Episode summary
Oil Falls; Tech Stocks Slump; Big Jobs Report on Tap | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 15 min
Summary
Oil extended its slide for a third day as flows through the Strait of Hormuz climbed and President Trump said indirect talks with Iran were making progress. The hosts said WTI was around $67.84 and Brent near $70.81, while U.S. oil inventories outside strategic reserves have fallen to their lowest level since March of last year. The discussion framed the drop in crude as a market signal that traders are taking diplomatic progress seriously, even as the exact nature of any breakthrough remains unclear.
The episode also focused on another volatile session for technology stocks, especially in Asia. South Korea’s Kospi fell almost 8% and SK Hynix sank 14% as investors worried the AI rally has run too far, too fast. The hosts said the selling was being amplified by mechanical flows in exchange-traded products. In Europe, technology was one of only a few sectors to lag.
Ahead of the June jobs report, the hosts emphasized that the labor market has stayed stronger than expected, keeping the Fed focused on inflation and average hourly earnings. One analyst said a stronger-than-expected report or firmer wage growth could keep alive expectations for a later rate increase this year. The show also touched on SEC scrutiny of Susquehanna’s insider-trading allegations and a new task force on Fed communications.
Key takeaways
- Oil is falling as Strait of Hormuz flows rise and Trump says Iran talks are progressing, easing supply fears for now.
- WTI was around $67.84 and Brent near $70.81, while U.S. oil inventories outside strategic reserves have declined for 12 straight weeks.
- South Korea’s Kospi dropped almost 8% and SK Hynix lost 14% as investors questioned whether the AI trade has outrun fundamentals.
- The analyst said the June jobs report could keep rate-hike expectations alive if payrolls or average hourly earnings come in strong.
- The SEC is reviewing Susquehanna’s claim that unknown traders made about $100 million on options bets before a Chinese crackdown.
Notable quotes
“The oil is dropping. We have some great oilmen here. I don't know if they're happy or sad”
“the labor market has been stronger than people anticipated, particularly the Fed, and that's given them reason for hope”
“If we get a big increase in average hourly earnings, you'll also get maybe some movement because then people think that uh inflation is causing problems again”
“a massive sell-off in Asian chip stocks is reviving concerns that the AI rally has gone too far too fast”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. — Good morning. I'm Nathan Hager — And I'm Karen Moscow. Here are the stories we're following today. — Karen, we begin with the latest on peace talks with Iran. President Trump is hailing progress in indirect discussions as both countries look to move past last week's tit fortat strikes. The president's son-in-law Jared Kushner and envoy Steve Whit are in Qatar for technical discussions. President Trump says he's aiming for lasting peace.
The den nuclearization of Iran is moving along well. They've had very good meetings and we'll see. We hit them very hard for three nights as you know, but we're getting along very well. — President Trump isn't specifying what, if any, breakthroughs have been made. Vice President JD Vance says technical talks carried out by lower level negotiators are continuing.
Meanwhile, Nathan, oil falling for a third straight day as flows through the straight of Hormuz climb. Checking prices right now, West Texas Intermediate is down more than 1% at $67.84 a barrel. Brent is also down about 1% at $70.81. And President Trump is touting that as well.
Those boats are coming out of the hormones straight. They're coming out by numbers that nobody ever saw. We're setting records, actually. The oil is dropping. We have some great oilmen here. I don't know if they're happy or sad. I don't give a damn if they're happy or sad. I want the prices to go down. And the oil is dropping like nobody thought possible.
President Trump made those remarks in North Dakota following his tour of the Theodore Roosevelt Presidential Library. Oil stockpiles in the US have fallen to their lowest level since March of last year. Inventories outside strategic reserves are around 1.2 billion barrels after 12 straight weeks of declines.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- oil prices
- us iran talks
- semiconductor selloff
- sec insider trading probe
- june payrolls expectations
Companies and tickers mentioned
- SK Hynix Inc.
- Samsung Electronics Co.
- Susquehanna International Group
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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