Stocks Drop as Oil Rises Due to US-Iranian Fears – US Market Wrap

A surge in geopolitical risks brought markets and bonds lower, but oil rose as Trump warned a ceasefire with Iran may be over, adding that the US would likely undertake additional strikes.

Almost 400 S&P 500 shares fell, but the index recovered as Trump stated that he does not believe the war would resume. Chipmakers gained. The increased confrontations in the Persian Gulf posed a new wave of disruption to oil trading, with Brent crude temporarily exceeding $80. That has sparked inflation concerns, driving money markets to increase their wagers that the Federal Reserve will raise interest rates by October. Bitcoin plummeted.

Trump spoke just hours after the United States began strikes on Iran and revoked a waiver that allowed Tehran to sell its oil globally, in response to attacks on tankers in the Strait of Hormuz. Trump also stated that a blockade of Iranian ports may restart, heightening fears of a return to all-out war.
According to The Information, China wants to enable top AI businesses to purchase a limited number of H200 processors from Nvidia, indicating that the country is loosening restrictions on the highly sought-after US technology.

Apple, following through on a commitment to increase spending on US-made components, said its extended arrangement with Broadcom Inc. is likely to exceed $30 billion.
SpaceXAI has introduced a new artificial-intelligence model developed in collaboration with AI code startup Cursor that is intended to be more competent at banking, legal, and coding jobs, in an effort by Musk’s company to gain ground on competitors like as Anthropic and OpenAI.
Meta will invest roughly $10 billion to develop its first data center in Canada as part of its infrastructure expansion to support its AI ambitions.