The U.S. and Iran signed a memorandum of understanding on Monday, sending major stock averages higher as investors reacted to potential conflict de-escalation. Vice President JD Vance acknowledged that 'a lot' of details still need to be sorted out, while President Donald Trump said the U.S. will not invest money in Iran as part of the deal. Both countries have signed the agreement electronically ahead of a formal signing ceremony on Friday, according to a senior administration official. The Dow Jones Industrial Average set new intraday and closing records on Monday, while U.S. crude fell nearly 5% to its lowest level since early March.
Vice President Vance told CNBC on Monday that the U.S. holds 'all the cards' and expects the Strait of Hormuz will be opened 'toll free.' President Trump, speaking from the G7 summit in Evian, France, stated this morning that the U.S. will not invest money in Iran as part of the agreement. One trade data firm said the strait could see transit rise to nearly half of prewar levels within 30 days of an official deal. Some market watchers remain skeptical and expect delays in the next negotiation period. Stock futures are near the flatline this morning following Monday's gains.
Fed Holds First Policy Meeting Under Chair Kevin Warsh
The Federal Reserve began its first policy meeting on Monday with Kevin Warsh as chair. Markets overwhelmingly expect the Fed to keep interest rates steady in Wednesday's rate decision announcement. One person familiar with the matter said Trump's trust in Warsh will provide him with 'some scope of action.' Respondents to CNBC's Fed Survey see the Fed keeping rates unchanged through 2027, though most think the Fed will remove the easing bias that has signaled its next move could be a cut.
SpaceX Shares Climb Nearly 20% and Announces Anysphere Acquisition
SpaceX shares climbed nearly 20% in the company's first full trading day on Monday. After underwriters exercised their 'greenshoe' overallotment of shares, SpaceX said its total raise for the initial public offering came in at $85.7 billion. Ron Baron told CNBC yesterday that Baron Capital purchased $1 billion worth of SpaceX during Friday's IPO, bringing his total stake to around $25 billion. The stock is still rising before the bell this morning, though shares pared their gains after SpaceX announced it would acquire Anysphere — the company behind artificial intelligence coding agent Cursor — for $60 billion.
Nvidia Plans to Raise at Least $20 Billion in Bond Issuance
Nvidia said in a regulatory filing on Monday that it would issue investment-grade corporate bonds for the first time since 2021. Sources told CNBC that the chipmaker is aiming to raise at least $20 billion in debt. Nvidia currently has around $7.5 billion in long-term debt and $1 billion in short-term debt. During its last debt raise five years ago, when the company was significantly smaller, Nvidia collected $5 billion. Alphabet announced plans for a raise earlier this month, while Super Micro shared equity-related financing goals last week.
Fox Corp. Enters Deal to Purchase Roku for $22 Billion
Fox Corp. said on Monday that it entered into a deal to purchase Roku for around $22 billion. The cash-and-stock deal is slated to close in the first half of next year. Shares of Fox closed yesterday's session down 15% following the deal's announcement, while shares of Roku lost nearly 2%. Salesforce announced yesterday that it is buying Fin, the AI customer service provider formerly known as Intercom. The company said that the acquisition, which is expected to close in the fourth quarter of the 2027 fiscal year, should bolster its agentic AI platform.
U.S. Strategic Petroleum Reserve Hits Lowest Level Since 1983
The U.S. Strategic Petroleum Reserve stood at around 340 million barrels as of June 12, according to the Department of Energy. That marks its lowest level since 1983.
FAQ
What did the U.S. and Iran sign on Monday?
The U.S. and Iran signed a memorandum of understanding on Monday. Both countries have signed the agreement electronically ahead of a formal signing ceremony on Friday, according to a senior administration official.
How much did SpaceX raise in its IPO?
After underwriters exercised their 'greenshoe' overallotment of shares, SpaceX said its total raise for the initial public offering came in at $85.7 billion.
How much debt is Nvidia aiming to raise?
Sources told CNBC that Nvidia is aiming to raise at least $20 billion in debt through its first investment-grade corporate bond issuance since 2021.
