WS #6679

The dominant narrative remains geopolitical tensions in the Middle East and Ukraine, with oil steadying as the US and Iran weigh a fresh peace proposal. Iran is reviewing a US peace proposal, and there are Polymarket contracts on US-Iran nuclear deal by May 31 and Strait of Hormuz traffic returning to normal, indicating market focus on de-escalation. However, new drone attacks in Ukraine and ballistic missile threats from Donetsk region suggest continued escalation there. Separately, the SEC proposes reducing earnings reporting frequency from quarterly to semiannual reports, which could have broad market implications. On the corporate front, Curtiss-Wright raised FY2026 guidance on defense strength, and McEwen Mining beat estimates. Nikkei futures surged to 62,155 vs pre-holiday cash close of 59,513, indicating a strong open for Japanese equities. The SEC's crypto-friendly stance is highlighted by Nasdaq's president and DTCC's tokenization plans. The overall narrative is STABLE with mixed signals: geopolitical de-escalation prospects countered by ongoing Ukraine attacks and US political developments.