Most Important News

1. Trump Signals Strikes on Iran, Markets React;
2. US May PPI Rises 6.5% Year-on-Year, Slightly Exceeding Expectations;
3. Oracle Shares Dip Amid Capital Spending and Financing Concerns;
4. Musk to Unveil "Terafab" at ASML's Closed-Door Summit;

US equity futures gained on Thursday, boosted by a rebound in chip stocks after recent pressure, but those gains were capped as oil prices rose as US-Iran tensions ramped up.

As of 03:50 PM Riyadh Time, S&P 500 futures gained 0.45%, and Nasdaq 100 futures added 0.80%. Futures tied to the Dow Jones Industrial Average rose 255 points, or 0.51%.

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As of 03:44 PM Riyadh Time, top pre-market movements are as follows:

Trump Signals Strikes on Iran, Markets React

Trump announced plans for severe strikes on Iran, claiming its naval, air, radar, and defense systems are already neutralized, with intentions to seize key oil infrastructure like Khark Island. He compared this strategy to actions in Venezuela. US stock futures dipped, with Nasdaq futures narrowing gains to 0.65%. Oil prices surged, with WTI crude rising 0.66% to $90.63/barrel and Brent crude up 0.68% to $93.74/barrel.  

Trump Praises Inflation as Analysts Warn of Worsening K-Shaped Economy  

According to CNBC, as US nominal inflation hit a three-year high, Trump expressed his fondness for inflation, sparking controversy. Analysts warned of growing risks tied to the "K-shaped economy," where wealthier groups thrive while lower-income populations struggle. Despite recent fluctuations in chip stocks, the broader US market has been rising, benefiting high-income earners. Meanwhile, inflation is intensifying financial pressures on middle- and low-income Americans.  

OpenAI Secretly Files for IPO, Altman Targets Listing Within a Year  

OpenAI CEO Sam Altman informed employees via Slack that the company plans to go public within the next year, though timing may vary. OpenAI has confidentially submitted a draft IPO prospectus to the SEC. Altman also announced an employee tender offer at $687.69 per share. He mentioned that delaying the IPO could be advantageous if AI achieves "Recursive Self-Improvement" (RSI), as remaining private could be beneficial amid rapid technological change.

US May PPI Rises 6.5% Year-on-Year, Slightly Exceeding Expectations

In May, the US Producer Price Index (PPI) increased by 6.5% year-on-year, slightly above the market expectation of 6.4%. The previous value was revised from 6.00% to 5.7%. The core PPI rose by 0.4% month-on-month, below the expected 0.5%, with the previous value revised from 1.00% to 0.7%.

Additionally, initial jobless claims for the week ending June 6 recorded 229,000, the highest since February 7, 2026, surpassing the forecast of 219,000 and up from the prior week's 225,000.

JPMorgan Expects Fed to Hold Rates Unchanged Next Week  

Jpmorgan Chase(JPM.US) predicts the Fed will unanimously maintain rates next week, despite US inflation hitting a three-year high. Chief Global Strategist David Kelly noted May’s inflation likely marked this cycle’s peak, with easing price pressures ahead. Core CPI rose 0.2% month-on-month, below forecasts, reflecting stable underlying inflation. Kelly believes the Fed’s patience stems from no immediate need to adjust monetary policy, even as inflation remains above target.

Storage Shortage Expected to Worsen Amid AI Accelerator Boom  

As NVIDIA Corporation(NVDA.US)'s Vera Rubin AI accelerator scales up, global storage supply faces intensifying pressure. Supply chain sources reveal major cloud service providers have secured all 2027 long-term agreement (LTA) capacity and are negotiating 2028 supply. DRAM and NAND shortages may deepen from late 2026, with 2027 expected to surpass 2026 in severity. Analysts foresee strong storage prices over the next 2-3 years, benefiting manufacturers.  

Oracle Shares Dip Amid Capital Spending and Financing Concerns

Oracle Corporation(ORCL.US) shares fell nearly 10% pre-market due to concerns over higher-than-expected capital spending and a massive financing plan. The company projects $70 billion in capital expenditure for the new fiscal year and plans to raise $40 billion through debt and equity, including a $20 billion stock offering. With $117 billion in debt, Oracle is the largest non-financial bond issuer, raising questions about the returns on such expansion.

OpenAI's Potential Token Price Cut Sparks Industry Concerns

OpenAI is reportedly considering significant token price cuts, raising fears that a price war could erode the AI industry's competitive edge. Analyst Gary Marcus called this a "weak signal," likening OpenAI's situation to a potential "WeWork moment." He warned that this move, aimed at retaining customers, indicates deeper troubles and could impact companies like NVIDIA Corporation(NVDA.US), Oracle Corporation(ORCL.US), and CoreWeave(CRWV.US). Marcus sees Anthropic as a potential beneficiary amid ongoing concerns over business models and profitability.

Japanese Retail Investors Flock to SpaceX IPO

SpaceX(SPCX.US)'s IPO, aiming to raise $75 billion, has allocated 30% to individual investors. Despite recent volatility in tech stocks, many view this as a once-in-a-lifetime opportunity, leading to a surge in demand. Brokerages have implemented measures to prevent duplicate orders across platforms. Japanese investors are expected to contribute around 3% of the total funds, with a higher share in the individual investor segment. While institutions can also participate, local regulations restrict Japanese fund managers from investing in foreign stocks, leaving most of the allocation to retail investors.

Amazon Secures $17.5 Billion Loan Led by Citigroup

Amazon.com, Inc.(AMZN.US) has signed a $17.5 billion loan agreement with a syndicate led by Citigroup. The loan's interest rate will be based on the Secured Overnight Financing Rate (SOFR), with an additional 0.625 to 0.875 percentage points, depending on Amazon's credit rating. Other major banks involved include JPMorgan Chase, Bank of America, HSBC, and Wells Fargo, along with several other financial institutions.

Teradyne Shares Rise on $140M US Air Force Contract

Teradyne, Inc.(TER.US) shares climbed nearly 4% pre-market after securing a $139.9 million fixed-price contract from the US Air Force. The deal involves supplying multifunctional diagnostic automated test station kits, highlighting the company's critical role in defense testing equipment. This contract further solidifies Teradyne's position as a key supplier in the defense technology sector.

Musk to Unveil "Terafab" at ASML's Closed-Door Summit

Elon Musk, CEO of Tesla Motors, Inc.(TSLA.US) and SpaceX(SPCX.US), is set to secretly attend ASML Holding NV ADR(ASML.US)'s annual internal tech conference via video link on Thursday. In a closed-door session, Musk will engage in a fireside chat with ASML's new CEO, Christophe Fouquet. He plans to reveal details and his vision for the ambitious semiconductor manufacturing project, "Terafab," to thousands of ASML's core employees.