US EQUITY OPEN: Indices open in the green, despite GOOGL after scientist leaves for Anthropic

OPEN: US indices opened the first trading session of the week in the green, with the majority of sectors in firmer territory. Communication Services is the clear laggard and weighed on by pressure in Alphabet (-4%) shares, albeit with no clear catalyst although a key scientist left for Anthropic, while semiconductor equipment names, INTC, AMAT, LRCX, SNDK, KLAC, surge and supported by Wells Fargo saying they still have room to run. The Dollar is mainly gaining vs. peers, although the Pound is leading, with Cable seeing little movement on PM Starmer resigning. Safe-havens are lagging. The crude complex is now lower by USD 2/bbl, following more recent constructive remarks and US Treasury's OFAC authorising the production, delivery and sale of crude oil, petrochemical products, and petroleum products of Iranian-origin. However, prior to this it was hit amid reports over the weekend that Iran shut the Strait of Hormuz amidst continued Israeli strikes on southern Lebanon. Treasuries are lower across the curve, while precious metals are firmer as spot silver outperforms its counterpart. The calendar ahead is very light, ahead of a deluge of data throughout the week as well as earnings from Micron and Jefferies.

STOCK SPECIFICS:

• Getty Images (GETY) announced a display agreement w/ OpenAI
• Apple (AAPL) faces unavoidable device price increases as AI hyperscalers & NVDA absorb DRAM & NAND supply
• ASML (ASML) denies claim of EUV shipments to China.
• CRH (CRH) confirmed it is to acquire Arcosa (ACA)
• China has added MP Materials (MP) and USA Rare Earth (USAR) to its export control list, citing national security.
• US FDA agreed to reverse the rejection of Regenxbio’s (RGNX) experimental gene therapy Navsunl.
• AbbVie (ABBV) confirmed it is to acquire Apogee Therapeutics (APGE).
• Alphabet (GOOGL) researcher left Google’s AI laboratory for Anthropic
• Micron (MU) and Anthropic announce strategic agreement to scale next-generation AI infrastructure