Report: AMG EV Supercar Concept to Lead a Mercedes Product Offensive

Mercedes-Benz will unveil an electric supercar concept from its AMG performance division this year, according to a report from .
The concept will preview the powertrain that will underpin the dedicated AMG electric sedan and SUV that are due in the next two years.
The report also claims that Mercedes will launch a new SUV with both hybrid and electric setups, as well as a heavily reworked that will adopt the storied name.
Two weeks ago, Mercedes-Benz declared that the new CLA—which we just drove in prototype form—will kick off "the most intense product launch" program in the automaker's nearly 100-year history. In the announcement, Mercedes confirmed several new or significantly refreshed vehicles which will arrive before 2027, including the face-lifted S-class that we recently spied testing in Sweden. Now a report from Autocar suggests that Mercedes-Benz's EV push will be led by an extreme supercar concept from the high-performance AMG division.
The electric Mercedes-AMG supercar will be shown as a concept later this year, Autocar reported, and will draw upon the radical Vision One-Eleven concept from 2023.
The sleek two-door will preview the potent electric powertrain that will underpin dedicated AMG EVs due in the next couple of years, which will include both a sedan—serving as a next generation for the AMG GT sedan—and an SUV.
According to one of Autocar's sources, who was described as a "high-ranking insider," the concept "will be the fastest-accelerating car AMG has ever produced." The rapid acceleration will be thanks to a new axial-flux electric motor developed by the British company Yasa, acquired by Mercedes in 2021. The supercar concept will also supposedly debut a next-generation battery, which might be a solid-state unit and will utilize input from the company's High Performance Powertrain division that crafts the hybrid powertrains for Mercedes's F1 cars. We've reached out to Mercedes for comment on the AMG supercar and will update this story when we've heard back.
The supercar concept is just one reveal among dozens coming from Mercedes, and the automaker confirmed three other products in its announcement. The CLA arrives first and will come with both an electric powertrain and a 48-volt electrified four-cylinder engine. Mercedes also announced electric versions of the GLC SUV, C-class sedan, and E-class sedan, continuing the brand's shift away from the EQ moniker and toward a strategy of offering multiple powertrains under the same nameplate.
The GLC EV should debut this year, while the other two are expected to emerge later. The GLC EV and C-class EV will share a platform and AMG-tuned variants for both vehicles are in the cards. Both the GLC and C-class EVs should feature single-motor/rear-wheel-drive and dual-motor/all-wheel-drive variants.
Along with those confirmed models, Autocar reports that the CLA will be accompanied by a new GLB. The compact SUV is expected to grow slightly in size and share powertrains with the CLA sedan. The electric version will also employ the GLB badge, signaling the end of the EQB nameplate.
2026 will bring the refreshed S-class, wearing a new face and running new software that should make better use of the screen-covered dashboard. A more advanced Level 3 autonomous driving system will also improve on the Drive Pilot setup currently found in the Mercedes flagship. The electric EQS is also set for a thorough reworking and is expected to adopt the S-class name despite riding on a different platform.
AMG's first dedicated EV will be unveiled in 2026, with the aforementioned sedan coming first ahead of the SUV version in 2027. Mercedes has already teased both models testing. The sporty sedan and SUV will both ride on a new platform called AMG.EA.
Other upcoming models include refreshes for the gas-powered C-class, EQS SUV, EQE sedan, and EQE SUV. The gas-powered GLE and GLS SUVs are also due for a facelift to extend their life span to around 2030. Mercedes is also expected to release more details on the baby G-class, recently confirmed by the automaker, in 2026 ahead of a 2027 debut. The baby G-class is expected to be related to the updated GLB.
