US Stock Market Outlook: Indices Rise, Intel Boosted by Trump, Market Closure Tomorrow.

Iran and US Sign Memorandum of Understanding

Key Developments

On June 18, the Iranian Foreign Ministry spokesperson Baghaei announced that the text of the memorandum of understanding between Iran and the US has been finalized and signed. Direct technical negotiations between Washington and Tehran are set to take place in Switzerland tomorrow, focusing on the legal aspects related to the lifting of sanctions against Iran.

Market Reactions

US stock index futures rose, with the Dow Jones futures up 0.43%, Nasdaq 100 futures up 1.57%, and S&P 500 futures up 0.82%. However, international oil prices and spot gold both fell by over 2%.

Pre-Market Stock Movements

• Tech Stocks: Most major tech stocks saw gains, with Intel rising over 9%, Micron Technology nearly 5%, and AMD close to 4%.
• Chinese Stocks: Many popular Chinese stocks declined, with Legend Biotech dropping nearly 12% and XPeng down over 2%. TSMC and NIO both rose over 2%.
• Storage Sector: Stocks in the storage sector surged, with companies like Smart Modular Technologies and Western Digital rising over 5%.

Accenture and Oracle Updates

Accenture's Earnings Miss

Accenture reported third-quarter revenue of $18.7 billion, slightly below the expected $18.76 billion, leading to a pre-market drop of nearly 16%. The company also announced plans to acquire majority stakes in Dragos and 100% of runZero and NetRise for approximately $4.175 billion.

Oracle Price Increase

Oracle's South Korean division announced a price increase of about 10% across its product line due to high exchange rates affecting costs. This price adjustment is expected to be implemented globally.

Apple Plans Price Increases

Apple CEO Tim Cook stated that the company plans to raise product prices in response to rising memory and storage chip costs. He emphasized that while they are trying to mitigate the impact on customers, price increases are unavoidable.

Semiconductor Sector Insights

Broadcom and Intel Updates

Broadcom shares rose over 3% after JPMorgan raised its target price to $580, citing ongoing collaboration with Google. Intel shares increased nearly 9% following news of a partnership with Apple to design and manufacture chips in the US.

Upcoming Market Closures

Both US and Chinese markets will be closed tomorrow for the Dragon Boat Festival, with early closures for futures trading in commodities and indices.

Conclusion

The signing of the Iran-US memorandum has sparked optimism in the markets, particularly in the tech and semiconductor sectors, while companies like Accenture and Oracle face challenges. Investors should remain vigilant as these developments unfold.