Weekly Market Movers — Key Highlights
  • The Strait of Hormuz disruption and vessel strike near Oman raised concerns over oil supply stability.
  • Crude declined as tanker flows improved, partially easing supply fears.
  • U.S. jobless claims fell below expectations, signaling ongoing economic resilience.
  • U.S. policy actions (Turkey jet engine deal, Chemours settlement, vape ban pressure) and Alibaba lawsuit added to headlines.

Global equities retreated sharply during the week as unwinding positions in crowded AI and semiconductor trades, elevated valuations, rising U.S. rate-hike expectations, and a synchronized Asian chip selloff drove broad risk-off sentiment. At the same time, geopolitical tensions intensified after the UN’s International Maritime Organization suspended Strait of Hormuz escort operations following an attack, with a Taiwan-linked vessel struck near Oman amid Iranian warnings on shipping routes. Separately, health risks escalated as Africa’s leading public health body raised the estimated funding requirement to combat the Ebola outbreak to $1.4 billion, underscoring growing global uncertainty.

Global Updates
  • The MSCI All Country World Index declined sharply, as a tech‑led selloff driven by AI valuation concerns and rising rate expectations triggered broad losses across U.S., European, and Asian equities.
  • Crude oil prices fell about 2% on Friday, heading for notable weekly losses as supply concerns eased with more tankers leaving the Strait of Hormuz.
  • South ​Africa’s producer ‌inflation accelerated to ​7.8% ​year on year ⁠in ​May, ​from 4.8% in April.
  • EL AL Airlines announced a temporary suspension of its Tel Aviv–Moscow flights due to escalating Russia‑Ukraine tensions and recent aviation incidents affecting regional safety.
  • Eli Lilly said its orforglipron pill for diabetes and obesity could be launched in China later this year, as Novo Nordisk intensifies competition in the market.
  • Alibaba filed a lawsuit against the U.S. government after being added to a Defense Department list linking certain Chinese companies to the military.
  • Volkswagen CEO Oliver Blume is reportedly planning to cut up to 100,000 jobs globally and shut down four German plants over the coming years.
  • Saudi Aramco resumed crude shipments from its Ras Tanura terminal on Friday after a nearly four‑month suspension, as exporters accelerated cargo movements amid expectations of normalizing market conditions.
  • The UN maritime agency halted Strait of Hormuz escort operations after an attack report, while Taiwan’s Evergreen said its vessel was struck near Oman.
  • The EU proposed extending protection for Ukrainian refugees to March 2028, while limiting eligibility for newly arriving men of military age without exit approval.
  • Iraq is reportedly considering exiting OPEC if the group does not permit a substantial increase in its oil production, according to sources.
U.S. Equity
  • U.S. equities declined during the week due to a tech‑led selloff driven by concerns over AI spending sustainability, elevated valuations, hawkish rate expectations, and falling oil prices signaling weaker macro support.
  • U.S. inflation rose further in May, surpassing 4% for the first time in three years as Middle East tensions lifted energy costs, keeping potential Federal Reserve rate hikes in focus.
  • New unemployment claims in the U.S. declined by 12,000 to 215,000 for the week ending June 20, beating expectations of 225,000 and signaling continued labor market strength.
  • Alphabet shares declined on concerns over AI talent departures, contributing materially to mega‑cap tech underperformance.
  • SpaceX equity fell amid post‑IPO valuation concerns, erasing roughly $600bn in market value.
  • Anthropic’s Mythos model reportedly uncovered weaknesses in critical U.S. government computer systems during a testing exercise, as per reports. 
  • Shopify Inc is set to prohibit all vape product sales on its platform as early as this week, following pressure from U.S. state attorneys general targeting illegal e‑cigarette distribution.
  • The U.S. Department of Justice announced that Chemours agreed to pay $450 million to settle claims related to PFAS contamination across West Virginia, North Carolina, and New Jersey.
  • The Trump administration has officially informed Congress of plans to approve a sale of jet engines to Turkey, with the deal valued at over $700 million.
  • The White House has requested over $1.4 billion in additional Congressional funding to respond to the expanding Ebola outbreak, including $800 million designated for humanitarian relief efforts.
  • The Trump administration sought to project unity on the Iran conflict, though differing remarks from senior officials, including Vice President JD Vance, revealed disagreements over Israel’s role.
Fixed Income
  • The Bloomberg U.S. Aggregate Bond Index rose over the week.
  • The U.S. 10-year Treasury yield fell to 4.37% and the yield on the 2-year note fell to 4.08% over the week.
  • The U.S. Dollar Index strengthened to 101.03 over the week.