The article says President Donald Trump approved military operations against Iran, after which Iran closed the Strait of Hormuz and disrupted the daily flow of about 20 million barrels of petroleum liquids. It says gasoline prices rose at the fastest pace in more than three decades and diesel climbed even more, helping lift U.S. inflation to a three-year high of 4.2% in May. Although oil prices pulled back in June and June inflation is projected to ease, core PCE continues to climb, raising the likelihood of a Federal Reserve rate hike by the end of 2026. The article argues higher rates could pressure the Dow, S&P 500 and Nasdaq Composite after record highs fueled by AI enthusiasm.

Micron Technology reported fiscal 2026 third-quarter results that beat expectations and said it expects more than 20% sequential growth in fiscal 2026 Q4. The results were cited as further evidence that AI infrastructure is driving strong demand for memory. The article says Western Digital’s SanDisk, a key supplier of NAND flash, posted fiscal 2026 Q3 revenue growth of 251% year over year and 97% quarter over quarter, outpacing Micron over comparable periods. SanDisk is scheduled to report earnings in August, and the market expects the high-growth trend to continue.

SpaceX has completed its IPO, but the article flags four risks for prospective buyers. It argues the offering has been heavily hyped, the valuation is far above underlying realities at 113 times 2025 revenue, and shareholder voting power is heavily skewed with Elon Musk controlling 85% of the vote. It also points to intensifying public and regulatory pressure on Musk and the company, while offering no financial results or operational updates beyond these cautions.

The Federal Reserve is set to hold an FOMC meeting on June 17, with new Chair Kevin Warsh expected to steer a first change in the Fed’s policy language by shifting from an “easing bias” to a “neutral” stance. The shift would come as May CPI rose 4.2% year over year, a three-year high. The article says the change is unlikely to include an interest-rate move, but it could strengthen expectations for future hikes. It adds that this could pressure U.S. equities, which it describes as sitting at the second-highest valuation in history and relying on low-rate financing for AI data-center buildouts.