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Yahoo

27 minutes ago

• Yahoo

Stock market today: Dow, S&P 500, Nasdaq rise, oil tanks after Iran's response to US strikes

US stocks rose on Monday following reports that Iran launched missiles at a US air base in Qatar in retaliation for US strikes against Iranian nuclear sites. The Dow Jones Industrial Average (^DJI) rose 0.6%. The S&P 500 (^GSPC) gained 0.7%, and the tech-heavy Nasdaq (^IXIC) rose around 0.9%. Oil prices fell as investors assessed the extent of Iran's retaliation. Brent crude (BZ=F) futures fell as much as 6%, trading around $72 a barrel, while WTI crude futures (CL=F) hovered near $66, also down over 6%. Iran said its retaliatory act matched the number of bombs the US dropped on its nuclear sites this weekend, in a move the Associated Press said signaled "a likely desire to deescalate." Qatar said the strike did not cause any casualties. That appeared to give a jolt to stocks, which started the session in red territory as oil surged on the immediate heels of President Trump's decision to join Israel's attacks on Iran on Saturday. Investors began the session on edge over a shock surge in energy prices if Iran blocks the key Strait of Hormuz waterway, as that would have repercussions for economies worldwide. Trump said late Saturday that the US had struck Iran's three main nuclear enrichment facilities, saying the sites had been "totally obliterated" — a claim that has since been questioned. He threatened Iran with more attacks if the country did not quickly seek peace talks. Elsewhere in markets, gold (GC=F) ticked higher, also switching course amid wavering haven demand. Stocks moved into positive territory earlier in the session after Federal Reserve governor Michelle Bowman expressed support for a rate cut "as soon" as July, becoming the second central bank policymaker to be that explicit in recent days about an easing of monetary policy in the near term. Stocks are taking their cues from the oil market right now. Brent crude (BZ=F), the international benchmark, fell about 6% to slip below $72.50 a barrel. West Texas Intermediate (CL=F) futures also slid about 6% to fall about $70 off reports that Iran launched missiles toward US air bases in Qatar and Iraq in retaliation over US strikes against Iranian nuclear sites. The instant investor read through appeared to be positive since the retaliatory attacks didn't threaten the outlook for oil supply. Stocks rose as oil fell. The S&P 500 (^GSPC) added 0.7%, while the tech-heavy Nasdaq Composite (^IXIC) rose 0.8% and the Dow Jones Industrial Average (^DJI) about 0.7%, or just under 300 points. Oil prices fell on Monday after Iran's retaliatory moves following US strikes on the country's nuclear sites appeared to spare any supply of energy products. West Texas Intermediate fell 4%, while Brent crude also dropped more than 4% after Iranian state media said it launched missiles against US air bases in Qatar. Prior to the missile attacks, Wall Street weighed the possibility of an energy supply shock if Iran were to close the Strait of Hormuz, a critical chokepoint through which roughly 20% of the world's oil products flow. Yahoo Finance's Josh Schafer reports: Read more here. Google's artificial intelligence model is set to drive $4.2 billion in subscription revenue within its Google Cloud segment in 2025, according to an analysis from Bank of America on Monday. That includes $3.1 billion in revenue from subscribers to Google's AI plans with its Google One service, Bank of America's Justin Post estimates. Post also expects that the integration of Google's Gemini AI features within its Workspace service will drive $1.1 billion of the $7.7 billion in revenue he projects for that segment in 2025. 'We believe Google has moved beyond the catch-up phase in the LLM [large language model] race, with Gemini now comparing favorably with leading peer models from OpenAI, Anthropic, xAI, and Meta,' Post wrote, saying that AI is a 'major growth driver for Google Cloud.' But, Post added, 'While the revenue opportunity is growing with subscriptions, Google will likely see a significant deterioration of market share relative to its ~90% share of search revenues.' At the same time, Alphabet is set to spend $75 billion on AI investments in 2025. 