismissed fears of Belarus’s involvement in the war.
🗓️ Zelenskyy emphasized the urgency of his request, saying a week should be sufficient for action.
🧨 Following this pattern, Russia should be issuing an ultimatum to the NATO countries that have provided weapons and intelligence to attack targets within Russia.
⚔️ Additionally, tensions between Zelenskyy and Poland’s president have escalated over the naming of a military unit.
📅 On May 26, 2026, Ukrainian President Volodymyr Zelenskyy honored a military unit by naming it after the “Heroes of the UPA” (Ukrainian Insurgent Army), framing the decision as a tribute to Ukraine’s independence efforts.
❗ This naming is highly controversial in Poland, where the UPA is associated with the Volhynia massacres, leading to strong Polish condemnation from President Karol Nawrocki. He described the decree as “outrageous” and revoked Zelenskyy’s Polish honor, the Order of the White Eagle.
🔁 In response, Zelenskyy returned the award and called for dialogue. The dispute threatens Ukrainian-Polish relations, crucial for Ukraine’s defense against Russia, amid differing historical perspectives. Today, tensions remain unresolved.
Corporate news.
🛢️ Chevron has signed a 20-year agreement to power a Microsoft data center, called Project Kilby, in West Texas using natural gas.
⚡ This data center will consume nearly 2.7 gigawatts of electricity, enough for about 2 million homes.
🔌 Most power will come from large gas turbines supplied by Chevron’s partner, GE Vernova. Construction has not begun yet, with power expected to start in 2028.
🤖 Microsoft plans to invest $190 billion this year for data centers to support AI applications, balancing renewable energy with fossil fuels for reliable energy needs.
SpaceX has started its first bond sale shortly after a successful IPO, where it raised nearly $86 billion, making Elon Musk the world’s first trillionaire. The company disclosed that it has approximately $100.8 billion in cash.
💳 The funds from the bond sale will be used to pay off bridge financing and meet other general needs; however, the exact amount they aim to raise has not been confirmed.
📌 Sources indicate that SpaceX is looking to raise around $20 billion, with the sale expected to begin soon.
📉 Despite the excitement around the IPO, SpaceX’s shares fell 16% over three days.
🧠 The company is also focusing on expanding its artificial intelligence initiatives, which includes acquiring more chips and investing in future data centers in space. The bond offering comes as SpaceX prepares for meetings with investors regarding this fundraising effort.
Alan Greenspan dies.
🏛️ Alan Greenspan, the former Federal Reserve chairman who served for 19 years under four presidents, died at age 100 from complications of Parkinson’s disease. He was known as “the Maestro” and became one of the most influential economic policymakers of his era.
📚 His tenure was the second longest in Fed history, ending in 2006. He is perhaps best remembered for his 1996 warning about “irrational exuberance” in asset markets, a phrase that briefly shook global stock markets but did not prevent the dot-com bubble from bursting years later.
🌎 He led the central bank through multiple crises including two recessions, the Asian financial crisis, the Russian default, the Long-Term Capital Management bailout, and the September 11 attacks. Supporters credit him with presiding over the longest economic expansion in U.S. history.
🧯 Critics argue his low interest rate policies and the so-called “Greenspan put” of calming market panics set the stage for the housing bubble that burst into the Great Recession.
🗓️ In January 2026, he signed a joint statement denouncing a criminal probe of Fed Chair Jerome Powell as an unprecedented threat to central bank independence.
🧠 He believed fear is many multiples the size of euphoria in financial markets, and that contagion is the critical phenomenon that causes systems to fall apart. He doubted anyone could successfully oversee financial stability, warning that failure would undermine the credibility of central banking.
Market View.
😰 The market remains fearful of a possible rate hike by the Federal Reserve. Yesterday, stocks fell on Wall Street: S&P 500 futures retreated below the 7,500-point mark and are currently trading at 7,450 points. Nasdaq 100 futures dropped below 30,500 points and are now trading at 30,000 points.
💵 The US Dollar Index (DXY) has continued to edge higher, reaching 101.100 points, pushing pairs such as EUR/USD down towards the 1.1420 area, now rebounding to 1.1435.
📌 The 10-year US Treasury yield climbed to 4.50%.
🌍 In Europe, futures are also falling, with the DAX 40 struggling to hold onto the 25,000-point level, while Euro Stoxx 50 futures are pulling back towards 6,275 points.
🛢️ Crude oil continues to fall as negotiations between Iran and the US progress; spot Brent crude is currently trading at $76.65 per barrel.
🥇 Gold futures are falling again, losing last week’s support levels and trading below $4,150 per ounce, reaching $4,131 per ounce at present.
🌐 Bitcoin has reversed and is falling once more, losing the $63,000 level and currently struggling to hold above it.
