US Stock Market Outlook: Trump on Iran, PPI Surprises, SpaceX IPO Boosts Stocks

US Market Update: Key Developments

Trump’s Warning to Iran

On June 11, former President Donald Trump announced on social media that the US would launch a "severe strike" against Iran that evening, aiming to take control of oil infrastructure, including Hark Island.

Inflation Data Released

The US reported a 6.5% year-on-year increase in the Producer Price Index (PPI) for May, surpassing the expected 6.4%. Month-on-month, it rose by 1.1%, exceeding the forecast of 0.7%.

Stock Market Reactions

US stock index futures narrowed their gains, while international oil prices increased and spot gold saw a short-term decline.

Tech Stocks Performance

In pre-market trading, major tech stocks saw gains, with Intel rising nearly 5% and ASML up over 3%. However, Chinese concept stocks showed mixed results, with UMC up over 6% and Alibaba down more than 3%.

Oracle's Earnings Report

Oracle's Q4 revenue reached $19.18 billion, a 21% increase year-on-year, exceeding analyst expectations. However, concerns arose over its capital expenditures, which were significantly higher than anticipated, leading to a drop in stock price.

Musk's Secret Meeting with ASML

Elon Musk is set to attend ASML's internal technology conference via video link, where he will discuss his semiconductor manufacturing project, "Terafab," with the new CEO.

General Motors' Battery Strategy Shift

General Motors is shifting its battery technology focus from lithium iron phosphate (LFP) to lithium manganese-rich (LMR) batteries, diverging from competitors like Tesla.

AI Cooling Technology Insights

BNP Paribas analysts highlighted the growing demand for AI cooling solutions, predicting that companies like Eaton and Vertiv will benefit from this trend.

SpaceX IPO Anticipation

As SpaceX prepares for its IPO, short-seller James Chanos cautioned investors against overvaluing the company based on hype rather than fundamentals.

OpenAI's IPO Plans

OpenAI CEO Sam Altman announced plans for an IPO within a year, revealing a proposed employee buyout at $687.69 per share.

Nvidia's Response to Market Concerns

Nvidia showcased its CPO technology in a recent video, addressing concerns raised by a bearish report on its future prospects.

European Central Bank Rate Hike

The European Central Bank raised key interest rates for the first time in 2023, aligning with market expectations.

US Jobless Claims Rise

Initial jobless claims in the US rose to 229,000, the highest since February 2026, indicating potential economic concerns.

Market Outlook

Morgan Stanley's analysts believe the current reset in storage prices does not signal the end of the cycle, as AI demand continues to support the market.

Legislative Developments on AI Risks

Senator Elizabeth Warren proposed legislation requiring financial institutions to disclose their exposure to AI-related companies, aiming to address the growing AI investment bubble.

This summary captures the key financial and market developments in the US, reflecting the latest trends and concerns among investors.