'If revenue growth doesn't keep pace with rising Capex, higher spending could weigh on free cash flow and margin projections,' Post wrote. He holds a Buy rating and $200 price target on Alphabet (GOOGL, GOOG) shares. Yahoo Finance's Anjalee Khemlani reports: Read more here. Yahoo Finance's Claire Boston reports: Read more here. Yahoo Finance's Jennifer Schonberger reports: Read more here. President Trump called for lower energy prices as he posted on social media on Monday: "EVERYONE, KEEP OIL PRICES DOWN. I'M WATCHING! YOU'RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON'T DO IT!" He also wrote,"To The Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!" Oil futures fell more than 1% on Monday after spiking more than 5% on Sunday night as traders assessed whether Iran would close off the Strait of Hormuz, a critical chokepoint through which roughly 20% of the world's oil products flow. Strategy (MSTR) stock fell as much as 3% on Monday morning after the Michael Saylor-helmed firm announced another bitcoin purchase. The software firm turned crypto giant said in a filing with the US Securities and Exchange Commission that it bought $26 million worth of bitcoin between June 16 and June 22. As of Monday's filing, Strategy has spent nearly $42 billion to acquire over 592,000 bitcoins since 2020. Over that time frame, the stock has soared more than 2,800% relative to the S&P 500's 78% gain. Strategy shares pared initial losses shortly after the market opened and are down less than 1%. At the same time, Strategy is facing two new lawsuits from investors — one filed in May, the second last week — over its bitcoin strategy. The lawsuits allege that the company misled investors about how its bitcoin strategy would affect its profits and its stock price, given the cryptocurrency's volatility. Tesla stock (TSLA) rose 5% in early trading Monday after its robotaxi launch kicked off on Sunday in Austin, Texas. Yahoo Finance's Pras Subramanian reports that several users on X claimed they were able to hail and ride some of the 10-20 Tesla Model Y vehicles available, which featured "Robotaxi" graphics on the sides of the cars. Tesla CEO Elon Musk had announced the rollout on X earlier in the day, saying that customers will pay a flat $4.20 fee. Only select invited Tesla users were invited to test the robotaxi service, as it begins to scale to take on industry leader Waymo (GOOG, GOOGL). Wedbush analyst and Tesla bull Dan Ives wrote in a note: 'We took two approximately 15 minute rides around Austin and the key takeaways are that it was a comfortable, safe, and personalized experience.' Read more here. US stocks wavered on Monday as oil trimmed gains and supply worries eased over Iran's possible retaliatory move following US strikes on the country's nuclear facilities. The Dow Jones Industrial Average (^DJI) fell slightly while the S&P 500 (^GSPC) was little changed. The tech-heavy Nasdaq (^IXIC) fell slightly. OIl futures were little changed after spiking more than 5% on Sunday night as traders assessed whether Iran would close off the Strait of Hormuz, a critical chokepoint through which roughly 20% of the world's oil products flow. Trump Media & Technology (DJT) stock rose 4% before the market opened Monday morning after the company announced a $400 million stock buyback. Shares of the company — in which President Trump is the majority stakeholder — have fallen roughly 48% in 2025. Stock buybacks, a common practice that faces a fair share of criticism, reduce the amount of a company's common shares in the public market and, hence, boost its earnings per share even if its profits don't rise. Trump Media said the buybacks 'would be funded separately from, and would not alter, Trump Media's previously announced Bitcoin treasury strategy.' The company is aiming to create a bitcoin treasury to hold the cryptocurrency on its balance sheet and announced a $2.5 billion private funding round to fund the initiative in May. Trump Media is part of a wave of firms following in the footsteps of crypto tycoon Michael Saylor's company, Strategy (MSTR), which has seen its stock soar by buying up bitcoin. Wedbush analyst Dan Ives wrote in a note to clients on Monday that he expects cybersecurity stocks to be in focus following the US bombing of three Iranian nuclear facilities over the weekend. Ives wrote that 'cyber security stocks in particular [are] set to be front and center this week as investors anticipate some cyber attacks from Iran could be on the horizon as retaliation.' 