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Europe’s Inflation Problem

Rising inflation across major eurozone economies increases pressure on the ECB to tighten policy.

Author

Ankit Sinha
June 01, 2026

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Market News

Wall Street Bets the War Is Over

U.S. stocks extended their rally for a ninth consecutive week, with the S&P 500 rising nearly 20% from its March lows as investors grew optimistic that a ceasefire could eventually end the conflict in Iran.

Markets were supported by signs of progress in negotiations, including comments from President Donald Trump and Treasury Secretary Scott Bessent suggesting a potential extension of the truce and even the possibility of easing some sanctions on Iran. 

As geopolitical concerns eased, Brent crude settled around $92 per barrel and Treasury bonds recovered some of the losses suffered earlier in the conflict.

Beyond hopes of a ceasefire, strong corporate earnings and continued enthusiasm for artificial intelligence helped fuel the rally.

  • Dell surged 32.8% after issuing a solid outlook, reinforcing confidence in the AI infrastructure boom.

  • Universal Music rejected a takeover proposal from Bill Ackman's Pershing Square.

  • SpaceX secured a contract worth more than $4 billion for the Golden Dome defense project.

  • OpenAI reportedly discussed a future IPO with major banks.

  • Tensions over cr*pto regulation escalated as JPMorgan CEO Jamie Dimon publicly criticized Coinbase CEO Brian Armstrong.

Despite ongoing geopolitical and policy uncertainty, investors remain focused on earnings growth and AI-driven opportunities.

Peel Take: Wall Street is acting like the war is already over, even though negotiations are still very much a work in progress. Falling oil prices and strong earnings have created the perfect excuse to keep buying stocks, while AI enthusiasm continues to pour fuel on the rally. For now, optimism is winning, perhaps a little too easily.

What's Ripe

Dell Technologies Inc. (DELL) 32.8%

  • Dell soared 32.8% and led the S&P 500 after crushing Wall Street's first-quarter expectations. The PC and server maker continued to ride the AI wave, with revenue from its AI-optimized server division skyrocketing 757% year-over-year, reinforcing investor confidence that demand for AI infrastructure remains red-hot.

  • Peel Take: Dell's results are another reminder that the AI boom is no longer just Nvidia's story. As companies race to build the infrastructure needed to power AI, suppliers across the ecosystem, from servers to networking equipment, are seeing demand surge. Investors are increasingly rewarding the companies selling the picks and shovels of the AI gold rush.

Okta Inc. (OKTA) 30.1%

  • OKTA surged 30% after the identity-security company delivered better-than-expected fiscal 2027 first-quarter earnings and raised its full-year profit guidance.

  • The strong results prompted a wave of optimism on Wall Street, with more than a dozen firms raising their price targets as investors gained confidence in the company's growth outlook and ability to capitalize on rising cybersecurity demand.

  • Peel Take: In a market obsessed with AI, Okta's rally is a reminder that cybersecurity remains one of tech's most durable growth themes. As companies deploy more AI tools and move more operations online, securing digital identities becomes even more critical.

What's Rotten

AST SpaceMobile Inc. (ASTS) 14.8%

  • ASTS slumped 14.8% while Rocket Lab fell 3.1%, as investors took profits following a blistering rally that had seen both stocks gain nearly 90% over the past month.

  • The space sector has been fueled by growing excitement surrounding the anticipated SpaceX IPO, which has reignited investor interest in publicly traded space companies.

  • Peel Take: This looks less like a change in the space industry's outlook and more like investors catching their breath after a near-vertical climb. The looming SpaceX IPO has created a halo effect across the sector, but when stocks double in a month, even the most exciting stories become vulnerable to profit-taking.

Gap Inc. (GAP) 15.4%

  • Retail stocks came under pressure as Gap and American Eagle Outfitters fell 15% and 11.8%, respectively, after reporting disappointing first-quarter same-store sales. While earnings were closely watched, investors focused on signs that consumer demand may be softening, particularly in discretionary apparel spending.

  • Peel Take: Retail investors have become increasingly selective, rewarding companies that can still drive store traffic and pricing power while punishing those showing signs of slowing demand. With consumers facing higher borrowing costs and lingering economic uncertainty, simply meeting earnings expectations is no longer enough; retailers need to prove shoppers are still willing to open their wallets.

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Banana Brain Teaser

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If x is the product of the integers from 1 to 150, inclusive, and (5)^y is a factor of x, what is the greatest possible value of y?

Answer: 37

Today

An investor purchased 100 shares of Stock X at 109/18 dollars per share and sold them all a year later at 24 dollars per share. If the investor paid a 2 percent brokerage fee on both the total purchase price and the total selling price, which of the following is closest to the investor’s percent gain on this investment?

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