ZeroHedge News

Permadrought: 75% Of Global Population Lives In A Country Affected By 'The Great Drying'

Tyler Durden — Tue, 02 Jun 2026 21:00:00 +0000

Permadrought: 75% Of Global Population Lives In A Country Affected By 'The Great Drying'

Authored by Michael Snyder via The Economic Collapse blog,

Our planet is drying out at a pace that is unlike anything we have ever seen before. Once massive lakes are rapidly shrinking, once mighty rivers are steadily dwindling, and colossal underground aquifers are being pumped dry all over the world. This is an absolutely enormous problem, because very soon we simply will not have enough fresh water to support 8 billion people. In fact, drought conditions are severely affecting global crop production in 2026. If current trends continue, it will become increasingly difficult to grow food. In other words, if the land on our planet doesn’t stop drying out there is no way that we will be able to avoid an era of widespread global famines.

This isn’t something that just started happening recently.

Over the last several decades, the world has been losing fresh water “at an unprecedented rate”…

The world is losing fresh water at an unprecedented rate, two decades’ worth of satellite data has revealed.

Measurements from NASA’s twin GRACE satellites and GRACE follow-on missions have shown that since 2002, the amount of land suffering from water loss has been increasing year on year by twice the area of the state of California. That includes the loss of water from surface reservoirs such as lakes and rivers and underground aquifers, which are an important source of drinking water around the globe.

Mega-drying regions have emerged across the Northern Hemisphere with the worst-hit areas extending across the western coast of North America, Southwestern North America and Central America, the Middle East and Southeast Asia.

Just look at what has been happening to the Great Salt Lake.

Once upon a time it was absolutely gigantic.

But now it has lost approximately 73 percent of its water and approximately 60 percent of its surface area.

Of course this isn’t just happening in the United States.

One study found that 75 percent of the population of the world currently lives in a country that is being affected by “continental drying”…

Much of the Earth is suffering a pandemic of “continental drying,” affecting the countries containing 75% of the world’s population, the new research shows.

The study, published in the journal Science Advances, examined changes to Earth’s total supply of fresh water and found that nearly 6 billion people live in the 101 countries facing a net decline in water supply, posing a “critical, emerging threat to humanity.”

I was stunned when I first read that.

If 6 billion people live in nations that are steadily drying out, what does that mean for the future of humanity?

We aren’t just talking about a few isolated deserts.

The United Nations is telling us that excluding Antarctica, drylands now account for more than 40 percent of all the land on this planet.

And more than three-quarters of all the land on this planet has been getting drier over the past 30 years…

As Earth continues to warm, more and more of the planet is becoming dry. A 2024 UN report found that in the last three decades, over three-fourths of all the world’s land became drier than it had been in the previous 30 years.

Drylands now comprise 40.6% of all global land (excluding Antarctica). In addition, the number of people living in drylands doubled over the last 30 years to 2.3 billion, which represents over 25% of the global population. In a worst-case climate change scenario, this number could climb to 5 billion by 2100.

Many of us have just come to accept that drought is a normal part of life.

If you look at the latest U.S. Drought Monitor map, it is a nightmare.

Right now, more than 60 percent of the continental United States is experiencing at least some level of drought…

As of May 26, 2026, 50.77% of the United States and Puerto Rico and 60.77% of the Lower 48 states are in drought.

Some of the areas that are being hit the hardest are where we grow our food.

In particular, wheat farmers in the U.S. are having a very challenging time this year…

It’s a perfect storm of terrible conditions for wheat farmers this year. Drought, dramatic swings in temperature, the skyrocketing price of fertilizer and diesel, plus multiple viruses affecting wheat have all led to one of the most challenging years for farmers in decades.

There are different classes of winter wheat, but they’re all down when compared to last year’s crop, explained Todd Hubbs, a crop marketing specialist at Oklahoma State University Extension.

What are they supposed to do?

If it doesn’t rain, it doesn’t rain.

Unfortunately, it is being projected that the winter wheat harvest in the U.S. will be down by 21 percent compared to last year…

The most widely produced class of wheat in the U.S., Hard Red Winter wheat, has a current production forecast of 515 million bushels. That may sound like a lot, but it would end up being the lowest since 1957, Hubbs said.

Soft red winter and white wheat varieties are also having tough years, with the lowest production volume in 6 to 10 years.

In all, growers will see their smallest wheat crop in terms of production since 1972, according to the U.S. Department of Agriculture; 1.56 billion bushels this year, down 21% from 2025.

Are you going to eat 21 percent less wheat this year?

I don’t think that anyone is planning to make that kind of sacrifice.

But there simply won’t be as much wheat as normal in 2026.

Kansas is a key wheat producing state, and a lack of rain has created nightmare conditions in much of the state…

The latest U.S. Drought Monitor (USDM) data, published May 28, shows 57% of Kansas suffering from drought, Sittel said.

“For the 26-year history of the USDM, the median coverage of drought in Kansas is 22%, which is another way to look at our current conditions against a historical time series,” Sittel said.

Typically, the winter wheat crop receives a few inches of rainfall in the spring, but that didn’t happen this year.

“The majority of the crop didn’t get that extra rainfall, and where we didn’t get any of that rainfall, a lot of times the crop already got terminated and insurance was called upon,” Lollato said. “Or we’re looking at very, very limited yield potentials, like 15–20 bushels per acre.”

We just experienced the driest first three months of a year ever recorded in the United States.

That is really saying something.

In addition to a seemingly endless drought, U.S. farmers are also facing much higher prices for diesel fuel and fertilizer.

On top of everything else, now a “Super El Niño” is coming, and that means that drought conditions will greatly intensify in many parts of the world.

This may be a good time to remind my readers that the “Super El Niño” of 1877-1878 caused horrifying droughts that killed more than 50 million people all over the globe.

Unfortunately, scientists are warning that the “Super El Niño” that will start later this year could be even more powerful.

Yes, we really are facing a catastrophic scenario.

But for now most of the population is still pretending that everything is going to be just fine, and so they continue to party as things rapidly get worse all around them.

Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

Tyler Durden Tue, 06/02/2026 - 17:00

DOGE Alumni Launch AI Startup To Target Waste On Main Street - And Already Have Their First Target

Tyler Durden — Tue, 02 Jun 2026 20:40:00 +0000

DOGE Alumni Launch AI Startup To Target Waste On Main Street - And Already Have Their First Target

Two alumni of the Department of Government Efficiency are bringing their cost-cutting experience from Washington to the private sector, launching Special, a startup that aims to harness artificial intelligence to wring inefficiencies out of what it describes as America's $10 trillion Main Street services economy.

Nate Cavanaugh and Justin Fox spent much of 2025 at DOGE, where they spearheaded the Small Agencies team. Their government stint, under the high-profile effort led by SpaceX and Tesla CEO Elon Musk, contributed to approximately $215 billion in estimated savings. The pair departed in September 2025.

In the spirit of DOGE, Figure Health plans to open source all of its billing claims, allowing the public to have full visibility into our Medicare and Medicaid...
- Nate Cavanaugh (@natecavanaugh) June 2, 2026

"Similar to the government, Main Street is massive, highly unoptimized, and provides essential services to Americans. One needs to look no further than childcare learning centers in Minnesota or hospice businesses in California to find immense waste at the state level from businesses that benefit from taxpayer dollars," the founders wrote in their announcement. "AI provides a generational opportunity to transform the efficiency of these businesses, root out waste, and deliver a great customer experience for American taxpayers. Through this process, we believe we can set a new standard for how these businesses should operate."

Special is reportedly building what it calls SpecialOS, an operating system that integrates frontier AI models with proprietary tools to automate manual tasks like billing, scheduling, and insurance processing. Instead of licensing the technology broadly, the company plans to vertically integrate by acquiring and operating businesses in targeted industries, allowing it to control deployment and outcomes.

The first product, Figure Health, focuses on senior care and has already secured its first acquisition in Texas, a provider serving more than 1,400 patients and employing hundreds of nurses, according to the company. The plan is to use AI efficiencies to raise nurse pay, easing labor shortages while improving care quality. Figure Health intends to open-source its Medicare and Medicaid billing claims.

Special has attracted notable backing in a financing round led by Andreessen Horowitz, with participation from DOGE alumni and allies including Steve Davis, as well as Coinbase's Brian Armstrong and Palantir's Shyam Sankar.

"The name Special pays tribute to those we believe are the greatest movers of society: the builders, the creators, the people who put it all on the line and just go for it. Special pledges allegiance not only to the United States, but to those in the arena - the ones courageous enough to move the world forward," Cavanaugh and Fox said.

Tyler Durden Tue, 06/02/2026 - 16:40

Bamboozled Once Again...

Tyler Durden — Tue, 02 Jun 2026 20:20:00 +0000

Bamboozled Once Again...

Authored by Jim Quinn via The Burning Platform blog,

“One of the saddest lessons of history is this: If we’ve been bamboozled long enough, we tend to reject any evidence of the bamboozle. We’re no longer interested in finding out the truth. The bamboozle has captured us. It’s simply too painful to acknowledge, even to ourselves, that we’ve been taken. Once you give a charlatan power over you, you almost never get it back.” ― Carl Sagan, The Demon-Haunted World

“Narcissists are unstable and go through repeated cycles of self-destruction, with other people usually paying the heft of the price. They are aware of what they are doing to others — but they do not care. Narcissists tend to be divisive, vindictive, confrontational, aggressive, hate-filled, raging, incoherent, judgment-impaired, and irrational.” – Sam Vaknin, Malignant Self-Love

Carl Sagan‘s words from 30 years ago, about the American public no longer caring about the truth and unwilling to acknowledge they have been bamboozled by the men controlling the levers of power over our civilization, has never been more prescient than during our current period of delusion, degradation and decay. As the crumbling American empire of debt and denial approaches its disastrous rendezvous with destiny, the populace remains gloriously and willfully ignorant of reality, mathematical certainty of collapse, and the treachery of those constituting the Deep State ruling class. We are truly living in a demon haunted world, run by child rapists and satanists.

It’s interesting Sagan had the foresight to make this brilliant observation in 1995, well before it became readily provable here in this century of the bamboozle, where the banality of evil, inflicted upon the masses by faceless apparatchiks, at the behest of soulless billionaire psychopaths in suits, has turned a once vibrant republic into a dying totalitarian hollowed out husk of a nation. I was bamboozled for about the first forty years of my life, but the weapons of mass destruction bamboozle in 2003 was the final straw. My eyes were opened to the utter corruption and lies of those hand selected by the real ruling class to lead our nation.

I’m convinced this century will see the end of the American Empire, likely to last less than 100 years (1946 – 2033?). As we approach the final blood letting that always marks the final years of a Fourth Turning, the malevolent, degenerate billionaires who currently control our world and pull the levers manipulating the willfully ignorant masses, are maximizing multiple bamboozles in an attempt to expand their wealth, optimize their power, and exploit the system to control the masses in an AI based technocratic gulag. We are nothing but expendable pieces in their demented game of Risk.

These Deep State fiends are the ruling social order doing everything in their power to avoid being swept away by the forces of this Fourth Turning, including mass murder (Covid jabs), global war, assassinations, planned starvation, imprisonment of truth tellers, and unrelenting propaganda designed to bamboozle the public into believing these totalitarian charlatans are actually doing these things (AI data centers, Iran War for Israel, kidnapping world leaders, waging a proxy war against Russia, threatening to invade multiple sovereign nations) for their own good. These bamboozles did not happen by happenstance.

As Edward Bernays explained in his 1928 book – Propaganda – there has always been a ruling elite who knew they could manipulate the minds of the masses in order to control the world. Back then they only had newspapers and radio. Bernays would be flabbergasted at the propaganda tools currently in the hands of the bamboozlers. Convincing a massively dumbed down populace of anything today is like taking candy from a baby.

“The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country. We are governed, our minds are molded, our tastes formed, our ideas suggested, largely by men we have never heard of. This is a logical result of the way in which our democratic society is organized. Vast numbers of human beings must cooperate in this manner if they are to live together as a smoothly functioning society. In almost every act of our daily lives, whether in the sphere of politics or business, in our social conduct or our ethical thinking, we are dominated by the relatively small number of persons who understand the mental processes and social patterns of the masses. It is they who pull the wires which control the public mind.” – Propaganda

The bamboozles went into overdrive at the start of this century. Those who profit from chaos, war and debt were down in the dumps, as there were no major conflicts in the world, deficits and government spending were under control, the internet was going to make our lives easier, and the optimism of a new century was lifting the spirits of America. The Deep State bad actors needed to rectify the situation and the 9/11 bamboozle was just what the doctor ordered. This inside job, probably in cooperation with Israel, ignited two decades of war, tens of trillions in government debt creation, implementation of the surveillance state through the pre-written Patriot Act, 100% increase in inflation (using the fake CPI number), and multiple bubbles/crashes used to lure the masses into consumer debt servitude to the Wall Street banking cabal.

Sagan feared the dumbing down of America through government indoctrination centers, known as public schools, would lead to a celebration of ignorance (have you seen the high school graduation videos floating around on-line?). With a populace unable or unwilling to think critically, the mouthpieces for the ruling elite in the media were easily able to manipulate the emotions, fears and greed of the average person and convince them to act in a way that would benefit the agenda of our overlord class. The slow decay of our culture turned into an avalanche of degeneracy and deceit.

Our world is supposedly driven by science and technology, but our schools matriculate mostly morons into society. The elitists who declare themselves scientific and medical experts (Fauci, Birx, Gates), technological geniuses (Musk, Karp, Altman, Theil) and social philanthropists (Soros, Adelson, Hoffman) are either mass murders, chaos coordinators, grifters, war mongers, and/or totalitarian minded pretentious traitors to mankind.

These people have far too much power and dominion over the narratives spun to sway the public. Truth is of no interest to these demons. The current combustible amalgam of public ignorance and elitist wealth and power is destined to ignite and create a conflagration which could burn our nation to the ground.

I certainly have a foreboding we have entered an age of darkness, where the “invisible government” (aka Deep State), who have relied on Huxley’s soft totalitarianism, where the masses have learned to love their servitude, have begun to lose control of the narrative, as financial collapse looms, and are now turning to Orwell’s “boot stamping on your face forever” totalitarianism, with AI data (Surveillance) centers providing the backbone and enforcement mechanism for this authoritarian dystopian future.

“There will be no curiosity, no enjoyment of the process of life. All competing pleasures will be destroyed. But always— do not forget this, Winston— always there will be the intoxication of power, constantly increasing and constantly growing subtler. Always, at every moment, there will be the thrill of victory, the sensation of trampling on an enemy who is helpless. If you want a picture of the future, imagine a boot stamping on a human face— forever. ” ― George Orwell, 1984

The Covid bamboozle perfectly captures the willful ignorance of the vast majority of Americans, who refuse to accept the unequivocal fact they were bamboozled by Fauci, Gates, Trump, Biden, and hundreds of other so called bought off “experts”. As a key element of their de-population agenda, a fake pandemic with a billion dollar marketing campaign; 24/7 media fear propaganda; never ending lies about cases, deaths, and treatments; killing patients with remdesivir and vents while paying hospitals per death; suppressing ivermectin and hydroxychloroquine because they worked; and forcing a toxic gene therapy (not a vaccine) to be injected into billions of guinea pigs across the world. Despite real scientific proof the shots killed people and will continue to kill people into the future, most of the jabbed prefer to remain bamboozled because the truth of their acquiescence to authority is too painful to confront. Willfully ignorant they prefer to remain.

Sagan foresaw the gutting of American jobs, the rise of technology in the hands of a few, and a populace so bamboozled by those in control of the narrative, they were incapable of resistance and unable to discern truth from falsehood. The unpayable national debt exceeding $39 trillion and the unfunded social welfare liabilities exceeding $200 trillion are guaranteed to create a governmental financial collapse. Credit card debt, mortgage debt, auto loan debt and student loan debt are at all-time highs, with defaults accelerating. We are losing a war, AI is taking our jobs, inflation is soaring, and the average schmuck is buying stocks at all-time highs, when a crash is inevitable. It seems Americans love being bamboozled, until the consequences land on their heads like a ton of bricks. Sagan warned us.

“I have a foreboding of an America in my children’s or grandchildren’s time — when the United States is a service and information economy; when nearly all the manufacturing industries have slipped away to other countries; when awesome technological powers are in the hands of a very few, and no one representing the public interest can even grasp the issues; when the people have lost the ability to set their own agendas or knowledgeably question those in authority; when, clutching our crystals and nervously consulting our horoscopes, our critical faculties in decline, unable to distinguish between what feels good and what’s true, we slide, almost without noticing, back into superstition and darkness… ― Carl Sagan, The Demon-Haunted World

We are currently experiencing the biggest bamboozle of them all – Trump’s presidency. His Make America Great shtick convinced millions to vote for him, but a huge chunk voted for him because his 75 IQ cackling hyena whore of an opponent was an absolutely unacceptable alternative. Virtually everything he promised to do turned out to be a lie. His extreme narcissism was perfectly described by Sam Vaknin in the quote above. Trump stated how little he cares about the financial plight of average Americans when questioned recently.

“I don’t think about Americans’ financial situation, I don’t think about anybody” – Donald Trump

Trump was going to end the Ukraine war in a week. He was going to keep us out of Middle East wars. He was going to reduce the deficit. DOGE was going to reduce government waste and save trillions. Gas was going to be $2.00 a gallon. Tariffs were going to restore manufacturing to America. He was going to release ALL the Epstein files. He was going to deport all the illegal invaders. He was going to prosecute all his enemies who stole the 2020 election and persecuted him and the J6ers. He was going to make future elections safe and fraud free. Everyone was going to get DOGE checks. Everyone was going to get tariff checks.