'On the cyber security sector, our favorite names remain Palo Alto (PANW), Cyberark (CYBR), Crowdstrike (CRWD), Zscaler (ZS), and Checkpoint (CHKP)." The stocks traded roughly flat premarket on Monday. Defense stocks were modestly higher Monday during premarket trading after the US bombed three Iranian nuclear facilities over the weekend. Palantir (PLTR), Lockheed Martin (LMT), and Northrop Grumman (NOC) rose less than 1%, while RTX (RTX) climbed 1.3%. Palantir supplies AI-fueled defense tech to Israel, which has prompted blowback from former employees and protesters. The other three companies supply weapons to Israel through their contracts with the US government. The defense stocks had jumped immediately after Israel's first airstrikes on Iran on June 12, but only RTX has sustained notable gains of 4% since those strikes. Lockheed Martin is up 0.3% over that time frame, while Northrop Grumman is roughly flat (up 0.1%). Palantir has risen 1.6%. Jefferies (JEF) analyst Mohit Kumar wrote Monday, 'Market is now waiting to see how Iran reacts …​​However, we are not fully convinced around the market's sanguine reaction.' 'Defence has been one area that we have been bullish on, and we continue to maintain our overweight exposure,' he added. 'NATO countries have moved to increase defense spending with a long term goal of taking to 5% of GDP. We are typically skeptical of long term goals as goal posts do change, but it is also clear to us that defense spending needs to increase globally and not just for NATO countries.' Energy stocks rose alongside rising oil prices in premarket trading on Monday while overall stock futures wobbled. Those with oil production in the US and outside the Middle East caught a bid as investors weighed the possibility of further disruption to the oil supply following the US strikes on Iran. The Energy Select Sector SPDR Fund (XLE) advanced 0.6% and has risen 6% in the past month. Here's a look at how trending energy stocks are trading this morning: View more trending tickers here. Yahoo Finance's Jennifer Schonberger reports: Read more here. Economic data: Chicago Fed activity index (February); S&P Global US Manufacturing PMI (March preliminary); S&P Global US services PMI (March preliminary); S&P Global US Composite PMI (March preliminary) Earnings: FactSet (FDS), KB Home (KBH) Here are some of the biggest stories you may have missed overnight and early this morning: Trump just made the Fed's rate call even more complicated Opinion: Trump wages 2 wars — one with trade partners, one with Iran Why Iran could hold off blocking the Strait of Hormuz Oil erases spike in gains in wait for Iran's response Morgan Stanley: Geopolitical selloffs tend to fade fast Analysts react as markets brace for Iran's next move Dollar advances as investors brace for Iran response to US attacks BNY Mellon approached Northern Trust for merger: WSJ Here are some top stocks trending on Yahoo Finance in premarket trading: Tesla (TSLA) stock rose over 1% in premarket trading after rolling out its driverless taxi service to riders on Sunday. The debut of the robotaxi was introduced to a handful of riders, which included retail investors and social-media influencers in Tesla's hometown of Austin. Wolfspeed (WOLF) stock fell 11% in premarket trading on Monday after announcing it plans to file for bankruptcy in the US under a new restructuring agreement with its creditors. The agreement would provide fresh financing and slash debt by nearly 70%. Northern Trust Corporation (NTRS) shares rose 4% before the bell after a report from The Wall Street Journal said that Bank of New York Mellon Corp had reached out to the asset and wealth manager and expressed interest in a merger. Most investors will awaken today searching online for "Strait of Hormuz" after the weekend attacks from the US on Iran. For speed of analysis purposes, if this key oil shipping hub closes down (seems like it won't happen, based on everything I am seeing this morning), it could really send oil (CL=F, BZ=F) prices skyrocketing. Here's what Goldman's team estimates: "If oil flows through the Strait of Hormuz were to drop by 50% for one month and then were to remain down 10% for another 11 months, we estimate that Brent would briefly jump to a peak of around $110." Read more here on Goldman's scenarios. Gold pushed higher with the world in limbo as the US joined Israel's attack on Iran over the weekend. No formal response has been issued by Iran, with wider fallout expected. Spot gold climbed 0.2% to $3,375.04 an ounce taking it to within $125 of its record high as investors sought safe-haven assets in a tumultuous economic situation. Gold then sank 0.5% despite broader haven demand. Bloomberg reports: Read more here. Stocks are taking their cues from the oil market right now. Brent crude (BZ=F), the international benchmark, fell about 6% to slip below $72.50 a barrel. West Texas Intermediate (CL=F) futures also slid about 6% to fall about $70 off reports that Iran launched missiles toward US air bases in Qatar and Iraq in retaliation over US strikes against