Hello Capitalists,

Trump is now very positive towards Iran’s oil trading future. Jerome Powell heads to Capitol Hill to be grilled by Congress. Wall Street surges this morning and home sales surprise analysts as Meta’s latest move shocks California liberals.

Here is everything you need to know:

• The Top Line Market Numbers:

• DOW: 43075.39 - (⬆️1.16) ✅

• S&P: 6092.25 - (⬆️1.11) ✅

• NASDAQ: 19925.52 - (⬆️1.50) ✅

• CBOE VIX Volatility Index: 17.62.50 (⬆️2.22) ⚠️⬇️

Trump reverses message on Iran, highlights economic opportunity for U.S.

While speaking to reporters Tuesday morning from Air Force One, President Donald Trump said he looks forward to seeing Iran become “a great trading nation,” sounding very optimistic for Iran’s future.

“They’re going to get on to being a great trading nation, you know they’re very good traders,” Trump told the press. “They have a lot of oil.”

• Sanctions Lifted: President Trump cleared China to purchase Iranian oil on Tuesday, eliminating longstanding sanctions that had limited the trade relationship. Trump announced the move on social media while flying to Europe, saying "China can now continue to purchase Oil from Iran" and expressing hope they will also buy "plenty" from the U.S.

• Market Response: Oil prices continued dropping and markets surged as the decision came amid a precarious ceasefire agreement between Iran and Israel that reduced fears of Iran shutting down the Strait of Hormuz. Crude fell to $65 per barrel in extended trading after West Texas Intermediate dropped more than 8% to about $67, while Brent crude fell to $70 a barrel.

• Strategic Context: The move reverses Trump's own 2018 sanctions and recent penalties on Chinese oil import companies that had curtailed buying from Iran. Energy Secretary Chris Wright dismissed concerns about potential Strait of Hormuz closures, noting the U.S. is now a net oil exporter and that Iran "would harm itself more than it would harm anyone else" since roughly 20% of global oil supply travels through the strait.

Trump drops F bomb on reporters during frustrating morning, then calls Israel

President Donald Trump exploded this morning after both Israel and Iran violated the ceasefire that he brokered late Monday afternoon. This came after a stream of Truth Social posts overnight warning both sides to respect the ceasefire.

• Iran Strikes Back: Iran launched missile attacks on U.S. military bases in Qatar and Iraq, retaliating for U.S. B-2 bomber strikes on its nuclear sites, escalating fears of a broader regional war.

• Ceasefire Struggles: President Trump announced a ceasefire between Israel and Iran, brokered with Qatar’s help, but Israel claims Iran violated it with more missile strikes, which Iran denies, leaving the peace shaky.

• Market Reactions: Stock markets stayed positive and oil prices dropped as investors saw Iran’s response as limited, avoiding worse scenarios like targeting oil routes, but the region remains tense with airspace closures and heightened alerts.

• Trump Calls Netanyahu: Following Trump’s tirade, both leaders reportedly spoke by phone, and Israel has ceased further attacks since the conversation.

Quote of the Day:

Trump turns up the heat on Powell as he heads to Capitol Hill to testify

Federal Reserve Chair Jerome Powell is on Capitol Hill today to testify to Congress about interest rates. President Trump is pushing hard for cuts so all eyes will be on this hearing.

• Powell’s Holding Steady: Powell told lawmakers the Fed is in no rush to cut interest rates, sticking to a “wait-and-see” approach until they get a clearer picture of how Trump’s tariffs might impact inflation and the economy.

• Trump’s Pressure is On: Trump’s been vocal, demanding rates drop from 4.25%-4.5% to 1%-2%, even calling Powell out on social media, but Powell’s standing firm, saying the Fed’s job is to keep inflation in check, not bow to political pressure.

• Tariffs Could Shake Things Up: Powell warned that Trump’s tariffs are likely to push prices higher and slow economic growth, which is why the Fed’s keeping rates steady for now to avoid sparking long-term inflation issues.

What crisis? Wall Street surges as oil tumbles

Wall Street appears to be back to business as usual. The fear of wider escalation after the US bombing raid of Iran’s nuclear facilities appears to have faded, with oil prices tumbling and markets rising.

• Stocks Surge: The Dow, S&P 500, and Nasdaq climbed nearly 1% each as hopes grew for the U.S.-brokered ceasefire to hold.

• Oil Prices Drop: Oil prices fell sharply, with Brent crude dipping below $70 a barrel, after Iran’s restrained missile strike on a U.S. base in Qatar signaled de-escalation, calming worries about disruptions in the Strait of Hormuz.

• Trump’s Role: President Trump’s push for Israel to halt strikes and his announcement of a fragile ceasefire boosted market optimism, though he noted both sides violated the agreement overnight, keeping some uncertainty alive.

Home sales numbers surprise the analysts

The latest report on May home sales shows some interesting trends that could affect prices going forward.

• Uptick in Sales: Existing home sales in May crept up by 0.8% from April, hitting an annualized rate of 4.03 million units, despite analysts expecting a 1% drop. However, sales were still down 0.7% compared to last May, showing the market’s still sluggish.

• Record-High Prices: Home prices soared to a new May record, with the median price reaching $422,800, driven by tight supply and high demand, especially in the Northeast where sales jumped 4.2%.

• High Mortgage Rates Impacting Demand: Mortgage rates climbing over 7% in April have kept many buyers on the sidelines, particularly in the pricey West, where sales dropped 5.4%.

Meta does a 180 in its support for San Francisco’s Pride Parade.

Meta and other major companies are pulling back from sponsoring San Francisco’s Pride parade in 2025, and it’s raising some eyebrows about the tech industry’s commitment to the LGBTQ+ community.

• Meta’s Absence from SF Pride: Meta, once a prominent supporter of San Francisco Pride, won’t be participating in the 2025 parade, following their decision to cut ties with the event in March after scaling back diversity, equity, and inclusion (DEI) programs. This comes after a history of involvement, like when Mark Zuckerberg personally ensured Facebook’s spot in the 2015 parade.

• Broader Tech Industry Retreat: Meta isn’t alone—companies like Anheuser-Busch, Comcast, Diageo, and Nissan are also dropping their sponsorships, contributing to a $180,000 budget shortfall for SF Pride. This pullback is linked to a broader trend of companies reducing DEI efforts, especially after political shifts like Trump’s executive orders targeting such initiatives.

• Impact on the LGBTQ+ Community: SF Pride’s Executive Director, Suzanne Ford, expressed disappointment over the tech industry’s silence, noting that the lack of support from companies in the heart of Silicon Valley stings deeply, especially as the event’s theme, “Queer Joy is Resistance,” emphasizes advocacy and resilience.

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