General Market News

Oil prices rose over 1% on Wednesday as the U.S. conducted strikes on Iranian military targets and reinstated a naval blockade of Iranian ports near the Strait of Hormuz. The escalation follows Iran's alleged attacks on seven commercial vessels that killed or injured dozens of crew members, dashing hopes for a quick resolution to the shipping crisis.

• U.S. WTI crude rose 1.01% to $80.14 per barrel while Brent futures climbed 1.23% to $85.77 as military operations intensified
• U.S. Central Command conducted a seven-hour operation targeting missile facilities, naval assets, and coastal defense systems along Iran's coastline
• Iran allegedly attacked seven commercial vessels in the previous week, leaving roughly a dozen crew members dead, missing or injured, prompting the U.S. military response

A large study examining Eli Lilly's GLP-1 obesity drug Zepbound (tirzepatide) in older adults found that while frailty-related conditions like malnutrition and muscle loss are rare, when they do occur, they are associated with significantly higher risks of death and hospitalization compared to other treatments. The findings underscore the need for close monitoring of seniors, particularly as an estimated 3-4 million older adults may now access GLP-1 drugs through Medicare starting July 2026.

• Among tirzepatide users who developed malnutrition, the risk of death increased 25-fold compared to users without malnutrition, versus 7-fold for other diabetes drugs and 2-fold for bariatric surgery patients
• The study analyzed nearly 30,000 adults age 65+ on Zepbound and found frailty conditions emerged in small percentages: 0.16% had muscle decline, 1.6% malnutrition, 3% dehydration, and 4.75% appetite loss, typically appearing after six months of treatment
• Researchers recommend aggressive intervention when frailty signals appear, including potentially stopping tirzepatide and increasing monitoring, though they emphasize the drug should not be avoided as the study does not prove causation

The second quarter of 2025 saw strong but uneven US equity performance, with the S&P 500 and Nasdaq reaching record highs driven by AI and mega-cap technology stocks before volatility emerged in June. Market breadth improved late in the quarter as investors rotated into small-caps and cyclicals, though leadership remained concentrated in AI infrastructure and momentum names. The Magnificent 7 shed approximately $2.3 trillion in market value during June as investors questioned AI monetization and the scale of capital spending required.

• Q1 S&P 500 earnings grew 28% year-over-year, the strongest pace since 2021, though results were heavily bifurcated with the Magnificent 7 accounting for a disproportionate share of growth
• Hyperscalers (Amazon, Microsoft, Alphabet, Meta) are expected to spend approaching or exceeding $700 billion on AI infrastructure in 2026, raising concerns about return on invested capital and monetization timelines
• Consumer sentiment hit a record low of 44.8 in May according to the University of Michigan survey, reflecting pressure from high prices and inflation uncertainty, particularly among lower-income households

Foreign investors purchased a net $132 billion of U.S. securities in May 2026, bringing total net long-term foreign purchases to $1.33 trillion over the past 12 months, according to the Treasury Department's monthly report. The strong inflows were driven primarily by equity purchases during a bull market, though foreign holdings of Treasury bills declined notably.

• Foreign investors bought $134 billion in U.S. equities in May, totaling $909 billion in net purchases over the past year amid a strong bull market
• Foreign holdings of U.S. Treasury bills decreased by $43.5 billion, a decline likely to draw scrutiny given market focus on inflation and Federal Reserve interest rate policy
• Net purchases of longer-term Treasury securities were $56.6 billion for the month and $290 billion over 12 months, while corporate bond purchases reached $52.5 billion in May and $449 billion annually

Biopharmaceutical company Attovia Therapeutics filed for an initial public offering in the United States on July 14, planning to list on the Nasdaq Global Market under the symbol 'ATTO'. The filing comes amid a pickup in biotech IPO activity driven by improving investor risk appetite, with the company focusing on biotherapeutics for immune-mediated diseases using its proprietary ATTOBODY platform.

