Indices:- U.S. equity index futures are in for a slight climb following a strong risk-on session driven by easing Middle East tensions after President Trump called off planned strikes on Iran and signaled a potential agreement was nearing, helping shrug off hotter producer prices (see Data below), while investors also positioned ahead of SpaceX’s trading debut; the S&P 500 (+1.8% to 7,394), Nasdaq 100 (+3.3% to 29,446), Dow 30 (+1.9% to 50,848), and Russell 2000 (+3.0% to 2,921) all closed sharply higher with big gains for the semiconductor sphere (see Stock below); Treasury yields ended significantly lower as oil prices retreated following Trump’s reversal on Iran, with the 10-year back below 4.5% and the 30-year breaking beneath 5%, and market pricing (CME’s FedWatch) via slight majority is in favor of a 25bp rate hike out of the Fed in DecemberStocks:- Shares of Nvidia (+2.2%) closed higher in what was a stellar session for semiconductors with far larger gains for its peers including AMD (+8%), Micron (+11.7%), and so too Intel (+9.3%) enjoying a double upgrade from Bank of America to buy from underperform and a significant price target hike- Oracle (-9%) shares slumped after announcing plans to raise an additional $20bn in equity and debt to fund its AI buildout despite delivering an earnings and revenue beat, but helped other chip equipment makers rally including Applied Materials (+11.2%), Lam Research (+12.7%), KLA (+12.9%) and ASML Holding (+9.5%)- Space-related stocks advanced ahead of the highly anticipated SpaceX market debut (Oppenheimer initiated coverage of it with an outperform rating and a $195 price target): Intuitive Machines (NASDAQ:LUNR) (+15.5%), Redwire (NYSE:RDW) (+14.9%), Rocket Lab (NASDAQ:RKLB) (+9.3%), AST Spacemobile (NASDAQ:ASTS) (+11.7%), Virgin Galactic (NYSE:SPCE) (+21.7%), Viasat (+18.2%; awarded a multi-year contract by the U.S. Space Force)- Defense contractor General Dynamics (+5.2%) gained after Jefferies upgraded the stock to buy- Adobe (-6.3%) shares closed lower and dropped a further 5.6% in after-hours trading despite an earnings and revenue beat as its CFO will depart in a few days- Meme stock movers: Beyond Meat (+3.2%), Kohl’s (+9.1%), Krispy Kreme (+7.7%), AMC (+8.8%), BlackBerry (+5.2%), Nokia (+5.3%)- Crypto stocks tracked cryptocurrencies higher: Coinbase (+4.2%), MicroStrategy (+4.2%), Mara Holdings (+7.8%), Gemini Space Station (+7.4%), Bullish (+5.4%), Circle Internet Group (+4.7%)Commodities:- Gold was also in for a rebound getting back up to around $4.2K after a rough Wednesday pullback thanks to the fall in yields, as well as a softer greenback and Fed rate hike likelihoods, though the precious metal is still down over 3% this week; silver was in for a healthier percentage climb and is down about 2% for the week helping take the gold/silver ratio into the 62s- Oil prices (WTI) slid over 5% briefly into the $84s and at its lowest since April after President Trump cancelled planned strikes on Iran and said Washington and Tehran were close to a deal that could be signed within days and “maybe in Europe” though Iran says it hasn’t reached a final decision on an agreement; OPEC lowers global oil demand growth forecast for this year again, to 970K bpd from a previous 1.17m bpd, but still sees the oil market relatively tight through next yearFX/Central Banks/Crypto:- Bitcoin rebounds to $63K and Ether to $1.6K with both enjoying higher lows but not yet higher highs, as risk appetite improves following Trump’s decision to halt planned strikes on Iran- US Dollar Index remains in the 99 handle but fell back a bit as de-escalation with Iran gave others a boost, with EUR/USD into the upper 1.15s following the ECB rate hike (see below); USD/JPY went below 160 before moving back above it again this morning- European Central Bank’s hikes rates for the first time in nearly three years taking the deposit rate to 2.25% as the “war in the Middle East is generating inflation pressures” and raised its inflation forecasts to an average 3% this year before falling to 2.3% in 2027 and to 2% in 2028; growth forecasts lowered to 0.8% this year, 1.2% next, and 1.5% in 2028; President Lagarde says the move aims to prevent energy-driven inflation from becoming entrenched across the euro area, and that they “are not pre-committing to a particular rate path”- Japanese Finance Minister Katayama that the upcoming BoJ meeting will be unaffected by Governor Ueda’s hospitalizationCapital.com Client Sentiment:- Indices: Notable price gains result in lower buy sentiment for the Nasdaq 100 (60% from 62% yesterday), Dow 30 (63% from 68%) and Russell 2000 (56% from 64%) with all three not in heavy buy territory, unlike for the S&P 500 (70% from 69%) where long bias rose a notch; elsewhere trader sentiment fell out of heavy buy territory in the Nikkei 225 (61% from 69%) and just out of extreme buy in the FTSE 100 (77% from 78%)- Commodities: Traders get back in on gold and sees buy sentiment move back into extreme buy territory (80% from 73% yesterday) and to a much lesser extent in silver (87% from 86%); WTI trader bias moves further into heavy buy territory (72% from 67%) following the pullback in price- FX: Remain majority buy but reduce their long bias in EUR/USD (56% from 60%) following the ECB’s rate hike, while opt to go with the move in GBP/USD (58% from 55% yesterday), and stick to heavy sell in USD/JPY (65% from 66%) as latest pullback fails to dissuade traders from awaiting policymaker interventionData:- U.S. May producer prices come in hotter than anticipated for headline up 1.1% m/m and taking the y/y reading to 6.5%, while core y/y held at 4.9% with m/m growth of 0.4% both below forecasts; initial jobless claims edge up to 229K slightly worse than the expected 220K, and so too continuing worsening to 1.795mToday:- U.S. UoM’s preliminary consumer sentiment and inflation expectations (6 pm Dubai time), weekly rig count data out of Baker Hughes (9 pm)- In Europe, German CPI and UK GDP (10 am)