Iranian nuclear sites. The instant investor read through appeared to be positive since the retaliatory attacks didn't threaten the outlook for oil supply. Stocks rose as oil fell. The S&P 500 (^GSPC) added 0.7%, while the tech-heavy Nasdaq Composite (^IXIC) rose 0.8% and the Dow Jones Industrial Average (^DJI) about 0.7%, or just under 300 points. Oil prices fell on Monday after Iran's retaliatory moves following US strikes on the country's nuclear sites appeared to spare any supply of energy products. West Texas Intermediate fell 4%, while Brent crude also dropped more than 4% after Iranian state media said it launched missiles against US air bases in Qatar. Prior to the missile attacks, Wall Street weighed the possibility of an energy supply shock if Iran were to close the Strait of Hormuz, a critical chokepoint through which roughly 20% of the world's oil products flow. Yahoo Finance's Josh Schafer reports: Read more here. Google's artificial intelligence model is set to drive $4.2 billion in subscription revenue within its Google Cloud segment in 2025, according to an analysis from Bank of America on Monday. That includes $3.1 billion in revenue from subscribers to Google's AI plans with its Google One service, Bank of America's Justin Post estimates. Post also expects that the integration of Google's Gemini AI features within its Workspace service will drive $1.1 billion of the $7.7 billion in revenue he projects for that segment in 2025. 'We believe Google has moved beyond the catch-up phase in the LLM [large language model] race, with Gemini now comparing favorably with leading peer models from OpenAI, Anthropic, xAI, and Meta,' Post wrote, saying that AI is a 'major growth driver for Google Cloud.' But, Post added, 'While the revenue opportunity is growing with subscriptions, Google will likely see a significant deterioration of market share relative to its ~90% share of search revenues.' At the same time, Alphabet is set to spend $75 billion on AI investments in 2025. 'If revenue growth doesn't keep pace with rising Capex, higher spending could weigh on free cash flow and margin projections,' Post wrote. He holds a Buy rating and $200 price target on Alphabet (GOOGL, GOOG) shares. Yahoo Finance's Anjalee Khemlani reports: Read more here. Yahoo Finance's Claire Boston reports: Read more here. Yahoo Finance's Jennifer Schonberger reports: Read more here. President Trump called for lower energy prices as he posted on social media on Monday: "EVERYONE, KEEP OIL PRICES DOWN. I'M WATCHING! YOU'RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON'T DO IT!" He also wrote,"To The Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!" Oil futures fell more than 1% on Monday after spiking more than 5% on Sunday night as traders assessed whether Iran would close off the Strait of Hormuz, a critical chokepoint through which roughly 20% of the world's oil products flow. Strategy (MSTR) stock fell as much as 3% on Monday morning after the Michael Saylor-helmed firm announced another bitcoin purchase. The software firm turned crypto giant said in a filing with the US Securities and Exchange Commission that it bought $26 million worth of bitcoin between June 16 and June 22. As of Monday's filing, Strategy has spent nearly $42 billion to acquire over 592,000 bitcoins since 2020. Over that time frame, the stock has soared more than 2,800% relative to the S&P 500's 78% gain. Strategy shares pared initial losses shortly after the market opened and are down less than 1%. At the same time, Strategy is facing two new lawsuits from investors — one filed in May, the second last week — over its bitcoin strategy. The lawsuits allege that the company misled investors about how its bitcoin strategy would affect its profits and its stock price, given the cryptocurrency's volatility. Tesla stock (TSLA) rose 5% in early trading Monday after its robotaxi launch kicked off on Sunday in Austin, Texas. Yahoo Finance's Pras Subramanian reports that several users on X claimed they were able to hail and ride some of the 10-20 Tesla Model Y vehicles available, which featured "Robotaxi" graphics on the sides of the cars. Tesla CEO Elon Musk had announced the rollout on X earlier in the day, saying that customers will pay a flat $4.20 fee. Only select invited Tesla users were invited to test the robotaxi service, as it begins to scale to take on industry leader Waymo (GOOG, GOOGL). Wedbush analyst and Tesla bull Dan Ives wrote in a note: 'We took two approximately 15 minute rides around Austin and the key takeaways are that it was a comfortable, safe, and personalized experience.' Read more here. US