Daily News 3rd June 26
Daily News
Japan's Nikkei Hits Record High as Asia Markets Rise; S&P 500 Posts First Close Above 7,600; WTI Climbs Toward $95 as U.S.-Iran Ceasefire Frays
03 June 2026
Today in Brief
Asia-Pacific markets opened broadly higher Wednesday, with Japan's Nikkei 225 hitting a record high as investors looked past ongoing U.S.-Iran uncertainty. Secretary of State Marco Rubio told Congress that Iran has mined "large segments" of the Strait of Hormuz, while the Pentagon confirmed it has destroyed over 40 minelaying vessels. On Tuesday, the S&P 500 advanced 0.13% to 7,609.78 — its first close above 7,600 — while the Dow gained 228.91 points to 51,307.79; Alphabet fell nearly 4% after announcing an $80 billion stock sale to fund AI infrastructure. Gold held below $4,500 as strong U.S. job openings data reinforced expectations for an extended period of elevated rates ahead of Friday's nonfarm payrolls report. WTI crude climbed toward $95 per barrel for a third straight session of gains as CENTCOM confirmed Iranian ballistic missile launches and U.S. retaliatory strikes on Qeshm Island. The U.S. proposed tariffs of up to 12.5% on imports from 60 economies over forced labor practices. Fed's Hammack warned a rate hike may be needed "soon" if inflation fails to abate. Microsoft unveiled its MAI-Code-1-Flash AI coding model at Build. Palo Alto Networks beat earnings as AI drives cybersecurity demand. Marvell soared 32% after Nvidia's Jensen Huang called it the next trillion-dollar company. Victoria's Secret surged 50% on a strong earnings beat and raised full-year guidance.
Japan's Nikkei hits record high as Asia markets rise amid Middle East concerns
Asia-Pacific markets opened broadly higher Wednesday, with Japan's Nikkei 225 hitting a record high, as investors appeared to look past uncertainty over U.S.-Iran negotiations aimed at ending the Middle East conflict. Tensions have escalated between Washington and Tehran, with Secretary of State Marco Rubio saying on Tuesday that Iran has mined "large segments" of the Strait of Hormuz. "They're firing on commercial ships and they've mined large segments of Hormuz — international waters," Rubio told the Senate Foreign Relations Committee. This marks his first appearance before Congress since the Iran war on Feb. 28. A White House official told CNBC that the Pentagon has destroyed numerous mines and over 40 minelaying vessels.
Dow jumps more than 200 points, S&P 500 posts first close above 7,600
The S&P 500 ticked up to a record close after reaching a new all-time high on Tuesday as traders monitored the latest U.S.-Iran developments as well as moves in major tech names. The broad-based index advanced 0.13% to end at 7,609.78 for its first close above the 7,600 threshold, while the Dow Jones Industrial Average gained 228.91 points, or 0.45%, to 51,307.79. The latter also rose to a new all-time intraday high earlier in the session. The Nasdaq Composite eked out a gain of 0.03% to end at 27,093.90. Alphabet weighed on the S&P 500, with shares down almost 4% after the company said it would raise $80 billion from stock sales to fund its artificial intelligence buildout. That includes a $10 billion investment from Berkshire Hathaway.
Gold prices held below $4,500 per ounce on Wednesday, holding losses from earlier in the week
Gold prices held below $4,500 per ounce on Wednesday, holding losses from earlier in the week as stronger-than-expected US labor market data reinforced expectations that the Federal Reserve may keep interest rates elevated for an extended period. Data released on Tuesday showed US job openings surged in April to their highest level in nearly two years, while layoffs declined, pointing to continued resilience in the labor market. Investors are now focused on Friday's closely watched nonfarm payrolls report for further clues on the trajectory of monetary policy. Meanwhile, ongoing uncertainty surrounding US-Iran peace negotiations contributed to higher oil prices, fueling concerns about inflation and strengthening the case for a more restrictive Fed stance.
WTI crude futures climbed toward $95 per barrel on Wednesday
WTI crude futures climbed toward $95 per barrel on Wednesday, marking a third consecutive session of gains as ongoing uncertainty surrounding US-Iran peace negotiations and renewed conflict in the Middle East continued to support a geopolitical risk premium in oil markets. According to the US Central Command, Iran launched ballistic missiles toward neighboring countries, while US forces carried out strikes on Qeshm Island in retaliation for attempted attacks attributed to Tehran. Despite the escalation, President Donald Trump insisted that negotiations with Iran remain active, pushing back against reports from Iranian state media claiming that talks with Washington had been suspended due to the fighting in Lebanon.
U.S. proposes fresh tariffs on 60 economies over forced labor trade practices
The Office of the U.S. Trade Representative has proposed additional tariffs of up to 12.5% on imports from 60 economies over their failure to ban goods made with forced labor, in a sweeping action that would hurt most trading partners, including China, the European Union and Japan. The determination, made under Section 301 of the Trade Act of 1974, found that all 60 countries have failed to impose or effectively enforce a prohibition on forced labor-related imports, creating what it called an "unlevel playing field" for American workers. USTR has proposed a 10% duty rate for economies that have adopted a full or partial prohibition on forced labor trade, and 12.5% for all other economies.
