WS #7882

The dominant narrative remains the US-Iran situation, which is in a state of diplomatic flux. Secretary of State Rubio indicated 'some good signs' for a deal with Iran, while also expressing displeasure with NATO allies over the response. Pakistan is mediating, with officials traveling to Iran today. However, Iran is discussing a permanent toll system for the Strait of Hormuz with Oman, which Rubio said would make a diplomatic deal unfeasible. French PM Lecornu stated the Iran conflict is 'bound to last.' This mixed messaging suggests the situation is STABLE but unresolved, with no clear de-escalation or escalation. The US flash S&P Composite PMI was confirmed at 51.7, indicating modest expansion. US manufacturing activity expanded in May by the most in four years, attributed to front-running price pressures from the Iran war. This is a positive economic signal but carries inflationary implications. In corporate news, SpaceX's IPO filing continues to generate speculation, with Polymarket traders pricing it in the low-$2T range. Spotify is surging on multiple product announcements from its Investor Day, including AI-powered podcast and audiobook tools, and a landmark licensing deal with Universal Music for fan-made covers and remixes. Lightspeed stock slid after disappointing Q4 earnings and guidance. Target posted a Q1 beat but its outlook reflected a slowdown in sales trends, causing the stock to fall. NVIDIA CEO Jensen Huang commented on the stock's performance, calling it 'one of the mysteries of the universe,' while Cantor Fitzgerald reiterated an Overweight rating with a $350 price target. The White House postponed an AI EO signing ceremony, a potential negative signal for AI policy momentum. Ebola cases in Uganda have surged to 681 with 165 deaths, leading Uganda to temporarily suspend cross-border passenger transport with DRC.