stocks wavered on Monday as oil trimmed gains and supply worries eased over Iran's possible retaliatory move following US strikes on the country's nuclear facilities. The Dow Jones Industrial Average (^DJI) fell slightly while the S&P 500 (^GSPC) was little changed. The tech-heavy Nasdaq (^IXIC) fell slightly. OIl futures were little changed after spiking more than 5% on Sunday night as traders assessed whether Iran would close off the Strait of Hormuz, a critical chokepoint through which roughly 20% of the world's oil products flow. Trump Media & Technology (DJT) stock rose 4% before the market opened Monday morning after the company announced a $400 million stock buyback. Shares of the company — in which President Trump is the majority stakeholder — have fallen roughly 48% in 2025. Stock buybacks, a common practice that faces a fair share of criticism, reduce the amount of a company's common shares in the public market and, hence, boost its earnings per share even if its profits don't rise. Trump Media said the buybacks 'would be funded separately from, and would not alter, Trump Media's previously announced Bitcoin treasury strategy.' The company is aiming to create a bitcoin treasury to hold the cryptocurrency on its balance sheet and announced a $2.5 billion private funding round to fund the initiative in May. Trump Media is part of a wave of firms following in the footsteps of crypto tycoon Michael Saylor's company, Strategy (MSTR), which has seen its stock soar by buying up bitcoin. Wedbush analyst Dan Ives wrote in a note to clients on Monday that he expects cybersecurity stocks to be in focus following the US bombing of three Iranian nuclear facilities over the weekend. Ives wrote that 'cyber security stocks in particular [are] set to be front and center this week as investors anticipate some cyber attacks from Iran could be on the horizon as retaliation.' 'On the cyber security sector, our favorite names remain Palo Alto (PANW), Cyberark (CYBR), Crowdstrike (CRWD), Zscaler (ZS), and Checkpoint (CHKP)." The stocks traded roughly flat premarket on Monday. Defense stocks were modestly higher Monday during premarket trading after the US bombed three Iranian nuclear facilities over the weekend. Palantir (PLTR), Lockheed Martin (LMT), and Northrop Grumman (NOC) rose less than 1%, while RTX (RTX) climbed 1.3%. Palantir supplies AI-fueled defense tech to Israel, which has prompted blowback from former employees and protesters. The other three companies supply weapons to Israel through their contracts with the US government. The defense stocks had jumped immediately after Israel's first airstrikes on Iran on June 12, but only RTX has sustained notable gains of 4% since those strikes. Lockheed Martin is up 0.3% over that time frame, while Northrop Grumman is roughly flat (up 0.1%). Palantir has risen 1.6%. Jefferies (JEF) analyst Mohit Kumar wrote Monday, 'Market is now waiting to see how Iran reacts …​​However, we are not fully convinced around the market's sanguine reaction.' 'Defence has been one area that we have been bullish on, and we continue to maintain our overweight exposure,' he added. 'NATO countries have moved to increase defense spending with a long term goal of taking to 5% of GDP. We are typically skeptical of long term goals as goal posts do change, but it is also clear to us that defense spending needs to increase globally and not just for NATO countries.' Energy stocks rose alongside rising oil prices in premarket trading on Monday while overall stock futures wobbled. Those with oil production in the US and outside the Middle East caught a bid as investors weighed the possibility of further disruption to the oil supply following the US strikes on Iran. The Energy Select Sector SPDR Fund (XLE) advanced 0.6% and has risen 6% in the past month. Here's a look at how trending energy stocks are trading this morning: View more trending tickers here. Yahoo Finance's Jennifer Schonberger reports: Read more here. Economic data: Chicago Fed activity index (February); S&P Global US Manufacturing PMI (March preliminary); S&P Global US services PMI (March preliminary); S&P Global US Composite PMI (March preliminary) Earnings: FactSet (FDS), KB Home (KBH) Here are some of the biggest stories you may have missed overnight and early this morning: Trump just made the Fed's rate call even more complicated Opinion: Trump wages 2 wars — one with trade partners, one with Iran Why Iran could hold off blocking the Strait of Hormuz Oil erases spike in gains in wait for Iran's response Morgan Stanley: Geopolitical selloffs tend to fade fast Analysts react as markets brace