The S&P 500 snapped its longest win streak in more than a year Wednesday as stocks pulled back sharply, pressured by rising oil prices and Treasury yields amid concerns about the Iran war. Israeli Prime Minister Benjamin Netanyahu told CNBC he and U.S. President Donald Trump have 'tactical disagreements' about handling the Iran war, while SpaceX set a fixed price of $135 per share for its public market debut. Chipmaker Broadcom missed revenue expectations for its second quarter, sending shares down 15% in extended trading, while CrowdStrike dropped roughly 10% overnight despite beating estimates. The developments come as futures tied to the S&P 500 and Nasdaq 100 are taking another leg down this morning, led lower by chipmakers including Micron and Marvell.
S&P 500 Snaps Win Streak on Iran War Concerns
Stocks pulled back sharply Wednesday, with the S&P 500 ending its longest win streak in more than a year. Oil prices advanced around 2% Wednesday but are lower this morning. U.S. Treasury yields also spiked, pushing the 10-year note near the 4.5% level. Private equity stocks dragged on the market amid a resurgence in concern about valuations. The S&P 500 is now in the red for the week following Wednesday's losses, putting its nine-week win streak in jeopardy. Futures tied to the broad market index and Nasdaq 100 are taking another leg down this morning, led lower by chipmakers. Shares of Micron and Marvell are both down more than 6% before the bell.
Netanyahu States Tactical Disagreements with Trump on Iran
In an interview with CNBC's Sara Eisen yesterday, Israeli Prime Minister Benjamin Netanyahu said he and U.S. President Donald Trump have some 'tactical disagreements' about how to handle the Iran war, though the two leaders 'agree on the main things.' Netanyahu also told CNBC that alternatives for oil shipping through the Strait of Hormuz are being developed and that he expects a regime change in Iran, though 'you can't predict when it'll happen.' Hours after the exclusive interview, Israel and Lebanon announced in a joint statement with the U.S. that they agreed to implement a ceasefire. The GOP-led House of Representatives passed a resolution limiting Trump's war powers in a rare rebuke of the president.
SpaceX Sets IPO Price at $135 Per Share
SpaceX set a fixed price of $135 per share ahead of its public market debut, according to a regulatory filing yesterday. Elon Musk's space startup said it plans to sell 555.6 million shares, equating to a $75 billion fundraise. SpaceX would be valued at $1.77 trillion, assuming its EchoStar spectrum and Cursor transactions close. That would make the company the seventh-largest U.S. firm by market cap. Data shows that after a major IPO, the stock tends to fall significantly in its first year.
Broadcom Misses Revenue Expectations Despite AI Chip Growth
Broadcom missed revenue expectations for its second quarter yesterday, sending shares of the chipmaker tumbling 15% in extended trading. CEO Hock Tan left the company's forecast for full-year artificial intelligence chip sales unchanged. Broadcom said revenue climbed 48% from the same quarter a year prior, a sign of soaring demand for its custom AI chips. The California-based firm also offered better-than-expected guidance for current-quarter revenue. CrowdStrike shares dropped roughly 10% overnight despite a beat on both lines for the first quarter. The company also announced a four-for-one stock split.
World Cup Health Officials Monitor Ebola and Measles Risks
The largest World Cup ever is kicking off next week, and public health officials are readying to take on infectious diseases. An Ebola outbreak in Congo and Uganda has been designated by the World Health Organization as a 'public health emergency of international concern.' Infectious disease experts told CNBC that the risk of widespread Ebola transmission during the World Cup is low. They're keeping an eye out for more contagious disease that could be harder to contain during large events with international visitors. The list includes measles, Covid-19 and influenza.
FAQ
What caused the S&P 500 to end its win streak Wednesday?
Stocks pulled back sharply Wednesday, pressured by rising oil prices and Treasury yields amid concerns about the Iran war. Oil prices advanced around 2% Wednesday, and U.S. Treasury yields spiked, pushing the 10-year note near the 4.5% level. The S&P 500 is now in the red for the week following Wednesday's losses, putting its nine-week win streak in jeopardy.
What price did SpaceX set for its IPO?
SpaceX set a fixed price of $135 per share ahead of its public market debut, according to a regulatory filing yesterday. The company plans to sell 555.6 million shares, equating to a $75 billion fundraise. SpaceX would be valued at $1.77 trillion, assuming its EchoStar spectrum and Cursor transactions close, making it the seventh-largest U.S. firm by market cap.
Why did Broadcom shares drop 15% after earnings?
Broadcom missed revenue expectations for its second quarter yesterday, sending shares tumbling 15% in extended trading. CEO Hock Tan left the company's forecast for full-year artificial intelligence chip sales unchanged. However, Broadcom said revenue climbed 48% from the same quarter a year prior, and the company offered better-than-expected guidance for current-quarter revenue.
