Weekly Summary 26 June – Iran Tensions, Market Rebounds, Nvidia & BBVA

As the final days of June approached, markets experienced a wave of volatility triggered by escalating geopolitical tensions and easing soon after with diplomatic developments. Meanwhile, tech stocks continued to soar, particularly in the U.S., with Nvidia and Microsoft leading gains. In Europe, a high-profile bank merger drew focus as BBVA inched closer to acquiring Sabadell, stirring investor enthusiasm. Here's what shaped global markets this week.

US-Iran Tensions Spark Investor Caution

Geopolitical risk returned to the forefront as reports surfaced of U.S. strikes on Iran. Markets initially reacted with caution, seeing spikes in oil prices and a modest flight to safe-haven assets like gold and the U.S. dollar. Though the actions were framed as limited, concerns over escalation loomed, particularly against the backdrop of ongoing tensions with Israel and Iranian-backed militias. The broader impact on equities was muted, though energy stocks briefly surged. Read more on the US-Iran conflict’s market impact.

Ceasefire Hopes Calm Middle East-Driven Volatility

A tentative ceasefire agreement between Israel and Iran-linked factions brought temporary calm to jittery markets midweek. Investor sentiment improved markedly, particularly in European and U.S. indices, reversing early losses from the prior escalation. Risk-on sentiment returned, as markets priced in a reduced likelihood of a wider regional war. Commodities like oil pulled back from highs, while equities, especially tech and cyclical stocks, rebounded strongly. For full details on the relief rally, see the market rebound following ceasefire reports.

Week Ahead Focused on Inflation and Fed Signals

Looking forward, analysts highlighted several key events likely to steer market sentiment, including U.S. PCE inflation data and a series of Federal Reserve speeches. Expectations were mixed, with some forecasting a possible dovish tilt depending on inflation trends. Global economic indicators from China and Europe were also on watch, especially amid rising expectations for ECB rate cuts. The outlook emphasised continued sensitivity to macro data, particularly in the lead-up to Q3 earnings season. More insights are available in the week-ahead market outlook.

BBVA’s Sabadell Bid Clears Major Hurdle in Spain

In European financials, Spanish regulators approved BBVA’s takeover bid for rival bank Sabadell—albeit with conditions designed to protect competition. BBVA’s shares rose following the announcement, as investors viewed the approval as a significant step forward in banking sector consolidation. The deal remains under scrutiny, especially given Sabadell’s earlier rejection of a hostile offer. Markets interpreted the news as a positive signal for BBVA’s regional dominance aspirations. Dive deeper into the BBVA-Sabadell deal approval.

Nvidia’s CEO Cashes In Amid Record Nasdaq Climb

Nvidia made headlines yet again as its share price reached record levels, contributing significantly to the Nasdaq Composite’s all-time high. Notably, CEO Jensen Huang sold nearly $80 million worth of shares, sparking discussion over executive confidence versus routine liquidation. Meanwhile, Coinbase also surged after a key court win, underscoring renewed investor appetite for crypto-related stocks. Tech remained the dominant force in the U.S. equity rally. See more on Nasdaq’s record run and key tech moves.

Nvidia and Microsoft Power Ahead as Dollar Slips

Further gains for Nvidia and Microsoft lifted major indices this week, with both companies posting fresh highs. A weakening U.S. dollar helped fuel appetite for large-cap tech, especially those with strong international revenues. Investors have increasingly favoured AI-linked and cloud infrastructure stocks, with Nvidia often seen as a bellwether for broader tech momentum. Microsoft’s continued strength underscored confidence in its AI integrations and Azure growth. For more on Nvidia and Microsoft’s record highs and dollar impact.

Conclusion

This week underscored the fragility of market sentiment amid geopolitical risk and the strength of tech-led optimism. While Middle East tensions briefly rattled investors, ceasefire hopes brought quick relief. Meanwhile, tech giants like Nvidia and Microsoft continued to push U.S. indices higher, despite caution around executive stock sales. In Europe, financial sector developments offered a different kind of momentum, as BBVA took a decisive step toward consolidating Spain’s banking landscape. Overall, the interplay of risk, relief, and record highs defined a dynamic pre-summer trading week.

TL;DR FAQs

What caused volatility in the markets this week?

Tensions between the U.S. and Iran triggered market jitters, but a ceasefire between Israel and Iran-linked groups quickly eased investor concerns.

Why are Nvidia and Microsoft in the spotlight?

Both hit record highs this week due to strong tech sentiment, with Nvidia boosted by AI demand and Microsoft by cloud and enterprise strength.

What’s the status of BBVA’s takeover of Sabadell?

Spanish regulators approved the deal with conditions, marking a major milestone in the proposed bank merger.