It is crystal clear to anyone with two brain cells Trump has failed to deliver on any of these campaign promises. The country was clearly bamboozled, but the MAGA NPCs reject all evidence of the bamboozle. They are captured and unwilling to recognize they were lied to and misled. It is too painful for those who saw Trump as some sort of savior to admit they have been bamboozled. The older I get, the less sure I am about what is happening in this world and who is responsible for the insanity. When every conspiracy theory comes true, I am now inclined to believe the worst scenario in every staged situation presented to the public by our overlords. Was Trump in on the bamboozle from the get go, or did something or someone “convince” him it was in his best interest to follow orders and set in motion the downfall of an empire?

In my estimation, the dystopian nightmare ignited by Trump at the start of 2026 is entirely related to the Epstein files and Israel blackmailing Trump, politicians in both parties, and billionaires who liked to rape children. Trump kidnapping foreign presidents; threatening to invade Greenland, Cuba and numerous other sovereign nations; turning on the America First patriots who got him elected (Massie, MTG, Carlson); embracing the traitorous Israel Firsters (Levin, Loomer, Huckabee); ramping up the Ukraine proxy war against Putin; and ultimately being Netanyahu’s bitch by insanely going to war with Iran under the false pretense of them being 2 weeks away from a nuclear bomb they would use on Israel, has set in motion a series of financial, political, and societal events which will have disastrous consequences for Americans and the world.

And still, the vast majority of Americans are either oblivious to the gathering storm, or openly cheering on their own downfall, because they refuse to believe they have been bamboozled once again. This tweet from X poster MW4Liberty succinctly and brutally captures this moment in time:

We live in an open air prison called America.
Debt slaves to central bankers who counterfeit our money.
Ruled by Baal worshiping pedos who traffic kids and souls.

Many of you out there?
Perfectly content in your recliner.
TV on. Phone in hand. Brain off. Worshiping a politician.

Mention any of this? Question the war?
You EXPLODE. You rush to defend your chains. That’s the conditioning talking.
The fear. The manufactured consent.
The illusion of choice they programmed into you.

Your “agency” is a f***ing joke.
They own your thoughts, your outrage, your vote. You’re a good little order taker.

History will not remember you well.

We have passed the point of no return. It is impossible to wake a vast majority of bamboozled boobs from their self-induced stupor. They will need to experience a banquet of consequences, on par with the Red Wedding scene from Game of Thrones, before reality will set in. There are a tireless, irate minority of men and women who still adhere to Samuel Adams‘ belief in prevailing over the forces of evil by setting brush fires of freedom in the minds of men. I consider myself a member of this small club.

This irate minority who form the resistance to the Deep State and their malicious machinations are why those pulling the levers of our society are accelerating their diabolical plans. They are scared of us because they are actually the minority, pretending to be the majority. They have abruptly abandoned their climate hoax bamboozle because it does not jive with their new AI surveillance center bamboozle that requires more electricity and water than exists on the planet today.

At the outset of 2026 you barely heard a peep about data centers. Now, there is a frenzy of planned data (surveillance) centers because they are the key cog for pedo-billionaires to technologically control the global population through permanent surveillance, dominion over your financial assets, social credit scores based on your obedience to their commands, and ability to ruin your life with the push of a button. Believing their bamboozles has given you the illusion of freedom. But your controllers have decided the illusion has become to expensive to maintain, so these data (surveillance) centers are the brick wall at the back of the theater, described many years ago by Frank Zappa.

.“The illusion of freedom will continue as long as it’s profitable to continue the illusion. At the point where the illusion becomes too expensive to maintain, they will just take down the scenery, they will pull back the curtains, they will move the tables and chairs out of the way and you will see the brick wall at the back of the theater.” ― Frank Zappa

Our choice is sedately accept our techno-imprisonment or fight using any means necessary. This is how Fourth Turnings roll. Good luck and Godspeed.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of ZeroHedge.

Tyler Durden Tue, 06/02/2026 - 16:20

Venezuela Oil Exports Hit 7-Year High

Tyler Durden — Tue, 02 Jun 2026 19:40:00 +0000

Venezuela Oil Exports Hit 7-Year High

Authored by Tsvetana Paraskova via OilPrice.com,

Venezuela’s oil exports inched up from April to hit a fresh seven-year high in May as shipments to the United States and India continued to rise.

Venezuela exported an estimated 1.25 million barrels per day (bpd) of oil in May, up by 0.7% compared to April’s 1.23 million bpd exports and a massive 61% jump compared to May 2025, according to ship-tracking and vessel-loading data reviewed by Reuters.

Venezuela has been steadily increasing its oil exports since the U.S. took control over its oil sales following the capture of Nicolas Maduro early this year.

The U.S. has eased sanctions on Venezuela’s oil industry and its state oil firm PDVSA, allowed Western firms to return to Venezuelan operations, and has encouraged American companies to sign production and export deals.

The U.S. and India have become major buyers of Venezuela’s oil after the sanctions were dropped and the top international oil traders Vitol and Trafigura were tasked to sell most of the crude to buyers.

As a result, the Venezuelan exports rose for a third consecutive month in May, with shipments to India accounting for the slight increase compared to April.

Exports in April jumped by 14% from March levels, with 66 cargoes leaving Venezuelan ports during the month, and volumes at their highest since 2019 when the first Trump Administration imposed sanctions on PDVSA and Venezuela’s oil exports.

In May, a total of 67 cargoes carrying Venezuelan crude were exported, according to the data Reuters has reviewed.

The United States remained the top buyer of Venezuela’s crude, taking in about 558,000 bpd in May, followed by India with 427,000 bpd and Europe with 169,000 bpd. Shipments to all three regions rose in May from April levels.

India’s top private refiner, Reliance Industries, has become one of the three biggest buyers of Venezuelan crude as it imported cargoes sold by Chevron, Vitol, and Trafigura, according to the data.

India is importing the highest volumes of Venezuelan crude in six years as it turns to the South American producer amid the Middle East supply crisis.

Tyler Durden Tue, 06/02/2026 - 15:40

Shake Shack Gets Smoked After Cutting Guidance

Tyler Durden — Tue, 02 Jun 2026 19:20:00 +0000

Shake Shack Gets Smoked After Cutting Guidance

Shake Shack plunged on Tuesday, hitting its lowest levels since November 2023, after the burger chain slashed second-quarter guidance only about a month after issuing it.

Baird analyst David Tarantino said the new outlook is viewed as "incrementally negative" for Shake Shack.

Tarantino noted that management had set an "unusually high bar" for 2Q comparable performance with its previous outlook, implying mid- to high-single-digit comps in May and June after -.6%.

He added that the updated guidance ranges may be attributed to new CFO Michelle Hook, who started May 11, and said "desire to set a more achievable bar going forward."

The burger chain, which has 445 stores in the U.S., now expects second-quarter revenue of $415 million to $420 million, down from its prior forecast of $424 million to $428 million.

Same-Shack sales growth is now expected to be 2.5% to 3%, down from the earlier 3% to 5% range. Shares sank 11% in the late-morning cash session, extending a nearly yearlong bear-market slide.

Here's a snapshot of the 2Q Forecast:

Sees total revenue $415 million to $420 million, saw $424 million to $428 million, estimate $421.9 million
Sees licensing revenue $13.5 million to $13.7 million
Sees same-Shack sales 2.5% to 3%, saw 3% to 5%
Sees restaurant level operating margin 22% to 23%, estimate 24.2%
Sees Company-operating openings about 16, estimate 18

"These results are particularly encouraging in the face of a challenging macro environment and inclement weather," Shake Shack wrote in a corporate presentation.

The downgrade adds to concerns that higher beef prices and other input prices are compressing margins. There are also concerns that cash-strapped consumers are dialing back purchases on higher-priced menu items.

Related:

Shake Shack Shares Crash Most On Record; McDonald's CEO Warns Of Faltering Consumer

Last month, Shake Shack reported a small multi-million-dollar loss in the first quarter despite a 14% revenue increase, reflecting the costs of investments to boost foot traffic.

Shares are now roughly 60% off their peak, a drawdown that has historically coincided with the stock's bottom. That said, downside pressure could still extend toward the $40 to $50 range, which has served as support during previous selloffs.

Shake Shack's guidance cut suggests the premium growth story is over for at least now, and the fast-casual restaurant chain may need a clearer turnaround plan to reignite Wall Street optimism. Perhaps that's what CFO Hook is about to engineer in the quarters ahead.

Tyler Durden Tue, 06/02/2026 - 15:20

Pentagon Restricts Press Office Access Over Privacy Concerns

Tyler Durden — Tue, 02 Jun 2026 19:05:00 +0000

Pentagon Restricts Press Office Access Over Privacy Concerns

Via American Greatness,

The Pentagon announced Monday that reporters will no longer have open access to the War Department’s public affairs office after the space was redesignated as a classified facility to accommodate staff handling sensitive material.

The announcement marks the latest effort by the Pete Hegseth-led War Department to tighten operational security and reshape longstanding media access practices inside the Pentagon.

Under the new policy, the Pentagon’s public affairs office has been converted into a Sensitive Compartmented Information Facility, commonly known as a SCIF.

The office had previously allowed journalists to enter without escorts and directly approach military public affairs officials with questions.

Pentagon spokesman Joel Valdez said the change was necessary because speechwriters working in the office routinely handle classified material and require access to secure government systems.

“This is the most transparent War Department in history. No amount of spin from the Fake News media will change that,” Valdez wrote in a post on X.

This is the most transparent War Department in history. No amount of spin from the Fake News media will change that.

The Pentagon Press Office has been redesignated as a Sensitive Compartmented Information Facility due to speechwriters from the Office of the Secretary of War… https://t.co/tlWb1XIeOk
— Acting Press Sec Joel Valdez (@JoelValdezDOW) June 1, 2026

“These speechwriters routinely handle classified material and require SIPRNet access. As a result, journalists will no longer be permitted to enter the office space. There’s nothing controversial about that,” he added.

Valdez said reporters will still have access to the Pentagon press secretary and the Assistant to the Secretary of War for Public Affairs through scheduled appointments.

The policy change comes months after War Secretary Pete Hegseth imposed additional restrictions on media operations at the Pentagon.

Last October, the department introduced new rules allowing officials to revoke press credentials from reporters designated as security risks.

The New York Times subsequently filed two lawsuits against the Pentagon, arguing the restrictions violate First Amendment protections. Both cases remain pending in court.

Tyler Durden Tue, 06/02/2026 - 15:05

HSBC Warns Of Commodity "Super-Squeeze" As Goldman Hikes Copper Forecasts

Tyler Durden — Tue, 02 Jun 2026 18:45:00 +0000

HSBC Warns Of Commodity "Super-Squeeze" As Goldman Hikes Copper Forecasts

Copper is inching closer to its mid-May all-time high of $14,153 a ton on the London Metal Exchange, trading around $13,832 on Tuesday morning, as Goldman raised its year-end price targets and HSBC warned that commodities face a "super-squeeze" with the Hormuz maritime chokepoint still largely shuttered in early June.

Let's begin with HSBC analysts, who wrote in a note to clients that "metal prices are generally in an upswing, driven by supply disruptions for some commodities due to the Middle East conflict and strong structural demand."

They warned that commodities were facing a "super-squeeze" with the Strait of Hormuz still blocked.

HSBC's note comes after Goldman analysts led by Aurelia Waltham told clients Monday that the core issue with copper markets right now is supply:

Year-to-date data does suggest that supply recovery from previous disruption events has trailed our expectations. Accordingly, we lower our 2026 global mine supply forecast by 350kt, equivalent to ~1.5% of global mine supply, including ~200kt less from Grasberg (Indonesia) and Kamoa-Kakula (DRC) combined, with neither returning to full capacity until 2028.

At the same time, she said stronger-than-expected US copper imports in the first half of 2026 are tightening the ex-US market:

Furthermore, US copper imports in H1 2026 have exceeded our previous forecast, tightening the ex-US balance. As a result, we now expect US inventory to build by 900kt in 2026 (vs. 550kt previously), even as our base case remains that no copper tariff will be announced this year.

The combination of soft mine supply, US stockpiling, tariff uncertainty, and long-term demand tied to AI buildout and grid-upgrade themes prompted Waltham to upgrade her end-of-year 2026 and 2027 copper price forecasts:

We raise our end-2026/average 2027 LME copper forecasts to $13,735/$13,800 from $12,465/$12,150 previously (vs. forwards at $13,630/$13,610).

She mapped out three price scenarios for copper:

1. Strait of Hormuz Remains Closed for Longer: While we would expect limited impact on the global copper balance as the demand hit from lower economic growth is largely offset by lower copper supply due to sulfur shortages, a substantial pullback in global risk appetite could push the LME price down to its fundamental support level at ~$12,600 in H2 2026, before resuming an upward trend.

2. US Copper Tariff Announced for January 2027: If a US copper tariff is announced prospectively in June 2026, to start in January 2027, we would expect US copper imports to accelerate in H2 2026 (vs. our base case of a slowdown in imports), tightening the ex-US balance and raising prices to over $14,000 in H2 2026. However, we would expect prices to retreat in 2027 as imports stop once the tariff is imposed.

3. Announcement of No Copper Tariff: A definitive decision against the tariff would reduce the size of our ex-US deficit forecast in 2026 and push the ex-US market back into surplus in 2027 as imports fall to a negligible level. In this scenario, we would expect the price to fall to an average of $12,800/t in 2027.

Mapped out here:

Professional subscribers can read the full copper note here at our new Marketdesk.ai portal

With Hormuz still all but shuttered and only a 22% chance that the critical waterway reopens by the end of June, according to a Polymarket bet, it would take many months, if not quarters, to normalize shipping flows. This indicates that the commodities cycle will likely remain bullish into early summer.

Tyler Durden Tue, 06/02/2026 - 14:45

State Department Issues Travel Advisory For Mexico

Tyler Durden — Tue, 02 Jun 2026 18:30:00 +0000

State Department Issues Travel Advisory For Mexico

Authored by Naveen Athrappully via The Epoch Times,

The State Department updated its travel advisory for Mexico on May 29, continuing to warn Americans who plan on visiting the country to be wary of terrorism and crimes.

“Many violent crimes take place in Mexico. They include homicide, kidnapping, carjacking, sexual assault, and robbery. There is a risk of terrorist violence, including terrorist attacks and other activity in Mexico,” the advisory said.

Overall, Mexico is categorized with a “Level 2—Exercise Increased Caution” designation for travelers.

“The U.S. government has limited ability to help in many parts of Mexico, a large country in which conditions can vary widely from state to state and even within a state. U.S. government employees may not travel to certain high-risk areas, which may be within states that include low-risk areas,” the department said.

The travel restrictions on U.S. employees prohibit them from traveling between cities in the dark, waving down taxis on the street, driving between border cities and the interior of Mexico, and traveling alone, especially in remote areas.

Due to security risks, Americans visiting Mexico must follow the same restrictions as applied to U.S. government employees, the advisory said.

The State Department also published maps showing various restricted areas in Mexico.

Some states in the country are classified under “Level 4-Do Not Travel,” such as Colima, Guerrero, Michoacán, Sinaloa, Tamaulipas, and Zacatecas. States designated as “Level 3-Reconsider Travel” are Baja California, Chiapas, Chihuahua, Guanajuato, Jalisco, Morelos, and Sonora.

The department warned Americans that emergency services will be unavailable or limited in rural or remote regions. When met with a road checkpoint, visitors must comply, the advisory said, warning that “fleeing or ignoring instructions can lead to you being hurt or killed.”

There have been multiple cases of tourists being killed in Mexico. In April, a Canadian tourist was killed in the Teotihuacan archaeological zone after a gunman opened fire on tourists. Back in 2024, an American couple was shot dead in the state of Michoacán while traveling in a pickup.

According to the Human Rights Watch’s World Report 2025, there are “extremely high rates” of violent crime in Mexico.

“Security analysts estimate that around two-thirds of homicides are committed by organized crime. Two-thirds of homicides in 2023 were committed with firearms,” the report said.

The group also warned about the risk of arbitrary detention in Mexico.

“People accused of crimes often face extended periods of pre-trial detention. Approximately 37 percent of incarcerated people in 2023 were not convicted of any crime, and more than 20 percent of those in pre-trial detention had been there for more than two years,” it said.

World Cup Travel

The State Department’s travel advisory update comes as Mexico is set to host the FIFA World Cup 2026 games beginning this month, together with the United States and Canada.

In Mexico, the games will be played across three locations—five in Mexico City, four in Guadalajara, and four in Monterrey.

The U.S. Embassy and consulates in Mexico have issued guidance for Americans who wish to visit the country for the games.

“Book your transportation, accommodation, and tickets well in advance. Expect big crowds, heavy traffic, and longer travel times,” the embassy said.

“You can find game tickets on the official FIFA website. For your protection, FIFA runs an Exchange Marketplace, the only authorized way to purchase FIFA World Cup 2026 tickets on the secondary market in Mexico. The U.S. Embassy and Consulates in Mexico do not sell FIFA World Cup 2026 tickets.”

In an April 23 post, the embassy said that Americans planning to travel by land to Mexico for the World Cup should review the latest State Department travel advisory, assess information for each state along their planned route, and understand the risks they may face.

While navigation apps may show the desired route, they only display the most direct driving route and fail to account for the State Department’s advice on unsafe areas.

