Fall in Asian tech stocks puts pressure on stocks such as Softbank

Hello, my name is Leonie Kidd and I’m from London. Welcome to today’s Daily Open Newsletter.

Today is one of those days where a lot seems to have changed between 4am and 6am London time.

In light of new attacks across the Gulf and U.S. retaliation for the downed helicopter, the escalating situation in Iran was a likely leading factor. Oil is also on the move.

But then, with no clear trigger, Asian tech stocks returned from a lunchtime trading hiatus with deep losses, with giants such as SoftBank and Samsung weighing on trade across the continent.

Tehran and technology are worlds apart, but investors must stay straddling developments in both areas to stay on top of movements in these volatile markets.

After a brief resurgence in semiconductor stocks, tech stocks are back in sellers’ sights. On Wall Street, the Nasdaq led the decline, closing 0.97% lower at 25,679, while in Asia, South Korea led the decline. Kospi They are facing the brunt of sales. The index has fallen significantly during the session, with Samsung being one of the biggest losers. Meanwhile, SoftBank fell another 9% on the day, dragging down Japanese stocks. Nikkei Stock Average It will turn even redder.

There is no clear trigger for a new selling bias, but investors will have a new reference point in earnings with today’s trade with Oracle, which will be reported after the Wall Street bell. You can read more about whether this is a correction or a buying opportunity here.

Tensions in Iran have flared up again, further exacerbating negative sentiment. The Iranian government has targeted several Gulf states with missile attacks, including Bahrain, Kuwait and Jordan. This comes after the United States launched a new attack on Iran following the downing of an Apache helicopter.

US President Donald Trump reiterated his assertion that a peace deal is only “days” away, adding that the US and Iran are in the final stages of negotiations.

This has caused volatile trading in oil prices, as US Energy Secretary Chris Wright says oil shipments have increased “significantly” in the Strait of Hormuz and will continue to do so.

Nevertheless, price pressures are increasing around the world. China’s wholesale prices rose at the fastest pace in about four years in May due to soaring raw material prices due to the Iran war and an artificial intelligence investment boom, but consumer inflation was lower than expected.

In the United States, inflation figures to be released later today are expected to show prices have surpassed a new benchmark, with the consumer price index expected to rise above 4% for the first time since May 2023.

— Leonie Kidd

SpaceX IPO explained: Price fixed but retail allocation still undetermined

There’s nothing out of the ordinary about SpaceX’s initial public offering. The rocket maker is aiming to raise a record amount at a historic valuation and will be led by Elon Musk, who is also CEO of fellow $1 trillion company Tesla.

As for the structure of the stock sale, SpaceX is offering a range as is customary for IPOs, offering a “take it or leave it” price of $135, rather than setting the deal price based on demand.

But once the stock offering begins Thursday, certain practices will become familiar to Wall Street. At some point, all of the IPO shares, worth about $75 billion, must be allocated to underwriters and asset managers so that they can be delivered to customers before trading opens on Friday.

— Ari Levy, Leslie Picker