🧠 Israel’s attack on Iran shatters stock market’s early-summer calm

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🏛️ Financial News

• Airlines ✈️ Amid Israel’s strikes, Delta, American, United, and other airlines take a beating on oil’s surge and airspace closures – Sherwood by Robinhood: Israel’s air strikes on Iran sent oil prices spiking, with Brent crude futures climbing to more than $78 at one point — the biggest intraday jump since the early days of Russia’s invasion of Ukraine in 2022. As Israel, Iran, Iraq, and Jordan all paused flights over their territory, hurting airline stocks.

• Administration 🏛️ Republicans may need an AI boom to have any hope of paying for their 'one big, beautiful bill' – Yahoo! Finance: President Trump is promising blockbuster economic growth that spans the entire coming decade in part because that is what's needed to make his "big, beautiful bill" make fiscal sense. Even wary economists say there is one long-shot way it could happen: an AI-fueled boom.

• Wholesale Report 🏭 US producer prices rise modest 2.6% in May with inflationary pressures still mild – AP via Barchart: US wholesale prices rose modestly last month from a year earlier, another sign that inflationary pressures remain mild. The Labor Department reported that the producer price index (PPI), a measures inflation before it hits consumers, rose 2.6% in May 2024. PPI rose 0.1% from April to May after dropping 0.2% the month before.

• Stablecoins 💱 Why retailers are looking into stablecoins – Axios: As legislation to regulate stablecoins moves further through Congress, major retailers, including Walmart and Amazon, are considering their own stablecoin offerings. For big retail, cash transactions cost a retailer nothing and stablecoins can cut billions in costs and delays tied to payment transactions.

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🌎 Global Markets

• S&P 500 $SPY ( ▼ 1.12% ) 📊 Fear of uncertainty held S&P 500 back from record. Now it’s real – Bloomberg via Yahoo! Finance: For weeks, the S&P 500 Index has inched along near an all-time high despite encouraging economic signals, as Wall Street’s concerns about a rich stock market in the face of mounting global uncertainty kept buying in check.

• United Kingdom $FTSE ( 0.0% ) 💂 UK's FTSE 100 hits record closing high on energy boost – Rueters: London's FTSE 100 recorded its highest-ever close on Thursday, outshining European peers on a boost from energy shares and some earnings-driven moves, though concerns about simmering geopolitical developments kept gains in check.

• China CSI 300 🐉 Chinese Stocks’ Premium Over Hong Kong Peers Drops to 5-Year Low – Rueters: The premium that Chinese stocks command over their Hong Kong-traded peers has narrowed to a five-year low, suggesting that some investors may look to snap up onshore stocks that have become cheaper.

• Canada $TSX.TSX ( 0.0% ) 🍁 After hitting all-time highs, TSX falls as Iran-Israel tensions shake markets – Rueters: Canada's main stock index retreated from recent highs on Friday, dragged down by investor fears of a wider conflict after an Israeli attack and Iranian retaliation rattled global markets. Investors rushed to safe-haven gold, pushing its price higher, while panic around the prospect of an all-out war triggered a spike in crude oil futures.

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📊 Stock Market

• Airlines $BA ( ▼ 1.68% )✈️  Air India crash is the latest test for new Boeing leadership – CNBC: Boeing’s leadership is back in crisis mode following the deadly crash of an Air India 787-8 Dreamliner jet after several key accomplishments in recent weeks to rebuild public trust following a series of safety and production crises.

• Banks : FinTech $CHYM ( ▼ 6.25% ) 💱  Chime pops 37% in Nasdaq debut after pricing IPO above expected range – CNBC: The online banking provider began trading marking one of the most closely watched fintech debuts in recent years. Chime priced its IPO at $27 per share, above the expected range, raiseding $700M in new capital in a deal valuing the company at about $11.6B

• Media $WBD ( ▼ 1.28% ) 🎪 Warner Bros. Discovery CEO Outlines “Bold Choice” to Split Company – Hollywood Reporter: ceo David Zaslav detail the blockbuster unbundling of WBD: Decision "reflects our belief that each company will go further and faster apart than they can together."

• eCommerce : Pets $CHWY ( ▲ 1.12% )🐕 Chewy Stock Tumbles as Net Income Falls Short of Estimates – CNBC: Chewy beat Q1 earnings and revenue estimates and reaffirmed FY guidance on rising active customers and net sales per user, and minimal tariff impact.

• Apparel : Beauty $VSCO ( ▼ 8.18% ) 👙 Victoria's Secret’s (NYSE:VSCO) Q1 Sales Top Estimates – CNBC: Victoria's Secret beat Q1 earnings and revenue estimates despite a 1% comparable sales decline, but issued a weak Q2 profit outlook dealing a setback to its ongoing turnaround under a freshman CEO.

