Here are the key headlines capturing global financial media attention from the overnight session.
1. US-Iran Peace Talks Remain Deadlocked as Conflict Nears 100 Days
The conflict involving Iran has persisted for nearly one hundred days, with the United States and Iran remaining at an impasse regarding any potential ceasefire. Furthermore, Tehran has asserted sovereignty, alongside Oman, over the Strait of Hormuz.
Following overnight clashes between Hezbollah and Israel in southern Lebanon, Iran continues to insist that a ceasefire in Lebanon must be achieved before any agreement with the US can be finalized. Concurrently, a military advisor to Iran's Supreme Leader Ayatollah Khamenei stated in an interview with CNN that "the ball is in Trump's court" concerning a deal and insisted on the unfreezing of $24 billion in assets.
US President Donald Trump has for months maintained that Iran is nearing its breaking point. On Friday, he told reporters, "We've had great success with Iran," adding, "They are not capable of having a nuclear weapon."
Trump even downplayed the impact of rising oil prices, which have pushed gasoline costs higher. He said, "People thought it was going to be a lot worse. Today, I see oil at $96 a barrel; people thought it was going to $300 a barrel."
2. US Economy Adds 172,000 Jobs in May, Far Exceeding Market Forecasts
The US economy added 172,000 non-farm payrolls in May, a figure that significantly surpassed Wall Street expectations and prompted traders to increase bets on a Federal Reserve interest rate hike this year.
Data released by the Bureau of Labor Statistics on Friday showed the monthly job gain was more than double the consensus forecast of economists surveyed, which was 85,000. Employment figures for March and April were also revised upward by a combined 93,000, with the revised totals now showing 214,000 jobs added in March and 179,000 in April.
US Treasury yields and the US dollar rose in response, with traders now pricing in a 25-basis-point rate hike by the Fed no later than December. Prior to the release of the jobs data, market pricing had not fully anticipated a hike until April of next year.
3. Alphabet and SpaceX Forge Major Computing Power Agreement: $920 Million Monthly for 110,000 NVIDIA GPUs
SpaceX and Alphabet have entered into a cloud services agreement. Under the terms, Google has agreed to pay SpaceX $920 million per month from October 2026 through June 2029.
According to a regulatory filing on Friday, Google will utilize approximately 110,000 NVIDIA graphics processing units, along with central processing units, memory, and other components housed within SpaceX data centers. The agreement runs from this October through June 2029, with a monthly fee of $920 million. The computing power will be ramped up gradually before September, with correspondingly lower fees during that period.
If SpaceX fails to deliver the agreed-upon number of GPUs by September 30, 2026, Google may, after a one-month grace period, choose to terminate the agreement immediately or accept the delivered quantity and proportionally reduce the monthly fee.
After December 31, 2026, either party may terminate the agreement with 90 days' notice.
4. US Mortgage Giants' Shares Surge Then Retreat After Trump's $1 Trillion Valuation Claim
Shares of mortgage giants Fannie Mae (FNMA) and Freddie Mac (FMCC) experienced significant volatility early Friday, surging more than 10% each at the open before paring gains substantially, with Freddie Mac even turning negative. This movement followed fresh comments from former President Donald Trump regarding the companies' valuation the previous day.
Trump told reporters at an event at the White House on Thursday that the combined market value of Fannie Mae and Freddie Mac could reach around $1 trillion. This figure far exceeds the common expectations of Wall Street analysts. KBW analysts reportedly estimate the combined fair value of the two companies to be between $200 billion and $250 billion. Spurred by his remarks, Fannie Mae shares jumped as much as 10.4% at the open, while Freddie Mac shares rose as much as 9.7%.
However, the market's optimism was short-lived. As investor skepticism grew regarding the government's progress on an IPO process for the two entities, the shares quickly retreated. By midday, Fannie Mae's gains had narrowed to about 0.2%, trading at $6.76, while Freddie Mac was down 1.2% at $6.02. Year-to-date, both stocks have fallen more than 30%.
5. Robust Jobs Report Solidifies Rate Hike Expectations, Testing New Fed Chair's Policy Debut
The US labor market has regained its footing, with Friday's strong employment data intensifying market concerns about a resurgence of inflation and bolstering the arguments of some Federal Reserve officials that a rate hike later this year may be necessary.
The shifting outlook presents a test for newly appointed Fed Chair Kevin Warsh, who must convince markets of the central bank's ability to control inflation while resisting pressure from the White House to lower borrowing costs.
Fed watchers suggest that when Warsh chairs his first monetary policy meeting on June 16-17, the easy part will be removing any language from the post-meeting statement that hints at a near-term rate cut. The difficulty will lie in articulating how he intends to restrain inflation.
6. Spot Gold Erases Year-to-Date Gains as Jobs Data Fuels Fed Rate Hike Bets
Spot gold erased its gains for the year as a strong US jobs report bolstered market bets that the Federal Reserve could hike interest rates this year, a move that is typically negative for the non-yielding precious metal.
Following the latest US data showing May job growth exceeded all expectations, bond yields and the US dollar rose. Spot gold fell as much as 3.6% on Friday to $4,315.35 per ounce, wiping out its year-to-date advance. The labor market's strength reinforced expectations for Fed officials to raise rates, even as Middle East tensions push energy prices higher. Higher interest rates generally diminish the appeal of gold, which pays no interest.