• Attovia develops biotherapeutics for immune-mediated diseases using its proprietary ATTOBODY platform technology
• The company will list on Nasdaq Global Market under ticker symbol 'ATTO'
• Major underwriters include Morgan Stanley, Leerink Partners, Citigroup, and RBC Capital Markets

US stocks rose Tuesday after June CPI showed a larger-than-expected decline, easing Federal Reserve rate hike concerns. The Nasdaq gained 0.91% led by semiconductor stocks rebounding around 2-5%, while the Dow edged up 0.05% despite IBM's weak profit outlook. Markets now price an 83.4% probability the Fed will hold rates steady at its July meeting.

• June CPI fell month-over-month (consensus was -0.2%) with annual inflation slowing to 3.5% versus 3.8% expected, prompting markets to reduce rate hike expectations from 58.3% to 83.4% probability of a July pause
• Semiconductor stocks rebounded sharply with VanEck Semiconductor ETF up ~2%, Applied Materials and Teradyne up ~4%, and Lam Research and Micron up ~5%
• Major banks reported strong Q2 earnings with Goldman Sachs beating expectations by 9% on trading and dealmaking strength, while IBM plunged on weak profit guidance

U.S. forces conducted military strikes against Iranian targets immediately before resuming a naval blockade of Iranian ports near the Strait of Hormuz, according to U.S. Central Command. The action represents a significant escalation in tensions involving one of the world's most critical oil shipping chokepoints.

• The strikes were coordinated with the restart of U.S. naval blockade operations targeting Iranian ports in and around the Strait of Hormuz
• The Strait of Hormuz is a critical global shipping route through which approximately one-fifth of the world's oil passes
• This is a breaking news situation with limited details currently available

Jefferies analysts suggest ecommerce and internet stocks could gain momentum during Q2 2026 earnings season as companies provide clarity on profit margins and growth trends. The firm believes sector valuations are at multi-year lows and remain attractive despite concerns about AI disruption to online traffic. Jefferies maintains selective views across ecommerce, delivery, travel, and social media companies heading into earnings.

• Jefferies expects Carvana's retail unit growth slowed to mid-30% range in Q2, potentially ending its nine-quarter streak of beating estimates, and notes the company needs growth above 30% to perform well in H2 2026
• Pattern was downgraded to 'Hold' after gaining roughly 150% year-to-date, with Jefferies saying valuation now reflects growth prospects and potential upside
• The firm is bullish on Uber, Airbnb, Booking.com, and Reddit heading into earnings, while remaining cautious on Expedia, Tripadvisor, Snap, and Pinterest

The semiconductor index (SOX) may have completed its Elliott Wave correction after bottoming at $11,960 on July 7, 2026, nearly matching the forecasted target range of $10,870-$11,765. Technical analysts predict the index could rally to new all-time highs if key support levels hold, with initial resistance targets between $13,590-$14,390.

• The SOX pullback achieved 98% accuracy compared to Elliott Wave Pattern forecasts made days in advance, with the correction ending just above the predicted support zone
• Bulls are targeting new all-time highs contingent on the index holding above the July 7 low of $11,960, with a breakout above $13,250 needed for confirmation
• A failure to hold last week's low would trigger a deeper correction to approximately $10,500-$10,600 before another bullish attempt

New York Governor Kathy Hochul signed an executive order imposing a one-year moratorium on new 'hyperscaler' AI data centers using 50 megawatts or more of power, making New York the first U.S. state to ban such construction. The decision comes amid rising electricity costs and public opposition to data centers' strain on the power grid and natural resources.

• New York's average residential electricity prices have climbed significantly since 2019, driving public opposition with 46% of state residents supporting the moratorium versus only 21% opposed
• Critics, including Republican state lawmakers and Pennsylvania Senator John Fetterman, argue the ban will hinder U.S. competitiveness in AI technology, with some claiming 'China wins'
• Governor Hochul is also pursuing legislation to repeal sales tax exemptions for massive data centers and requiring them to fund new clean electric generation for their operations

Wall Street banks are generating substantial fees from AI-related deals as technology companies rush to fund AI infrastructure. Major banks including Goldman Sachs, Citigroup, and Bank of America are profiting from capital raising, loans, and dealmaking tied to what executives call an AI 'super cycle.' This multi-year investment boom is driving elevated activity across financing instruments, from equity offerings to credit lines for AI companies.