🌐 Magnificent 7 & Technology

• Semi-conductors $NVDA ( ▼ 2.09% ) 🧇 Nvidia CEO says quantum computing is reaching an ‘inflection point’ – TechCrunch: Jensen Huang said “quantum computing is reaching an inflection point” during the chipmaker’s GTC Paris developer conference, adding: “We are within reach of being able to apply quantum computers in areas that can solve some interesting problems in the coming years”.

  Technology $GOOG ( ▼ 0.62% )🔍 Google offers buyouts to employees across the company, including Search – TechCrunch: Buyouts marketing, research and communications are part of the company’s effort to reduce headcount, which Google has continued to do in waves since laying off 12,000 employees in 2023. The online communications giant is also mandating office returns for remote workers who live within 50 miles of an office.

  Automobiles : EV $TSLA ( ▲ 1.94% ) 🔌 Tesla delays robotaxis debut in Austin, veers from June 12 launch to June 28 latest – TechCrunch: The EV automaker was expected to roll out its first robotaxi program in Austin, Texas amid waning interest in electric vehicles.

• Technology $ORCL ( ▲ 7.69% ) 🌐 Oracle beat Q4 earnings and revenue estimates on strong demand in cloud infrastructure and cloud services – TechCrunch: Oracle raised its annual revenue growth forecast to $67B, betting on robust demand for its cloud offerings from companies deploying AI.

  Software : Marketing $ADBE ( ▼ 5.32% ) 🎯  Adobe posts solid quarter, but market doubts its AI optimism – Sherwood by Robinhood: Adobe issued a Q2 beat-and-raise on strong demand for AI-driven products, with Digital Media and Digital Experience growing over 10% YoY.

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• Data Management 🧱 Scale AI CEO Alexandr Wang departs to join Meta after securing multibillion-dollar investment – SiliconANGLE: Scale AI’s founder is leaving to join Meta after confirming the social media giant has made an estimated $14.3B investment in return for a 49% stake in its ownership.

• Frontier LLMs 🤖 OpenAI releases o3-pro, a souped-up version of its o3 AI reasoning model – Tech Crunch: OpenAI’s O3-pro is a version of OpenAI’s o3, a reasoning model that the startup launched earlier this year. As opposed to conventional AI models, reasoning models work through problems step by step, enabling them to perform more reliably in domains like physics, math, and coding.

  • Reuters: OpenAI taps Google in unprecedented cloud deal despite AI rivalry, sources say

💬 The Prompt

• Meteorology ⛈️ Google develops AI model for forecasting tropical cyclones – Silicon Angle: Google detailed an AI algorithm model developed through a collaboration between its Google Research and DeepMind units that can forecast the path and intensity of tropical cyclones days in advance.

• Media 🎪 Disney, Universal File First Major Studio Lawsuit Against AI Company, Sue Midjourney for Copyright Infringement: ‘This Is Theft’ – Variety: Disney and NBCU filed a federal lawsuit Tuesday against Midjourney, a generative AI start-up, alleging copyright infringement. The companies alleged that Midjourney’s own website “displays hundreds, if not thousands, of images generated by its Image Service at the request of its subscribers that infringe Plaintiffs’ Copyrighted Works.”

• Media 🧸 Mattel inks deal with OpenAI for fan experiences – Hollywood Reporter: The Mattel-OpenAI partnership will see AI-powered products develop and bolster fan engagement and launch experiences, including potentially with attractions and rides based on iconic toy brands.

• Restaurants 🍔 Starbucks pilots ‘Green Dot’ AI virtual assistant tool – Inside Retail: Starbucks is trialing a new AI-powered virtual assistant (Green Dot Assist) across 35 stores in the US and Canada that enables baristas to ask questions and receive immediate, conversational answers, eliminating the need to reference manuals or look up info.

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• Parenting 👪 What parents should know about the $1,000 ‘Trump Accounts’ for babies – Time:  Almost every baby born in America would get a $1,000 government-sponsored investment account under President Trump’s “One Big Beautiful Bill” currently making its way thru Congress.

• Retirement 🏖️ The guy behind retirement’s 4% rule now thinks that’s way too low. Here’s how much more money you could spend. – Morningstar:  When Bill Bengen introduced the 4% rule in 1994, he had no idea it would take on a life of its own. Now, he has revised his trademark rule to be more generous.

• Great Wealth Transfer 👩  Women are about to inherit $30T: How to prepare for your windfall – GoBankingRates via Yahoo! Finance: A significant amount will be generationally-passed from men to their wives. Although this transfer is narrowing wealth disparities between women and men, a Bank of America Institute study found that women are still less confident in their ability to manage a financial windfall.

• Personal Finance 💸 The salary a single person needs to live comfortably in all 50 states. (It’s over $120k in 2 places) – CNBC:  According to SmartAsset, the median annual wage for individuals was just below $62,000 at the end of 2024, but it takes a salary of at least $80,829 for a single adult to live comfortably in West Virginia, the most affordable state.

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Lastly, thoughts go out to those impacted by the events in the Middle East and India.

✨ Happy Unprompting,

Rawee
[email protected]

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