WS #13427
Markets are in a strong risk-on rally driven by hopes of a US-Iran deal to reopen the Strait of Hormuz, with the S&P 500 and Dow closing at record highs. Treasury Secretary Bessent's comments that a deal could be reached 'today or tomorrow' sent oil prices down over 5%, boosting equities. This is corroborated by multiple sources including GDELT, Reuters, and CNBC. However, after-hours earnings from SpaceX and AMD are creating divergence: SpaceX beat revenue but fell on massive AI capex ($18.4B) and lock-up expiry concerns, while AMD beat but missed whisper numbers, dragging Nasdaq futures lower. Meanwhile, Amazon's stock is under pressure after Jeff Bezos sold $4.1B in shares, a potential overhang despite strong AWS growth. The AI trade remains bifurcated with Palantir surging 29.5% on earnings, but hedge fund Whale Rock down 22% on AI selloff, indicating fragility. Overall, the dominant theme is the Hormuz deal hopes, which is ESCALATING with tangible progress, but the AI earnings split is creating pockets of volatility.
Topics
Key developments
- US-Iran Hormuz deal could be reached 'today or tomorrow' per Bessent, oil plunges 5%
- SpaceX Q2 revenue beats but stock falls on $18.4B AI capex and lock-up expiry
- AMD Q2 beats revenue and EPS but misses whisper number, stock slips after-hours
- Jeff Bezos sells $4.1B in Amazon shares, stock dips
- Palantir surges 29.5% on blowout earnings, raises guidance