Stock Market Update

Equity futures point to a higher open this morning as tech stocks, and in particular, semiconductor and memory names, are rebounding from yesterday's selloff. A similar bounce was seen in South Korea's Kospi index (+3.3%), which moved higher after shedding 10% ahead of yesterday's rout.

Micron (MU 1,098.80, +47.03, +4.5%) is a top mover ahead of its earnings release after the close, which analysts are touting as an important read-through of demand, though expectations for the stock are extremely elevated.

The market has a few geopolitical developments to monitor this morning, with oil prices moving lower again. Reports suggest that Iran will not charge tolls for ships traversing the Strait of Hormuz, but Reuters reported the U.S. and Iran remain in disagreement on the terms of nuclear inspections.

This morning is once again lighter on the data front ahead of tomorrow's full slate, with May New Home Sales (Briefing.com consensus 627K) the most notable release.

The MBA Mortgage Applications Index for the week ended June 20 increased 1.0%, from a prior decrease of 3.8%.

In corporate news:

• Cerebras Systems (CBRS 203.00, -23.72, -10.5%) is sharply lower after missing EPS expectations and announcing a multi-year deal with OpenAI valued at more than $20 billion.
• FedEx (FDX 297.30, -19.94, -6.3%) beat EPS expectations by $0.35 and beat revenue expectations.
• Nike (NKE 42.57, +0.19, +0.5%) announced that David Denton will join the company as Executive Vice President and Chief Financial Officer, effective August 17, as Matthew Friends steps down at that time

Reviewing overnight developments:

Most equity indices in the Asia-Pacific region rebounded on Wednesday while Japan's Nikkei (-0.9%) underperformed, deepening its pullback from a record high. Japan's Nikkei: -0.9%, Hong Kong's Hang Seng: +0.3%, China's Shanghai Composite: +0.1%, India's Sensex: +1.0%, South Korea's Kospi: +3.3%, Australia's ASX All Ordinaries: +0.3%.

In news:

• Samsung announced a $58 bln buyback for employee equity bonuses while SK Hynix updated its plan for a U.S. listing.
• An adviser from the People's Bank of China said that rate cuts are still possible this year.
• MSCI extended its review of Indonesia's market classification and chose not to upgrade South Korea to developed market status due to currency-related concerns.

In economic data:

• Japan's May Corporate Services Price Index 3.3% yr/yr, as expected (last 3.3%)
• Australia's May Monthly CPI Indicator 4.0% (expected 4.3%; last 4.2%)

Major European indices trade on a mostly lower note. STOXX Europe 600: -0.1%, Germany's DAX: -1.3%, U.K.'s FTSE 100: UNCH, France's CAC 40: +0.2%, Italy's FTSE MIB: -0.6%, Spain's IBEX 35: -0.5%.

In news:

• Rheinmetall has plunged to its lowest level since early 2025 after Germany canceled its plan to build six warships and purchase frigates from ThyssenKrupp instead.
• Sweden's central bank indicated readiness to raise rates in its meeting minutes for June.

In economic data:

• Germany's June ifo Business Climate Index 85.6, as expected (last 85.0). June Current Assessment 87.0 (expected 86.0; last 86.1) and June Business Expectations 84.1 (expected 85.0; last 83.9)
• Swiss June ZEW Expectations -25.0 (last -11.1)