Global financial markets ended a holiday-shortened week on a constructive note, with US equities recovering sharply after President Trump signed an interim peace agreement with Iran, paving the way for shipping to resume through the Strait of Hormuz. The agreement lifted risk sentiment broadly, drove semiconductor stocks higher and sent oil prices retreating toward pre-conflict levels. Meanwhile, the Federal Reserve’s hawkish policy stance continued to underpin the US dollar and keep short-term Treasury yields elevated, tempering the broader mood in bond markets.
US equities and market sentiment
The week’s most significant catalyst for equity markets was the signing of an interim peace deal between Washington and Tehran, reopening the critical Strait of Hormuz shipping lane. Risk appetite improved decisively on the back of this development, with lower energy prices easing one of the key inflation concerns that had weighed on investors in recent months.
S&P 500, Nasdaq and Dow Jones performance
The S&P 500 advanced 1.2% over the shortened trading week, recovering much of the previous session’s losses. The Nasdaq outperformed with a gain of 1.9%, supported by a surge in semiconductor-related shares. The rally in chip stocks was further bolstered by Intel’s announcement of a chipmaking agreement with Apple, reinforcing domestic semiconductor production ambitions in the United States.
Federal Reserve policy and Treasury markets
Despite the improvement in equity sentiment, bond markets reflected continued caution over US monetary policy. Following a more hawkish Federal Reserve communication earlier in the week, two-year Treasury yields remained elevated near 4.18%, close to their highest level of 2026. Longer-dated Treasuries fared better, with 10-year and 30-year yields moving somewhat lower. Weekly jobless claims data remained subdued, pointing to a resilient labour market that gives the Fed little incentive to pivot toward easing. Analysts noted, however, that declining petrol prices and easing energy costs could soften upcoming inflation readings over the summer months.
Asian and European market developments
Asian and European equity markets traded with a mixed tone, reflecting diverging sector exposures to the AI and energy themes dominating global sentiment this week.
Asian equities
Asian markets were mixed in early Friday trading. South Korea’s Kospi extended its record-breaking rally, surging 2.8% as Samsung Electronics and SK Hynix both hit fresh highs. SK Hynix rose more than 7% on the session, driven by continued strong demand for AI-related memory chips. Japan’s Nikkei 225 added 0.6%, while Australia’s ASX 200 slipped 0.7%. Chinese and Hong Kong markets were closed for a public holiday.
European equities
European markets were weaker, with the STOXX 600 ending modestly lower, while energy and defence stocks underperformed. The Euro STOXX 50 reached a record high as easing energy prices and softer inflation concerns lifted sentiment. The session’s outperformers included chipmaker Infineon, aerospace names Airbus and Safran, and several European banks and industrial companies. Offsetting these gains were declines in SAP, German automakers, and mining and energy stocks, which weighed on the broader STOXX 600 index.
Currencies, commodities and central banks
The macro backdrop this week was shaped by the interplay between a strengthening US dollar, falling oil prices and cautious central bank messaging on both sides of the Atlantic.
US dollar and EUR/USD
The US dollar remained firmly supported, with the dollar index holding near its highest level since May 2025. The Federal Reserve’s reinforcement of a hawkish policy stance, combined with expectations of further rate increases and higher inflation projections, continued to underpin demand for the greenback. As a result, EUR/USD eased to 1.1444, reflecting broad-based dollar strength.
Oil prices
Oil prices declined in Asian trading on Friday and were tracking weekly losses of close to 10%. Brent crude traded near $79 per barrel while WTI hovered around $76, as renewed optimism over the US-Iran interim agreement and the restoration of Strait of Hormuz shipping eased supply concerns. A stronger US dollar and the Fed’s hawkish guidance provided additional downward pressure on crude prices.
Bank of England rate decision
The Bank of England held its benchmark interest rate at 3.75% following a 7-2 vote among policymakers. The decision reflected ongoing uncertainty stemming from volatile energy prices linked to Middle East tensions. The Bank noted that inflation is expected to rise again later in the year despite some recent moderation. Policymakers adopted a cautious, wait-and-see approach, broadly aligned with the stance taken by the US Federal Reserve, as they navigate a mixed set of economic signals.
