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Monday, June 2

Noteworthy macro moves today: Oil (WTI) +4.3%. Copper +4.2%. Gold +2.1%. Noteworthy US mega-cap moves today: Alphabet Inc (GOOG) -2.2%. Alphabet Inc (GOOGL) -2.2%. Exxon Mobil Corp (XOM) +1.6%.

Recent developments in the global markets are heavily influenced by renewed trade tensions and tariff announcements from U.S. President Donald Trump, who has threatened to double tariffs on steel and aluminum imports from 25% to 50%. This escalation comes amid accusations that China is not adhering to previous agreements made during recent negotiations, contributing to a cautious market sentiment as investors react negatively.

In economic data releases, the ISM Manufacturing PMI for May will be closely watched today alongside construction spending figures. The manufacturing sector's performance remains critical amidst ongoing concerns about inflationary pressures linked with Trump's tariff policies. Analysts expect this report could significantly impact investor confidence in equities and influence Federal Reserve policy discussions later this week.

Additionally, commodity prices have surged due partly to geopolitical risks surrounding Ukraine-Russia conflicts which have heightened supply chain uncertainties. Oil prices rose sharply following OPEC+'s decision to increase output less than anticipated while gold reached record highs driven by safe-haven demand stemming from these macroeconomic instabilities along with fears of rising inflation tied directly back into fiscal challenges facing the United States economy.

Materials Select Sector SPDR Fund (XLB) [+0.8%, +45.0M]
President Trump has announced plans to double tariffs on steel and aluminum imports from 25% to 50%, a move anticipated to significantly impact the materials sector, including companies within the Materials Select Sector SPDR Fund (XLB). This decision has raised concerns regarding potential inflationary pressures and constraints on economic growth in the U.S. OPEC+ has confirmed an increase in oil output for July, which may also affect commodity prices relevant to the materials sector. Among XLB's holdings, notable contributors included NUE and STLD, both of which experienced significant returns. Additionally, Dow Inc. has signed an agreement to divest its 50% interest in DowAksa Advanced Composites Holdings BV for approximately $125 million, aligning with its strategy to focus on core downstream businesses. The AUD/USD currency pair has increased, reflecting broader market movements that may influence XLB.

Energy Select Sector SPDR Fund (XLE) [+1.5%, +566.8M]
OPEC+ has announced an increase in oil production by 411,000 barrels per day for July, part of its strategy to reclaim market share amid geopolitical tensions. This decision coincides with a surge in WTI crude prices, which rose over 3% due to concerns about supply security following drone strikes on Russian military targets and potential new U.S. sanctions against Russia. The Energy Select Sector SPDR Fund (XLE) has increased by 1.5%, reflecting the broader market dynamics. Among the fund's holdings, Exxon Mobil (XOM) is set to sign new agreements for oil and gas exploration in Azerbaijan, while Chevron Corp (CVX) stockholders have approved amendments aimed at enhancing governance frameworks. Additionally, oil prices have surged by 4.5%, further influencing the recent movement in XLE.

BNTX | +11.2% | +2.8B
BioNTech SE | Biotechnology BioNTech SE has entered a strategic partnership with Bristol Myers Squibb for the global co-development and co-commercialization of its bispecific antibody BNT327, targeting various solid tumor types. Bristol Myers Squibb will pay an upfront fee of 1.5 billion and may provide up to 2 billion in non-contingent payments through 2028. Additionally, BioNTech could receive up to 7.6 billion in milestone payments. The companies will share development and manufacturing costs equally and split global profits and losses. This announcement has generated significant buzz on social media, with discussions highlighting the potential total value of the deal at 11.1 billion. As a result, BioNTech's stock has seen a notable increase in pre-market trading, reflecting positive sentiment surrounding this collaboration.

NUE | +12.3% | +3.6B
Nucor Corp | Steel Nucor Corp received an upgrade from BMO Capital, moving from Market Perform to Outperform with a new price target of 145, up from 140. Concurrently, Nucor's stock, along with other American steel companies, experienced a notable premarket increase of approximately 13.85%. This uptick followed President Trump's announcement regarding a doubling of tariffs on imported steel and aluminum to 50%, effective June 4. The announcement aims to curb the import of low-quality steel, particularly from Shanghai. Discussions on social media highlighted Nucor as a potential beneficiary of these tariffs, amidst mixed reactions about their impact on the competitive landscape in the steel industry. Additionally, it was noted that the European Union plans to retaliate with countermeasures against the U.S. tariffs by July 14, further complicating market dynamics for Nucor and its peers.

MRNA | +3.6% | +385.3M
Moderna Inc | Biotechnology Moderna Inc. experienced a price increase of 2.8% following the FDA's approval of its new COVID-19 vaccine, mNEXSPIKE, for adults aged 65 and older and individuals aged 12 to 64 with underlying health conditions. This approval, granted after a Phase 3 trial involving approximately 11,400 participants, demonstrated a 9.3% higher relative efficacy compared to the original Spikevax vaccine. The new vaccine's storage in standard refrigerators enhances logistical flexibility. Social media engagement highlighted this approval as a significant development, particularly given the ongoing impact of COVID-19, which resulted in over 47,000 deaths in the U.S. last year. Additionally, BioNTech SE surged significantly after announcing a partnership with Bristol Myers Squibb, further correlating with Moderna's stock movement in the biotech sector.

BA | +1.5% | +1.9B
Boeing Co | Aerospace & Defense
Boeing Co's share price has risen following significant developments. Tata Group's Air India is reportedly in discussions with Boeing for a substantial new aircraft order, including approximately 200 additional single-aisle planes. Concurrently, Bank of America upgraded Boeing to a "Buy" rating, increasing its price target to 260 from 185. This upgrade reflects growing confidence in Boeing's recovery under CEO Kelly Ortberg, focusing on production stability and recent orders. Social media discussions corroborate these reports, highlighting Air India's negotiations with both Boeing and Airbus for narrow-body jets. Additionally, analysts noted that Boeing is not prioritizing a new model to replace the 737 MAX, although optimism remains around the future of the 777X and 737-10 aircraft. As of the latest updates, Boeing's share price was reported at 207.32, reflecting an increase following the Bank of America upgrade.

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