[New York Stock Market] Monitoring Follow-up Negotiations... Mixed After Opening Lower

International Oil Prices Decline
SpaceX Plunges Over 7%

On June 22, local time, the three major U.S. stock indexes reversed course after initially opening lower, following the announcement that the United States had accepted nuclear inspections by Iran after completing their first follow-up negotiations. The market is showing caution ahead of this week's scheduled release of the Personal Consumption Expenditures (PCE) price index while monitoring the progress of follow-up negotiations.

As of 9:43 a.m. on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was up 216.00 points (0.42%) from the previous trading day at 51,780.70. The large-cap S&P 500 index rose by 8.44 points (0.11%) to 7,509.02, while the tech-heavy Nasdaq index was down 53.92 points (0.20%) at 26,464.01.

On this day, the market is gauging upward momentum as it closely follows the progress of follow-up negotiations between the United States and Iran. This comes after the two countries agreed to resume the activities of International Atomic Energy Agency (IAEA) nuclear inspection teams within Iran.

U.S. Vice President JD Vance held a press conference at the Bürgenstock Resort in Lucerne, Switzerland, after concluding the first follow-up negotiations following the signing of a memorandum of understanding (MOU) to end hostilities with Iran. He stated, "Iran has agreed to invite the IAEA inspection teams back into the country."

Vice President Vance, who serves as the chief representative of the U.S. negotiating team, emphasized, "This is a significant event for the American people and marks the first step towards permanently denuclearizing or permanently ending Iran's nuclear weapons program." He added that the nuclear inspection team's activities are scheduled to begin within this week and could start as early as today.

Previously, mediator countries Qatar and Pakistan announced that U.S. and Iranian officials had agreed on a roadmap to reach a final agreement within 60 days, leading to a decline in international oil prices.

At this moment, West Texas Intermediate (WTI) crude oil on the New York Mercantile Exchange is down 1.89% from the previous session, trading at $75.15 per barrel. On the ICE Futures Exchange, August delivery Brent crude is trading at $78.29 per barrel, a decrease of 2.81% from the previous day.

SpaceX shares are also plunging 7.02% today. This is interpreted as a result of weakened investor sentiment following mention of possible corporate bond issuance after last week's public listing. In contrast, Micron is up 3.56%, Apple 1.21%, Nvidia 0.88%, and Broadcom 0.52%.

The key test for the market this week is the May Personal Consumption Expenditures (PCE) price index, which is scheduled for release on Thursday. According to economists surveyed by FactSet, core PCE, which excludes volatile food and energy prices, is expected to rise compared to April.

Following last week’s hawkish Federal Reserve meeting, expectations for an interest rate hike have moved forward to October. Investors are now closely watching inflation data for any indication that the U.S. central bank may signal a potential rate increase.

Tom Lee of Fundstrat Global Advisors pointed out that, although there are several factors that could influence the market in the future—such as the composition of the Fed's task force or supply chain disruptions caused by a closure of the Strait of Hormuz—the overall market environment remains positive.

He stated, "I expect market conditions to change dramatically in the second half of this year. It may feel like a bear market, but I'm reluctant to call a top prematurely." He added, "Personally, I still believe the environment is favorable for the stock market."

This content was produced with the assistance of AI translation services.