|
|
Inflation rose to 4.2%, the highest level in three years. Oracle (ORCL) beat earnings but announced plans to raise another $40 billion for AI infrastructure. SpaceX demand reportedly exceeded $250 billion ahead of Thursday pricing. Stocks fell as Trump threatened new strikes on Iran. Bitcoin stayed near $62,000. |
|
|
| |
| |
MARKET PULSE |
Wednesday answered one question and raised several more. |
Inflation is back above 4%. |
The May CPI report showed prices rising 4.2% year over year and 0.5% month over month. Both matched expectations. Core inflation rose just 0.2% for the month and 2.9% annually. |
The split mattered. |
Energy drove more than 60% of the monthly increase. Gasoline prices rose 7% in May and remained more than 40% above year-ago levels. Outside energy, inflation looked much calmer. |
Markets initially treated that as good news. |
They did not hold that view for long. |
Stocks sold off as geopolitical tensions returned. The Dow fell 953 points. The S&P 500 dropped 1.62%. The Nasdaq lost 1.98%. |
Trump warned Iran would "pay the price" if negotiations continued to stall and later said the U.S. would resume attacks. The comments came one day after U.S. strikes and renewed fighting in the Gulf. |
Investors were forced to price inflation, war, and SpaceX at the same time. |
The Signal |
The CPI report did not create a new inflation problem. The Iran war did. The market now has to decide whether higher prices are temporary or becoming embedded. |
|
|
|
| |
|
| |
| |
Premier Feature |
|
|
|
A legendary investor who bought Apple at $1 split adjusted - says AI is compressing what used to take years into months. And it's about to tip us into a new reality most people won't recognize. But investors who position themselves NOW could be looking at the single greatest wealth-building opportunity of the century. He just laid it all out on camera. Watch it free here. |
|
|
|
| |
|
|
|
| |
Oil spent most of the day caught between diplomacy and escalation. |
Brent settled near $93.10 while WTI closed around $90.03. |
Trump again said a deal with Iran could be only days away. Reports found he has made similar comments more than 30 times since March. |
Markets still believe him. |
That belief is one reason oil remains below the highs many expected after nearly three months of conflict. |
But military headlines continue to interrupt the optimism. |
Trump threatened to hit Iran "very hard" if negotiations fail. The U.S. and Iran exchanged attacks again overnight. Hormuz traffic remains well below prewar levels. |
Yet supply chains are adapting. |
Saudi Arabia is now sending more jet fuel to Europe through the Red Sea than before the Hormuz disruption. Shipments reached between 118,000 and 140,000 barrels per day in early June, according to shipping data. |
The market is slowly building alternative routes while waiting for diplomacy. |
Energy Signal |
Oil is trading on two competing stories. Diplomacy keeps prices contained. Supply disruptions keep the risk premium alive. |
|
|
|
| |
|
|
|
| |
Oracle just showed how expensive the AI race has become. |
Oracle (ORCL) beat earnings expectations. Revenue rose 21% to $19.18 billion. Cloud revenue jumped 47%. Cloud infrastructure revenue surged 93%. |
None of that was the headline. |
The headline was financing. |
Oracle said it plans to raise another $40 billion through debt and equity after already raising roughly $48 billion during fiscal 2026. |
Capital expenditures rose 162% to $55.7 billion. Free cash flow was negative $23.7 billion. |
The company is effectively telling investors that AI demand remains so strong it needs even more capital to keep up. |
Its remaining performance obligation reached $638 billion, helped by OpenAI-related demand. |
Oracle is not alone. |
Amazon (AMZN) issued a record C$14 billion bond sale in Canada this week. Earlier this year it raised €14.5 billion in Europe. |
The hyperscalers are borrowing globally because AI infrastructure spending keeps accelerating. |
Then there is SpaceX. |
Demand has already exceeded $250 billion, roughly four times the $75 billion offering size. Investors continue to chase exposure despite a valuation near $1.75 trillion. |
The AI capital cycle is not slowing. |
It is getting larger. |
Capital Signal |
Oracle's earnings showed that AI demand remains strong. Its financing plans showed that demand is becoming extraordinarily expensive to serve. |
|
|
|
| |
|
| |
| |
From Our Partners |