“Do not bring weapons or ammunition into Mexico. It is a serious crime, and you could face severe penalties, including years in prison. Permits to own or carry a gun in the United States are not valid in Mexico. Do a thorough check before leaving home,” the embassy said.

“Search your belongings and clothing pockets before travel if you regularly use items prohibited in Mexico. Bringing in banned items can result in serious penalties, even if accidental.”

Tyler Durden Tue, 06/02/2026 - 14:30

Trump Blasts 'Fake' Reports Of Iran Talks Freeze As Rubio Insists To Congress Tehran Ready To Negotiate Nuclear Curbs

Tyler Durden — Tue, 02 Jun 2026 17:55:00 +0000

Trump Blasts 'Fake' Reports Of Iran Talks Freeze As Rubio Insists To Congress Tehran Ready To Negotiate Nuclear Curbs

Summary:

Trump insists reports that Iran & US have not been talking for days is 'fake news'; Rubio also tells Congress talks are ongoing, despite fresh Iranian denials, and even claims the nuclear file is part of it.
Washington has seen the Lebanon partial truce as opportunity enough to press forward on broader talks, with Trump saying he expects a broader Iran deal "over the next week".
But Fars denies this Tuesday: "exchange of messages between Iran & the US has been stopped for at least a few days" on MOU.
In Lebanon, "While the ceasefire appears to be largely holding, there was further violence overnight," reports BBC, with more dead & wounded on both sides.

* * *

US Military Fires on Non-compliant vessel

In fresh action CENTCOM has announced it has fired on another vessel which was non-compliant to the US blockade:

CENTCOM SAYS DISABLED NON-COMPLIANT VESSEL IN ARABIAN GULF
CENTCOM: DISABLED VESSEL W/ HELLFIRE MISSILE TO ENGINE ROOM

Trump: It's 'Fake News' That Iran & US Stopped Speaking Days Ago

President Trump in a fresh Truth Social post has again insisted that Washington and Tehran are talking again. "The conversations between us have been going on continuously... where they lead, one never knows, but as I told Iran, 'It's time, one way or another, for you to make a Deal.'"

Throughout the morning Secretary of State Marco Rubio was fielding questions on Capitol Hill. He too insisted that talks are ongoing, despite a Tuesday Iranian denial. He claimed the regime is 'fragmented' and because of this, back-and-forth messaging is extremely slow-going. "Iranian people would make a deal tomorrow if it were up to them," Rubio said. "The Supreme Leader and the IRGC are a bit more immune to pressures."

He also generally acknowledged that Iran has effectively shut down the Strait of Hormuz, and then said this justified the US naval blockade of Iranian ports in turn. There was also this interesting exchange when he echoed Trump's line that the war is actually 'over' at this point...

— You keep telling us how we're winning this war — Senator

— Well, the war IS OVER now — Rubio

— The war IS NOT OVER. We still find ourselves spending billions of dollars a week on war — Senator pic.twitter.com/WuofatTvoQ
— RT (@RT_com) June 2, 2026

Hawks like Ted Cruz want to know of any other regime change tactics going on...

Marco Rubio:

I'm not aware of any program to arm civilians in Iran to overthrow their government.

I mean, there may be other countries doing it, or other groups doing it, but certainly not the U.S. government. pic.twitter.com/tYVeSbWVqE
— Clash Report (@clashreport) June 2, 2026

A potential new nuclear framework regarding Iran was also a central topic to Tuesday's Congressional testimony:

Marco Rubio:

Iran would be like North Korea, but worse, if they got nuclear weapons.

They would destroy the State of Israel, and you wouldn't be able to do anything about it because they have a nuclear weapon. pic.twitter.com/5TDGPNBY1W
— Clash Report (@clashreport) June 2, 2026

Big if true, there is still too much smoke and noise:

Secretary of State Marco Rubio said Tuesday that Iran has agreed to discuss previously off-limits aspects of its nuclear program, raising hopes that ongoing negotiations could pave the way for the reopening of the Strait of Hormuz and a broader diplomatic breakthrough.

Speaking at a Senate Foreign Relations Committee hearing on the State Department's budget request, Rubio said: "We are in talks... There is the prospect before us, which could happen today, it could happen tomorrow, it could happen next week, that for the first time, certainly in my memory, they have agreed to negotiate aspects of their nuclear program."

He said the U.S. hopes such negotiations could lead to a broader understanding that would include the reopening of the strategic waterway.

"We're hopeful that something like that could happen, in which the straits would reopen, we would enter into a period of negotiations on very specific topics, delineated negotiations, in the hope of reaching an outcome that's acceptable to us and something they would be able to do as well," he said.

The above was spoken with a few too many caveats... "which could happen today, it could happen tomorrow, it could happen next week..."

Rubio in the hot seat over Iran war:

.@SecRubio shuts down @SenBooker: "No one's 'begging' for anything here. The Iranians might be begging — because their economy is losing hundreds of millions of dollars a day."

"I don't know where you're getting this perception that Iran is stronger. Iran has no navy left.… pic.twitter.com/XHVerZeo8D
— Rapid Response 47 (@RapidResponse47) June 2, 2026

Iran Denies Progress, Halt in Talks Still in Effect

State media has belatedly responded to Trump's Monday claim that talks between the US and Iran are back on. Trump has even said Tuesday that he expects an agreement for an extended ceasefire to take place "over the next week" - along with the reopening of the Strait of Hormuz.

"An informed source says that the exchange of messages between Iran and the US has been stopped for at least a few days for what is called the initial memorandum of understanding between Tehran and Washington," Fars reports. So this is Iran in effect saying 'not so fast' - as it seeks to 'hold the cards' and maintain some leverage. Trump has not indicated a willingness to resume bombing the Islamic Republic, but his patience has seemed to be wearing thin over the last several days, as the White House is boxed in to only choosing among several 'bad options' in the wake of launching a war of choice 95 days ago.

Oil spikes on the negative news from Tehran, extends:

And more confirmation via newswires:

An Iranian source says there is currently no message exchange with the U.S., contradicting claims of ongoing progress. The source reports talks on an initial understanding have stalled for several days. It also noted Iran’s last communication with Washington concerned Lebanon and drew international attention, despite President Trump stating negotiations are advancing rapidly.

Latest on the Lebanon front:

"American sources for AI Hadath: Proposal for a 60-day plan during which Israel withdraws gradually from southern Lebanon": AI Hadath reports.

"Negotiations propose the deployment of the Lebanese army and UNIFIL in southern Lebanon after Israel's withdrawal."
"Lebanon seeks to resolve Hezbollah's weapons file politically, but after Israel's complete withdrawal."

Lebanon Fighting Persists Amid Nominal Ceasefire

Various regional and international reports have documented serious ongoing fighting in Lebanon, despite President Trump the day prior having declared that the shooting will cease and that Hezbollah and Israel were forging a limited ceasefire. Trump had said of both sides that "they agreed that all shooting will stop" - after Iran announcing it had suspended peace talks with the US over Israeli military action in Lebanon.

Israeli Prime Minister Benjamin Netanyahu did affirm he would adhere to the agreement, and reports say that planned new airstrikes on Beirut were called off, but he also warned the attacks on the capital would go ahead "if Hezbollah does not stop attacking our cities and civilians" - and that forces in the south would continue operating.

BBC has freshly written that "While the ceasefire appears to be largely holding, there was further violence overnight." The same report details:

Hezbollah said its fighters had targeted Israeli tanks in the southern Lebanese towns of Haddatha and Bayada with missiles and shells. The Israeli military said it had intercepted two projectiles that had been fired from Lebanon in the early hours of Tuesday. No injuries have been reported.

Lebanon's state-run National News Agency reported Israeli strikes on several southern areas and said a "very violent" explosion from a large-scale demolition rocked the town of Debbine.

Tuesday has witnessed some ongoing attacks on south Lebanon, as well as Hezbollah drone attacks on Israeli troop positions, wounding some. According to some of the latest from Al Jazeera:

Israeli forces have carried out multiple air raids on the city of Nabatieh, one of the largest in southern Lebanon, our colleagues on the ground report. The city, a strategic hub for Hezbollah, has been encircled by Israeli forces in recent days as troops continue pushing north.

Israeli attacks were also reported across the wider Nabatieh district as Israel deepens its occupation of surrounding areas. Drones hit the towns of Kafr Sir and Aabba, while a strike targeted the road leading to Houmine al-Fawqa. The outskirts of Yahmour al-Shaqif were also hit.

There's also been a lot of explosions in the southern city of Tyre, with Israeli jets active in the airspace above on Tuesday. And rescuers have recovered six bodies from another town, with Lebanese civil defense agency having said in a statement: "Since yesterday evening and continuing until this morning … personnel have been carrying out search and rescue operations in a residential building that was targeted in the town of Marwaniyah – Sidon district."

#WATCH: Israel conducts strikes over south Lebanon, Hezbollah fires into northern Israel after US @POTUS @realDonaldTrump announces agreement to halt attacks that neither side has publicly accepted https://t.co/vgbtbZ2sm8 pic.twitter.com/jx5O69Knfo
— Arab News (@arabnews) June 2, 2026

Hezbollah's fiber-optic drone attacks have at the same time not ceased: "Two Israeli soldiers have been wounded in a Hezbollah drone attack in southern Lebanon, the military says, describing their injuries as minor," Al Jazeera reports Tuesday. This is after "Two other Israeli soldiers were killed over the weekend, also in drone attacks, bringing to 26 the number of soldiers killed since fighting escalated three months ago. Four Israeli civilians have also been killed."

Impact of Trump's 'Steamrolling' Netanyahu in Monday Call

President Trump's angry dressing down of Netanyahu may have had very limited effect, it appears. To review, per Axios during a Monday call Trump was reportedly heard cussing at the Israeli leader and essentially 'steamrolled' him - angry over breaking the Lebanon truce and demanding that Israel's military not attack Beirut.

Trump is said to have told Netanyahu "you’re fucking crazy’" while demanding Lebanon truce: "I’m saving your ass," he also reportedly said. Iran early Monday said it halted talks with Washington because of Israel's escalation in Lebanon.

There's been some reaction from Iran to the Axios report, with Iran’s Deputy Foreign Minister Kazem Gharibabadi having remarked, "In this regard, the US president’s claim of having dissuaded Netanyahu from launching a major attack on Beirut is more than a sign of Washington’s peace-seeking, it’s confirmation of America’s direct role in managing the Zionist regime’s aggressions."

How many times have they sold and resold this same story about Biden and now Trump being secretly VERY VERY mad at Netanyahu https://t.co/uGpSULbhhM
— Krystal Ball (@krystalball) June 1, 2026

The Iranian official continued to offer Tehran's vew: "If the decision to attack the capital of an independent state can be changed with a single phone call the main question is: why did months of ceasefire violations, aggression against Lebanon, the displacement of its people, and threats to this country’s sovereignty – backed by Western political and military support – continue unabated?" he remarked.

Mark Levin rages over White House leaks of Trump-Netanyahu call...

Mark R. Levin, a close ally of both U.S. President Donald J. Trump and Israeli Prime Minister Benjamin Netanyahu, appears to confirm the veracity of the report earlier by Axios on today’s heated call between Trump and Netanyahu regarding peace negations with Iran as well as… pic.twitter.com/46qmYBJsJZ
— OSINTdefender (@sentdefender) June 2, 2026

Trump Returns to Optimism: Agreement 'Over the Next Week'

But Washington has seen the Lebanon partial truce as opportunity enough to press forward on broader talks. While there's hasn't been full confirmation from Tehran's side, Trump has declared the talks as back on:

US President Trump told ABC News he thinks he will have an agreement with Iran to extend the ceasefire and reopen the Strait of Hormuz over the next week, while he also stated that a peace agreement with Iran could be better than a military victory. Trump also stated that it's not simple for both sides, but they're getting what they need to get and that he still has to get a few more points.

The very same network points on Tuesday morning:

Israeli and Hezbollah forces continued their attacks on Tuesday despite President Donald Trump's claim that the warring sides had "stopped shooting each other" after his intervention to prevent escalation on Monday.

Lebanon's state-run news agency, NNA, reported three Israeli strikes in separate areas in southern Lebanon. One person was killed, NNA reported. ABC News has contacted the Israel Defense Forces to request comment.

So, once again Trump touting the likelihood of a deal to reopen Hormuz by next week seems extremely wishful and ambitious, to say the least. And we've heard all this before, and been here many times over the past 95 days of war.

Tyler Durden Tue, 06/02/2026 - 13:55

Short-Seller Andrew Left Found Guilty In High-Profile Market Manipulation Jury Trial

Tyler Durden — Tue, 02 Jun 2026 17:50:00 +0000

Short-Seller Andrew Left Found Guilty In High-Profile Market Manipulation Jury Trial

Andrew Left, the founder of Citron Research and a well-known figure in the short-selling community, was convicted on 13 of 17 counts following a three-week federal trial in Los Angeles, according to Bloomberg.

Prosecutors alleged that between 2018 and 2023, Left used public stock recommendations and social media posts to influence market prices while privately trading in ways that contradicted his public statements. Authorities estimate the scheme generated more than $20 million in profits.

Patrick Grandy, Assistant Director in Charge of the FBI Los Angeles Field Office commented: “Frauds such as the one perpetrated by Left can erode investor confidence which impacts our capital markets..."

“Left used his TV appearances to disguise his intentions, manipulate the stock market, and pad his pockets,” said First Assistant United States Attorney Bill Essayli in a Department of Justice release out Tuesday morning. “A fair and transparent securities market is a foundation of our nation’s financial system. We will continue to bring to justice individuals who abuse the public trust placed in financial advisors.”

As financial television, sell side research and social media are all replete with public commentary about stocks, the verdict is being closely watched on Wall Street. It raises broader questions about the boundaries of activist investing and short selling. Many investors and analysts regularly publish bullish or bearish views on companies, and some industry participants worry the ruling could create uncertainty around when public ommentary crosses into unlawful market manipulation.

Bloomberg writes that during the trial, prosecutors pointed to several instances in which Left’s private messages and trading activity allegedly conflicted with what he was telling the public. They argued that he used platforms such as X to move stock prices and then quickly exited positions after benefiting from the market reaction. One example involved Roku, where prosecutors claimed Left publicly downplayed his involvement while privately maintaining a profitable short position.

Left took the stand in his own defense, maintaining that his opinions were genuine and reflected his honest assessment of the companies he discussed. He argued that investors are not legally obligated to hold a position for any set period after expressing a public view and rejected accusations that he intentionally misled the market.

The conviction could become an important precedent for future cases involving activist investors and short sellers. Left remains free pending sentencing on August 31 and has indicated that he plans to challenge the verdict through the appeals process. While he faces the possibility of significant prison time, the final sentence could be substantially lower than the statutory maximum penalties.

Left wrote on Twitter after the verdict: "Today I was found guilty. Amongst other things, for recommending Tesla, Nvidia and Meta back in 2018. Not once did anyone say I lied. The government’s own agent admitted it on the stand. There were no false statements."

He continued: "So now a truthful opinion that ends up making money is illegal. Is this America? We disagree with the jury and this does not stop here. We will keep fighting for free, honest speech and opportunity, the backbone of this country. This is not over."

According to DealBook, Left also told FT: “It’s a sad day for free speech", saying he was being penalized for giving “honest opinions on the biggest companies in the world.”

The investigation into Left began as part of a wider, sweeping probe into short sellers which began by the DOJ in 2018. Hedge fund Anson Funds Management settled with the SEC in 2024 for its work involving activist short sellers. Muddy Waters Research, who was also involved in the probe, was reportedly cleared of wrongdoing back in 2024.

Tyler Durden Tue, 06/02/2026 - 13:50

Facebook Is Accused Of Fostering Ethnic Enclaves At Headquarters

Tyler Durden — Tue, 02 Jun 2026 17:35:00 +0000

Facebook Is Accused Of Fostering Ethnic Enclaves At Headquarters

Authored by Jose Nino via Headline USA,

Tech advocacy group blames visa programs for enabling corporate tribalism.

A terminated software engineer is accusing Facebook parent company Meta of allowing Chinese migrants to take over entire departments while American employees face systematic exclusion and layoffs, Neil Munro of Breitbart News reported.

Jeremy Bernier, who graduated from Virginia Tech in 2012, lost his software engineering job at the company and has gone public with allegations of widespread discrimination. "At Meta, 90% of my coworkers were Chinese, and non-Chinese were routinely excluded, disadvantaged, and targeted for layoffs," Bernier said. He continued that "6 out of the 7 layoffs I observed targeted non-Chinese despite non-Chinese being the vast minority. Certain org[anizations] like ads and MRS [Meta Recommendation Systems for prioritizing Facebook posts] are notorious for being Chinese dominated."

The former employee shared his account through multiple social media posts. "On Wednesdays and Fridays I'd often be the only non-Chinese person on my team in the office, and they'd all get lunch together without inviting me," Bernier recounted.

Meta was easily the most toxic company I've worked for. There's a reason the Chinese call it "Squid Game". Others refer to it as "Hunger Games" or "Lord of the Flies". I think they're all accurate.

The company culture is basically every man/woman for themselves. The performance...
- Jeremy Bernier (@jeremybernier) May 21, 2026

He expressed frustration at the broader pattern he witnessed. "I think Americans would be outraged if they knew that their own citizens were getting marginalized and laid off at their own companies, while Chinese promote themselves up, conquer entire orgs, and reap millions [in pay and bonuses]," Bernier said. "Americans are practically non-existent in the most coveted, high paying tech jobs in the world at American companies in America."

