WS #9470

US inflation accelerated to a three-year high in May, driven by energy prices from the Iran conflict, keeping Fed rate cut prospects low. This is corroborated by Bloomberg and NYT reports. Simultaneously, the US-Iran conflict escalated with an Iranian missile strike hitting Israel's Ramat David Airbase and Israeli strikes killing 17 in southern Lebanon, while Iran's military spox warned of appropriate responses to Trump threats. The Strait of Hormuz remains a key risk, with Polymarket contracts pricing in uncertainty. On the corporate side, Amazon's expansion into less-than-truckload shipping triggered a sell-off in freight carriers (FDX, ODFL, XPO, SAIA, ARCB). Palantir CEO Karp criticized frontier AI labs, stating enterprise customers are unhappy, which could pressure AI sentiment. SpaceX IPO is deeply oversubscribed with perps trading at a 20% premium, though Senator Warren urged the SEC to delay it. Einride surged up to 90% on its Nasdaq debut. Cracker Barrel rose on strong Q3 earnings. The dominant narrative is stagflationary pressures from inflation and geopolitical conflict, with no counter-signals emerging.