WS #7715

The dominant macro narrative remains the Iran conflict and its inflationary impact, with no new escalation or de-escalation in this window. Key developments include: Trump stating Iran still has 'a little capacity to retaliate' and that China's Xi promised not to send weapons to Iran, while also hinting at 'other initiatives to keep gas prices in check' — this counters the bearish oil thesis slightly but does not resolve the Strait of Hormuz blockade. A drone strike cut external power to the UAE's Barakah nuclear reactor for 24 hours, forcing reliance on backup generators — the first military impact on a fully operating nuclear plant's safety systems, raising geopolitical risk premiums. US Treasury long-bond yields hit near 20-year highs on inflation panic, pressuring growth stocks. On the MAG7 front, Microsoft saw aggressive institutional call buying ($5.4M in $MSFT 435C 06/05/26), while Amazon's Trainium chips are winning AI developers from Nvidia — a bullish signal for AMZN and bearish for NVDA. KE Holdings (BEKE) surged 7% on Q1 profit beat despite revenue decline. The Iran narrative is STABLE — no new escalation or de-escalation, but the Barakah incident adds a fresh layer of nuclear safety risk.