Kevin Lynn, who founded the advocacy organization U.S. TechWorkers, provided context for why corporations permit such arrangements. "Tribalism is a [C-Suite] tool that tamps down potential [internal executive] competitors because it changes incentives. If you're either leading a tribe or you're part of a tribe, you know you're secure. Your position isn't merit-based - it's based on your race, your ethnicity, who you're friends with, family, that kind of thing."

According to Lynn, this dynamic stifles creativity and progress. "Innovation, inventiveness, novel ideas take a backseat to tribalism," he explained, noting that "When 40 percent or more of your coworkers are from another country, from another culture, and prefer to speak another language, there's not going to be any trust, any ability to bond to build something [innovative]."

The Trump administration has taken aim at workforce visa programs that channel foreign nationals into American corporations. Vice President JD Vance and other officials have criticized these initiatives for displacing domestic workers, per a report by Breitbart. Facebook previously paid a $14 million settlement in 2021 following extensive documentation of bias against American job candidates, as Breitbart previously reported.

Bernier offered nuance in his criticism. "Just to be clear, most Chinese are very kind so don't take this as an attack," he stated. However, he described the broader workplace atmosphere as brutal. "Meta was easily the most toxic company I've worked for. There's a reason the Chinese call it 'Squid Game'. Others refer to it as 'Hunger Games' or 'Lord of the Flies'. I think they're all accurate."

Meta offered no response to Bernier's claims.

Jose Nino is the deputy editor of Headline USA. Follow him at x.com/JoseAlNino.

Tyler Durden Tue, 06/02/2026 - 13:35

'Crypto Spring': StanChart Sees Ethereum Outperforming As Mt. Gox Moves $739M BTC From Cold Wallets

Tyler Durden — Tue, 02 Jun 2026 17:15:00 +0000

'Crypto Spring': StanChart Sees Ethereum Outperforming As Mt. Gox Moves $739M BTC From Cold Wallets

“Over the past week, we acquired 26,497 ETH,” Bitmine Immersion Technologies Chair, Tom Lee, said in a statement on Monday.

“In our view, ETH prices are not reflecting the strengthening of Ethereum fundamentals, but then again, this is not surprising given we are in the early stages of crypto spring.”

As CoinTelegraph reports, Bitmine is the largest Ether treasury company with 5.4 million ETH worth more than $10.5 billion.

It had slowed its pace of buying earlier this month after scooping up more than 100,000 Ether a week for three straight weeks.

Lee told CNBC on Monday that there is disappointment in crypto at the moment because it hasn’t moved while other sectors like software are rallying, but argued that it “always happens at the end of crypto winter.”

Lee argued that the thesis for Bitcoin and Ethereum that he believes in still stands; that they are likely to be the future of money, despite the short-term price downturn across the market and some long-term holders and whales selling.

“As AI systems evolve, we’re now talking about using commerce and operating websites, you need decentralized identity and verification, and that’s really what crypto does,” he said.

“We know Wall Street wants to go toward tokenization; it’s a vast improvement in efficiency of how money actually moves, and it’s an innovation. That only happens on Bitcoin, Ethereum and other smart contracts. The future isn’t changed.”

Meanwhile, Bitcoin has tumbled to two-month lows, dramatically diverging from traditional equity markets' recent surge...

Andri Fauzan Adziima, research lead at Bitrue Research Institute, told Cointelegraph that some analysts have noted that Bitcoin is the only major asset in contraction right now, and the divergence is notable.

“It shows Bitcoin is trading more like a high-beta risk asset tied to macro sentiment rather than an independent hedge,” he added.

“This gap highlights current weakness, but it also sets up potential for stronger relative performance once macro conditions improve. I view it as a temporary phase in the cycle, not a permanent shift.”

Analytics platform Santiment said on Monday that “the gap between traditional equities and crypto has become increasingly difficult for traders to ignore.”

However, Santiment said that this pattern won’t last forever, and “mainstream influencers” discussing stock dominance over crypto is often a good sign that the crowd is leaning too far into the “equity FOMO and crypto FUD.” Markets generally move opposite to the majority of traders’ expectations, it added.

This most recent decline in bitcoin comes after Michael Saylor's Strategy actually sold some of its holdings (admittedly a de minimus amount) and perhaps even more ominously, as CoinTelegraph reports, defunct Japanese crypto exchange Mt. Gox moved roughly $739 million worth of Bitcoin from its cold wallets early Tuesday, its first onchain movement in over two months, according to Arkham Intelligence data.

Blockchain data shows the exchange transferred 10,306 Bitcoin (BTC), worth approximately $730.8 million, from its cold wallet to an unmarked address at 4:47 am UTC.

The transferred Bitcoin is currently marked as “unspent” by Arkham. The exchange also made a separate transfer of 116.3 BTC, worth around $8.25 million, to its hot wallet at the same time, which is marked as “spent.”

The transferred Bitcoin being marked “unspent” means the funds are sitting in the new address and have not yet been sent anywhere further. On the other hand, “spent” means those funds have already been moved on again to another address.

The large movement has raised questions about whether creditor distributions are imminent, which could weigh on markets, as creditors who have waited over a decade to recover their funds may choose to sell once they receive their Bitcoin.

Bringing all of this together, Standard Chartered's Geoffrey Kendrick sees opportunity in buying Ethereum against Bitcoin here, suggesting it's only a matter of time before ETH catches up to improving internal metrics.

Internal metrics for Ethereum (ETH) continue to improve – transaction numbers and total value locked (measured in ETH terms) both remain close to all-time highs.

However, the ETH price continues to underperform in both absolute and relative terms – ETH-USD has fallen 57% from its August 2025 high to around USD 2,100, while ETH-BTC is down 37% over the same period.

Describing Amazon during the 2001 dot-com bust, Jeff Bezos said, “While the stock price was going the wrong way, everything inside the company was going the right way”.

We think the same applies to the current ETH price.

Similar to the Amazon example, we see significant scope for the ETH price to catch back up to internal metrics.

Ethereum is poised to benefit as traditional finance (TradFi) equivalents migrate to digital assets.

We project that stablecoin market cap will increase 6x from current levels by end-2028, and that the market cap of tokenised, non-stablecoin real-world assets (RWAs) will multiply 50x over the same period. Ethereum dominates both of these segments, with 50-65% of each underlying market being on Ethereum. These segments now account for more than half of the value locked on Ethereum.

As such, Kendrick reaffirms his ETH forecasts of USD 4,000 for end-2026 and USD 40,000 for end-2030. This would take ETH-BTC back to the 2021 highs around 0.08.

And Kendrick notes that yesterday saw the beginning of ETH outperformance relative to BTC.

The market reaction to MSTR’s sale of 32 BTC (a ridiculously small amount for MSTR to sell, given it still owns 843,706 BTC) was telling.

Specifically, on days where the BTC price falls, yesterday was one of the largest ETH-BTC topside moves of the past few years (there have been just 23 days since the start of 2024 more than yesterday).

The StanChart analyst highlights the larger moves in this chart:

Figure – ETH-BTC price moves on BTC down days (that are bigger than yesterday)

Further, MSTR’s selling (whilst small) highlights the different business models of the BTC DATs from the ETH DATs.

Specifically, because ETH has a 3% staking yield there is zero need for the ETH DATs to ever sell ETH (differently to the BTC DATs).

As such I would expect the mNAVs of the main ETH DATs to go back above that of MSTR (and a higher mNAV makes these businesses more sustainable).

I highlight the mNAV of BMNR and SBET here:

Figure – mNAV of BMNR and SBET v MSTR

Days like yesterday form important turning points for ETH-BTC.

Kendrick sees that cross back at 0.040 by year-end (from 0.028 today), even if (as is likely) MSTR this week buys a large multiple of the 32 BTC it sold last week.

Tyler Durden Tue, 06/02/2026 - 13:15

Massachusetts Church Cancels Traditional July 4th Celebration "To Better Understand Our Own Whiteness"

Tyler Durden — Tue, 02 Jun 2026 16:55:00 +0000

Massachusetts Church Cancels Traditional July 4th Celebration "To Better Understand Our Own Whiteness"

Authored by Jonathan Turley via JonathanTurley.org,

In Nantucket, there is an interesting conflict between churches after the Nantucket Unitarian Universalists (NUU) canceled its traditional celebration. In a letter from the church and the Rev. Erin Splaine of the Second Congregational Meeting House Society, residents were told the traditional reading of the Declaration of Independence would be canceled to better focus on the "on-going process within the congregation to better understand our own whiteness."

Across the country, July 4th celebrations are being canceled, and protests are planned for the nation's 250th anniversary. MS NOW anchor Ali Velshi declared this week, "I feel a deep unease about the celebrations to which I am invited to mark the 250th anniversary of our so-called democracy." The comment mirrors a recent poll showing that 85% of Democrats describe the U.S. in negative terms, and only 10% said they view it positively.

For 25 years, the historic Nantucket Unitarian Meeting House has hosted a public reading of the Declaration of Independence and the Bill of Rights.

The letter announcing the cancellation from Splaine and the NUU Nantucket church is full of the usual virtue-signaling jingoism that has become common on the left:

"Our cancelling the 4th of July celebration this year reflects ... an on-going process within the congregation to better understand our own whiteness.

...For those of us who are white the experience of the Rights and Privileges conferred by the Declaration of Independence, The Bill of Rights, and the Constitution of the United States have, for centuries, been tragically, often violently, and unequally applied to fellow citizens who are not white."

This type of pandering and posturing has become the norm today. In a time when the American flag is denounced as a divisive and "triggering" symbol, a refusal to celebrate our Independence is yet another way of proving one's bona fides to the perpetually enraged.

Splaine and the church stressed that she would not "engage" with critics on social media because "Social media is not the place for important, tender conversations."

For some of us who believe that the Declaration of Independence embodies natural rights that ultimately prevailed in a more perfect union, the letter is maddening.

As I discuss in Rage and the Republic, the continuation of slavery was recognized at the time as a fundamental betrayal of those values. However, we created a system that would ultimately reject slavery and then later segregation. It was indeed a stain on our history and a sin of our founders to continue slavery. Yet, despite those imperfections, we rallied behind the founding values that define us as a people.

Thomas Paine, who (like other founding figures) was vehemently against slavery, still celebrated the founding of a new nation and a new people: "We have it in our power to begin the world over again . . . The birth-day of a new world is at hand."

John Adams represented Massachusetts, including Nantucket, at the Continental Congress and fought to end slavery, but still understood that they had created a country based on freedoms that would ultimately prevail for everyone. He wrote his wife Abigail to predict that Independence Day would be:

"celebrated by succeeding generations as the great anniversary festival. It ought to be commemorated as the Day of Deliverance by solemn acts of devotion to God Almighty. It ought to be solemnized with pomp and parade, with shows, games, sports, guns, bells, bonfires and illuminations from end of this continent to the other from this time forward forever more."

Rather than Adams, Massachusetts now has figures like Rev. Splaine who focus not on the natural rights that bind us to those ongoing conflicts that divide us. This is a holiday that allows us to take one day of the year to celebrate our shared values. In an age of rage, it is a respite from the anger and hate that consumes so many in this country.

Yet, there remain some in Massachusetts who still understand what Adams was describing 250 years ago. Another church has stepped forward to take up the celebration. St. Paul's Episcopal Church announced it would read the Declaration of Independence and the Bill of Rights. St. Paul's Rev. Max Wolf declared, "We may not be there yet but we felt it was important to gather together and try to live up to the promises our country has made. Those documents are aspirational."

Amen, Reverend, Amen.

Tyler Durden Tue, 06/02/2026 - 12:55

Euro Area Inflation Tops 3.0% For First Time Since 2023, Cementing ECB Rate Hike

Tyler Durden — Tue, 02 Jun 2026 16:40:00 +0000

Euro Area Inflation Tops 3.0% For First Time Since 2023, Cementing ECB Rate Hike

Euro Area inflation topped 3% for the first time since September 2023, further cementing expectations for a rate hike when the ECB meets next week.

Consumer prices rose 3.2% from a year ago in May, and up from 3% the previous month, in line expectations. But core inflation, which excludes volatile items like food and energy, jumped more than anticipated to 2.5% (technically 2.55%), while the closely watched services gauge jumped to 3.5%, the highest since last November, and non-energy industrial goods inflation printing at 0.87%YoY.

Energy inflation increased to 10.9%YoY, while food, alcohol and tobacco inflation fell to 1.97%YoY, notably below the weak 2.2%YoY Goldman was expecting.

“The acceleration of headline and core inflation in May cements the case for a 25 basis-point rate increase from the ECB next week. Those moves have been driven by services prices, which have probably been pushed up by pass-through from oil prices. That may be used by the hawks on the Governing Council to argue broad-based inflation requires a follow-up move in September” said Bloomberg economist David Powell.

Incorporating the May flash release into the Euro area inflation path, but also accounting for the potential Easter-related nature of the outsized move in services which should not be fully persistent, Goldman's medium-term path continues to show core inflation at a weak 2.5%yoy in 2026, peaking at 2.7%yoy in 2027Q2 before gradually declining to 2.0%yoy in 2028Q4, above the ECB staff March projections. As for headline inflation, Goldman expects it to peak at 3.4%YoY in Q4, using the bank's latest baseline path for gas and oil prices.

The latest hot inflation print has cemented the ECB's first rate hike since September 2023 on June 11, with officials appearing to conclude that they can no longer wait to respond to the fallout from the Middle East conflict. ECB rate hike odds are now at 98% on Polymarket. They’re worried chiefly about workers demanding steep pay rises and firms boosting selling prices, viewing such consequences as probably now inevitable as the war drags on.

Source: Polymarket

Most policymakers, however, remain cautious on the path beyond June according to Bloomberg, as growth in the region’s 21-nation economy also takes a hit. Business activity shrank in May at the quickest pace since 2023.

ECB Executive Board member Isabel Schnabel, viewed as the most hawkish Governing Council member, suggested Monday that it’s too early to specify how many rate increases may be needed. Lithuania’s Gediminas Simkus has said a second move after June “is more likely than not,” though it’s unclear when.

“It’s quite important to react in a timely manner to this emerging inflationary environment so we can prevent a possible acceleration of inflation and the inflationary spiral, prevent it at its very beginning with the least possible impact on the economy,” Simkus said Tuesday in Vilnius.

His Finnish counterpart Olli Rehn described inflation expectations as still anchored so far, but said action is needed this month to keep prices under control. “While inflation risks have increased, a rate increase in June would be an insurance one, but not due to entrenched inflationary pressures,” he said in a speech.

Today's CPI print should not have been a major surprise: data last week showed inflation gathering pace in three of the bloc’s biggest member states, and remaining well above the ECB’s 2% target in all of them. Propelled by the war-induced surge in energy costs, May readings for France, Italy and Spain quickened to 2.8%, 3.3% and 3.6%, while the headline number for Germany moderated to 2.7%.

Tyler Durden Tue, 06/02/2026 - 12:40

California, Iowa, 4 Other States Hold Primaries: Key Races To Watch

Tyler Durden — Tue, 02 Jun 2026 16:20:00 +0000

California, Iowa, 4 Other States Hold Primaries: Key Races To Watch

Authored by Joseph Lord via The Epoch Times (emphasis ours),

The California gubernatorial and Los Angeles mayoral primaries are among the most closely watched races today.

A voter fills out a ballot at a polling station in Des Moines, Iowa, on Nov. 6, 2018. Joshua Lott/Getty Images

Voters in six states will go to the polls today for a series of key races.

The biggest item of the night will be the litany of races in California, the nation's largest state. Others will be held in Iowa, Montana, New Mexico, New Jersey, and South Dakota.

Here are the most important races to watch.

California Governor

The race to replace outgoing Gov. Gavin Newsom is one of the most-watched in the nation.

California's gubernatorial elections are designed to be nonpartisan. With about six candidates polling with at least 5 percent support, only the top two vote-getters will be on the general gubernatorial election ballot in November, even if both are of the same party.

In the final weeks leading into the primary, the election underwent a total shake-up when front-runner Rep. Eric Swalwell (D-Calif.) left the race - and Congress - following multiple allegations of sexual harassment and sexual assault. Swalwell has denied the allegations.

Currently, the Democratic front-runners are former U.S. Secretary of Health and Human Services Xavier Becerra and billionaire Tom Steyer. The two are polling close, although Becerra retains a slight advantage.

Will Xavier Becerra advance from the 2026 California Governor primary election?
Yes 93% · No 7%
View full market & trade on Polymarket

The main Republican candidates in the race are Steve Hilton, a British American TV show host and conservative commentator, and Riverside County Sheriff Chad Bianco.

Polling leaves it unclear whether Hilton or Steyer is favored for second place.

Los Angeles Mayoral Primary

Residents of Los Angeles will also vote in the nonpartisan mayoral primary.

Incumbent Mayor Karen Bass is facing off against 10 other contenders. She is expected to win the top spot in the primary.

Will Karen Bass win the 2026 Los Angeles mayoral election?
Yes 68% · No 33%
View full market & trade on Polymarket

Meanwhile, the top Democratic contender for the second-place spot - member of the Los Angeles City Council Nithya Raman - is seeking to hold off a challenge from former reality TV star Spencer Pratt, running as a Republican, and make it to the general election.

California's 22nd Congressional District

In California's 22nd Congressional District, Rep. David Valadao (R-Calif.) will face off in a nonpartisan primary with state Rep. Jasmeet Bains and Randy Villegas, both Democrats.

Valadao is expected to win a place in the general election, although his final opponent will be decided by the outcome on June 2.

