WS #8270

Markets are caught between escalating Middle East conflict and optimism over a potential US-Iran deal to reopen the Strait of Hormuz. US consumer confidence for May came in at 93.1 vs 92.0 consensus, a slight dip from April's revised 93.8, but above expectations. The dominant macro narrative remains the US-Iran crisis, which is ESCALATING: US strikes on Iran, Israeli ground operation expanded in Lebanon, and a tanker explosion off Oman. Brent crude surged $4 to near $100. However, a key counter-signal: Bloomberg reported stocks gained on optimism over a US-Iran deal to open Hormuz, suggesting diplomatic progress may offset some geopolitical risk. On the corporate front, Micron (MU) surged ~8.4% pre-market after UBS raised its price target from $535 to $1,625, citing AI-driven memory demand, with multiple short liquidations reported. This is a high-signal event for MU and the semiconductor sector. The Supreme Court declined to hear Meta's bid to avoid a Vermont lawsuit over Instagram addicting teens, a negative for META. BP ousted its board chair over conduct concerns. Ferrari plunged after unveiling its first EV at $640,000, losing ~$3B in market cap. The Iran situation remains the macro backdrop, but the key developments this window are the Micron analyst upgrade, the Meta legal setback, the BP governance shock, and the Ferrari EV disappointment.