for Iran's next move Dollar advances as investors brace for Iran response to US attacks BNY Mellon approached Northern Trust for merger: WSJ Here are some top stocks trending on Yahoo Finance in premarket trading: Tesla (TSLA) stock rose over 1% in premarket trading after rolling out its driverless taxi service to riders on Sunday. The debut of the robotaxi was introduced to a handful of riders, which included retail investors and social-media influencers in Tesla's hometown of Austin. Wolfspeed (WOLF) stock fell 11% in premarket trading on Monday after announcing it plans to file for bankruptcy in the US under a new restructuring agreement with its creditors. The agreement would provide fresh financing and slash debt by nearly 70%. Northern Trust Corporation (NTRS) shares rose 4% before the bell after a report from The Wall Street Journal said that Bank of New York Mellon Corp had reached out to the asset and wealth manager and expressed interest in a merger. Most investors will awaken today searching online for "Strait of Hormuz" after the weekend attacks from the US on Iran. For speed of analysis purposes, if this key oil shipping hub closes down (seems like it won't happen, based on everything I am seeing this morning), it could really send oil (CL=F, BZ=F) prices skyrocketing. Here's what Goldman's team estimates: "If oil flows through the Strait of Hormuz were to drop by 50% for one month and then were to remain down 10% for another 11 months, we estimate that Brent would briefly jump to a peak of around $110." Read more here on Goldman's scenarios. Gold pushed higher with the world in limbo as the US joined Israel's attack on Iran over the weekend. No formal response has been issued by Iran, with wider fallout expected. Spot gold climbed 0.2% to $3,375.04 an ounce taking it to within $125 of its record high as investors sought safe-haven assets in a tumultuous economic situation. Gold then sank 0.5% despite broader haven demand. Bloomberg reports: Read more here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Yahoo

34 minutes ago

• Yahoo

Markets Surge as Oil Drops and Fed Signals July Rate Cut -- What Investors Need to Know Now

The market kicked off the week on a stronger footing. The S&P 500 (SPY) broke a three-day losing streak, helped by a sharp pullback in oil prices and dovish signals from the Federal Reserve. West Texas Intermediate crude slipped back to $73 a barrel as fears of an immediate disruption in Middle East oil supply eased. Despite weekend headlines involving Israeli strikes and Iran's missile retaliation, Iranian oil exports through the Strait of Hormuz have shown no signs of slowingin fact, flows may have increased. Analysts noted that without a broad regional escalation, the impact on physical oil markets could stay contained. At the same time, bond markets caught a bid after Fed Vice Chair for Supervision Michelle Bowman said she's open to cutting interest rates as soon as July. Bowman cited progress on inflation and potential risks to the labor market as key reasons. Her comments added momentum to existing bets on a September rate cut, with investors now viewing July as a live meeting. Treasury yields edged lower, as traders positioned for the Fed to start unwinding policy tightening sooner than expected. Bowman's remarks came just ahead of the Fed's preferred inflation gauge later this week, which could shape expectations further. Meanwhile, equity strategists at Morgan Stanley argued that markets tend to bounce back quickly from geopolitical scares. In past episodes, the S&P 500 has gained 2% after one month, 3% after three months, and 9% over a year. The takeaway: barring a major oil supply shock, volatility may prove short-lived. Stocks like Tesla (TSLA), Northern Trust (NASDAQ:NTRS), and Estee Lauder (NYSE:EL) were among the notable movers, as investors repositioned around a possible Fed pivot, stable economic data, and a cooling energy narrative. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Miami Herald

36 minutes ago

• Miami Herald

Analyst makes bold tariff prediction as deal clock ticks down