Will David Valadao advance from the CA-22 Primary?
Yes 90% · No 10%
View full market & trade on Polymarket

Polling in the district is sparse. A single poll conducted at the beginning of May by Data for Progress, a left-leaning pollster, showed Valadao with 44 percent support, Villegas with 25 percent, and Bains with 21 percent.

California's 48th Congressional District

In California's 48th Congressional District, a flurry of candidates have put their names into the ring.

Republican Jim Desmond leads in polls in the nonpartisan election, with fellow Republican Kevin O'Neil coming in second in some polls. Marni von Wilpert and Ammar Campa-Najjar are the Democratic front-runners.

The seat was one of five redrawn to favor Democrats last year - but that advantage only holds if a Democrat wins the nonpartisan primary.

California's 11th Congressional District

In California's 11th Congressional District, a slate of Democrats is competing to replace outgoing Rep. Nancy Pelosi (D-Calif.).

Most polls show a lead for candidate Scott Wiener, a Democrat, while Pelosi has endorsed San Francisco Supervisor Connie Chan. Chan has come in second in some polls, and Wiener enters the primary as the clear front-runner.

Will Scott Wiener receive the most votes in the CA-11 primary?
Yes 99% · No 1%
View full market & trade on Polymarket

The two Republicans in the running - when they have made it into the polls at all - have pulled less than 5 percent support.

Iowa Senate

Although Iowa has long been a lock for Republicans, it is among Democrats' targets this year, as there are indications that the party could flip Senate seats previously considered safe. This year, Sen. Joni Ernst (R-Iowa) will not be seeking reelection, leaving the seat open.

Polls indicate that Rep. Ashley Hinson (R-Iowa) is favored for the Republican nomination over her rival, state Sen. Jim Carlin.

Will the Republicans win the Iowa Senate race in 2026?
Yes 62% · No 38%
View full market & trade on Polymarket

The polls leave it unclear whom the Democrats will nominate between candidates Josh Turek and Zach Wahls. Turek has led in more recent polling.

Will Josh Turek be the Democratic nominee for Senate in Iowa?
Yes 93% · No 7%
View full market & trade on Polymarket

Iowa Governor

Iowa's gubernatorial race is open after Gov. Kim Reynolds, a Republican, announced that she would not seek reelection in 2026.

Several Republicans are contending for the nomination to replace her. The polls show that candidates Rep. Randy Feenstra (R-Iowa), Zach Lahn, and Adam Steen are leading in that race. On the Democratic side, only state Auditor Rob Sand is running.

A general election poll conducted in April by Echelon Insights, a Republican-aligned pollster, found that Sand had 51 percent support against Feenstra, who was polling at 39 percent.

Montana Senate

In Montana, the last-minute exit of Sen. Steve Daines (R-Mont.) from the race left Republican challengers little opportunity to register against former U.S. Attorney Kurt Alme, who registered for the GOP nomination just as Daines exited the race.

On the Democratic side, no polls have been conducted, leaving it unclear who is in the lead for the nomination.

As recently as 2024, the state was represented by Sen. Jon Tester, a Democrat. Some general election polls have shown 44 percent support for a generic Democrat.

New Mexico Governor

In New Mexico, Democrat and former U.S. Secretary of the Interior Debra Haaland is highly favored to win the Democratic nomination in the blue-leaning state, which some Republican strategists had eyed as a potential target in 2024.

On the Republican side, Gregg Hull narrowly leads Doug Turner in polls for the nomination.

New Jersey's 7th Congressional District

One of the two top targets for Democrats in New Jersey is the seat of Rep. Tom Kean (R-N.J.).

Rebecca Bennett, a former Navy helicopter pilot, is favored to win the nomination, leading in most polls. Her closest rival is Brian Varela.

New Jersey's 12th Congressional District

In New Jersey's 12th Congressional District, incumbent Rep. Bonnie Watson Coleman (D-N.J.) is retiring, leaving open a safely Democratic seat in a district where the primary essentially is the general election.

The race has exposed ideological rifts in the Democratic Party.

Leading the progressive side in the race is Dr. Adam Hamawy, a Princeton trauma surgeon and Army veteran with endorsements from progressive heavyweights such as Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.).

The main other contenders for the Democratic nomination include East Brunswick Mayor Brad Cohen, state Rep. Verlina Reynolds-Jackson, and Somerset County Commissioner Shanel Robinson.

Tyler Durden Tue, 06/02/2026 - 12:20

Bringing Sexy Back: Victoria's Secret Shoots Higher After Abandoning Woke Ideology

Tyler Durden — Tue, 02 Jun 2026 15:40:00 +0000

Bringing Sexy Back: Victoria's Secret Shoots Higher After Abandoning Woke Ideology

Shares of Victoria's Secret surged a mind-boggling 40% in the U.S. morning cash session after the bras-and-lingerie retailer delivered a stronger-than-expected first quarter, boosted its outlook, and showed signs of a turnaround plan in motion.

Net sales rose 15% to $1.56 billion in the first quarter, beating guidance, while comparable sales increased 13%, signaling that CEO Hillary Super's turnaround plan is gaining traction as product innovation, stronger regular-price selling, and renewed brand momentum drive shoppers back into stores and online.

Management lifted its 2026 outlook, now forecasting net sales of $7.03 billion to $7.13 billion, up from prior guidance of $6.85 billion to $6.95 billion. Adjusted operating income is now expected to be $550 million to $580 million, above the prior $430 million to $460 million range.

"Our customer responded strongly to our product innovation, emotionally resonant storytelling, and distinct brand projection, driving double-digit growth in new customer acquisition, increased regular-price selling, and broad-based strength across categories, channels, and geographies," Super wrote in a statement.

Super concluded, "We are increasingly confident in the trajectory of the business. Our teams are executing with greater precision and agility. Victoria's Secret, PINK, and Beauty are gaining cultural relevance and expanding their customer files, and we have a strong pipeline of product launches, partnerships, and brand moments ahead. We believe we are well-positioned to continue building momentum and creating shareholder value."

The positive earnings sent shares soaring, up more than 41% in late morning trade.

To note, some of the surge could be due to a vicious unwind of a short position. Latest Bloomberg data shows 16.6% of the float, or 13 million shares, are short.

Let's not forget that Victoria's Secret lost the plot in the woke era when it pivoted away from skinny, beautiful models to a more "inclusive" fashion message that alienated a large chunk of its core customer base.

The backlash was notable and diluted the brand's iconic image, which it had built over the years.

Notably absent from Super and the management team commentary was any discussion of a potential GLP-1 tailwind.

With nearly 20 million women reportedly taking medications such as Ozempic, Wegovy, or Zepbound, the weight-loss wave could be creating a new driver of demand as consumers refresh their wardrobes and feel more comfortable with their physiques.

Let's hope Super's turnaround plan involves getting back to basics.

Tyler Durden Tue, 06/02/2026 - 11:40

Where's The Limit

Tyler Durden — Tue, 02 Jun 2026 15:00:00 +0000

Where's The Limit

By Stefan Koopman, senior market strategist at Rabobank

The ancient Greeks left a rich intellectual legacy, as our global strategist Michael Every showed last week in The Hormuz Odyssey. The same fertile ground also produced a famous set of puzzles that have challenged thinkers for centuries. These are the paradoxes of Zeno. In the Dichotomy Paradox, Zeno argued that a runner can never reach the finish line on a straight track. The logic is simple. The runner must first cover half the distance to the goal. Once there, he must still cover half of what remains. After that, he must cover half of the new remainder, and so on, and so on. At each step, some distance remains. In Zeno’s telling, the runner is never able to reach the finish line.

US‑Iran talks follow the same logic. Washington and Tehran have broadly agreed on the outline of a deal: a 60‑day ceasefire extension, a reopening of the Strait of Hormuz, and a trade of sanctions relief for nuclear constraints. Officials on both sides also describe an agreement as imminent. Yet each apparent breakthrough produces a new obstacle. Negotiators still haggle over language, sequencing and enforcement, and have even yet to settle the basic question of who signs first. Like Zeno’s runner, the two sides keep halving the distance to a deal – closing in on it step by step – without seeming to ever arrive.

The resolution to Zeno’s paradox lies in the concept of limits. So when will President Trump and Ayatollah Khamenei reach theirs? When is enough, enough? Markets still assume that moment is close, with the front‑month Brent contract hovering just above six‑week lows. But the longer Washington and Tehran fail to reach an agreement, the more they open the door for disruptors to shape events, from US‑Iran skirmishes in the Strait of Hormuz to Israeli strikes in Lebanon.

Every time an Iran deal is close, it moves away again. I’d described this crisis as a polytropos Odyssey, but it also matches Zeno’s Achilles & the 🐢 paradox - ever closer but never reached.

If so, markets pricing oil lower is… ZENOHEDGE.

(Sorry, the pun was irresistible!) https://t.co/tY8moivdXn
— Michael Every (@TheMichaelEvery) June 1, 2026

The past 24 hours indeed showed how fragile this equilibrium is. Iran’s IRGC‑linked Tasnim agency reported that Iranian negotiators would halt talks with the US in response to Israeli attacks in Lebanon against Hezbollah. It also warned that the “resistance front” could be activated, including potential Houthi involvement in the Bab al‑Mandeb Strait. Oil prices jumped 7%, the dollar strengthened, and equity futures turned red. Within hours, however, Trump said he had spoken to both Hezbollah and Netanyahu (all while saying he “really doesn’t care” if talks collapse) and claimed that Israel and Hezbollah would stand down. He also added that talks with Iran were proceeding at a “rapid pace”, a line we have now heard for weeks.

Oil prices quickly reversed, but scepticism is warranted. Trump again appears to negotiate with himself. He claims progress while trying to contain escalation on fronts he does not control. From Tehran’s perspective, that urgency weakens the US position. Why offer concessions that fall short of core strategic interests if they believe they can roll the US president a bit further? The past day suggests Iran does not see itself as the side under decisive pressure. It appears to believe that the US and its partners have at least as much at stake in avoiding further instability. In that setting, President Trump does not seem to hold the stronger hand. And while Zeno’s runner never arrives, the real world does have real limits, and we are moving steadily closer to physical supply hitting effective tank bottom.

It cannot be stressed enough: the longer this drags on, the bigger the problems become. The PMIs made that clear yesterday. The US manufacturing ISM rose to 54, its highest level in four years, but that headline is deceptive. Much of the strength reflects companies bringing forward orders and activity to build inventories and protect against supply chain disruptions. That boost is likely to prove temporary but inflationary.

The details of the euro area manufacturing PMI, which printed at 51.6, are equally unconvincing. The survey shows costs rose at the fastest pace in four years, driven by higher energy and raw material prices, while more frequent supply chain delays added further upward pressure..

Higher prices for inputs, packaging and logistics will push up euro area goods inflation in the months ahead. But as factories pass these higher costs on to customers, they face weaker demand than in the immediate post‑pandemic period, when the previous supply shock hit the economy. The PMI suggests that order books are already starting to stall after an initial boost from front‑loading and precautionary bookings. This points to a clear trade‑off. The ECB will raise rates next week to signal vigilance, but it will also need to stay cautious about how far it goes as demand starts to weaken.

The ECB’s consumer expectations survey showed a slight easing in April. Consumers expect prices to rise by 2.9% a year over the next three years, down from 3.0% in March. One modestly positive signal for the ECB is that the distribution around this three‑year expectation has normalised somewhat. Last week, Schnabel warned that a rightward shift in inflation expectations could signal de‑anchoring risks that “must be monitored carefully.” Expectations for the next 12 months stayed at 4%, while five‑year expectations held at 2.4%, still above the ECB’s 2% medium‑term target.

Tyler Durden Tue, 06/02/2026 - 11:00

Shocking JOLTS: Job Openings Soar By 731K, 9-Sigma Beat, As Quits Bizarrely Plunge To 6 Year Low

Tyler Durden — Tue, 02 Jun 2026 14:44:31 +0000

Shocking JOLTS: Job Openings Soar By 731K, 9-Sigma Beat, As Quits Bizarrely Plunge To 6 Year Low

We had to do a double take when the BLS reported today's JOLTS job openings: with consensus expecting no change from last month's print of 6.866MM, and near the lowest in two years, moments ago a flashing red headline revealed that in April the US added a stunning 731K jobs to 7.618 million, up from an upward revised 6.887 million, and up 520K from a year ago.

For context, this was a 9 sigma beat to expectations, the biggest beat in history.

WTF!?... and how is this possible at a time when companies are mass laying off thanks to AI? Well, according to the BLS,the number of job openings increased in professional and business services (+668,000), and also rose in manufacturing, manufacturing, and - alas - government. Jobs stumbled in finance and insurance (-135,000).

This was the biggest monthly increase in professional and business services by a huge margin. It wasn't clear what exactly job category prompted this surge.

Meanwhile, the draining of the swamp appears to be officially over with government jobs jumping by 47K to 777K, the biggest monthly increase this year.

The historic surge in April job openings, coupled with the modest increase in unemployed workers means that after 9 months of labor surplus, there were 245K more job openings than unemployed workers in April, a reversal to the "deficit" regime observed since last July.

The surge in openings also means that after falling back to 0.9x in March, in April the ratio of job openings rose back to 1.0x and was the highest since January 2025.

But while the job openings number was a shock, this month we saw a reversal of last month's surge in hires and quits, and in April both the number of Quits and Hires, tumbled once more. Specifically, hires plunged by 419K to 4.899 million, while quits - or the "take his job and shove it" indicator - plunged by 183K, or 5.8%, to 2.977 million, the lowest since 2020 and the biggest percentage drop since April 2025, as Americans are suddenly allergic to leaving their jobs on their own.

It goes without saying that a surge in job openings even as nobody is leaving their jobs, leads one to scratch their head just what is going on here, besides data massaging of course.

In any case, since this hires number feeds directly into the payrolls calculations (after netting out separations) this explains why the April payrolls report slumped to 115K from 185K in March.

Overall, this was a shockingly strong JOLTS report - so strong in fact one wonders who at the BLS had a fat finger incident when calculating the professional and business services job openings, and shows that after some significant weakness in late 2025, US labor market has continued to stabilize in early 2026. Of course, the report also lags the payrolls report by a month, which is why it gives us little insight into what Friday's jobs report will be.

Tyler Durden Tue, 06/02/2026 - 10:44

Russia Unleashes Its Threatened Mass Bombardment: At Least 18 Killed, Over 100 Wounded Across Ukraine

Tyler Durden — Tue, 02 Jun 2026 14:25:00 +0000

Russia Unleashes Its Threatened Mass Bombardment: At Least 18 Killed, Over 100 Wounded Across Ukraine

The Kremlin spent much of the last week warning foreign diplomats and bystanders to evacuate Ukraine's capital, warning that an escalation in airstrikes is imminent, in response to Ukraine's own drone swarms sent against Moscow and other Russian sites last month - especially the Starobelsk dormitory attack.

"In response to terrorist attacks by the Kyiv regime, the Russian Armed Forces launched a large-scale strike using long-range, high-precision air, land and sea-based weapons — including hypersonic aero-ballistic missiles and attack drones," the Russian Defense Ministry (MoD) said in a statement. "The objectives of the strike were achieved. All designated targets were hit," it added.

In the wake of these devastating overnight attacks, Ukraine is reporting that at least 18 people were killed and over 100 more wounded. The hours-long assault was clearly one of the biggest and deadliest of the last year or more.

Tuesday attack on Ukraine's capital, via Reuters

Ukraine's air force tallied that over 640 drones were sent and 73 missiles were fired on various cities, including Kyiv, and Dnipro, as well as several eastern cities, including Kharkiv and Zaporizhzhia. Ukraine claims it intercepted the majority of these, but still dozens of projectiles made it through to impact.

Kyiv Mayor Vitali Klitschko later confirmed that six people were killed in the Ukrainian capital and that at least 66 others, including two children, were wounded.

There was mayhem as people fled to shelters during the nighttime "mass enemy attack". The mayor had warned while it unfolded: "Explosions in the city. Air defense forces are working! Stay in shelters!"

Central Ukraine's Dnipropetrovsk region also saw high casualties, with at least 12 people killed and 36 others wounded. The regional governor reported that children were among the injured.

Moscow has not owned up to inflicting civilian casualties in the fresh overnight assault, but has instead framed this as part of its previewed "systematic and consistent strikes" on Ukraine’s military infrastructure.

President Putin and top military brass had last month said strikes would be initiated against "decision-making centers" in response to the dorm attack in the Russia’s Lugansk People’s Republic on May 22, which killed 21 people - mostly teenage girls - and injured 70 others.

Kremlin officials now say that Russian forces have "a right to dismantle any infrastructure that supports terrorism."

Russian drones and missiles struck the Ukrainian capital Kyiv and other cities, killing at least 18 people and wounding more than 100, authorities said, following days of warnings about ‌Moscow's plans for a major assault https://t.co/RZjbJYupmp pic.twitter.com/UY6FOwNne7
— Reuters (@Reuters) June 2, 2026

Despite this clear escalation, peace talks are nowhere on the horizon, also as the White House's attention is currently fixated on the Iran war and Hormuz Strait crisis. Russia has in the meantime benefited from the Iran crisis, with sanctions relief on its oil exports from Washington, and elevated crude prices.

President Trump is on a daily basis dealing with now largely stalemated back-and-forth diplomatic messaging with Tehran, and so the persistent Ukraine war seems to have taken a far back seat in terms of administration priorities.

