Energy risk is back on the board after tankers turned away from Hormuz, giving markets another inflation and shipping headline to watch. At the same time, DeepSeek’s AI-chip push and NATO’s long-range weapons plans show how technology and defense spending remain two of the strongest structural themes in the market.

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Futures at a Glance📈

Futures are slipping as fresh U.S. strikes on Iran put geopolitical risk back in the driver’s seat. Oil is jumping, Asia is under pressure, and Korea’s Kospi has fallen into bear market territory as traders reassess the path toward a lasting Iran deal. The market also has one eye on today’s Fed minutes, which could add another wrinkle after Warsh’s first policy meeting.

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What to Watch

Earnings (Premarket):
• Levi Strauss & Co. [LEVI]
• Helen of Troy Limited [HELE]

Earnings (Aftermarket):
• PriceSmart, Inc. [PSMT]
• AZZ Inc. [AZZ]
• Pure Cycle Corporation [PCYO]

Economic Reports:
• Monthly Wholesale Trade (May): 10:00 am
• Federal Open Market Committee Meeting Minutes: 2:00 pm
• Consumer Credit (May): 3:00 pm
• BOE Deputy Governor Sarah Breeden, FRB New York President John Williams, and FRB Dallas President Lorie Logan speak at The Future of Market Liquidity and Functioning Workshop: 8:00 pm

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Market Pulse

Markets Brace for a Messier Risk Setup
Global markets are starting the day with oil, yields, and AI volatility all back in focus after renewed U.S.-Iran fighting threatened the fragile ceasefire and lifted crude prices. The market read is that investors are not panicking yet, but the easy “AI up, oil down, yields stable” backdrop has clearly gotten more complicated.

The Dollar Catches a Safe-Haven Bid
The dollar moved to a one-week high after the U.S. resumed strikes on Iran, with traders balancing geopolitical risk against the next Fed signal. That matters because a stronger dollar can tighten financial conditions globally, especially if oil prices are also moving higher at the same time.

AI & Semiconductors

OpenAI Gets a Green Light for Its Next Model Rollout
OpenAI reportedly received U.S. Commerce Department approval for a broad GPT-5.6 launch, following additional government testing under Washington’s frontier-AI oversight framework. The key market angle is that AI regulation is becoming more formal, but not yet restrictive enough to stop leading U.S. model companies from pushing ahead.

DeepSeek Pushes Toward Its Own AI Chip
China’s DeepSeek is developing its own AI chip, according to Reuters, with the design focused on inference rather than model training. That keeps the China AI story tied directly to hardware self-sufficiency, Nvidia exposure, and the race to reduce reliance on foreign chips.

China Tech & Autos

Apple Puts China Memory Chips on the Watchlist
Apple is reportedly testing CXMT memory chips for devices sold in China, putting China’s state-backed DRAM champion deeper into the global supply-chain conversation. The bigger read is that local sourcing is becoming a strategic issue for megacap tech, especially as Beijing keeps pushing for semiconductor independence.

Momenta Tests Hong Kong’s Autonomous-Driving Appetite
Chinese autonomous-driving firm Momenta debuted flat in Hong Kong after its IPO, despite strong demand during the bookbuild. That muted open shows investors still like the self-driving theme, but they are not giving every unprofitable mobility platform a free pass.

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Energy & Geopolitics

Tankers Turn Back From Hormuz
At least four oil and gas tankers turned back from the Strait of Hormuz after vessel attacks, putting shipping risk back at the center of the oil trade. Even if crude remains below prior war peaks, disruptions at this chokepoint can quickly feed into energy prices, inflation expectations, and transport costs.

NATO Pushes Deeper Into Long-Range Weapons
The U.K. is set to unveil a $50 billion NATO effort for deep-strike weapons, alongside France, Germany, and other European partners. For markets, the defense-spending theme still looks durable, especially for contractors tied to missiles, precision weapons, surveillance, and European security infrastructure.

Healthcare & Biotech

Vera Wins FDA Approval in Kidney Disease
The FDA approved Vera Therapeutics’ kidney disease drug Trutakna, giving the company a new entry in the IgA nephropathy market. The approval adds another rare-disease catalyst to biotech, but the launch still has to prove payer uptake at a high annual treatment cost.

Kailera’s GLP-1 Data Comes With a Catch
Kailera shares fell after its oral weight-loss drug showed high nausea and vomiting rates, even though the treatment met its main late-stage trial goals. The read-through is important for the obesity-drug race: efficacy still matters, but tolerability may decide which challengers can actually compete with Lilly and Novo.

Movers and Shakers

Penguin Solutions [PENG]: Premarket Move: +5%

Penguin Solutions rose after the semiconductor company reported a stronger-than-expected Q2, with revenue up 47.6% year over year to $478.7 million and adjusted EPS of $0.84, beating estimates. Management also raised full-year adjusted EPS guidance to $2.60 at the midpoint, giving investors a cleaner earnings catalyst after a stock run of more than 200% year to date.

FuelCell Energy [FCEL]: Premarket Move: −14%

FuelCell Energy dropped after the company announced a $200 million common stock offering, with underwriters also receiving an option to buy additional shares. The company plans to use the money for manufacturing expansion, working capital, and general corporate needs, but traders are focused on dilution after the stock had already gained more than 200% year to date.

Argan [AGX]: Premarket Move: −3%

Argan slipped after SG Americas Securities cut its stake by 70.5% in the first quarter, leaving it with 1,292 shares worth about $704,000. The sale comes despite strong recent numbers, including $3.24 in quarterly EPS, revenue growth of 50.2%, and a $200 million repurchase program, so the move looks more like profit-taking pressure than a broken business story.

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Everything Else

  • 🏦 A broader leadership shift may be taking shape, as investors look for the companies most likely to matter after the Mag 7.

  • 🛢️ Oil prices are moving again as Brent and WTI react to fresh Iran-U.S. tension and renewed Hormuz risk.

  • 🍎 Apple has reportedly started testing CXMT chips for devices sold in China, adding another twist to its local supply strategy.

  • 🚗 Chinese autonomous driving firm Momenta rose in its Hong Kong debut, giving investors another look at the robotaxi trade.

  • 🎨 Meta expanded its generative AI tools with the Muse image rollout, pushing deeper into the creative AI race.

  • 🧠 Perplexity says it plans to use Nvidia’s new CPU, adding another high-profile name to the AI hardware demand story.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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