WS #11599
The Strait of Hormuz crisis continues to escalate, with UKMTO reporting a third ship hit by a drone in the critical oil-shipping waterway, adding to two earlier tanker attacks. This is corroborated by multiple sources (Al Jazeera, MaritimeAttack, UKMTO) and has driven oil and gas stocks higher. The AI/semiconductor trade is de-escalating sharply: Micron (MU) is down ~8%, SanDisk (SNDK) -12%, and the SOX index -6.6%, as investors fear the memory market has peaked. SK Hynix's $28B ADR listing is being closely watched. Meanwhile, the IOC has provisionally lifted its ban on the Russian Olympic Committee, a geopolitical development that could ease some Russia-related tensions. The US trade balance came in at -$77.6B (forecast -$78.4B, previous -$55.9B), slightly better than expected but still a significant widening. Trump's Truth Social post claiming Walmart will cut prices 'by a lot' could pressure retail margins if confirmed. Amazon is raising $25B in bonds for AI investments. Vanguard is hiring a head of digital assets, signaling a shift in crypto strategy. SpaceX analysts initiated coverage with mostly buy ratings, with price targets up to $800.
Topics
Key developments
- Third tanker hit by drone in Strait of Hormuz; oil stocks rally
- Micron and semiconductor stocks plunge on memory cycle peak fears
- IOC provisionally lifts ban on Russian Olympic Committee
- US trade deficit widens to -$77.6B in May
- Trump claims Walmart will cut prices 'by a lot'
- Amazon raising $25B in bonds for AI investments
- Vanguard hiring head of digital assets, signaling crypto strategy shift
- Wall Street initiates bullish coverage on SpaceX with targets up to $800