Tyler Durden Tue, 06/02/2026 - 10:25

Tencent Soars Most Since 2022 On Report It's Set To Launch AI Agent For China's Most Used App

Tyler Durden — Tue, 02 Jun 2026 13:50:00 +0000

Tencent Soars Most Since 2022 On Report It's Set To Launch AI Agent For China's Most Used App

Tencent shares jumped the most since late 2022 after an FT report that the Chinese company was testing a prototype AI agent for WeChat, China’s most widely used app for everything from messaging and social media to ride-hailing and payments, fueled optimism about the company’s artificial intelligence efforts.

The Chinese internet giant plans to begin a compliance process for a public launch of the agent as soon as this month, the Financial Times reported, citing sources. After that, Tencent plans to test the agent on a small group of outside users before initiating a phased rollout, the newspaper said.

Shares of Tencent closed up 10.5%, its biggest jump since November 2022, with turnover at the highest in more than a year. The stock gave a boost to the Hang Seng Tech Index, which rose 4.7%.

Users will be able to access the chat box for the AI agent by swiping right on the main WeChat screen, according to a person who has seen an early demonstration. They can then enter instructions for the agent to automatically tap into WeChat’s millions of mini-apps, the bedrock of the app’s broad functionality, and complete tasks such as finding a café and ordering a drink based on certain flavor and price requirements.

A successful introduction of an AI agent for the popular WeChat service would mark a step forward for Tencent’s bid to catch up to rivals in the rapidly emerging technology. While Tencent has vowed to at least double investments in the field to more than 36 billion yuan ($5.3 billion) this year, it trails peers like ByteDance and Alibaba in both user adoption and advances in developing state-of-the-art large language models.

“Tencent has been a huge underperformer this year because market perceives it as an AI laggard,” said Vey-Sern Ling, managing director at Union Bancaire Privee. “The AI agent, if successful, could change such a perception. Even though there’s very little detail right now, we know Tencent has a huge ecosystem to make it work.”

According to Citigroup, while the adoption of an AI agent in WeChat had been anticipated by the market, its earlier-than-expected timing likely prompted the positive share price reaction.

Goldman's Graham Ambrose cautions that it's still not clear how this will evolve and the market is so far unconvinced on Tencent management’s explanation of their strategy to confront the challenge.

The infrastructure was upgraded in March
The Hunyuan 3.0 foundation model powering the agent was launched in April
A Developer Beta recently started
The pilot launch is planned for June for Weixin users
The broad roll-out is expected to be in Q3 (not confirmed by management yet) with full integration across the domestic Weixin app, including deep "AI Search" and "Agentic Pay" features.

The news sparked a major move higher in Chinese stocks: in addition to Tencent developments, a slew of positive drivers including Meituan’s earnings and upbeat delivery figures by electric vehicle makers supported the Hang Seng Tech Index. Other internet and e-commerce heavyweights such as Alibaba and JD.com Inc. rose more than 6% as sentiment improved.

The rebound comes after the gauge, with its reliance on Chinese internet giants, has trailed the blistering surge in tech hardware-heavy benchmarks such as South Korea’s Kospi and Taiwan’s Taiex this year.

Prosus NV, Tencent’s biggest shareholder, jumped as much as 11% on Tuesday in Amsterdam. Its parent company Naspers rose at a similar pace in Johannesburg trading.

“Tencent’s move potentially shifts the China AI story from model development to real consumer distribution,” said Charu Chanana, chief investment strategist at Saxo Markets in Singapore. “It’s still too early to say, but if WeChat can integrate an AI agent into a platform with around 1.4 billion users, that gives investors a clearer path to usage, engagement and eventually monetization.”

Bloomberg notes that even with Tuesday’s rebound, Tencent remains down about 20% for the year. Options suggest some investors are making bets on a further recovery after Tuesday’s rally, as China is about to get its own gamma squeeze. Trading of bullish options on Tencent surged to a record high, with more than 430,000 calls changing hands against 177,000 puts.

The four most-active contracts in Hong Kong were Tencent calls, and those with an exercise price 10% above Tuesday’s closing price led the pack. Meanwhile, the cost of hedging against declines in the next three months plunged to its lowest level in almost a year.

Tyler Durden Tue, 06/02/2026 - 09:50

Trump Taps Housing Regulator Bill Pulte As Acting Director Of National Intelligence

Tyler Durden — Tue, 02 Jun 2026 13:21:06 +0000

Trump Taps Housing Regulator Bill Pulte As Acting Director Of National Intelligence

President Trump said Tuesday that he is appointing Bill Pulte, the director of the Federal Housing Finance Agency and chairman of Fannie Mae and Freddie Mac, to serve as acting director of national intelligence after Tulsi Gabbard leaves the post.

Gabbard announced her resignation on May 22, citing her husband Abraham Williams’ recent diagnosis with a rare form of bone cancer. Her resignation is effective June 30, meaning Pulte’s appointment would mark a change from Trump’s earlier statement that Principal Deputy Director of National Intelligence Aaron Lukas would serve as acting intelligence chief after Gabbard’s departure.

Pulte is expected to continue leading the FHFA while serving as chairman of Fannie Mae and Freddie Mac, the government-sponsored mortgage companies that play a central role in the U.S. housing finance system. The arrangement would place a close Trump ally simultaneously near the center of federal housing finance and atop the U.S. Intelligence Community, which is made up of 18 organizations.

"I am appointing the Director of the Federal Housing Finance Agency, and Chairman of Fannie Mae/Freddie Mac, William J. Pulte, to serve as Acting Director of National Intelligence," Trump posted on Truth Social. "William has deep experience managing the most sensitive matters in America, the safety and soundness of the Markets, and over 10 Trillion Dollars at Fannie Mae/Freddie Mac, a substantial increase from where it was just 12 months ago. During this period, he will remain Director of the Federal Housing Finance Agency, and Chairman of Fannie Mae/Freddie Mac. Congratulations to Director Pulte!"

Pulte, 38, is the grandson of William J. Pulte, founder of PulteGroup, which describes itself as the nation’s third-largest homebuilder. Before entering government, the younger Pulte was known for private-equity work tied to housing and building products, as well as high-profile online philanthropy. He was sworn in as FHFA director on March 14, 2025, after Senate confirmation.

Since taking office, Pulte has turned the FHFA, historically a low-profile housing regulator, into a far more visible political force. His tenure has included board and leadership changes at Fannie Mae and Freddie Mac and public mortgage-fraud referrals involving several Trump critics, moves that have drawn scrutiny from Democrats and watchdogs.

The director of national intelligence position was created after the Sept. 11 attacks to improve coordination across the Intelligence Community. The DNI serves as the head of the U.S. Intelligence Community and as the principal intelligence adviser to the president, the National Security Council and the Homeland Security Council. The community includes the CIA, NSA, DIA, FBI intelligence branch and other military and civilian intelligence elements.

Unlike most past confirmed DNIs, Pulte is not known for a career in intelligence, diplomacy, military command or national-security policy. His selection on an acting basis would put a housing-finance official in charge of coordinating U.S. intelligence agencies during a period of personnel upheaval inside Trump’s national-security team.

Developing...

Tyler Durden Tue, 06/02/2026 - 09:21

Europe Has "Serious, Really Serious Problems" If US Cuts Oil Exports, Currie

Tyler Durden — Tue, 02 Jun 2026 13:00:00 +0000

Europe Has "Serious, Really Serious Problems" If US Cuts Oil Exports, Currie

Last night, the Abaxx Markets’ Jeff Currie and Veriten’s Arjun Murti joined Real Vision's Ash Bennington for a ZeroHedge Debate on what the oil market is getting wrong.

Surprise surprise… the EU is not looking good. But the U.S. may be in trouble too. Currie doubled down on his reserves-to-run-dry-by-July call.

They each gave their outlook on structural supply constraints that existed before the Hormuz debacle, whether the latest ‘ceasefire’ can be trusted, and where the price is headed and how quickly it’s headed there. Despite signs of relief in the Mid-East, many signs still read bullish oil (and thus bearish cost of living).

Here were the highlights for those short on time:

Currie’s July 4th Doomer Call

Currie on his recent warning that global oil inventories could run into serious shortages as early as July:

"There's a misnomer that the eight billion barrels of oil that you see in storage around the world is all usable,” he said, noting that fuel is not homogenous (jet, diesel, gasoline, etc.) and that 8 billion is not actually that much… “Every single energy analyst says sometime in that July, August is when you get into pretty serious problems."

The current calm in prices, Currie said, reflects seasonal demand weakness rather than a genuine easing of supply constraints. "Why you haven't seen this? We're in the seasonal low of demand," he explained. "April and May it goes down like this, and then June it just goes straight up five million barrels a day."

Murti agreed that shortages are likely to emerge region by region and product by product… where one country runs out of jet fuel, another gasoline. He added that developing Asia appears particularly vulnerable while Europe remains heavily exposed after years of energy underinvestment.

Asked how long it takes for shortages to be felt once inventories are exhausted:

"When you're out of something, it's it. That's it. It's over... it's instantaneous."

pic.twitter.com/DNrstsJMDL
— ZeroHedge Debates (@zerohedgeDebate) June 2, 2026

Turns out Exxon agrees with Jeff…

Exxon is saying that oil prices will rise to $150 to $160 in coming weeks pic.twitter.com/xI2PRsuhH7
— Josh Young (@JoshYoung) May 31, 2026

Which Countries Will Feel The Most Pain?

According to Murti: China looks good, rest of Asia… not so much. EU not great. America too complacent but likely OK.

“Europe might be able to avoid shortage by the fact that they're still rich enough to outbid those less fortunate Asian countries for the cargoes that you have… blase attitude on the part of Americans, American investors, even American politicians, about how serious of an issue this is… we're not going to face shortages like the 70s, but go tell that to the people of you know Malaysia and Pakistan.”

According to Currie: Asia will be fine thanks to China “taking care of its neighbors” but Europe is screwed.

“Europe is the one that's the most exposed, and the only reason they don't have problems is that the United States is exporting everything they have to Europe right now…” And while China has been building up inventory, “Europe, on the other hand, didn't invest in any brown. They got serious problems, really serious, problems when the Americans don't export to them.”

pic.twitter.com/471dIHng81
— ZeroHedge Debates (@zerohedgeDebate) June 2, 2026

Check out the full discussion below, on YouTube, or listen on Spotify.

Tyler Durden Tue, 06/02/2026 - 09:00

US Futures Dip As Questions Mount Over Relentless Tech Rally, Lack Of Peace Progress

Tyler Durden — Tue, 02 Jun 2026 12:22:43 +0000

US Futures Dip As Questions Mount Over Relentless Tech Rally, Lack Of Peace Progress

Futs are weaker but well off their overnight lows as the US is set to lag its global peers; according to JPM investors will need to watch to see if there is a beginning of a larger rotation similar to Jan-Feb or perhaps a slight pullback following the US’s multi-week run. As of 8:00am ET, S&P futures are down 0.2% after the artificial-intelligence trade fueled the S&P 500’s longest winning streak in more than a year, with investors gauging prospects for an end to the war in the Middle East. Nasdaq futures down a fraction after clocking yet more records on Monday (driven by a surge in Software stocks), as traders digest a barrage of AI news overnight while a growing number of traders urge caution on market positioning and the technical setup. Im premarket trading the story remains Tech with HPE / MRVL both up ~25% and AVGO +6.5%, NVDA +1.8%. Industrials, Materials, and Utilities the standout sectors. Technology stocks led gains in Asia overnight and are doing the same in Europe where the Stoxx 600 climbs 0.7%. Overnight macro news was quiet, and broader risk sentiment has also been helped by Brent crude futures falling 1.6% to around $93 a barrel. Treasuries advance, pushing US 10-year yields down 2 bps to 4.44%.Oil / Energy prices are declining along with Ags as Metals are bid led by aluminum, copper, and precious. US economic data calendar includes April JOLTS job openings at 10am; Fed speaker slate includes Hammack (8:30am) and Goolsbee (11pm).

In premarket trading, Mag 7 are mixed with Alphabet down 2.7% after raising $80 billion through a package of equity offerings, including a deeply discounted private placement with Berkshire Hathaway and a $40bn ATM ovvering (Nvidia +1.5%, Meta +0.5%, Tesla flat, Apple -0.1%, Amazon -1.6%, Microsoft -2.6%)

Shares of semiconductor companies are rallying as investors continue to rotate into the sector, seeing strong long-term growth potential related to artificial intelligence.
Credo Technology Group (CRDO) falls 3% after the communications equipment company reported fourth-quarter results that beat expectations but weren’t strong enough to extend recent strength.
Fulcrum Therapeutics (FULC) plunges 50% after the company discontinued its pociredir program for treatment of sickle cell disease and initiated a strategic review.
Generac (GNRC) is up 9% after the company signed a global agreement to supply backup power generators to a leading hyperscale data center operator.
Hewlett Packard Enterprise (HPE) rallies 25% after the company gave an outlook for annual sales that topped estimates, citing massive growth in AI-fueled demand for its servers and networking.
Intuit (INTU) is down 5% after Goldman downgraded its rating on the maker of tax-preparation software to sell, the only negative rating among 32 analysts tracked by Bloomberg.
Marvell Technology (MRVL) rises 22% after Nvidia’s Jensen Huang called the firm the “next trillion dollar company.”
Microchip Technology (MCHP) gains 7% after the chipmaker says its data center solutions unit generated $302.7m in revenue in calendar year 2025, with about $500m expected for this year.
NU Holdings (NU) falls 5% after the company announced a CFO transition, hiring Visa Inc.’s Rob Livingston to succeed Guilherme Lago.
Praxis Precision Medicines (PRAX) falls 10% after the company said said vormatrigine did not meet its primary endpoint of percent change in monthly seizure frequency in the Phase 2/3 study.

In corporate news, Abivax shares plunged after cancer cases in a crucial clinical trial for an experimental bowel disease drug threw the French biotech’s future into question. Morgan Stanley risks being drawn into a probe over Bolloré’s disposal of an allegedly corrupt €5.7 billion ($6.6 billion) asset.

In AI developments, Arm may achieve its target of $15 billion in sales of its own chips earlier than anticipated, according to its CEO. SK Hynix plans to double its memory chip wafer capacity to help ease the memory chip crunch. HPE delivered a sizable beat and raise after-hours on the back of growing AI-fueled demand for its servers and networks. Alphabet unveiled an $80 billion equity raise to fund AI spending. And Tencent shares surged after a report it’s set to launch WeChat AI agent.

Traders are juggling unprecedented euphoria around the economic potential of AI and a war that has brought about a historic disruption in oil markets. Uncertainty about how close a deal may be means investors must consider that crude prices could retreat dramatically or scale to the highest levels in years. Downside risks are also growing as US large-cap positioning continued to grind higher last week, led by persistent new risk flows to both the S&P 500 and Nasdaq 100, according to Citigroup strategists. “How much more concentration can investors handle” is the question posed by Bloomberg strategists, noting that re-risking has been unusually quick and narrow.

"Triggers that could force an unwind include hawkish Fed repricing, structural rebalancing risks surrounding a prominent SpaceX IPO, or a momentum rotation out of over-allocated Tech into Cyclicals,” notes Andrew Kent at Kyte. At these current levels, the forward three-month return profile for the S&P 500 exhibits “a clear fat left tail, signaling a significantly higher probability of a >5% correction,” Kent adds.

In the latest example of the vast amounts of capital being pumped into AI infrastructure, Alphabet Inc. said it is raising $80 billion through equity offerings. The announcement came hours after Anthropic PBC filed draft paperwork for a possible blockbuster initial public offering.

“We may be approaching the point where optimism around the long-term positive impact of the AI buildout is going to crash against a wall of higher yields, higher inflation and lower growth,” said Stephan Kemper, chief investment strategist at BNP Paribas Wealth Management.

The next part of the tech trade to experience FOMO-driven chasing looks to be software stocks. In the past two sessions, theSoftware Sector ETF IGV has experienced the familiar “vol-up/spot-up” pattern as investors have bought call options to chase upside. That’s seen the call skew invert and the volatility spread vs S&P 500 reach extremes again.

With all attention constantly focused on AI rather than macro jobs data, the set-up into US non-farm payrolls data suggests a muted reaction to the reading on Friday. Through the lens of S&P 500 options, Barclays derivatives strategists note the current NFP-related implied move of 55 bps is significantly lower than the past one-year average realized move.

“US data, such as the ISM manufacturing print we just had, still keeps the Fed/inflation debate alive and limits the scope for a dovish rates repricing, especially if oil remains volatile,” said Alessandro Gabellone, fixed-income analyst at Bank Degroof Petercam. Tuesday’s figures on US job openings will likely add to the series of favorable labor-market data releases for April. High-frequency data suggest total openings inched up, particularly in the second half of the month, according to Bloomberg.

In other assets, commodities are in a “super-squeeze,” rather than “super-cycle” that will worsen if the Strait of Hormuz remains effectively shut, according to HSBC analysts. Bitcoin dipped below $70,000 as Strategy’s rare sale of the token continues to weigh on fragile sentiment.

In hedge fund news, famed short seller Andrew Left faces the possibility of 25 years behind bars after being found guilty of using disingenuous social media posts to manipulate stocks, in a landmark case that threatens to chill a broader trading strategy loathed by corporate executives.