• Citigroup earned over $70 million from SK Hynix's $26.5 billion ADR offering, while Bank of America extended a $520 million credit line to OpenAI
• Bank of America has helped raise nearly $500 billion for AI-related companies since 2025, representing 60% of such fundraising across investment-grade debt, leveraged finance, and equity capital markets
• Goldman Sachs CEO David Solomon described the situation as an 'AI capex super cycle' with demand spanning every financing instrument, noting AI infrastructure build-out remains in early stages

President Trump announced he is replacing a proposed 20% fee on commercial ships transiting the Strait of Hormuz with trade and investment deals from Gulf states into the United States. The decision follows heightened tensions with Iran over control of the vital waterway, with Trump maintaining a full blockade only on Iranian shipping while keeping the strait open to all other traffic.

• Trump scrapped the 20% reimbursement fee after 'highly productive conversations' with Middle East leadership, who agreed to make 'massive investments' in the U.S. at 'record amounts'
• The U.S. will maintain a full blockade on ships traveling to or from Iranian ports or carrying Iranian cargo, while keeping the Strait of Hormuz open to all other commercial traffic
• The policy shift comes amid escalating U.S.-Iran military exchanges over the weekend and follows Iran's claims of sovereign authority over the historically international waterway

U.S. stocks rallied on softer-than-expected June CPI data, with the Nasdaq Composite leading gains up 0.70% driven by chip stocks rebounding from Monday's selloff. The report reduced odds of a July Fed rate hike from 42% to 17%, benefiting tech and financials, though the Dow lagged due to IBM's sharp decline on weak earnings guidance.

• Nasdaq rose 0.70% to 26,054.98, S&P 500 gained 0.20% to 7,530.54, while Dow fell 0.19% to 52,399.39 as IBM dragged on the blue-chip index
• June CPI data came in softer than expected on both headline and core measures, causing Treasury yields to drop and nearly eliminating market expectations for a July rate hike
• Semiconductor stocks rallied including Micron (+5.26%), Applied Materials, and Lam Research, while Goldman Sachs surged on strong earnings and crude oil pulled back after Trump reversed a 20% Hormuz cargo fee

Iraqi Prime Minister Ali al-Zaidi stated that Iraq needs a fair share within OPEC during a visit to Washington on July 14, 2026. He is seeking major U.S. investment in Iraq's oil, gas, and power sectors after the Iran war significantly damaged crude output and state finances. Al-Zaidi cited over $400 billion in damage from past conflicts, including with the Islamic State, as justification for increased production quotas.

• Iraq seeking U.S. investment in energy sectors after Iran war devastated crude output and government revenues
• Prime Minister claims Iraq suffered over $400 billion in damage from Islamic State conflicts, with displaced citizens still living in camps
• Iraq, as a founding OPEC member, is requesting a larger production quota to support reconstruction and economic recovery

A U.S. Commerce Department official overseeing export controls announced that regulatory action on artificial intelligence and semiconductors is forthcoming. Jeffrey Kessler stated that the Trump administration will maintain the Biden-era AI diffusion rule, which established a global framework limiting AI chip shipments to certain countries.

• The Trump administration will not replace the existing Biden-era AI diffusion rule that caps chip shipments
• The rule creates a global regime restricting the number of AI chips certain countries can receive
• Jeffrey Kessler, who oversees export controls at Commerce, indicated new regulatory measures are coming

Reza Zarrab, a key witness in the U.S. criminal case against Turkey's Halkbank over alleged Iran sanctions evasion, was sentenced to time served and avoided prison. The charges against Halkbank were dismissed in March 2025 after a deal with the Justice Department requiring the bank to hire a compliance monitor. The resolution ends a longstanding irritant in U.S.-Turkey relations.

