WS #7961

The dominant stagflation narrative from the prior window is reinforced by new data: the University of Michigan sentiment final May reading hit a record low of 44.8, with 1-year inflation expectations at 4.8% and 5-10 year at 3.9%. This corroborates the earlier preliminary miss and confirms the stagflation thesis. Fed Governor Waller explicitly stated he supports making clear the next rate move is as likely a hike as a cut, citing the Iran war energy shock, and that it's 'crazy' to talk about rate cuts. This is a significant hawkish signal that counters any lingering dovish expectations. Separately, GameStop is seeking shareholder approval for a massive increase in authorized shares to pursue an acquisition of eBay, a high-significance M&A development. AMD shares rose after CEO Lisa Su forecast >35% annual CPU market growth over five years on AI demand. Goldman Sachs shares hit $1000 for the first time. The Guardian reported that Australian government plans for 'worst-case scenario' retail fuel rationing as IEA warns oil markets enter 'red zone' by August, underscoring persistent energy supply stress. The Turkey political risk theme is stable but repeated across multiple sources (Al Jazeera, DeepDive) as the government tightens institutional grip after court ruling. The Ebola outbreak in DR Congo risk was raised to 'very high' by WHO, but global risk remains low. Overall, the narrative is ESCALATING on stagflation/hawkish Fed, with no counter-signals to the prevailing bearish macro thesis.