Equities on the move
A range of individual companies saw meaningful share price movements this week, driven by earnings results, analyst commentary and corporate announcements. Here is a summary of the key movers across sectors.
Technology and semiconductors
Trump said Apple will work with Intel to design and manufacture chips in the US, supporting domestic semiconductor production. Intel shares jumped more than 10% following the announcement, with the president noting Intel’s strategic partnerships and flagging that the government’s Intel stake had grown sharply. Intel is simultaneously advancing its latest 18A-P chipmaking process node.
Memory chip stocks also rose sharply after Apple CEO Tim Cook acknowledged that iPhone, Mac and iPad price increases are unavoidable given record memory cost inflation. SanDisk and Micron both moved higher as AI-driven demand and supply shortages continued to tighten the memory market. Analysts noted that Apple can no longer absorb rising chip costs internally, confirming strong pricing power for semiconductor manufacturers.
Marvell Technology shares gained 7.3% after reports emerged that Amazon Web Services is exploring sales of its Trainium AI chips to external customers. As AWS’s key Trainium design partner, Marvell is widely regarded as a major beneficiary of any such expansion. The news also provided a lift to Amazon shares and reinforced broader optimism around growing AI infrastructure demand across the sector.
US officials raised concerns with Dutch semiconductor equipment manufacturer ASML regarding the possibility that one of its advanced extreme ultraviolet lithography machines, or associated equipment, may have reached China in violation of export controls. ASML strongly disputed the allegation, stating it has never shipped an EUV system to China and has found no evidence of such a machine operating in the country.
IT services and consulting
Accenture shares fell more than 18% after the company reduced its full-year revenue growth forecast to a range of 3% to 4%, down from the previous guidance of 3% to 5%. Third-quarter earnings came in ahead of expectations, but both revenue and bookings fell modestly short of analyst forecasts. Accenture also announced a series of cybersecurity acquisitions totalling approximately $4.2 billion, including Dragos, runZero and NetRise, as part of its longer-term strategic growth plan.
Defence
Major US defence stocks declined after the United States and Iran formalised their interim peace agreement. L3Harris and Northrop Grumman led the sector lower, each falling around 6%, while Lockheed Martin, RTX, Boeing and General Dynamics also retreated. Markets began reassessing the near-term outlook for defence procurement as a 60-day negotiating window toward a comprehensive final agreement commenced.
Energy and industrials
Siemens Energy rose after reports surfaced that the company is evaluating a potential spinoff of its Transformation of Industry division as a means of unlocking shareholder value. The unit generates €5.7bn revenue and could be partially monetised through an initial public offering or a structured spinoff. The stock received additional support from a partnership with HPE around AI infrastructure and the award of a major offshore grid contract. The company’s €1 billion buyback programme provided further underpinning.
Legrand shares moved higher after management used a presentation at a JPMorgan conference to reassure investors about the company’s data centre growth strategy. Executives stated that strong demand from data centres will continue beyond 2026 and highlighted what they described as a €400 billion medium-term addressable market for the sector. Analyst commentary suggested the update helped allay concerns over Legrand’s competitive positioning.
Goldman Sachs initiated coverage of a group of US independent power producers, pointing to rising electricity consumption from data centres and tightening supply conditions within the PJM wholesale power market. The bank assigned a Buy rating to Talen Energy with a price target of $499 and a Neutral rating to Constellation Energy at $305, expressing a preference for Talen given its stronger potential upside. Goldman expects sustained elevated power prices and continued capacity investment across the sector.
Consumer and retail
Tesco shares fell more than 2% after the UK supermarket reported like-for-like sales growth of 1.8% for its latest period, which came in below analyst expectations. The shortfall reflected a slowdown in food price inflation and increasingly tough year-on-year comparisons. Booker, Tesco’s wholesale division, also reported a steeper-than-expected sales decline. Despite these top-line pressures, Tesco maintained its full-year profit and cash flow guidance, reported solid performance in Ireland and online channels, and continued its ongoing share buyback programme.
