WS #7203

The dominant macro narrative remains the Iran oil crisis and its second-order effects, with several new data points in this window. The U.S. PPI surged 1.4% month-over-month in April (consensus +0.5%), pushing the annual rate to 6% — the highest since 2022. This confirms inflation is accelerating, driven by energy costs from the Strait of Hormuz closure. Fed's Collins reinforced a hawkish stance, saying rates should stay on hold for 'some time.' Meanwhile, the DOJ is investigating suspicious trading activity linked to oil market volatility, and a Chinese oil tanker successfully transited the Strait of Hormuz during Trump's Beijing visit, testing the U.S. blockade. Trump called the Strait closure 'genius' for boosting Texas oil exports, but U.S. gasoline prices remain elevated. The House reached the threshold to force a vote on $1.3 billion in Ukraine aid, and Slovakia temporarily closed border crossings with Ukraine for security reasons. On the corporate front, Wolfspeed surged 24% after Citrini named it a top AI infrastructure pick post-restructuring. Eli Lilly crossed $1,000 per share. Cerebras IPO prices tonight at $150-$160, raising up to $4.8B. A massive $5.04M premium was paid for Five9 (FIVN) October 2026 call options, signaling bullish AI cloud contact center bets. The South Carolina Supreme Court overturned Alex Murdaugh's murder convictions, a non-market story. Overall, the inflation shock and Iran war escalation dominate, with the PPI data being the most market-moving item.