WS #8974
The data window shows a significant escalation in geopolitical and macro risks, with the OECD slashing global growth forecasts due to the Iran war and Strait of Hormuz disruption, while the US Trade Representative confirms tariff caps will be upheld in deals with EU and Japan. This is partially countered by reports that the UK and France are finalizing plans for a mine-clearing mission in the Strait of Hormuz, contingent on a US-Iran agreement to reopen the waterway. On the corporate front, Broadcom (AVGO) reported a Q2 beat but guided Q3 AI chip revenue below expectations, causing a 13% premarket drop and dragging the semiconductor sector. CrowdStrike (CRWD) received multiple analyst price target upgrades, while Rumble (RUM) surged on a $270M cloud services deal. Bitcoin plunged to $62,000, its lowest since February, with XRP falling 7% to four-month lows. Jobless claims rose to a four-month high, though analysts attribute this to holiday volatility rather than rising layoffs. The dominant narrative is one of escalating geopolitical tension and tech sector rotation, with AI infrastructure names under pressure.
Key developments
- OECD slashes global growth forecast as Iran war rattles energy markets; Strait of Hormuz disruption could drag growth to 1.8%
- US Trade Representative Greer says US will uphold tariff caps in deals with EU, Japan & others
- Broadcom Q2 beat but Q3 AI chip guidance of $16B misses $17.2B estimate; stock down 13% premarket
- Bitcoin plunges to $62,000, lowest since February; XRP sinks 7% to four-month lows
- Rumble enters $270M multiyear GPU cloud capacity agreement; stock surges
- CrowdStrike receives multiple analyst price target upgrades (RBC $755, Rosenblatt $825, Truist $750, Wedbush $720, Wells Fargo $725)
- US jobless claims jump to 4-month high but analysts attribute to Memorial Day holiday volatility
- Pinterest signs $4 billion Amazon deal for cloud services