Financial services
Citigroup revised its forecast for the timing of the Federal Reserve’s first interest rate cut, pushing it back from September to October. The bank cited the Fed’s more hawkish dot plot projections and a slower policy consensus among policymakers as the reasons for the change. Citigroup still anticipates softer inflation and labour market data in the months ahead but now expects rate reductions to begin later, continuing at a gradual pace into early next year.
Space, technology and clean energy
SpaceX shares fell for a second consecutive session as investors took profits following the company’s strong post-IPO rally. Concerns around valuation, the company’s $60 billion acquisition of Cursor, an approaching lock-up period expiry and ongoing losses weighed on the stock. Bloomberg separately reported that SpaceX is considering a bond offering of at least $20 billion. Analyst price targets remained broadly supportive, with some maintaining targets of up to $401 per share.
Monness, Crespi, Hardt upgraded Salesforce to Buy, arguing that investor fears around AI-driven disruption to the company’s business model have been overdone and that the recent share price weakness presents an attractive entry point. The firm set a price target of $200, citing Salesforce’s strong free cash flow generation, expanding margins and active share buyback programme. Growth within the Agentforce platform and the Data 360 product suite was specifically highlighted, with AI-powered offerings showing strong revenue momentum.
Jefferies initiated coverage of IREN with a Buy rating and a price target of $79, highlighting the company’s strategic shift away from Bitcoin mining and toward AI infrastructure. The firm pointed to major contracted relationships with Microsoft and NVIDIA, supporting around $3.1bn ARR. Jefferies sees attractive returns from the company’s GPU cloud expansion programme and its extensive land and data centre portfolio.
Enphase Energy rose after Barclays upgraded the stock to Equalweight and raised its price target to $51. The upgrade was driven by anticipated growth in the market for solid-state transformers serving data centre infrastructure. Barclays identified an emerging $2 billion addressable market driven by 800V architectures. Enphase also began US production shipments of its new commercial microinverter, supporting efficiency improvements and eligibility for manufacturing tax credits.
Goldman Sachs reduced its price target for BMW to €84 but maintained a Buy rating, arguing that the market’s negative reaction to weaker 2026 guidance had been excessive. The bank acknowledged near-term headwinds from softer Chinese demand and restructuring-related costs but maintained confidence in the company’s strong cash generation and its capacity to return capital to shareholders through a combination of buybacks and dividends potentially exceeding 10% of market capitalisation.
Kepler Cheuvreux upgraded Airbus to Buy and raised its price target to €212, citing improving macroeconomic conditions and a more constructive backdrop for the aerospace sector broadly. The broker expects aircraft deliveries to accelerate as supply chain bottlenecks continue to ease and sees limited downside risk to Airbus’s 2026 delivery guidance. Potential margin improvement and a positive medium-term earnings trajectory were both cited in support of the upgrade.
Upcoming economic events
With US markets closed for Juneteenth National Independence Day, trading liquidity is expected to be reduced across global markets. Attention will be on the UK Retail Sales for May, with markets assessing whether activity rebounds from the prior -1.3% decline.
This information is being provided solely for information purposes and should not be deemed or construed as investment advice, tax, legal, or any other ancillary regulatory advice. CCIS does not accept liability for actions, proceedings, costs, demands, expenses, damages, and losses suffered by persons as a result of information, views, or opinions appearing in this document. The financial instruments discussed are intended for retail clients however, they may not be suitable for all investors and investors must make their own informed decisions and seek their own advice regarding the appropriateness of investing in financial instruments or implementing strategies discussed herein. The value of the investment may go down as well as up and may be affected by changes in currency. Where investments are denominated in a currency other than the investor’s base or reporting currency, changes in foreign exchange rates may adversely affect the value and/or returns of the investment. Any performance figures quoted refer to the past and past performance is not a guarantee nor a reliable guide to future performance. Calamatta Cuschieri Investment Services Ltd (C13729) is licensed by the MFSA to carry out investment services business in terms of the Investment Services Act (Cap. 370). The company is a subsidiary of Calamatta Cuschieri Moneybase plc and is registered at Level 0, Ewropa Business Centre, Dun Karm Street, Birkirkara BKR 9034, Malta.
