WS #9361

The dominant narrative remains the sharp escalation in the Israel-Iran conflict, with multiple sources corroborating that Iran and Israel have pledged to end attacks that threatened talks, according to Bloomberg. However, Kalshi prediction markets show a 66% chance that Strait of Hormuz traffic will not return to normal before January, up from 21% two weeks ago, indicating persistent disruption. The Pentagon has labeled Alibaba, BYD, and Baidu as aiding Chinese military, a major US-China escalation that could hit those stocks. China's May trade surplus hit $105.4B as exports surged 19.4% on AI hardware demand, a positive for tech supply chains. Indonesia delivered an off-cycle rate hike of 25 bps to 5.50% to temper market rout, signaling emerging market stress. The BOJ is considering halting bond tapering from April 2027 and lifting rates to 1.0% at the June meeting, a hawkish shift for Japanese yields. Apple unveiled a revamped Siri AI powered by Google's Gemini at WWDC 2026, a positive for both AAPL and GOOGL. OpenAI's IPO filing has sparked reactions, and Perplexity plans a 2028 IPO. Stellantis is recalling over 1.3 million Jeep vehicles over fire concerns, a negative for STLA. Wuxi Apptec slides as Pentagon adds firm to military-linked entities list. The Israel-Iran conflict is ESCALATING, with the ceasefire narrative now refuted by Iran's denial and Israeli warnings.