U.S., Iran intensifies attacks as ceasefire frays, peace talks stall
U.S. Central Command said Tuesday that it had defeated multiple Iranian ballistic missiles and drones and launched defensive strikes in response to "attempted attacks" by Iran, the latest in a cycle of attacks that has further threatened a fragile ceasefire. Iran had launched several ballistic missiles toward regional neighbors, though none hit their intended targets, according to a statement from CENTCOM. Two Iranian missiles fired at Kuwait fell short or broke apart en route, and three missiles launched at Bahrain were immediately intercepted by U.S. and Bahrain air defense forces. The U.S. also shot down three one-way attack drones launched by Iran toward civilian mariners that were transiting regional waters, according to the statement.
Trump, Rubio say talks with Tehran ongoing despite Iranian media claims otherwise
President Donald Trump and Secretary of State Marco Rubio said Tuesday the U.S. remains in negotiations with Iran about a deal to pause their war despite claims to the contrary by Iranian state media. Rubio told the Senate Foreign Relations Committee that as part of those talks, "there is the prospect" that Iran "could negotiate aspects of their nuclear program." Iran's Fars news agency, citing a source, reported Tuesday morning that Iran and the U.S. stopped exchanging messages several days ago. On Monday, the state-affiliated news outlet Tasnim said that Iranian negotiators would stop exchanging messages with the U.S. through intermediaries and that Iran would move to fully close the Strait of Hormuz, a crucial choke point for crude oil shipments.
Fed's Hammack eyes tighter policy if inflation doesn't abate
Federal Reserve Bank of Cleveland President Beth Hammack said Tuesday that the U.S. central bank may need to act "soon" to combat inflation pressures that are already too high and are on a worrisome trend. "Based on the data, I'm more concerned about the growing risks of persistently elevated inflation than the risks to full employment and also that monetary policy may not be sufficiently restrictive to bring inflation down to 2 percent," Hammack said in a speech prepared for delivery before the City Club of Cleveland. "If we wait for definitive evidence that high inflation has become embedded in the economy, it may require larger policy adjustments, at greater cost," the official said. For now, "it's reasonable to keep rates steady given the uncertainties around the economic outlook. But if recent trends continue, it may soon be appropriate to act," the official said.
Microsoft unveils new AI models to lessen reliance on OpenAI and lower costs for developers
Microsoft has been a major player in the artificial intelligence boom, providing key cloud infrastructure and services and taking multibillion-dollar equity stakes in OpenAI and Anthropic. Now the company is making a concerted effort to compete with proprietary models. At its Build developer conference in San Francisco on Tuesday, Microsoft announced MAI-Code-1-Flash, its inaugural model that takes written descriptions from people and spits out source code for applications and websites. The AI coding market, or vibe coding, has taken off of late, with developers and people without technical backgrounds using text-based prompts to produce sophisticated software.
Palo Alto Networks tops earnings as AI fuels cybersecurity urgency
Palo Alto Networks surpassed Wall Street's fiscal third-quarter results as artificial intelligence threats drive demand for sophisticated cybersecurity tools. Shares rose as much as 12% in after-hours trading, but later pulled back near the flatline. Revenue grew 31% from a year ago, including $388 million from its recent CyberArk and Chronosphere acquisitions, the cybersecurity company said. The company reported a net loss of $177 million, a loss of 22 cents per share, down from net income of $262 million, or 37 cents per share, a year ago. Palo Alto issued stronger-than-expected guidance for the fourth quarter, with revenue expected to range between $3.35 billion and $3.36 billion, versus a $3.28 billion estimate. Full-year guidance was also lifted, coming in at $11.42 billion to $11.43 billion.
Marvell stock soars 32% as Nvidia's Huang says it could be the next trillion-dollar company
Nvidia's CEO Jensen Huang hailed Marvell Technology as the next trillion-dollar firm, sending its shares up 32.52% on Tuesday. The stock move is Marvell's biggest one-day gain ever, narrowly topping its previous best set in May 2023. The semiconductor firm, which designs chips for data centers, soared after Huang touted the company's efforts in supplying the AI infrastructure build-out during an onstage appearance with Marvell CEO Matthew Murphy at Computex Week in Taipei on Monday. Marvell is set to be the "next trillion-dollar company," Huang said, adding that the company's networking and connectivity chips are essential to data centers where computing tasks are spread across thousands of connected chips that need to share data quickly.
Victoria's Secret soars 50% as turnaround powers upbeat annual forecasts
Victoria's Secret shares jumped about 50% to a record high and were set for their best day ever on Tuesday, after the lingerie retailer raised its annual forecasts after posting double-digit quarterly revenue growth across its brands. The upbeat forecasts underscore CEO Hillary Super's efforts to stem several years of declining sales by reining in discounting and leaning back into its former "sexy" image. The company has revived its popular annual runway show after a six-year hiatus and in May announced it would change its ticker on the New York Stock Exchange to "VSXY" from "VSCO," saying "sexy has always been part of our DNA." "Victoria's Secret, PINK, and Beauty are gaining cultural relevance and expanding their customer files, and we have a strong pipeline of product launches, partnerships, and brand moments ahead," Super, who took charge in 2024, said on Tuesday.
