Wall Street opened lower; The price of oil jumps

16:35

Wall Street opens the month of June with slight price drops, which constitute easy profit realization after the powerful rally of May. The futures contracts, which traded in the green throughout most of the morning, changed direction before the opening of trading: the S&P 500 retreated by about 0.1%, the Dow Jones shed about 0.3%, while the Nasdaq traded almost unchanged. About half an hour before the opening of trading, it was reported that Iran was suspending negotiations with the US due to Israel’s actions in Lebanon. As a result, the price of a barrel of Brent oil jumped by about 5.4% and traded at $96 per barrel.

Today’s tepid trading opening comes after a particularly positive month of May, in which the Nasdaq index jumped over 8% led by the technology sector, the S&P 500 climbed about 5% and the Dow Jones index added almost 3% to its value.

The new collaboration between Nvidia toMicrosoft In the development of a PC processor, he received a boost from investors: Nvidia’s stock rises by 4% and Microsoft adds 3% to its value.

The price of gold falls by more than 1% to a price of 4,529 dollars per ounce in the shadow of the confrontation between the US and Iran which increases the fear of inflation.

Bitcoin weakened to a level of about $72,000 following Microstrategy’s announcement of its first coin sale in four years worth $2.5 million – a move that pressured the market down despite its minimal volume.

15:40

Trading in Europe continues the mixed trend and the leading indexes are traded with only slight fluctuations. Germany’s DAX rose half a percent, France’s CAC jumped 0.3%, while Britain’s FTSE and the pan-European Stoxx 50 fell 0.3%.

The increase in the price of Brent oil weakened slightly. Now, its price has increased by 2.5% and stands at $93.4 per barrel. Trading in natural gas turned around and traded in a negative mood.

Early trading on Wall Street continues to be conducted during these hours in a positive trend, as the technology sector continues to gather a lot of interest. The chip giant’s announcement Nvidia for cooperation with a company Microsoft on a new processor for personal computers, jumped the shares of the two and Ethan computing companies poor and-HP and your company Arm which jumped 14.5% thanks to the use of its technology. On the other hand, the announcement put pressure on the competitors Qualcomm , Intel and-AMD that recorded declines.

At the same time, the software sector shows a strong rally led by Servisnao, Adobe and a share IBM which jumps by 13% following the “overweight” recommendation from Barclays Bank; Analysts from the bank stated in this context that “quantum computing is expected to be the next central computing model, and IBM’s strategy in this area is convincing.”

The stock of the house building company Taylor Morrison Jumps in early trading by almost 23%, this after you have joined Berkshire Hathaway of Warren Buffett agreed to purchase it for 6.8 billion dollars. Berkshire CEO Greg Abel praised the company and called it “the best of its kind” in its field.

At the same time, a share Robinhood andCoinbase Losing about 2% in early trading. The negative sentiment comes in the wake of selling pressure in the digital currency market, which led to the Bitcoin price retreating below the $73,000 mark – the currency’s lowest level since mid-April.

12:12

In Europe, the mixed trend continues and the leading indices are traded with only slight fluctuations. The German DAX index and the French CAC register minimal changes around the base levels, while the British FTSE trades in a similar trend with a slight decline. The pan-European STOXX 50 index also reflects the hesitancy of investors on the continent with a 0.1% drop. The price of Brent oil increased by 3.4% and its price now stands at $94.2 per barrel. Trading in natural gas also increased by 2.1%.

The early trading on Wall Street is currently in a positive trend, with the futures contracts on the leading indexes trading at higher rates. “Trump is clearly not interested in escalation and is looking for an exit path. And the markets are already pricing in prolonged silence in the sector,” wrote Adam Crispoli, founder of Vital Knowledge, in a review for investors. “An actual official announcement would likely trigger a ‘sell in the know’ reaction for the S&P 500 as a whole.”

10:35

European stock markets opened the day with a mixed trend. For the time being, the DAX index is trading stable, the FTSE weakens by about 0.3% and the advanced KAC rises by about 0.1%.

At the same time, oil prices are now climbing over 3%. Brent crude is trading around $94 per barrel, while US crude oil (WTI) crosses the $90 per barrel mark again.

9:00

In Asia, the stock markets are trading higher this morning. The Tokyo Stock Exchange rises by about 1%, the Hong Kong Stock Exchange climbs by about 0.9% and the Shanghai Stock Exchange trades stably. The Seoul Stock Exchange continues its incredible streak of gains and jumps by about 4%, among other things, amid reports that Nvidia CEO Jensen Huang will visit South Korea soon. Samsung Electronics shares climb by more than 3% to an all-time high.

In Japan, Softbank shares climbed about 5%, after the investment giant announced plans to invest $53 billion over the next five years to build an AI infrastructure in France.

The New York Stock Exchange returns from another week of new highs, led by technology stocks. The S&P 500 rose about 1.4%, the Nasdaq added about 2.4% and the Dow Jones advanced about 0.9%. This morning, Wall Street futures are trading up as much as 0.5%.

On a monthly basis, those who followed the old adage on Wall Street “Sell in May and go away” and sold in May lost impressive returns: the Nasdaq climbed over 8%, the S&P 500 advanced by about 5% and the Dow Jones rose by nearly 3%. Thus, the S&P 500 went on to register a double-digit return of over 10% since the beginning of the year.

The locomotive that led Wall Street to new highs is the chip sector, which recorded a historic rally during the month. Micron Crossing a trillion dollar market cap last week, after completing an 87% jump in the last month alone, the company AMD completed a jump of more than 50%, andBroadcom climbed by about 7%. These three companies alone make up 17% of the entire sector.

Violeta Todorova, a research analyst at Leverage Shares, identifies warning lights here: “The SOXX chip index has surged about 82% since the March low, when the Relative Strength Index (RSI) climbed above 87 points – the second highest level recorded since 1995.” According to her, these are extreme levels previously seen only during the dot-com bubble. “The market is pricing in perfection. The long-term story of AI is real, but in the short term, investors act as if the huge expenditures of the technology companies in the field can accelerate forever.” In her estimation, when the trend reverses, a correction of 15%-20% in the sector is not an unusual scenario.

However, the main event of the past weekend is undoubtedly the massive surge in the computer company’s stock poor after the financial statements it published on Thursday night – these presented a sharp increase of 88% in revenues and a dizzying jump of 757% in revenues from AI servers. The stock took off on Friday by over 30% and recorded its strongest day ever.

In the macro sector, in the US this afternoon data from the manufacturing activity in May will be published: the S&P Global purchasing managers’ index and the ISM manufacturing index.