Top stories for the morning: Israel and Lebanon agree on peace, SpaceX confirms record IPO

The U.S. announced an agreement between Israel and Lebanon on a ceasefire on condition that Hezbollah refuses to attack. SpaceX confirmed plans for a record IPO for $75 billion with a potential valuation of about $1.8 trillion. These and other topics - in our review of key events for the morning of June 4.

The U.S. said that Israel and Lebanon agreed to a cease-fire on the condition of a complete cessation of hostilities by the Iranian-backed Hezbollah, Bloomberg writes. The parties confirmed the absence of hostile intentions to each other and agreed to continue direct negotiations to resolve outstanding differences, but the consent of Hezbollah itself to the proposed conditions has not yet been confirmed. Brent oil against the background of these reports loses about 0.7% against the previous close - at $97 per barrel, WTI declines by 0.5% - to $95.5.

The new agreement is seen as an attempt by US President Donald Trump's administration to preserve peace talks with Iran, complicated by the escalating conflict in Lebanon and the closure of the Strait of Hormuz. Additional pressure on the White House is exerted by the decision of the U.S. House of Representatives to support an end to U.S. involvement in the war, as well as the growing economic costs of the conflict, which increases inflation and becomes a political factor before the midterm elections to Congress, the agency points out.

SoftBank shares lost more than 10% after a sell-off in technology securities in the U.S. and a wave of profit taking in Asian markets, CNBC reports. Despite the growth of quotations by about 70% since the beginning of the year and the recent status of the most expensive company in Japan, investors are concerned about the scale and risks of the group's bets on artificial intelligence, the channel explains.

Other Asian tech giants also came under pressure: Samsung and SK Hynix shares fell after both companies surpassed a market capitalization of $1 trillion in May. SoftBank CEO Masaesi Son, however, remains optimistic, saying that the AI revolution could be 50 times bigger than the dot-com boom, and a possible correction would be a good opportunity for long-term investments.

SpaceX has confirmed plans to raise $75 billion in an IPO, offering investors 555.6 million shares at $135 apiece, Yahoo Finance reports. At that price, the company could be valued at about $1.8 trillion, making the offering the largest in the market's history.

The raised funds will be used to develop Starlink's AI infrastructure, rocket and satellite programs, as well as to repay part of the $20-billion bridge loan. Investors consider the joint project of Tesla and SpaceX to produce Terafab AI chips and Elon Musk's plans to create orbital data centers as an additional growth driver. If SpaceX's valuation exceeds $1.6 trillion, Musk could become the first person in the world with a fortune of more than $1 trillion, the publication points out.

Security software developer CrowdStrike beat Wall Street's expectations for its first quarter results: adjusted earnings came in at $1.1 per share, compared to estimates of $1.07, and revenue rose 26% year-over-year to $1.39 billion, CNBC reported. The company also returned to net income, earning $27.8 million versus a loss a year earlier.

Despite the strong results, the company's shares fell 10% following the announcement. CrowdStrike announced a 4-to-1 stock split, raised its outlook for annual recurring revenue (annual subscription revenue) growth, and said demand for AI defense solutions is growing. Management notes that its new AI Detection and Response business has already generated more than $50 million in quarterly pipelines, and recent acquisitions of startups SGNL and Pangea should strengthen the company's position in the fast-growing AI cybersecurity market.

Broadcom reported 48% year-on-year revenue growth to $22.2 billion and adjusted earnings of $2.44 per share, exceeding analysts' expectations, Yahoo Finance reports. Demand for AI chips remains the main growth driver: revenue from this segment more than doubled to $10.8 billion, and the company expects it to grow to $16 billion in the current quarter.

Despite strong results and a revenue outlook for the next quarter above market expectations, Broadcom's shares declined following the release of its financials. Investors were disappointed by CEO Hock Tan's decision not to raise his long-term forecast for AI semiconductor sales, which still stands at more than $100 billion a year. The company also said it would focus on supplying individual chips rather than complete AI systems, with Anthropic, Google, Meta and OpenAI remaining among its key customers.

- Japan's broad Topix index was down 0.9 percent on June 4, while the Nikkei 225 was down 1.5 percent.

- Hong Kong's Hang Seng Index was down 1.5 percent, while mainland China's CSI 300 Index was down 0.7 percent.

- In South Korea, the Kospi index was down 0.9%, while the Kosdaq was up 2%.

- Australia's S&P/ASX 200 was down 1.2 percent.

- S&P 500 futures were down 0.4 percent, Nasdaq Composite futures were down 0.5 percent and Dow Jones Industrial Average exchange-traded contracts were unchanged.

This article was AI-translated and verified by a human editor