Technology stocks led gains in Europe where the Stoxx 600 climbs 0.7%. Here are the biggest movers Tuesday:

STMicro shares soared as much as 10% to the highest since 2000, after the chipmaker raised its data center revenue forecast for this year to about $1 billion
Alzchem shares rose as much as 13% to a record high as the German maker of chemicals used for ammunition and muscle enhancement announces that defense firm CSG has been increasing its stake
Hiab rallied as much as 7.9%, adding to its 5.6% advance on Monday, as analysts raise their price targets on the Finnish cargo-handling firm, lauding yesterday’s announcement that it’s buying refuse collection vehicle manufacturer Labrie Environmental Group
Deutsche Post shares rose as much as 3.6% to their highest level in over four years after Kepler Cheuvreux upgraded its rating to buy. The broker cites strength in a key metric, weight transported
Entain shares rose as much as 4.6%, extending Monday’s gains after MGM Resorts confirmed it received a takeover offer from People Inc
IntegraFin Holdings gained as much as 6.1%, the most since mid-December, after Shore Capital upgrades the investment platform provider to buy from hold in a note, saying it’s “an excellent business, properly undervalued”
Abivax shares plunged as much as 32%, the most in a decade, after the French biotech company reported cancer cases in a crucial clinical trial for its experimental inflammatory bowel disease drug
British American Tobacco shares fell as much as 3.8%, extending a seven-day losing streak, as a trading update showed continued downtrading from consumers is hurting margins, overshadowing the firm’s maintained guidance and growth in new, smoke-free categories
Avolta shares dropped as much as 5.9% to CHF45, after holder Richemont sold its stake in the Basel, Switzerland-based travel retail store operator for CHF45.35 per share
Paragon Banking Group shares fell as much as 7.6% to the lowest in nearly two months after first-half impairments prove unexpectedly big
GB Group slumped as much as 17%, the most since April 2025, after the identity verification and fraud prevention company announced additional investments to accelerate growth, which will impact short-term numbers

Asian stocks rebounded from early losses to extend their run of record‑setting gains, lifted by falling crude prices and gains in chipmakers and other technology shares. The MSCI Asia Pacific Index rose 0.6% in afternoon trading, heading for a record, after being down as much as 1% Tuesday. Tencent Holdings, Samsung Electronics and TSMC were among the top gainers, underscoring investors’ continued enthusiasm for artificial intelligence-related shares. Hong Kong and China led the region’s gains, while Japan fell. Investors eyeing major Chinese technology firms in Hong Kong helped revive the Asia benchmark, following a report of Tencent’s progress in launching an AI agent on WeChat and Meituan’s narrower quarterly losses. A gauge tracking these companies rose 4.7%. Indian information technology stocks also gained, after Nvidia CEO Jensen Huang rebuffed concerns that the software industry is at risk of being disrupted by more advanced AI tools.

In FX, the Bloomberg Dollar Spot Index edged 0.1% lower and oil prices eased as President Donald Trump said he is still optimistic the US can reach an interim peace deal with Iran soon, even after the Islamic Republic threatened to suspend talks. AUD/USD gained 0.3% to 0.7182 after Reserve Bank of Australia monetary policy board member Ian Harper said strong action is needed if inflation expectations become unanchored,USD/JPY ticked up less than 0.1% to 159.73. EUR/USD rose 0.2% to 1.1650

In rates, treasuries advance, pushing US 10-year yields down 2 bps to 4.44% supported by a wider rally across European bonds as oil unwinds a portion of Monday’s gains on optimism around the prospects of a US-Iran peace deal flagged by President Donald Trump. US yields richer by 2bp to 3bp across the curve with belly marginally outperforming, richening the 2s5s30s fly by ~1bp on the day. US 10-year yields trade around 4.425%, richer by 3bp on the day with bunds and gilts outperforming by 2.5bp and 4.5bp in the sector. European government bonds outperform with UK and German 10-year borrowing costs falling 5-6 bps each. Labor market in focus for the US session with JOLTS job openings data due, ahead of ADP employment and the May jobs report later this week.

In commodities, WTI crude oil futures are down 1.3% near session lows. Precious metals advance, with spot silver adding 2% and gold trading around $4,525. Bitcoin falls below $70,000 for the first time since April.

US economic data calendar includes April JOLTS job openings at 10am; Fed speaker slate includes Hammack (8:30am) and Goolsbee (11pm).

Market Snapshot

Top Overnight News

Lebanon announced a partial ceasefire between Hezbollah and Israel on Monday in what would amount to a limited de-escalation of a conflict that has ‌killed thousands of people and inflamed the broader U.S.-Israeli war with Iran. RTRS
The fighting in Lebanon had become a major sticking point in end-of-war talks as Iran considers the conflict a violation of the U.S.-Iran ceasefire. Trump received briefings in recent weeks that the Israel-Hezbollah conflict was one of the key reasons why Iran remained unwilling to make a deal with the U.S., Trump administration officials said. WSJ
The Trump administration on Monday proposed a 25 percent tariff on a broad range of Brazilian imports, concluding after a trade investigation that Brazil had engaged in unfair practices that imposed burdens on American businesses. NYT
The White House will cut tariffs on agricultural equipment, such as combines and harvesters, to 15% from 25% on June 8. A lower 10% duty rate may apply if the equipment contains at least 85% US steel or aluminum. BBG
Gold has overtaken US government bonds as the world’s top reserve asset following years of relentless buying by central banks and a historic rally that has seen prices nearly double over the past two years. FT
SK Hynix plans to double its memory chip wafer capacity over the coming half-decade to ease a global shortage of a key AI component. BBG
Former BOJ board member Sayuri Shirai said the central bank may hold rates steady this month because underlying inflation pressures haven’t strengthened that much. BBG
The US is discussing whether to deploy nuclear weapons in additional European Nato states, in a move intended to reassure allies that reduced conventional military support does not weaken security guarantees. FT
NVDA CEO Jensen Huang said on Tuesday the company has enough supply to accommodate robust growth in central processing units (CPUs) and graphics processing units (GPUs) as it ‌rides an AI boom. The company, considered a barometer for the AI market's health as its semiconductors are used in virtually every major data center in the world, acknowledged, however, that supply constraints remain a concern. RTRS

Iran War

US President Trump told ABC News he thinks he will have an agreement with Iran to extend the ceasefire and reopen the Strait of Hormuz over the next week, while he also stated that a peace agreement with Iran could be better than a military victory. Trump also stated that it's not simple for both sides, but they're getting what they need to get and that he still has to get a few more points.
US President Trump said he had a very productive call with Israeli PM Netanyahu and that there will be no troops going to Beirut, while he added that Hezbollah agreed that all shooting will stop.
US President Trump reportedly lashed out at Israeli PM Netanyahu over Israel's escalation in Lebanon in an expletive-laden call on Monday, according to Axios, citing two US officials and a source briefed on the call.
Iran’s final text is still being discussed in Tehran and no response has been sent yet, Mehr News reported citing sources.
Iranian Parliament Speaker Ghalibaf said talks will halt if Israeli actions persist in Lebanon, and warned that Iran will confront Israel if atrocities in Lebanon continue.
A senior Iranian official said a renewed war with US 'inevitable', Arab News reported citing state TV.
Iran's IRGC reported targeting a US-owned commercial vessel with a cruise missile, according to Al Jazeera.
Iran's IRGC said 24 ships passed through the Strait of Hormuz in the last 24 hours after obtaining permission from Iran, Nour News reported.
"A number of vessel owners are saying that they are no longer receiving IRGC threats via the radio, which wasn’t the case a few weeks back. But still the confidence level in crossing is low", Kpler's Bakr posted.
Lebanon officials said Hezbollah and Israel agreed to the US proposal for mutual cessation of hostilities. Israel will stop strikes on Beirut southern suburbs under the proposed agreement, Press TV reported.
Israeli airstrikes target sites in southern Lebanon, Sky News Arabia reported.
Source close to Yemen's Houthis emphasised they will not allow Lebanon to be attacked and Hezbollah to fight alone, according to SNN.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were mixed following the choppy performance stateside, where the major indices ultimately finished mostly higher amid tech strength and mixed geopolitical updates. ASX 200 was subdued amid weakness in real estate, financials and defensives, while sentiment was also not helped by a slew of mostly weaker-than-expected data releases. Nikkei 225 slipped after printing a new all-time high at the open with very few fresh catalysts from Japan, and as the recent mixed geopolitical headlines provide an opportunity to book profits. Hang Seng and Shanghai Comp conformed to the mixed picture with the mainland flat, while the Hong Kong benchmark was led higher by strength in the big tech names, with Meituan underpinned post-earnings, while Tencent, Alibaba, Lenovo, Kuaishou, SMIC and JD were all among the top performers.

Top Asian News

Japanese Finance Minister Katayama refrained from commenting on FX intervention and current FX levels, while she said volatility in oil markets remain and prepared to take appropriate action. Closely coordinating with the US on Forex, and both sides are closely monitoring markets.
South Korean Inflation Rate YoY (May) Y/Y 3.1% (Prev. 2.6%).
South Korean Inflation Rate MoM (May) M/M 0.5% (Prev. 0.5%).

European bourses (STOXX 600 +0.7%) start Tuesday’s trade with broad gains after raised hopes of an imminent US-Iran deal. US President Trump said negotiations with Tehran were continuing and signalled expectations of a deal to extend the ceasefire and reopen Hormuz "over the next week". Furthermore, Trump also claimed Israel and Hezbollah had agreed to stop shooting, which further weighed on energy prices and boosted the global risk tone. European sectors highlight the positive bias. Technology (+2.7%) tops the sector pile, with Basic Resources (+2.2%) following closely behind as metals surge amid worries of a tighter global supply. Energy (-0.7%), Healthcare (-0.6%) and Food, Beverages & Tobacco (-0.4%) are the only sectors printing modest losses.

Top European News

EU is weighing fiscal flexibility for energy costs, while the proposal would allow countries budgetary leeway to cushion energy costs, according to Bloomberg.
US is in talks to expand nuclear weapon deployments in Europe, according to FT.
UK Labour leader candidate Andy Burnham said he rules out an early General Election if he is elected to replace PM Starmer, Bloomberg reported citing his spokesperson.
UK's Ofgem is seeking views on draft guidance to support proportionate supply chain security risk management in the downstream gas and electricity sector.

G10s are mixed but mostly stronger against the Buck as energy benchmarks pull back alongside more constructive Gulf headlines.
The Buck trades a touch lower after pressure seen in the early European morning attempted to push the Dollar index to the 99.00 level. Markets are generally more risk-on after headlines overnight were more constructive than those seen on Monday. See 08:20 BST headline for geopolitical specifics. US domestic newsflow has been light. Today sees the release of JOLTS job openings. The figure is expected to be broadly unchanged from the March figure. DXY trades 0.1% lower within a 99.05-9922 range.
EUR is a touch firmer against the weaker Buck in a reaction you would expect to see in response to the recent geopolitical headlines. The EZ Inflation report held a hawkish skew, with the energy component and Services jumping. The single currency was little moved on the report, given it ultimately plays in favour of a hike in June, which is ultimately fully priced in.
JPY is incrementally lower vs the USD. Japan saw strong demand at its 10yr auction overnight, where demand rose beyond the 12-month average despite the BoJ slated to hike rates in two weeks. JPY saw modest strength on the results, though it proved fleeting with USD/JPY rangebound given the various fiscal/Terms of Trade headwinds. In a note this morning, ING wrote "The risk of new intervention does look a bit underpriced, considering Japanese authorities have remained rather hawkish with their intervention narrative." Katayama was on the wires overnight, she said: "Closely coordinating with the US on FX."

Fixed Income

Global fixed benchmarks are stronger across the board, facilitated by a pullback in energy prices after some positive-leaning geopolitical newsflow. In brief, President Trump suggested that talks with Iran are continuing at a rapid pace, adding that he thinks an agreement will be made with Iran to extend the ceasefire over the next week.
As for price action, USTs benefit from the lower energy prices this morning, with gains of c. 8 ticks at pixel time; currently holds at the upper end of a 109-22 to 109-30 range (vs Monday’s trough of 109-09+). From a yield perspective, rates at the belly of the curve are underperforming vs short-dated rates, signalling that traders remain uncertain about near-term geopolitical progress. The 10yr (4.43%) now resides back towards recent troughs, and another leg lower could see a test of the low from 12 May at 4.41%. Focus ahead turns to US JOLTS.
Bunds (+50 ticks) and Gilts (+60 ticks) also extend higher, following the geopolitical risk tone. For the EZ specifically, a hawkish inflation report out of the EZ (Services at 3.5% from 3.00%, and Core Y/Y topped expectations), led to some mild pressure in German paper.
JGBs (+92 ticks) are outperforming vs peer, boosted by the geopolitical tone and a solid 10yr Japanese auction. Whilst the b/c and avg. yield were not so good, the lowest accepted price fell to 98.01 (prev. 98.86), indicating some solid demand for the paper. The 10yr knee-jerked higher following the sale, before then gradually moving higher as other investors also bought debt. As it stands, the 10yr (2.57%) now resides at levels not seen since 13 May 2026.
Germany sells EUR 3.857bln vs exp. EUR 5bln 2.50% 2028 Schatz: b/c 1.58x (prev. 1.4x), average yield 2.59% (prev. 2.70%), retention 22.86% (prev. 22.8%).
UK sells GBP 3.25bln 4.625% 2037 Green Gilt: b/c 3.63x, average yield 4.975%, tail 0.2bps.
Japan sells JPY 1.98tln 10yr JGBs, b/c 3.53x (prev. 3.90x, 12-month avg. 3.35x), average yield 2.649% (prev. 2.540%).

Central Banks

ECB's Rehn says a June rate move would be an insurance hike and that inflation expectations remain unanchored.
ECB's Simkus said consumer short-term inflation expectations are similar to 2022 and that it is important to react in a timely manner to inflation.
Rabobank maintains its forecast for a 25bps ECB rate hike next week; expects the ECB to raise rates by another 25bps, likely in September.
RBA's Harper said stronger than expected domestic demand and re-emergence of capacity constraints have widened the output gap again, and markets are now anticipating that the bank would have to address this, while he added that persistent inflation is a genuine concern and market measures of inflation have gone up, which is a worry.
Nikkei reported that the BoJ is continuing to call for a June hike, though the government is opting for a "wait-and-see" approach given the risks of risking inflation and a weaker JPY.
BoJ summary of meeting with investors: one participant said the need for further tapering of bond purchases is not high; participant said there is no need for further tapering of bond buying. One participant said the BoJ should act nimbly, such as conducting emergency bond-buying operations as needed when the bond market destabilises.

Commodities

Crude futures are subdued this European morning as the complex takes a breather from yesterday’s surge, with upside capped by constructive comments from US President Trump. To recap, US President Trump said talks with Iran were continuing at a rapid pace and that he believes an agreement to extend the ceasefire and reopen the Strait of Hormuz could be reached within the next week. That being said, it was reported this morning that Iran’s final text is still being discussed in Tehran and no response has been sent yet; Mehr News reported, citing sources. Meanwhile, a senior Iranian official said renewed war with the US is 'inevitable', Arab News reported, citing state TV. Elsewhere, Lebanon emerged as a major issue, with Iran warning that continued Israeli actions could impact negotiations.
WTI and Brent front-month futures trade softer by some 2% and 1.8% respectively, at the time of writing after the benchmarks settled higher by USD 4.80/bbl and USD 3.86/bbl, respectively, on Monday. Benchmarks have held a negative bias throughout the European morning. WTI Jul resides towards the bottom end of a USD 90.15-92.65/bbl range, Brent Aug trades in a USD 90.66-92.85/bbl range. Dutch TTF trades -2.5% within the recent EUR 47-48/MWh range.
Spot gold is slightly firmer as the USD remains subdued by oil prices, with the yellow metal in a USD 4,463-4,541/oz range, within yesterday’s USD 4,447-4,546/oz range. Spot silver similarly rebounds but tops yesterday’s high (USD 76.29/oz) to currently trade towards the top end of a USD 74.48-76.93/oz range.
Base metals are firmer across the board amid the softer USD and softer oil prices, coupled with a firm performance across Chinese markets overnight. 3M LME copper resides in a narrow USD 13,821.53-13,992.22/t range at the time of writing.
The IEA’s oil division chief said oil supplies from the US, Brazil, Argentina and Venezuela have exceeded expectations, but output from the Americas can only marginally offset supplies lost East of Suez.
UAE's ADNOC executive said China’s demand is starting to come back, and "teapot" refineries are showing appetite.

Trade/Tariffs

White House released a Fact Sheet stating President Trump signed a Proclamation adjusting certain metals tariffs to more effectively address national security threats and spur investment. The Proclamation adjusts the tariffs on agricultural equipment, like combines and harvesters, as well as certain other equipment, from 25% to 15%, while it expands the category of industrial equipment subject to a 15% tariff to include mobile industrial equipment, like bulldozers and forklifts, when imported from trade deal countries that are entitled to such treatment. It also encourages foreign companies to use more US steel and aluminium by allowing them to qualify for a 10% duty rate if their capital equipment includes at least 85% US melted and poured or smelted and cast steel or aluminium by weight.
US Trade Representative said they determined that Brazil has performed unreasonable acts under Section 301 and that the acts are actionable, while the US continues to engage with Brazil to seek a resolution, and the US will hold a hearing about proposed action on June 6th. USTR later proposed to impose tariffs of 25% on all imports from Brazil, except for goods that are subject to Section 232 national security tariffs.
European Parliament’s Trade Committee voted in favour of legislation to remove EU duties on several US goods imports.

Geopolitics

Russia's Kremlin said systematic strikes against Ukrainian military infrastructure are being carried out, however reiterated that it is ready to achieve its aims in Ukraine through diplomacy.
Explosions were reported in Kyiv, and a witness said the city sustained a large-scale air bombardment, while Ukraine's air force said it detected missiles headed towards the Sumy region and Kyiv, as well as UAVs that were headed towards Zaporizhzhia from the south.
Air raid sirens were activated in Ukraine's Kyiv, while authorities urged residents to seek shelter.
Ukraine’s military said it has struck Russia’s Ilsky oil refinery (132k-138k BPD).

