Oil Fell. Tech Still Couldn’t Rally.

GOOD MORNING, Oil fell as U.S.-Iran talks made progress, but Wall Street still could not turn that geopolitical relief into a clean rally. Treasury yields rose, Big Tech sold off and investors kept questioning the economics behind massive AI infrastructure spending. Elsewhere, AbbVie agreed to pay $10.9 billion for Apogee Therapeutics — another reminder that pharma's next growth cycle is being bought as much as it is being developed.

MARKETS | TLDR

Nasdaq falls as Big Tech drags: The Nasdaq lost 1.3% and the S&P 500 slipped 0.4%, while the Dow gained 0.3% as investors rotated toward healthcare and industrials.
Oil drops on Iran-talk optimism: Crude prices fell as Washington and Tehran agreed to a roadmap toward a final deal, raising hopes that the Strait of Hormuz could normalize further.
Higher yields offset the peace trade: Treasury yields rose as investors priced a more restrictive Fed path, limiting the valuation benefit that lower oil would normally provide to growth stocks.

AI CAPEX

Big Tech Wrote the Checks. Investors Sold.

Alphabet fell more than 6% on Monday, while Meta, Amazon and Microsoft dropped between roughly 2% and 4%. The selloff came even as oil prices fell and U.S.-Iran negotiations made progress — exactly the kind of macro backdrop that would usually support growth stocks.

The problem was increasingly company-specific. Investors are beginning to distinguish between companies receiving AI infrastructure spending and the hyperscalers writing the checks. Memory, networking and chip suppliers can book revenue as soon as data centers are built. The largest technology platforms are committing hundreds of billions of dollars before the full revenue payoff is visible.

That does not mean the AI investment cycle is breaking. Demand for infrastructure remains strong. But it changes what markets need to see next. Capex itself is no longer enough to justify higher valuations; investors increasingly want evidence that AI revenue, margins and productivity gains can catch up with the spending.

PHARMA

AbbVie Is Paying $10.9 Billion for Its Next Growth Engine

AbbVie agreed to acquire Apogee Therapeutics for $10.9 billion in cash, its largest acquisition in more than five years. The deal gives AbbVie access to Apogee's pipeline of experimental immunology drugs, including a late-stage treatment aimed at atopic dermatitis and asthma.

The strategic logic is less about today's revenue than tomorrow's patent expirations. AbbVie has already been managing the decline of Humira after biosimilar competition, and future expirations around Skyrizi and Rinvoq create another long-term pressure point. Buying promising clinical assets lets large drugmakers refill pipelines faster than relying only on internal R&D.

That is why pharma M&A is becoming a broader market signal. Large incumbents still generate enormous cash flows, but the value of those cash flows depends on replacing blockbuster drugs before exclusivity disappears. AbbVie's Apogee deal shows how aggressively the industry is willing to pay for future growth when the patent clock is already running.

HEADLINES

SpaceX taps the bond market days after its IPO: SpaceX launched its first senior unsecured notes offering despite holding about $100.8 billion in cash, using debt to refinance bridge financing and support an expensive rockets-and-AI expansion.
SpaceX shares slide as leverage enters the story: Shares fell after the financing announcement, showing that even newly listed AI-linked megacaps are not immune to investor scrutiny over capital structure.
The Fed says inflation is still moving the wrong way: Chicago Fed President Austan Goolsbee said inflation remains well above target and has been moving in the wrong direction, reinforcing the market's focus on whether higher rates will need to persist.
Iran agrees to a roadmap toward a broader deal: Negotiations produced progress on nuclear inspections and a path toward freer transit through Hormuz, helping remove part of the oil risk premium.
Healthcare outperforms as tech weakens: The Dow finished higher while the Nasdaq fell, showing another session of rotation away from expensive growth into more defensive and value-oriented sectors.

UPCOMING

Micron reports June 24: The memory maker will be a key test of whether the AI selloff reflects weaker infrastructure demand or simply lower tolerance for expensive valuations.
New-home sales arrive June 24: The release will show whether high mortgage rates are continuing to suppress demand despite more inventory and builder incentives.
GDP and PCE arrive June 25: Growth revisions and the Fed's preferred inflation gauge will directly test the market's increasingly hawkish rate expectations.
Final June consumer sentiment lands June 26: Household views on inflation and personal finances will show whether falling oil prices are improving confidence or whether affordability remains the dominant issue.

DEEP INSIGTHS

SpaceX's Inaugural Bond Issuance

SpaceX's filing is a useful primary-source look at how one of the market's largest newly public companies is financing expansion. The company says proceeds will repay bridge-loan borrowings and support general corporate purposes — a reminder that even firms with enormous cash balances may prefer debt when capital requirements are rising quickly.

AbbVie to Acquire Apogee Therapeutics

The deal announcement lays out the pipeline assets AbbVie is buying and why they matter. It is useful context for understanding modern pharma M&A: large drugmakers are effectively buying future exclusivity and pipeline optionality before their current blockbuster franchises mature.