The tariffs announced by President Trump on April 2, so-called "Liberation Day," surprised most because they were more widespread and harsher than expected. The market reaction in the following days, including a 19% drop that nearly reached bear market territory for the S&P 500, led to President Trump pausing most reciprocal tariffs on April 9 for 60 days, kicking off a rip-roaring stock market rally back toward new highs. Don't miss the move: Subscribe to TheStreet's free daily newsletter Clearly, investors have cheered the reprieve, but many are still wringing hands as the 60-day window for trade deals closes. There's been little substantive progress announced, suggesting that once the tariff pause expires, import taxes could surge, sending inflation soaring. The possibility that reciprocal tariffs hit the economy, risking stagflation, or worse, recession, isn't lost on long-time economist Torsten Slok. Slok is the chief economist for Apollo Global Management, a money manager with $513 billion in assets under management, and he recently made an intriguing prediction on what could happen in the tariff war next. Bloomberg/Getty Images While President Trump paused most reciprocal tariffs, many tariffs remain, including 25% tariffs on Canada, Mexico, and autos, plus a 30% tariff on China, and a 10% 'baseline' tariff on all imports. Those tariffs are smaller than what was originally announced in early April, but still represent the largest tax increase since the 1960s, according to hedge fund legend Paul Tudor Jones. Perhaps, the biggest casualty from the tariff war has been Federal Reserve interest rate policy. Related: Fed interest rate cut decision resets forecasts for the rest of this year The Fed is tasked with setting rates at levels that encourage low inflation and unemployment, too often competing goals. Lowering interest rates like it did in September, November, and December, shaving 1% off the Fed Funds Rate, helps lower unemployment but increases inflation. The opposite happens when it raises interest rates. Because rate cuts and tariffs are inflationary, the Fed hasn't cut rates this year, citing the risk of fanning the inflationary fire as tariffs hit. Although companies are working with suppliers to lower costs and many will absorb some of the tariff hit, most say at least some of the higher cost will be passed along to customers, including Walmart. Fed Chairman explained his hesitancy to cut rates because of tariff uncertainty last week when he held rates steady at their current 4.25% to 4.50% rate. "The effects on inflation could be short-lived - reflecting a one-time shift in the price level. It is also possible that the inflationary effects could instead be more persistent," said Powell. The Fed's reluctance to lower rates has drawn the ire of President Trump, who has called Powell a "numbskull" and "Mr. Too-Late," suggesting the Fed is falling behind the curve. It's also caught the attention of Bill Pulte, Fannie Mae's Chairman and Director of the Federal Housing Finance Agency (FHFA). Pulte has gone so far as to call for Powell's resignation over the Fed's hesitancy. Spending decisions have likely been slowed by tariff and trade deal uncertainty. Until players understand the rules, most tend to stand on the sidelines awaiting insight. So far, we've seen little in the way of meaningful trade deals. The UK struck a deal, but 10% tariffs remain and most view the deal as limited, impacting mostly autos and agriculture. Similarly, the initial deal with China appears limited, leaving in place 30% tariffs, despite making some progress on rare earth minerals necessary for next-gen technology, including electric vehicle batteries. The arguably 'meh' progress may signal that reciprocal tariffs will go into effect once the 60-day tariff pause expires. "The longer uncertainty remains elevated, the more negative its impact on the economy," wrote Slok. While is possible that tariffs are reinstated after the pause expires, Slok thinks another outcome is more likely, given the administration may focus on giving the market what it wants rather than risk sending it back into a tailspin. "Maybe the strategy is to maintain 30% tariffs on China and 10% tariffs on all other countries and then give all countries 12 months to lower non-tariff barriers and open up their economies to trade," predicted Slock. Slok believes extending the tariff deadline would provide participants to better model for the impact and make necessary decisions, limiting the negative impact to economic growth and inflation. He argues that certainty "would be positive for business planning, employment, and financial markets." Ultimately, extending the pause could leave everyone feeling like they've won. Countries who rely heavily on exporting to the U.S. would exhale at not facing even harsher tariffs, while the US could "produce $400 billion of annual revenue for US taxpayers," according to Slok. The possibility of such a win/win outcome led Slock to conclude: "Maybe the administration has outsmarted all of us." Related: Veteran fund manager who predicted April rally updates S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.