The dip buyers are getting beaten up today.
The market briefly rose into positive territory shortly after the open but it’s been downhill since Trump started talking about striking Iran “very hard.” Now Israel’s Minister of Defense Katz is saying the war with Iran is “far from over” and the IDF is prepared to strike with far greater force.
WTI crude oil is at the highs of the day, up $3.45 to $91.65.
The S&P 500 fell as much as 1.3% but in the past few minutes, it’s pared that to 1.0%.
Eyes will be on tomorrow’s IPO of SpaceX, which will be the biggest ever. There is a sense that some investors are selling a few tech names in order to raise capital to participate. Tesla shares are down 3.0% and at the lowest since May 1.
Trump is also out with a message on Truth Social about getting out through Hormuz:
Last month, I directed our Great U.S. Military to execute a secret
mission to support Oil Tankers and other Commercial Ships through the
Straight of Hormuz. Today, I am pleased to announce that this effort has
resulted in more than 100 MILLION Barrels of Oil making its way through
the Straight, and into the Open Market. More than 200 Commercial Ships
have safely traveled through the Strait. This wildly successful effort
is because the UNITED STATES of AMERICA CONTROLS the Strait of Hormuz —
NOT Iran. Their military is defeated, and their economy is lost. It’s
over for Iran! Thank you for your attention to this matter. President
DONALD J. TRUMP
This is likely through the rumored route hugging Oman’s coast. If anything, 100 million barrels sounds like a lot but it’s less than 1 day’s worth of global demand. Certainly, it’s cushioned the supply crunch but it’s only buying time as 10-12 million barrels are cut off each day and the ships that have gone out aren’t coming back in for more.
This article was written by Adam Button at investinglive.com.
