US EQUITY OPEN: Indices open in the red as US/Iran tensions show no sign of abating

OPEN: US indices opened in the red, as did most sectors, with energy, health and consumer staples the only sectors trading higher. Energy was buoyed by gains of about USD 4/bbl in the crude complex. The geopolitical backdrop remains uncertain, with Trump saying he has a plan on Iran, reiterating that Tehran's proposal is unacceptable and saying the ceasefire is unbelievably weak and "on life support". The dollar firmed and Treasuries fell on the sentiment, with a US 10-year auction due later today. Adding to the equity downside was pressure in semiconductor names, although they bounced off lows after the open. Qualcomm fell 5% after a negative note from Tae Kim, who said he was "extremely bearish" on the name. In FX, the pound lagged amid continued UK political turmoil and growing calls for Starmer to leave his post. The yen's sharp strengthening this morning raised intervention speculation, while the Bessent-Takaichi meeting lacked surprises. Elsewhere, US CPI was broadly hotter than expected and drove two-way price action. Fed's Goolsbee, a 2027 voter, said the data was worse than expected and that services inflation was the worst part.

STOCK SPECIFICS:

• Affirm (AFRM) works with Google (GOOGL) to make AI shopping payments clear and simple; Affirm's pay-over-time options will be Integrated into the Gemini app and Google Search, including AI Mode, through Google Pay.
• eBay (EBAY) rejected the unsolicited proposal from GameStop (GME); board concluded that proposal is neither credible nor attractive.
• GitLab (GTLB) to restructure over the coming weeks & intends to reduce the number of countries it serves by up to 30%.
• Key Context's Tae Kim says Qualcomm (QCOM) is the problem child of the current chip rally;... "I'm extremely bearish"
• Klarna (KLAR) flexible payments is coming to Google (GOOGL) search and the Gemini app within Google Play.
• Lowe's (LOW) upgraded at Citi to 'Buy' from 'Neutral'.
• Nelson Peltz in talks to raise funds for Wendy's (WEN) go-private bid.
• OpenAI to save USD 97bln through 2030 in latest Microsoft (MSFT) deal.

EARNINGS:

• Hims & Hers Health (HIMS): Surprise loss per share and revenue light.
• On Holding (ONON): Profit and revenue missed.
• Under Armour (UAA): Deeper loss per share than expected.
• ZoomInfo Tech (GTM): Disappointing FY revenue guidance.