Micron to the Moon
Memory chip company Micron surged past the US$1 trillion valuation mark, leading the NASDAQ and the S&P 500 near record highs. Europe fell as optimism for a peace deal between the US and Iran waned slightly following positive progress over the weekend, while Australasia was mixed.
Wall Street gains as oil falls and Micron surges
US equities commenced the holiday-shortened week by trading broadly higher on Tuesday as easing oil prices and renewed optimism around US–Iran negotiations over the weekend lifted technology stocks. The S&P 500 rose +0.6%, the NASDAQ gained +1.0%, and the DOW fell -0.4%, with sentiment supported after President Trump said talks with Tehran were ‘moving along well’ despite ongoing military exchanges in the Strait of Hormuz. Micron surged +20.4% to a record high after a major broker materially lifted its price target and argued AI had structurally reshaped the memory chip market, pushing the company above a US$1tn market capitalisation for the first time. The rally lifted other memory stocks and broader semiconductor sentiment, with investors also speculating SK Hynix could soon join Samsung and Micron in the trillion-dollar club. Space-related stocks also advanced following SpaceX’s IPO filing, with Redwire jumping +26.0% and Rocket Lab rising +6.3%. Bond yields drifting lower from recent highs was also constructive for equities: the US two-year Treasury yield dropped -9bp to 4.042% while the 10-year dropped -8bp to 4.491%.
Europe slips as Iran tensions offset peace hopes
European equities closed slightly lower on Tuesday as renewed US strikes on Iran clouded ceasefire hopes following the positive strides made over the weekend. The pan-European STOXX 600 fell -0.6%, while the FTSE 100 rose +0.2% to a five-week high as energy stocks advanced. Brent crude climbed after the US launched strikes on Iranian missile sites and mine-laying vessels in the Strait of Hormuz, despite continued comments from President Trump and Secretary of State Marco Rubio that a peace deal remained possible. BP fell -4.9% after removing chairman Albert Manifold with immediate effect over governance and conduct concerns. Ferrari slid -8.4% following the launch of its first electric vehicle.
Australasia mixed following fresh US-Iran attacks
Australia’s ASX 200 lost ground on Tuesday (-0.4%), led lower by exchange operator ASX (-13.2%). Energy and banking stocks were broadly weaker, weighing on the index. Goodman Group lost -0.1%, paring losses after being down nearly -5.0% intraday, after guiding operating EPS growth below market expectations. Across the ditch, the NZX 50 added +0.8% as Fisher & Paykel Healthcare (+9.1%) printed a solid FY26 result and provided reassuringly strong FY27 guidance. Slightly offsetting this was Infratil, which consolidated -5.1% despite an as-expected result, with the market seemingly disappointed by a lack of additional colour around further large contracts relating to key portfolio company CDC. Asian stocks were mixed, with the Kospi and China’s CSI 300 up +2.6% and +0.5% respectively. Japan’s Nikkei 225 fell -0.3%, Hong Kong’s Hang Seng remained flat, while the Shanghai Composite dropped -0.2%.
WTI Crude and Iron Ore flat, Gold down
WTI Crude remained flat at US$93.85/bbl, Gold lost -1.6% to US$4,498.55/oz, while Iron Ore remained flat at US$109.67/MT.