S&P 500 – 7,386.65 (-0.26%)

Dow Jones – 50,872.11 (+0.17%)

NASDAQ – 25,678.82 (-0.97%)

• MARKET ACTION: Tech Rotation and Geopolitical Jitters Weigh on Equities: U.S. equities declined on Tuesday as a renewed rotation out of technology stocks and rising geopolitical tensions between the U.S. and Iran weighed on sentiment, with major indices paring deeper intraday losses into the close.
• MIDDLE EAST TENSIONS: Trump Signals U.S. Will “Respond” After Alleged Iran Strike: Tensions escalated after President Trump said the U.S. will “respond” to Iran allegedly shooting down an Apache helicopter near the Strait of Hormuz, though details remain unclear and the incident is still under investigation.
• DERIVATIVES SURGE: Kalshi “Perps” Top $1B in First Week of Trading: Kalshi’s newly launched perpetual futures surged past $1 billion in trading volume within a week, highlighting strong early demand for the U.S.-approved derivatives product.
• SPORTS MARKETS: Knicks–Spurs Finals Tied Ahead of Crucial Game 4: The NBA Finals heads into Game 4 tied after the Spurs’ Game 3 win in New York, with prediction markets and models slightly favoring the Knicks in a closely priced matchup.
• CONSUMER SHIFT: Lavazza Pushes Coffee Innovation Into U.S. Single-Serve Market: Lavazza is bringing its Tablì single-serve coffee tablet system to the U.S., aiming to compete in the premium pod market with a fully coffee-based brewing format.
• RATES & MACRO: Yields Ease as Markets Balance Growth and Geopolitical Risk: Bond yields are easing, with the 10-year U.S. Treasury yield at 4.54%, offering additional support for equities. Global markets were mixed-to-positive, with Europe higher and Asia uneven. WTI crude slipped below $90 per barrel before paring losses on renewed geopolitical concerns after Trump’s comments on Iran, while earlier optimism around diplomacy briefly pressured oil. President Trump also reiterated confidence that a potential deal with Iran could still be reached in the near term.
• LABOR SIGNALS: Hiring Trends Point to Cooling but Stable Employment: U.S. private employers added an average of 29,000 jobs per week over the four weeks ending May 23, slightly below the prior reading, signaling continued moderation in hiring momentum.
• TECH & AI LEADERSHIP: Semis Rally on Memory and AI Momentum: Semiconductor names, particularly in memory, were among the strongest performers. Micron rose nearly 5%, SanDisk (SNDK) gained about 4%, and Marvell (MRVL) also advanced roughly 4%.
• AI INFRASTRUCTURE: Applied Digital Rallies on Long-Term Hyperscaler Deal: Applied Digital (APLD) surged after Bloomberg reported the company signed a 15-year lease agreement with a U.S. AI hyperscaler, reinforcing continued demand tied to AI infrastructure.
• INDIVIDUAL STOCK PRESSURE: Vail Resorts Cuts Outlook on Weak Weather Conditions: Vail Resorts (MTN) fell after cutting its full-year net income outlook, citing exceptionally unfavorable weather conditions and weaker visitation trends across key markets.
• APPLE IN FOCUS: WWDC AI Updates Meet Muted Market Reaction: Apple (AAPL) traded slightly lower following its Worldwide Developers Conference, which featured AI enhancements to Siri powered by Alphabet’s Gemini technology, along with broader software updates. Analyst sentiment remained steady.
• EARNINGS MIX: Smucker Beats Expectations but Soft Outlook Weighs: J.M. Smucker (SJM) rose after better-than-expected earnings and in-line revenue, though its fiscal 2027 revenue guidance came in below consensus estimates.
• CRYPTO WEAKNESS: Bitcoin Pullback Pressures Digital Asset Stocks: Crypto-linked equities softened as Bitcoin declined more than 1%, contributing to broader risk-off sentiment in digital asset names.
• HOUSING & FINANCIALS: Homebuilders Move on Analyst Calls: Toll Brothers (TOL) gained after an upgrade from Keefe Bruyette, while Lennar (LEN) was downgraded due to higher exposure to entry-level housing markets.
• CHINA TRADE: Exports Surge to Record High on AI-Driven Demand: China’s exports rose 19.4% in May to a record level, driven in part by strong AI-related hardware demand and pricing effects amid energy cost dynamics.
• HOUSING DATA: Existing Home Sales Edge Higher Year-Over-Year: Existing home sales rose 3.2% year-over-year in May to a seasonally adjusted annual rate of 4.17 million, with monthly gains also reflecting modest improvement in demand conditions.

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“I have measured out my life with coffee spoons.”

 — T. S. Eliot

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Notable Stocks

• Intel (INTC)
• Apple (AAPL)
• Applied Digital (APLD)
• Vail Resorts (MTN)
• Micron (MU)

Weekly Notables

Trump Says U.S. Will “Respond” After Iran Allegedly Downs Apache Helicopter Near Strait of Hormuz

President Donald Trump said Tuesday that the United States will “respond” after accusing Iran of shooting down a U.S. Apache helicopter patrolling near the Strait of Hormuz. In a Truth Social post, Trump said the two pilots involved were safe and uninjured, but added that the U.S. “must, of necessity, respond” to the incident. He did not specify what form that response would take.

Vinted Sees Structural Shift Toward Secondhand Shopping as Valuation Tops $9 Billion

Vinted is seeing a “fundamental” change in consumer behavior as more shoppers embrace resale markets, according to the company’s marketplace CEO, amid continued rapid growth for the online secondhand platform. The consumer-to-consumer marketplace, which allows users to sell items such as clothing, electronics, and furniture, has benefited from rising cost-of-living pressures and a broader shift toward value-driven spending. The company said the total value of goods sold on its platform rose nearly 50% last year as it expanded further across Europe.

Earnings Spotlight: Oracle Corp. (ORCL)

Oracle is scheduled to report its fiscal fourth-quarter 2026 earnings on June 10, 2026. Wall Street projects adjusted earnings per share of $1.96 on roughly $19.1 billion in revenue. The company’s financial performance will heavily hinge on data center expansion costs and surging AI infrastructure demand.

What's Ahead

Attention now turns to today’s U.S. Consumer Price Index (CPI) report for May. Consensus expectations call for headline inflation to rise to 4.2% year-over-year from 3.8% previously, which would mark a three-year high if realized. Core CPI is expected to edge up to 2.9% from 2.8%, the highest level since September 2025.

The details of the report will be critical, particularly whether inflation pressures are concentrated in energy or increasingly spreading into core services, which would carry greater implications for Federal Reserve policy. 

June 10: May CPI, May core CPI, and expected earnings from Chewy (CHWY) and Oracle (ORCL).
June 11: ECB interest rate decision, May PPI and core PPI, and expected earnings from Adobe (ADBE) and Lennar (LEN).
June 12: University of Michigan June preliminary consumer sentiment.
June 15: May industrial production.
June 16: Start of FOMC meeting, May housing starts and building permits.