• Zarrab, a Turkish-Iranian gold trader, pleaded guilty in 2017 to conspiring to evade U.S. sanctions and testified against former Halkbank official Mehmet Hakan Atilla, who was convicted
• Halkbank was charged in 2019 with secretly transferring $20 billion of restricted Iranian funds and converting oil revenue into gold and cash to benefit Iranian interests
• The Justice Department said the deal arose from Turkey's role in securing a ceasefire between Israel and Hamas, helping improve U.S.-Turkey relations under President Trump

UK banks' limited access to Anthropic's Mythos AI model has prompted a government adviser to call for Britain to develop its own AI infrastructure and capabilities. While U.S. banks like JPMorgan received access to the advanced cybersecurity AI in April, most British banks remain without access or a clear timeline. The issue highlights Britain's reliance on U.S. tech providers and has led to new policy recommendations aimed at boosting domestic AI adoption.

• Mythos is considered the most advanced AI model for identifying cybersecurity vulnerabilities, but only UK operations of U.S. lenders have gained access so far
• Government adviser Harriet Rees warns that 'time is of the essence' and Britain doesn't have 'two years' to address AI sovereignty issues
• New recommendations include bringing AI firms under financial regulatory oversight as 'critical' providers and building relationships with non-U.S. AI companies in China and France

Federal Reserve Chair Kevin Warsh testified before the House Financial Services Committee, declaring the central bank has 'no tolerance' for persistently elevated inflation in his first testimony as Fed chief. Warsh explained that inflation concerns influenced the Fed's decision to hold interest rates steady at 3.5% to 3.75% at the June meeting, while emphasizing the Fed's independence from political pressure.

• The Fed maintained its benchmark federal funds rate at 3.5% to 3.75% at its June meeting, citing inflation concerns as a key factor in the decision
• Warsh emphasized Fed independence after being asked about potential presidential interference, noting the Supreme Court recently affirmed the central bank's independent status
• The Fed chair stated the goal is to eliminate politics from monetary policy decisions, positioning the institution to make inflation 'a thing of the past' if policy is executed correctly

Nigeria's Dangote Petroleum Refinery has shifted to pricing fuel products in U.S. dollars for the domestic market, abandoning the government's naira-for-crude programme. The change follows difficulties securing sufficient crude supply under the local currency scheme, with the refinery receiving only 7 cargoes monthly versus the 13-15 needed. This move could increase dollar demand among fuel marketers and make domestic prices more vulnerable to exchange rate fluctuations.

• Dangote set dollar prices at $0.779/liter for petrol, $1.087/liter for diesel, and $0.942/liter for aviation fuel at Africa's largest refinery with 700,000 barrels per day capacity
• The naira-for-crude programme launched in October 2024 aimed to reduce foreign exchange pressure, but limited crude allocations forced Dangote to import additional supply at international prices
• The refinery had been absorbing currency mismatches by selling in naira while sourcing crude in dollars, but inadequate supply under the government scheme made this arrangement unviable

Tech investor Chamath Palihapitiya warned that untracked AI token spending could negatively impact companies' earnings, as C-suite executives may be unaware of the extent of AI usage within their organizations. He predicts some companies will experience unexpected earnings misses due to hidden AI costs, joining other tech leaders cautioning that the 'tokenmaxxing' era is ending.

• Palihapitiya believes CEOs and CFOs are largely unaware of how much 'tokenmaxxing' (excessive AI usage) is occurring internally, which could lead to surprise earnings shortfalls
• His own AI company 8090's spending is trending toward over $10 million annually, which he described as 'very scary' for a small startup without meaningful ROI
• The concerns echo warnings from Palantir CEO Alex Karp, who recently criticized OpenAI and Anthropic's token-based pricing models as problematic for enterprise customers