US Event Calendar

10:00 am: Apr JOLTS Job Openings, est. 6866k, prior 6866k
1:50 am: Fed’s Kashkari in Panel Discussion
8:30 am: Fed’s Hammack Speaks on Monetary Policy
11:00 pm: Fed’s Goolsbee Speaks on CBS Chicago

DB's Jim Reid concludes the overnight wrap

I'll be at a Parisian breakfast as you read this presenting our new semi-annual World Outlook, which is called “1999 meets 1990”. The title reflects the interplay of AI-driven optimism and the disruptive effects of the Middle East conflict, which makes it feel like those two years are now coinciding.

In the outlook, our baseline expectation is that a US-Iran deal is reached this month that allows shipping through the Strait of Hormuz to resume, with Brent crude falling back to $86/bbl in Q4. However, if the Strait of Hormuz experiences a prolonged closure, that would push Brent towards $150/bbl, hitting global growth and pushing Europe into recession. But net net, our global GDP forecast has only been trimmed slightly to 3.0% this year, before recovering back to 3.2% in 2027.

For markets, our equity strategists remain constructive, still seeing the S&P 500 at 8000 by year-end. However, our fixed-income strategists expect a further selloff, with 10yr Treasury yields reaching 4.7%, and 10yr bund yields up to 3.2%. In credit, we also see some mild spread widening by year-end, particularly in Europe. And on the FX side, we expect a continued (albeit slower) dollar depreciation, with EUR/USD reaching 1.20 by year-end.

Looking at the last 24 hours, 1990 continued to fight it out with 1999 as higher oil met fresh mega equity issuance and AI euphoria. Brent crude (+4.24%) and 10yr Treasury yields (+1.7bps) climbed yesterday as headlines pointed away from a US-Iran deal though the S&P 500 (+0.26%) still reached a fifth consecutive record high as AI optimism persisted. However, the equity mood has softened overnight, with NASDAQ futures (-0.67%) underperforming those on the S&P (-0.42%) as news that Alphabet is planning a $80bn equity offering, reminding investors of unprecedented scale of the AI spending boom.

Starting with Iran, the biggest market moving story yesterday came as Iran’s Tasnim news reported that negotiators would suspend “talks and the exchange of documents through mediators”, which dashed hopes for an imminent deal. A little later, further escalatory risks came into play, as Iran also threatened to target northern Israel if Israel continued attacks on Lebanon. That was according to Iran’s ISNA news, who cited the country’s Central Military Command. This marked a clear shift from the more hopeful tone of last week. The mood did then improve later in the session as Trump sought to de-escalate the tensions in Lebanon, with the US President claiming that Israel and Hezbollah agreed to “stop shooting” at each other after his calls with their respective leaders. Trump also countered the news out of Iran, claiming talks were continuing “at a rapid pace” and telling ABC News yesterday evening that he thinks an MoU will be completed “over the next week”.

Trump’s intervention helped ease fears that the weekend’s escalation in Lebanon would lead to a broader re-escalation between the US and Iran. Still, uncertainty over the possible US-Iran deal persists, with growing doubts that the Strait of Hormuz will reopen soon. For instance, the Polymarket probability of a return to normal traffic in the Strait this month stands at 22%, down from 26% on Sunday and 36% back on Friday. The resulting increased caution in oil markets saw Brent crude jumping to as high as $97.79bbl following the Tasnim report before settling at $94.98/bbl. When adjusting for the roll in the monthly benchmark from July to August, this marked the biggest daily jump for the front-end contract (+4.24%) in four weeks. Brent is -0.74% lower this morning as I type.

This backdrop of rising oil prices yesterday led investors to price back in the chance of a stagflationary shock. So yields moved higher, with the 10yr Treasury yield (+1.7bps) reversing a run of 7 consecutive declines to close at 4.45%, though it did retreat from an intra-day higha of 4.516%. In Europe markets closed before the positive comments on Lebanon came through, with yields on 10yr bunds (+6.5bps), OATs (+7.9bps) and BTPs (+8.3bps) all posting larger increases. Pricing of a Fed rate hike by December moved up to a 69% probability, having been at 57% on Friday, while for the ECB 63bps of hikes are now priced by year-end (+11.5bps yesterday).

Whilst oil prices drove most of yesterday’s bond moves, a rise in yields was also supported by another batch of solid data. Most notably in the US, the ISM manufacturing print hit a 4-year high of 54.0 in May (vs. 53.0 expected), which cemented the view of economic resilience there. Meanwhile in the Eurozone, the manufacturing PMI was also revised up modestly from the flash print, up two-tenths to 51.6.

For equities, US stocks held onto their risk-on tone yesterday, with the S&P 500 (+0.26%) and the NASDAQ (+0.42%) both posting an 8th consecutive advance to fresh records. That marks the first time in a year the S&P has achieved 8 consecutive daily gains. And if you look at the moves on a weekly basis, a positive gain this week would be the S&P’s 10th consecutive advance, which is something we haven’t seen since 1985. The Mag-7 (-1.03%) did decline amid outsized losses for Meta (-5.07%) and Tesla (-4.57%), while the Philly semiconductor index rose +1.06%. The latter included a large dispersion among the chipmakers as Nvidia (+6.26%) announced a new chip to enter the PC market. The news also boosted the likes of ARM Holdings (+15.73%) and Micron (+6.64%) but weighed on Intel (-4.67%) and Qualcomm (-8.78%).

In other tech news, Anthropic confidentially submitted its draft IPO filing, which follows the anticipation that OpenAI will also file for an IPO soon. Then shortly after the US close, we heard that Alphabet is set to raise $80bn through a package of equity offerings that includes a $10bn investment from Berkshire Hathaway. So funding of the AI capex boom is becoming an increasingly key topic for markets. The 1999 comparison in our World Outlook seemed quite apt yesterday.

Across the Atlantic it was a more downbeat picture, with the STOXX 600 (-0.76%) seeing a sizeable decline, reflecting the region’s greater exposure to the energy shock and as European markets closed before some of the more constructive headlines came through. Euro STOXX 50 futures (+0.38%) are reversing some of yesterday’s loss overnight.

In Asia we're seeing a mixed picture with the KOSPI (-1.97%) and the Nikkei (-1.53%) the worst performers with both indexes falling from record highs. Additionally, the S&P/ASX 200 (-0.33%) is also edging lower. However the Hang Seng (+1.46%) is bucking the regional trend with gains in heavyweight tech shares. Meanwhile, mainland Chinese stocks are a mixed bag with the CSI (+0.78%) trading moderately higher while the Shanghai Composite (-0.04%) is flat. Meanwhile, 10yr USTs are -1.4bps lower trading at 4.44% as we go to print.

Early morning data showed that Korean CPI hit a 26-month high in May, ramping up bets that the Bank of Korea will hike interest rates later this year. CPI rose +3.1% from a year earlier (v/s +2.9% expected), after climbing +2.6% in April.

Looking at the day ahead, data releases include the Euro Area flash CPI print for May, UK mortgage approvals for April, and the US JOLTS report for April. Otherwise, central bank speakers include the Fed’s Hammack, the ECB’s Rehn, Vujcic and Sleijpen, BoE Governor Bailey, and the BoE’s Greene.

Tyler Durden Tue, 06/02/2026 - 08:22

Marvell Soars After Nvidia CEO Says Chipmaker Is Headed For Trillion-Dollar Club

Tyler Durden — Tue, 02 Jun 2026 12:15:00 +0000

Marvell Soars After Nvidia CEO Says Chipmaker Is Headed For Trillion-Dollar Club

Computex 2026 in Taipei is underway for the second day.

Let's begin with Monday's wrap-up of the event:

There was no shortage of fireworks on day two, as Nvidia CEO Jensen Huang took the stage and greeted Marvell Technology CEO Matt Murphy, stating that the fabless semiconductor company that designs chips will be "the next trillion-dollar company."

$NVDA CEO Jensen Huang says $MRVL could 5x and become “the next trillion-dollar company.”

Marvell is one of the few companies with exposure to both custom AI silicon and networking fabric connecting modern AI data centers. https://t.co/5rDcHLa0eJ pic.twitter.com/12C7IYTDWQ
— Shay Boloor (@StockSavvyShay) June 2, 2026

Pumpmaxxing...

» Be Nvidia

» Invest $2 billion in Marvell

» Introduce them as “the next trillion dollar company”

» Stock goes up 40% overnight on remarks

Wild times! https://t.co/h9QXmOE0l3
— Brandon Carl (@brandonjcarl) June 2, 2026

Huang's comments catapulted Marvell shares, sending the stock up 26% in premarket trading and extending what was already a stunning 158% year-to-date rally as of Monday's close.

A move to a $1 trillion market cap would imply more than a fivefold increase from the semiconductor and networking company's current valuation. Huang noted that Marvell's valuation will soar now that the age of "useful AI has arrived."

The stock has 44 "Buy" ratings, 6 "Holds", and zero sells. What could possibly go wrong?

For context, Marvell's business is data infrastructure silicon, meaning the chips and networking tech that help data move, store, process, and connect inside cloud and AI data centers.

Nvidia sells GPUs, but giant AI data center clusters also need ultra-fast networking and interconnects so all those GPUs and servers can function as a single system. Marvell is one of the companies positioned to supply that connective tissue:

Custom AI chips and ASICs for hyperscalers
High-speed networking chips that connect servers and GPUs
Optical and copper interconnects that move data inside and between AI clusters
Ethernet switches
Storage and memory-controller chips
Data-center, telecom, enterprise, auto, and carrier infrastructure silicon

Also notable at Computex 2026 was SK Group Chairman Chey Tae-won, who told reporters that his memory chip company plans to double its wafer capacity over the next five years.

"We are going to double the whole capacity over the next five years ... there are a lot of obstacles and hurdles, but we will get over them and expand," Chey told reporters.

SK Hynix remains one of the top players in the AI memory chip market, holding 58% of the global HBM market in the first quarter, well ahead of Samsung and Micron, which each held 21%, according to Counterpoint Research.

Must Read:

Will $800 Billion In AI Capex Spending Boost US GDP: The Surprising Math That Leads To Disappointment

The broader takeaway is that AI demand is expanding the club of trillion-dollar market companies, with the latest Bloomberg data showing about 15 companies.

Tyler Durden Tue, 06/02/2026 - 08:15

Britain's White 'George Floyd' Moment?

Tyler Durden — Tue, 02 Jun 2026 12:10:00 +0000

Britain's White 'George Floyd' Moment?

Update: Vickrum Singh Digwa, 23, received a life sentence with a 21-year minimum on Monday for the murder of 18-year-old Henry Nowak.

Judge William Mousley describes Nowak as a “much-loved, kind, hard-working and ambitious young man, devoted to his family and with a bright future.”

Mousley includes agonizing testimony from Nowak’s family: Nowak’s death has caused his sister’s world to “fall apart,” she said; Nowak’s father describes his son’s death as a “life sentence” for the family.

The judge then details the extensive lies he believes Digwa told to evade responsibility for the murder.

'His murderer was afforded decency. He was believed'

Henry Nowak's father says the 'contrast' in the police's treatment of his son and his murderer is 'unbearable' in a statement after Nowak's killer was sentenced to 21 years in prison. pic.twitter.com/9w8A35hpMp
— GB News (@GBNEWS) June 1, 2026

As Daily Caller noted, Mousley more or less excused the actions of the responding police officers, writing they “honestly believed that there were reasonable grounds for suspecting Henry had committed an offence and arrested him.”

* * *

As Bruce Oliver Newsome detailed earlier via American Greatness, this had all the ingredients (except inverted) to become Britain's white 'George Floyd' moment.

If police see racism before they see a man bleeding out, something has gone profoundly wrong with justice.

Police handcuffed and arrested an 18-year-old while he was bleeding out from multiple stabbings because the stabber, a Sikh, accused the victim, a white man, of racism.

The stabber showed no signs of being the victim of violence. He said the man lying in his own blood on the ground had knocked off his turban in a drunken racist attack. And for that, the police arrested and handcuffed the victim.

The victim had been stabbed once in the face, twice in the legs while trying to escape over a fence, and once in the lung. But somehow the police claim not to have been aware of his wounds.

Vickrum Digwa, the 23-year-old stabber, was carrying two blades: an 8-inch “shastar” openly, and a smaller “kirpan” around his neck and under his clothing. During the trial, the prosecutor said that Digwa had “been training with weapons since the age of 12,” slept with weapons, and used “loving terms” when speaking about the murder weapon.

Digwa’s defense barrister claimed religious allowance for openly carrying knives that are illegal for the rest of us to carry. And the judge instructed the jury to consider whether the stabber had a good reason, such as self-defense or religion, to carry his weapons. The national government says that courts should decide what is legal to carry. The police federation says there is no limit on the size of the blade that can be carried with religious allowance.

Police initially arrested and handcuffed the victim without treating his wounds and without detaining the stabber.

On Thursday, May 28, the stabber was convicted of murder. The court found that the stabber had certainly not told the whole truth. He had told arriving officers of racist provocation but denied stabbing anyone.

There is no evidence for any racism other than the retrospective verbal claims of the stabber and his brother, who arrived after the stabbings and who made a call to emergency services claiming his brother was a victim of racism. He too did not mention any stabbing.

The perp’s father and mother also showed up at the scene. The mother helped to conceal the weapons.

The victim did not know his murderer. The victim was walking home around 11:30 p.m. on December 3, 2025, from a night out with his university soccer team in Southampton. He was well-dressed and well-groomed. He had drunk less alcohol than would have put him over the driving limit. But Digwa claimed to be attacked by a racist drunk. And the police believed him.

What will the consequences for the police entail?

The police force (Hampshire) referred itself for independent investigation but is also making excuses.

They claim that the stabbings were not obvious to officers, despite a trail of blood, and despite the victim repeatedly saying he had been stabbed and couldn’t breathe.

The police force maintains that officers could not have known the victim was suffering from internal bleeding. Yet the victim had been stabbed five times, of which one stabbing went 8 cm (more than 3 inches) into his lung. The blade itself is 21 centimeters (8 inches) long.

The police force isn’t publicly pondering whether the police officers should have examined rather than arrested the victim.

The police force says the victim couldn’t have been saved, but the victim didn’t die for another hour.

The police force says it is the victim of the stabber’s lies and that its officers were obliged to act on the stabber’s false accusations of racial provocation. But aren’t officers trained in judgment, to use their freaking eyes, to not make hasty judgments, and to care for even the perps? Wasn’t the victim’s plight obvious and the other party’s rude behavior equally obvious?

Note that the police force didn’t refer itself for investigation until the day of the conviction, almost six months after the murder.

And the police force still hasn’t released bodycam footage, even though one justification for introducing bodycams was to reassure the public of impartiality in racially sensitive cases, following the BLM explosion in 2020. The trial has concluded, so there can be no concerns around contempt of court by releasing footage.

[ZH: police just released the bodycam - its not embeddable]

Note that in other cases, such as the stabbings of girls at Southport in 2024 and the rape of a child in Nuneaton in 2025, local police, courts, and national government fell over each other to cover up the non-white race of the perpetrators, to warn against white racist misinformation, and even to prosecute some of the supposed misinformers for supposedly promoting hate.

I bet the Independent Office for Police Conduct (IOPC) won’t be investigating what journalists and opposition politicians have already identified: the racism of anti-racism.

Matt Goodwin, an academic and candidate for Parliament representing Reform UK, writes that “Henry Nowak now joins a growing list of people that most people in Westminster have probably never heard of—Terence Carney, Thomas Roberts, Victoria Agoglia, Lucy Lowe, Charlene Downes, Wayne Broadhurst, Rhiannon Whyte, among countless more—all of whom happen to belong to the wrong identity group to be considered worthy of serious discussion and attention,” after being murdered or raped by immigrants or the progeny of immigrants.

The Critic’s Tom Jones tweeted that “were the races reversed, this could be a story from the Jim Crow South that became a cause célèbre of the Civil Rights movement.”

The Spectator’s David Shipley wonders whether the police are so primed to posture as anti-racist (that is: anti-white racist) that they were blind to the evidence on and from the victim because he is white and gullible towards the stabber because he is not white.

Ed West, author of the classic The Diversity Illusion, reports that even the prosecutor went out of his way to avoid accusing the perpetrator of racism. “This is not a case about Sikhism. This is not a case about racism. This is a case about murder.” But as Ed West notes, the same defender made this a case of anti-racism.

This is a case with a false accusation of racism and a false justification of anti-racism for homicide, including labeling the victim as racist partly because of his different color.

So isn’t that racist?

You won’t find such questions in the mainstream media. The Guardian does not report the police’s actions at all and was at pains to specify the justifications for carrying a kirpan.

Worst of all, where the BBC reports on the police force’s decision to refer itself for investigation, the BBC goes out of its way to claim that “Digwa . . . had used a blade he said he carried because of his Sikh faith.” In fact, the jury had not formally agreed with that claim from the defense.

Anti-racism is racism, and British police are racist.

The name of the victim is Henry Nowak. Say his name.

And remember his last words: “I can’t breathe.”

But protesters aren’t blockading the streets. Keir Starmer isn’t taking the knee. Politicians aren’t calling on the public to chant his name or his last words, unlike in the case of the career criminal George Floyd, who almost certainly died of a fentanyl overdose.

Tyler Durden Tue, 06/02/2026 - 08:10