slight increases in Europe; SpaceX surges in early Wall Street trading

11:20

The increases in Europe are getting stronger. The Dax index rises by about 0.7%, the Potsi strengthens by about 0.4% and the CAC adds to its value by about 0.6%.

stock SpaceX of Elon Musk jumps by more than 8% in early trading and thus completes a jump of nearly 50% within three trading days, since its giant IPO last Friday.

10:20

European stock markets open the day with slight price increases. The DAX index rises by about 0.1%, the FTSE advances by about 0.2% and the CAC adds to its value by about 0.3%. The trade is being conducted against the backdrop of the summit of the leaders of the G7 countries in France, which will also be attended by US President Donald Trump – where the war against Iran is expected to be at the center of the agenda.

9:30

Asia

In Asia, trading this morning is in a mixed trend. The Nikkei is climbing about 0.2% after setting a new high earlier, the Hang Seng is down about 1.6%, the Shanghai Stock Exchange is trading steady, and the Kospi is advancing about 2%. At the same time, futures contracts on Wall Street are trading stably.

This morning, the Central Bank of Japan raised interest rates in the country to 1%, in line with economists’ expectations. This is the highest level of interest since 1995. CNBC reported that the monetary tightening comes at a time when Japan is dealing with the weakness of the Japanese yen currency and inflation that has begun to climb, partly due to the war against Iran.

More in the macro sector: CNBC reports that retail sales in China fell in May for the first time in over three years, while municipal investment shrank more than expected, increasing pressure on Beijing to present a significant stimulus program to encourage consumption, although the easing of tensions in the Middle East provides some relief in the short term. Retail sales fell in May for the first time since December 2022, and recorded a 0.6% decrease compared to the same period last year.

In the commodities market, oil is trading stably, after prices fell by about 5% yesterday, while investors are pricing in the reopening of the Strait of Hormuz. Brent crude is trading around $83 per barrel and US crude (WTI) is trading around $80 per barrel.

In the global foreign exchange market, the dollar index (DXY), which measures its strength against a basket of selected currencies around the world, rises by about 0.15%.

Wall Street

Wall Street closed in bright green yesterday, with SpaceX’s positive momentum also contributing to investors’ risk appetite. The technology-biased Nasdaq jumped by about 2.9% – and thus recorded its second strongest day since the beginning of the year. Marketwatch reported that in the last seven trading days, the Nasdaq recorded abnormal average fluctuations of about 1.98% in each direction daily – the highest level of volatility measured in the index in over a year. At the same time, the S&P 500 jumped about 1.7% and the Dow Jones climbed about 1.1% to a new high.

After climbing nearly 20% on its Nasdaq debut last weekend, SpaceX Elon Musk’s continued its positive momentum and jumped about 20% more to a market value of about 2.5 trillion dollars. Thus, it established its position as the sixth largest company in the world in terms of market value, after TSMC . The IPO, which raised a record $75 billion, is seen on Wall Street as the opening shot of a “hot IPO summer,” with the expected IPOs of leading artificial intelligence companies OpenAI and Anthropic.

Brian Mulberry, chief market strategist at Zacks Investment Management, commented on SpaceX, noting that “It [המסחר] Looks a lot neater than I expected, which isn’t a bad thing. It’s not some kind of meme stock already at the beginning, but it seems that people are really adding it and holding it in their investment portfolio, and not trying to make a quick profit on it.”

Dan Ives, a senior analyst at Wedbush, wrote that “SpaceX going public is an important watershed moment for the broader technology sector.” In addition to this, Ives estimated that the technological affinity between Musk’s companies could lead to dramatic moves in the future, noting that “there is an increasing chance that Tesla will eventually be merged in some way into SpaceX/xAI”. On the other hand, alongside the optimism, there are also voices in the market warning against overpricing. Rand Millwood, an investment advisor at Guardian Wealth Advisors, cooled the enthusiasm and mentioned the company’s lack of positive cash flow, saying: “There are only about 15 companies that are worth a trillion dollars or more today. If you look at these companies, most of them have been around for a long time, are very successful and have positive cash flow, which is not the case with SpaceX.”

As mentioned, chip stocks also stood out in their gains, among them Micron , Nvidia , AMD , Marvel , Broadcom and more. The SOXX hedge fund, which tracks the chip sector, jumped over 5% to its all-time high and is now recording a 100% return since the beginning of the year. Also stocks memory chip manufacturers like SanDisk andSeagate traded up. The increase in Micron shares comes against the background of a significant target price increase by TD Cowen to $1,500 – reflecting an upside of over 50%.

The chip giant Nvidia announced that it will raise at least 20 billion dollars in bonds to finance its continued investments in the field of AI. Recall that at the beginning of the month, it announced Alphabetical (Google) plans to raise a massive $80 billion in capital to finance its expansion in the AI ​​field – a move that has rekindled concerns among some investors regarding the huge capital expenditures of the companies operating in the artificial intelligence arena. Also last week, the AI ​​server maker Super Micro Computer plunged by more than 20% in one day and erased about a quarter of its value, after announcing a capital raising of 7 billion dollars; This, in order to finance the purchase of components in order to satisfy the AI ​​orders that the company recently received.

The drop in oil prices led to price drops in the major energy stocks, such as misfortune andExxon Mobile but on the other hand it boosted the shares of airlines and cruise companies, which benefit from the drop in fuel prices, among them shares United Airlines , Delta Airlines , Royal Caribbean andCarnival . At the same time, gold prices jumped by over 3% and the mining company Freeport McMorran climbed, after the diplomatic calm reduced fears in the markets about the need for an interest rate hike by the Fed later this year.