Global Market News
Global Equities Edge Up
Global equities made gains this week. The S&P 500 and Nasdaq increased 1.88% and 2.01%, respectively, and the Dow Jones rose 1.60% on the week. The U.S. 10-year Treasury note rose several basis points to 4.40%, while the price of West Texas Intermediate crude oil declined to $60.79 per barrel. Volatility, as measured by the CBOE Volatility Index, came down more than 25% over the week, closing Friday at 18.57.
US Economic Data Shows Cooling Inflation and Cautious Consumers
In April, the Federal Reserve’s preferred inflation gauge showed signs of easing, with headline inflation falling to 2.1% year over year from 2.3% in March, and the core rate dipping to 2.5% from a revised 2.7%, even before the full effects of new tariffs are felt. Meanwhile, personal income rose a stronger-than-expected 0.8% month over month, though consumer spending increased by a modest 0.2%, indicating cautious behavior among households. The U.S. trade deficit narrowed significantly by 46% to $87.6 billion, as imports plunged nearly 20%, likely reflecting tariff-related disruptions. This sharp improvement in the trade balance is expected to boost second-quarter GDP. Although the economy contracted at an annual rate of 0.2% in Q1, consumer spending was revised down to 1.2% from 1.8%, reinforcing signs of restrained consumption.
International Developments
EU and U.S. Accelerate Trade Talks Amid Tariff Threat
On Tuesday, the European Commission announced it will fast-track trade negotiations with the U.S. following a weekend phone call between President Donald Trump and Commission President Ursula von der Leyen. Trump had threatened to impose 50% tariffs on European imports beginning June 1st but agreed to delay them until July 9th after the call. The move signals a thaw in tensions after Trump criticized the EU for slow negotiations, claiming it was “formed for the primary purpose of taking advantage of the United States on trade.” EU spokeswoman Paula Pinho confirmed both sides have agreed to stay in close contact to advance talks.
All of Gaza at Risk of Famine Per UN Warning Amid Renewed Israeli Offensive
Yesterday, the UN’s humanitarian agency OCHA warned that 100% of Gaza’s population is now at risk of famine, as Israel intensifies its military campaign following a breakdown in ceasefire negotiations. Despite 900 UN aid trucks being authorized by Israel, only 600 were offloaded and even fewer distributed due to dire security conditions. Far-right Israeli minister Itamar Ben Gvir urged Prime Minister Netanyahu to use “full force” after Hamas expressed dissatisfaction with a U.S.-backed ceasefire proposal involving a potential 60-day truce. The death toll has surged, with 3,986 Palestinians killed since March 18th alone, bringing the total to over 54,000, while 57 of the 251 hostages taken on October 7th remain in Gaza.
US Social & Political Developments
White House Plots Backup Plan for Imposing Tariffs After Adverse Court Ruling
On May 29th, the U.S. Court of International Trade ruled that President Trump’s sweeping use of emergency economic powers to impose tariffs was illegal, prompting his team to consider a backup plan using Section 122 of the 1974 Trade Act. The court ordered that the Trump administration cease implementation of the Liberation Day tariffs within 10 days and also struck down the fentanyl and immigration-related tariffs imposed on China, Mexico and Canada. However, a federal appeals court has temporarily allowed the tariffs to remain during the ongoing appeal, but advisers including Peter Navarro are preparing a two-step fallback involving 150-day stopgap tariffs followed by individualized duties under Section 301. This pivot aims to maintain leverage in global trade talks, especially with the EU, ahead of a July 9th negotiation deadline. Former officials like Everett Eissenstat and Peter Harrell say the new approach is more legally defensible but still faces potential challenges.
Musk Exits DOGE Post Amid Legal Battles and Political Fallout
Elon Musk announced on May 30th that he will leave the Trump administration and his controversial role leading the Department of Government Efficiency (DOGE), capping a 130-day tenure marked by legal challenges, internal clashes, and unverified claims of up to $150 billion in savings. His exit follows a federal judge’s ruling allowing lawsuits challenging DOGE’s authority to proceed, amid criticism of the group’s data collection practices and budgetary impact. Musk’s relationship with President Trump deteriorated after the passage of a “Big, Beautiful Bill” that Musk claimed undermined DOGE’s mission. Returning focus to his businesses—including Tesla and SpaceX—Musk announced at the Qatar Economic Forum he would scale back political spending, saying, “I think I’ve done enough.”
Corporate/Sector News
Nvidia Surges as Data Center Sales Drive Record Growth
This week, Nvidia reported $44.06 billion in quarterly revenue—up 69% year-over-year—driven by a 73% surge in data center sales, including its AI chips and networking products. CEO Jensen Huang, speaking from Taipei, cited strong global AI demand, even as U.S. export controls cut $2.5 billion in potential China-bound sales. Net income rose 26% to $18.8 billion, while the company’s gross margin was reduced to 61% due to a $4.5 billion inventory charge linked to the H20 chip ban. Despite geopolitical headwinds, Nvidia’s stock jumped 6% in after-hours trading and is near its all-time high.
Chevron’s Dual Oil Fronts: Exit from Venezuela, Legal Battle in Guyana
Chevron has terminated its operating contracts in Venezuela and handed control to Venezuela’s national oil company, PDVSA, following the expiration of a key U.S. license on May 27th, though it will retain local staff amid sanctions and limited authorization. The move halts Chevron’s exports of nearly 290,000 barrels per day—about one-third of Venezuela’s oil output—and shifts all sales and workforce oversight to the state oil firm. Meanwhile, in London, arbitration has started over Chevron’s $53 billion acquisition of Hess and its 30% stake in Guyana’s Exxon-led offshore oil project, a generational find of 11 billion barrels. The case pits Exxon CEO Darren Woods against Chevron CEO Mike Wirth and could reshape control over one of the most lucrative oil basins in the world.
Memorial Day Box Office Breaks Records with ‘Lilo & Stitch’ and ‘Mission: Impossible’
Over Memorial Day weekend, Disney’s Lilo & Stitch remake soared to $183 million in U.S. and Canadian ticket sales, surpassing the previous holiday record set in 2013. Paramount’s Mission: Impossible—The Final Reckoning followed with a strong $77.5 million domestic debut and $127 million internationally. The total domestic box office reached $326.7 million, signaling a major rebound for Hollywood after a sluggish first quarter. With production costs just over $100 million, Lilo & Stitch is now on track to exceed $1 billion globally.
Corporate Profile
Italy’s Leonardo Riding the EU Defense Wave
Leonardo CEO Roberto Cingolani has emphasized that Europe’s fragmented defense industry will gradually consolidate through joint ventures and mergers to rival U.S. and Chinese competitors. Leonardo, Italy’s largest military contractor with the Italian state as its biggest shareholder, is advancing partnerships with Airbus SE and Thales SA to create a European space and satellite champion, while also expanding its joint venture with Germany’s Rheinmetall AG to modernize Italy’s armored vehicles. The company’s shares have surged 109.49% in 2025 amid rising global military spending, and Leonardo plans to strengthen its U.S. presence through its publicly traded Leonardo DRS Inc. unit. Cingolani envisions a more integrated European defense sector to boost military capabilities and fulfill NATO commitments, backed by EU plans to invest over €800 billion in defense spending.
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