The Man Who Called Nvidia Before It Soared 1,000% Issues New Elon Musk BUY Alert |
|
|
Luke Lango was ranked America's #1 stock picker in 2020. He was mentored by two hedge fund billionaires from the Soros network and trained at Caltech. His readers have had the chance to see gains as high as AMD +8,500%... Nvidia +5,000%... Tesla +3,500%... Palantir +1,000%... and Apple +890%. Now he's releasing his next big pick. |
This ad is sent on behalf of InvestorPlace Media at 1125 N. Charles Street, Baltimore, Maryland 21201. If you're not interested in this opportunity, please click here. |
|
|
|
| |
|
|
|
| |
Crypto remains outside the rally. |
Bitcoin spent most of Wednesday near $62,000 despite softer-than-feared core inflation. |
The problem remains demand. |
CryptoQuant estimates bitcoin demand fell by 652,000 BTC last week, the largest decline since January 2022. ETF demand continues to weaken. Thirty-day ETF growth has fallen to negative 74,000 BTC. |
Analysts increasingly believe SpaceX is part of the problem. |
The upcoming IPO may reserve as much as 30% of shares for retail investors. That could mean up to $22.5 billion competing for the same speculative capital that often supports bitcoin and other digital assets. |
Several firms described crypto as a funding source for the IPO. |
The timing is difficult. |
Bitcoin remains down more than 50% from its October high. ETF outflows exceeded $2 billion in May. OpenAI and Anthropic IPOs are still ahead. |
Yet crypto's longer-term story is evolving. |
Bitwise CIO Matt Hougan said financial advisors are showing greater interest in stablecoins and tokenization than bitcoin itself. Ethereum developers are also revisiting privacy through new token standards designed to hide balances and transaction details while preserving compliance controls. |
One more pressure point arrives in four days. The Bank of Japan is widely expected to raise its policy rate to 1.0% at its June 15-16 meeting. That reduces the appeal of the yen carry trade, where investors borrow cheaply in yen and deploy into riskier assets including bitcoin. |
As funding costs rise and the yen strengthens, those positions unwind. It is a bearish macro force for crypto with nothing to do with the Fed, SpaceX, or ETF flows. |
The Verdict |
Bitcoin held above $60,000 but the margin is narrowing. At $61,420 it sits within 2.5% of a strike with more than $1 billion in put open interest. The short gamma dealer mechanics that apply at that level have not changed. Demand did not recover. SpaceX remains the next major test for whether any of it can. |
|
|
|
| |
|
| |
| |
From Our Partners |
Buffett's Famous ‘Phone Rule’ Could Make This Company Soar |
|
|
Warren Buffett famously said, “If you don't find a way to make money while you sleep, you will work until you die.” |
What if your phone could do it for you? 📲 |
That’s exactly what Mode Mobile has created — technology that turns idle phone time into passive income. With 490M+ users in their ecosystem and $1B in earnings and savings, their EarnPhone is being called the Uber of smartphones. |
With 32,481% revenue growth and a newly secured Nasdaq ticker $MODE, investors can access their pre-IPO offering at $0.52/share. |
Tap into a $1T opportunity — invest now at just $0.52/share and get up to 20% bonus! |
Disclaimer: Please read the offering circular and related risks at invest.modemobile.com. This is a paid advertisement for Mode Mobile’s Regulation A+ Offering. Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur. The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period. |
|
|
|
| |
|
|
|
| |
Wednesday connected several themes that have been building for weeks. |
Inflation moved above 4%. |
Oil stayed elevated because the Iran war remains unresolved. |
Oracle showed that AI demand is still accelerating. Amazon showed the same thing through financing. SpaceX showed it through investor demand. |
Meanwhile bitcoin remained stuck near $62,000. |
The divide is becoming clearer. |
Capital continues to move toward AI infrastructure, power, data centers, and frontier technology. Crypto continues to build products while losing flows. |
Thursday brings SpaceX pricing. That is the week's most important market event. Not because it changes earnings or inflation. Because it answers the question the whole week has been building toward. The market is buying the buildout. The question is whether it is still buying bitcoin while it does. |
|
|
|
| |
|
|
Tidak ada komentar:
Posting Komentar