Dow Jones - 42,215.80 (-0.70%) 

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• Traders reacted to Middle East tension. U.S. stocks edged lower on Tuesday after investors shrugged off the Middle Eastern conflict on Monday. No quick fix to the conflict rattled investors and more so after President Trump's social media post that read, "He is an easy target, but is safe there — We are not going to take him out (kill!), at least not for now. But we don’t want missiles shot at civilians, or American soldiers. Our patience is wearing thin."
• Every index in the red. The Dow Jones Industrial Average (^DJI) closed down roughly 0.7%, losing around 300 points. The S&P 500 (^GSPC) dropped more than 0.8%, and the Nasdaq Composite (^IXIC) slid over 0.9%, as geopolitical tensions rattled investor sentiment.
• Energy won the day. The Energy sector was the lone S&P 500 sector in the green on Tuesday, rising about 1% as oil prices once again picked up. Oil prices jumped over 4%.
• A trade agreement. President Trump and British Prime Minister Keir Starmer signed off on the US-UK trade pact agreed in May. 
• U.S. retail sales dropped more than expected. A drop of 0.9% in May was a sharper decline than economists anticipated, as consumers eased up following a pre-tariff spending surge.
• Interest cuts? The Fed is widely expected to keep interest rates unchanged in today's announcement.
• Central banks are buying up gold. Survey revealed that Central banks around the globe are ramping up gold purchases at a record pace while signaling a shift away from U.S. dollar reserves in the coming years. According to a survey from the World Gold Council, 95% of central bank respondents expect global reserves to rise over the next 12 months.
• Microsoft’s feud with OpenAI hits boing point. A Wall Street Journal report suggests that tensions with OpenAI are “reaching a boiling point.” OpenAI is asking Microsoft (MSFT, Financials) for significant financial concessions as it works to overhaul its for-profit division, according to a new report from The Information.
• TikTok may go dark. The social media site is once again facing a potential U.S. ban this week. President Trump on Tuesday said he'll likely extend the deadline for China-based ByteDance to sell off the short-form video app before it's set to go dark on Thursday, according to Reuters.
• Bitcoin (/BTC) fell. The coin extended its recent volatility amid geopolitical uncertainty. Shares of crypto-exposed firms Coinbase (COIN) and MicroStrategy (MSTR) also slid.
• A landmark Stablecoin bill. The Senate on Tuesday passed a groundbreaking bill that would establish the first federal regulatory framework for stablecoins, marking a major milestone for the cryptocurrency industry as it seeks legitimacy and oversight in Washington.
• JetBlue shares fell over 3%. The airline announced plans to cut more costs and scale back flight operations.
• Solar stocks took a dive. The Senate unveiled its version of President Trump’s tax and spending package, which reflected a united Republican effort to scrap clean energy tax credits. Sunrun led the sector’s plunge, tumbling 43%. SolarEdge Technologies, a battery systems supplier, dropped 39%, while Enphase Energy, known for its solar inverters, fell 27%. First Solar (FSLR) slid nearly 20%.
• Kraft Heinz ticked higher. The company announced it will eliminate synthetic dyes from the remaining 10% of its U.S. products still using them—affecting brands such as Kool-Aid and Jell-O.
• OpenAI scored a big contract. The U.S. Department of Defense awarded OpenAI a $200 million contract to "develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains."
• Xbox news. Microsoft and AMD signed a multi-year agreement to collaborate on new Xbox chip technology.
• Reddit kept climbing. The stock extended its rally for a second straight session after rolling out a suite of new AI-driven advertising tools.
• T-Mobile US declined. The stock went lower after SoftBank Group raised $4.8 billion by selling part of its stake. The proceeds will help fuel SoftBank’s continued investment in artificial intelligence.
• Verve Therapeutics soared 75% in premarket action. Eli Lilly announced a potential acquisition worth up to $1.3 billion. Despite the deal news, Lilly shares dipped 0.8% early Tuesday.
• Lennar climbed despite missing earnings per share estimates. The homebuilder beat revenue forecasts but flagged “softer market conditions,” with elevated mortgage rates and weaker consumer sentiment pressuring average selling prices.
• CERo Therapeutics posted triple-digit gains. The FDA granted Orphan Drug Designation for its lead candidate, CER-1236.

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“I’ve been saying, 'Oh, hell yes,' for I think it’s almost six weeks. Bombing and destroying their nuclear facilities, that’s about peace.” 

-Pennsylvania Sen. John Fetterman 

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Most Active Stocks

• Tesla (TSLA)
• Reddit (RDDT)
• CERo Therapeutics (CERO)
• AMD (AMD)
• Microsoft (MSFT)

Weekly Notables

OpenAI Seeks Major Concessions from Microsoft 

OpenAI is asking Microsoft (MSFT, Financials) for significant financial concessions as it works to overhaul its for-profit division, according to a new report from The Information. The AI company is reportedly proposing that Microsoft relinquish its rights to future profits in exchange for a 33% stake in a newly restructured entity. OpenAI is also looking to exclude its acquisition of AI coding firm Windsurf from Microsoft’s intellectual property access agreements.

Senate Approves Historic Stablecoin Legislation

In a significant step toward regulating digital assets, the Senate on Tuesday passed a landmark bill that would create the first-ever federal framework for stablecoins—marking a pivotal moment for the cryptocurrency industry as it pushes for greater legitimacy in Washington. The legislation, titled the GENIUS Act—short for Guiding and Establishing National Innovation for US Stablecoins—cleared the chamber in a bipartisan 68-30 vote. While the bill still needs to pass the House and be signed by President Trump to become law, its swift progress is already being hailed as a major victory for the crypto sector.

Earnings Spotlight: Smith & Wesson Brands, Inc. (SWBI)

• Smith & Wesson Brands is gearing up to announce its Q4 earnings today after the close with expectations of a notable year-over-year decline. Analysts predict earnings per share (EPS) to drop significantly, potentially impacting investor sentiment. Amidst projections for a significant decline, analysts forecast an earnings per share (EPS) of $0.23, reflecting a 48.9% drop from the same period last year. Revenue is also expected to shrink by 4.2%, totaling $152.41 million compared to the previous year.