Andrew Left convicted, Iran pact lifts markets

A memorandum of understanding between the United States and Iran ended active hostilities, prompting a sharp rally in U.S. equities and a >4% drop in oil prices. The deal promises to reopen the Strait of Hormuz and freeze the war for 60 days, but the text is secret, nuclear talks and Israel’s role remain unresolved.

A Los Angeles jury found Citron Research founder Andrew Left guilty of one securities‑fraud scheme count and 12 related counts for using media appearances and social‑media posts to hype stocks he was shorting. The verdict, announced June 1, clears a path for a potential 25‑year prison term, raising doubts about the future of activist short‑selling.

CFRA analyst Keith Snyder says 71% of SpaceX’s $2 trillion market cap hinges on AI, yet current Grok adoption data makes that claim “almost comical.” With only 1.6% of 117 million users paying for Grok, the AI revenue needed to justify the valuation looks unattainable, raising doubts about the IPO’s pricing.

The CFTC approved Kalshi's Bitcoin perpetual futures, the first regulated onshore perps product in the U.S. Chair Michael Selig defended the move on CNBC, arguing that domestic oversight beats offshore risk despite pushback from CME. The contracts have already generated $3 billion in notional volume, signaling strong market appetite.

The SPR fell to 340.3 million barrels, its lowest since 1983, after a week‑long draw of 9 million barrels. The depletion comes just as the U.S. and Iran prepare to sign a deal reopening the Strait of Hormuz, raising concerns that inventories will stay critically low and keep oil prices pressured.

May retail sales fell 0.6% year‑on‑year, the first drop since Dec 2022, while urban fixed‑asset investment contracted 4.1%, far worse than forecasts. The slump highlights a widening supply‑demand gap, putting further pressure on China’s recovery and signaling tougher conditions for global growth outlooks.

President Trump’s public trust in incoming Fed chair Kevin Warsh could let the central bank tilt toward lower rates and balance‑sheet shrinkage, even as markets expect a hold this week. Warsh’s reform agenda, gradual rate cuts and a leaner Fed, relies on presidential goodwill, but the independence of the board remains a legal hurdle.

Nvidia announced a $25 billion U.S. bond issuance, up from an early $20 billion target, after investors poured in $85 billion of demand. The chipmaker will use the cash mainly to refinance debt and set a liquid credit benchmark, marking its first investment‑grade bond sale since 2021 and signaling confidence in AI‑driven growth.

The upcoming SpaceX IPO will list at $1.75‑2 trillion valuation but give Elon Musk about 84% of voting power via 10‑vote shares, effectively shutting out retail investors. This structure signals a broader market shift toward mega‑cap offerings that prioritize capital control over public stewardship, leaving everyday investors on the sidelines.

Bankers backed Brian McClain’s ghost‑cattle empire, then discovered the herd existed only on paper. The March 2026 bankruptcy court ruling strips the four banks of liability shields, exposing investors to losses from a $170 million fraud that inflated cattle inventories across Texas and Kentucky.

Amazon CEO Andy Jassy told senior Trump officials that researchers had cracked Anthropic’s Fable 5 model, exposing a jailbreak that could reveal software vulnerabilities. The warning triggered a U.S. national‑security order forcing Anthropic to suspend global access to its flagship models. The move underscores Amazon’s sway over AI policy and raises questions about export controls on advanced generative AI.