WS #8334
Markets opened higher on Wednesday, driven by AI optimism and hopes of a U.S.-Iran deal. The dominant theme is the continued surge in semiconductor stocks, particularly Micron (MU), which has joined the $1 trillion club alongside SK Hynix, with over $8 billion in pre-market volume. JPMorgan CEO Jamie Dimon provided a bullish outlook on investment banking and equity capital markets, while also noting the bank is 'over-earning' and raising expense guidance. On the geopolitical front, reports of a U.S.-Iran deal draft pointing to Hormuz normalization within weeks are supporting risk appetite, though Israeli airstrikes on Lebanon and evacuation warnings in Tyre indicate ongoing tensions. Robinhood launched agentic trading and a credit card, while Amazon is licensing its AI shopping technology to other retailers. The narrative arc is ESCALATING for the semiconductor/AI rally, with MU now the 13th most valuable global company, and STABLE for the Iran de-escalation theme, with deal hopes persisting but no final agreement.
Key developments
- Micron (MU) joins $1 trillion club, pre-market volume exceeds $8 billion
- U.S.-Iran deal draft points to Hormuz normalization within weeks
- JPMorgan CEO Dimon says bank 'over-earning', raises expense guidance, but sees strong IB and ECM
- Robinhood launches agentic trading and credit card
- Amazon launches AI shopping technology for other retailers via AWS
- SQM raises lithium sales guidance as recovery gathers pace
- Mastercard secures New York BitLicense for stablecoin and digital payment infrastructure