Stock Market Update

Equity futures point to a modestly higher opening after stocks rallied yesterday in response to headlines of a peace agreement between the U.S. and Iran that sent oil prices sharply lower. Oil continues to move lower this morning, approaching the $78 per barrel mark, though stocks seem to be taking a breather after yesterday's advance.

The rally resulted in fresh record highs for the DJIA. Support was relatively broad, and mega-cap stocks provided solid leadership.

The market's newest mega-cap stock, SpaceX (SPCX 201.64, +9.14, +4.8%), jumped nearly 20% yesterday and is moving higher again in the premarket ahead of its third trading day.

On the data front, the market has several economic data releases slated for this morning, including May housing starts (Briefing.com consensus 1.440 million) and building permits (Briefing.com consensus 1.410 million) data.

In corporate news:

• NVIDIA (NVDA 211.88, -0.57, -0.3%) raises $25 billion through a debt sale, according to Bloomberg.
• Qualcomm (QCOM 231.75, +10.94, +5.0%) is in discussions to buy Tenstorrent, according to The Information.
• Robinhood (HOOD 99.33, +1.21, +1.3%) will reduce its workforce by 10%, according to Reuters.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mostly higher showing on Tuesday with Japan's Nikkei (+0.1%) eking out a fresh record close while South Korea's Kospi (+2.1%) was on the verge of doing the same. Japan's Nikkei: +0.1%, Hong Kong's Hang Seng: -1.4%, China's Shanghai Composite: -0.1%, India's Sensex: +0.7%, South Korea's Kospi: +2.1%, Australia's ASX All Ordinaries: UNCH.

In news:

• The Bank of Japan raised its policy rate by 25 basis points to 1.00% while the Reserve Bank of Australia left its cash rate at 4.35%.
• Both moves were in line with expectations, causing a limited reaction in the market.
• The yen and the Aussie are essentially flat while Japan's yields are up a bit after the hike to a level not seen since 1995.
• The BoJ left the door open for additional hikes while the RBA noted that the economy is decelerating after this year's hikes.

In economic data:

• China's May Retail Sales -0.6% m/m (expected -0.3%; last 0.2%), May Industrial Production 4.5% yr/yr (expected 4.4%; last 4.1%), May Fixed Asset Investment -4.1% yr/yr (expected -2.3%; last -1.6%), and May House Prices -3.5% yr/yr (last -3.5%). May Unemployment Rate 5.1% (expected 5.2%; last 5.2%)
• Hong Kong's May Unemployment Rate 3.7% (last 3.7%)
• South Korea's May Import Price Index 24.8% yr/yr (last 20.5%) and Export Price Index 46.9% (last 41.3%)
• New Zealand's May FPI 1.0% m/m (last 0.0%)

Major European indices trade in the green. STOXX Europe 600: +0.4%, Germany's DAX: +0.4%, U.K.'s FTSE 100: +0.6%, France's CAC 40: +0.7%, Italy's FTSE MIB: +1.3%, Spain's IBEX 35: +0.4%.

In news:

• Germany rejected UniCredit's offer to acquire Commerzbank.
• British Chancellor Reeves said that she hopes to plan the next budget without raising taxes.
• Norwegian Air Shuttle will acquire Nordic Leisure Travel for $833 mln.

In economic data:

• Eurozone's June ZEW Economic Index 9.5 (expected -7.2; last -9.1). Q1 Eurozone Wages 3.4% yr/yr (last 3.0%) and Q1 Labor Cost Index 3.2% yr/yr (expected 3.3%; last 3.3%)
• Germany's June ZEW Economic Sentiment 10.5 (expected -5.8; last -10.2) and ZEW Current Conditions -81.0 (expected -77.5; last -77.8)
• Italy's May CPI 0.4% m/m, as expected (last 1.1%); 3.2% yr/yr, as expected (last 3.2%)