Argentina, led by Lionel Messi, defeated England to reach the World Cup final against Spain, while market news focuses on volatility in the tech sector with SK Hynix’s decline and SpaceX shares dipping below IPO price.
Amidst ongoing U.S.-Iran tensions, President Trump suggested Iran is open to a deal, influencing crude prices, as AI firm Anthropic moves closer to a public listing. Warren Buffett also weighed in, criticizing the stock market for its increasing speculative nature, calling it ‘gambling’.
Hello from London, this is Leonie Kidd.
While it won't shake the markets, the mood in newsrooms and across England is certainly impacted after last night's semi-final disappointment. Spain is now set to clash with Argentina in the World Cup final on Sunday, following England's elimination in Atlanta, Georgia.
What You Need to Know Today
England's journey in the Men's FIFA World Cup concluded after a dramatic comeback by an Lionel Messi-led Argentina, who secured a 2-1 victory. Argentina will now face Spain in the final this Sunday at MetLife Stadium in New Jersey, while England will compete for third place against France on Saturday.
This World Cup has been a boon for American bars and restaurants, providing a much-needed economic lift, as highlighted by the latest Federal Reserve Beige Book. For England, however, the semi-final marks the peak of their World Cup excitement.
Chipping Away at the Tech Rally
The semiconductor sector continues its wild ride. South Korea's SK Hynix experienced another double-digit drop in Thursday trading, putting a drag on the Kospi and broader Asian tech markets. The stock has seen extreme volatility since its U.S. listing last week.
Louis Kondratev, a trader at XFUNDs, attributes this pullback to the crowded nature of semiconductor trades following an extended AI-driven rally. He noted, "Semiconductors alone now make up roughly 20% of the S&P 500, which is incredibly difficult to sustain."
Meanwhile, Taiwan Semiconductor Manufacturing Co (TSMC) reported a robust 23.4% surge in second-quarter profit, fueled by strong demand for its chips.
Public Market Challenges and Promising IPOs
Elon Musk's SpaceX has seen its shares dip below their $135 IPO price for the first time, wiping over $1 trillion from the company's valuation. This comes shortly after SpaceX's induction into the Nasdaq 100 last week. The company's Starship is slated for its thirteenth flight test later today.
In other IPO news, AI firm Anthropic is reportedly nearing a mega-public listing. A CNBC source indicates that Co-founder and CEO Dario Amodei is arranging investor meetings ahead of a planned IPO later this year.
Global Affairs: 'Forever War' Risks and Diplomacy
President Donald Trump stated in a Fox News interview on Wednesday that Iran is interested in meeting and striking a deal, despite ongoing tensions. His comments follow a second wave of U.S. Central Command attacks on Iran on Wednesday.
These geopolitical developments are creating uncertainty in early Thursday trading. Crude prices initially rose but have since receded, while U.S. futures are slightly up ahead of a busy day for economic data and corporate earnings on Wall Street.
— Leonie Kidd
And Finally... Investment Wisdom from Warren Buffett
Legendary investor Warren Buffett offered a critical perspective on the current market, lamenting its increasing shift towards speculative trading over long-term investing. He told CNBC's Becky Quick, "It's tough to find values when everybody is preferring gambling."
The chairman of Berkshire Hathaway has previously expressed concerns, comparing the stock market earlier this year to "a church with a casino attached" and specifically criticizing the surge in one-day options trading as "gambling."
— Sarah Min
