AGP Executive Report

AI Chips & Supply Chains: Nvidia struck fresh deals in South Korea with SK Hynix, Naver and others to secure memory for its AI push, underscoring how the U.S. AI boom keeps tightening global chip supply. Inflation Watch: A New York Fed survey found Americans’ inflation expectations were mostly steady in May, even as Middle East-linked price pressure and uncertainty rose—setting up a key Fed meeting. Crypto & Sanctions: The U.S. Treasury sanctioned Iran’s Nobitex crypto exchange, saying it helped the IRGC-Quds Force route transactions around restrictions. Oil & Markets: Oil remains the macro driver as Strait of Hormuz disruptions and renewed Iran-Israel tensions feed volatility, while Bitcoin’s rebound has triggered heavy short-seller losses. Trade Policy for Farmers: USMCA’s upcoming review is framed as a chance to expand market access for U.S. agriculture, but analysts warn it could disrupt an integrated North American pork supply chain. Food Prices Risk: USDA confirmed additional New World screwworm cases in Texas, a threat that could worsen beef costs. Housing Tech: SmartRent launched a “Climate Protection Mode” for thermostats aimed at reducing water- and moisture-related property damage.

Geopolitics & Markets: Israel struck Iran again despite Trump urging restraint, while U.S.-Iran missile exchanges kept Gulf stocks mostly lower and pushed investors to reprice oil and risk. Sanctions & Crypto: The U.S. Treasury sanctioned Iran’s Nobitex crypto exchange, alleging it helped the IRGC-Quds move money around restrictions. Energy & Inflation: A Fed study says today’s oil shocks are hitting inflation less than in the 1970s and employment effects have faded, but a separate report warns another grocery price wave is coming as tariffs, weather, and cattle supply pressures build. Retail Pressure: Major retailers say shoppers are still spending, yet consumers are already adjusting—especially lower-income households—suggesting the squeeze could widen when refunds fade. AI & Semiconductors: Nvidia announced new South Korea partnerships to expand AI infrastructure, but Asian markets sold off as the “AI runs everything” trade cooled ahead of inflation data and a major SpaceX IPO. Business & Policy: A bill would block Chinese-connected vehicles entering via Canada and Mexico, citing data and surveillance risks. Health & Pharma: ADA 2026 updates highlighted new obesity/diabetes and cardiometabolic results from Ascletis, Amgen, and Novo Nordisk. Local Economy: Utah reports immigrant women are vital to the workforce and taxes, while the state’s collegiate entrepreneurship participation shows a slight dip.

Middle East & Markets: Iran fired ballistic missiles and drones toward Bahrain and Kuwait, with the U.S. shooting down several and striking targets as Washington weighs tougher economic pressure, including a plan to let Gulf allies tap frozen Iranian assets for war damages. Nuclear Diplomacy: Trump said he’s open to retrieving and destroying Iran’s enriched uranium only if a deal is reached, while intelligence and IAEA assessments remain mixed. Jobs & Consumer Pressure: The U.S. added about 172,000 jobs in May, but wages lag inflation; retailers report shoppers trading down and cutting back as fuel costs stay elevated. AI & Policy: OpenAI and lawmakers are debating public ownership in AI, while regulators face growing backlash over AI data centers and energy use. Healthcare & Pharma: Eli Lilly reported menopause-stage weight-loss results for Foundayo in women across trials. Local Governance & Infrastructure: Laredo’s toll-bridge plan is splitting city staff and industry leaders over who should pay and how spending affects trade. Energy & Defense: Germany moved closer to F-35 delivery after installing its F135 engine; Ukraine authorized the MAC OWL armored vehicle for service.

Markets Selloff: Wall Street logged its worst day of 2026 as a strong May jobs report (172,000 jobs) reignited rate-hike fears, sending the S&P 500 down 2.64% and the Nasdaq 4.18%, while semiconductors erased more than $1T in value. AI & Chips: The chip rout underscored how fast sentiment can flip in AI-linked stocks, even as investors eye major IPOs tied to memory and AI infrastructure. IPO Watch: S&P Dow Jones rejected a plan to fast-track megacap inclusion in the S&P 500, complicating how investors access huge new listings like SpaceX, Anthropic, and OpenAI. Defense Tech: A proposed NDAA provision would formalize U.S.-Israel defense technology cooperation across areas like drones, missile defense, cyber, and AI. Energy/Geopolitics: Treasury plans to use Iranian assets to help Gulf allies repair damage from the Iran war, while the U.S. extended talks for Hungary’s MOL to buy Russia-linked Serbian oil firm NIS. Business & Tech Ops: McDonald’s is testing a Google-backed AI drive-thru robot at five locations, and Subaru’s Indiana plant highlights wildlife-friendly operations.

AI & Bonds: Fidelity says the math is turning against investors as hyperscalers flood the bond market with AI/data-center debt—yields are too thin versus Treasurys for the risk. Labor Market: The U.S. added 172,000 jobs in May and unemployment held at 4.3%, with hiring strength pulling more people into work even as prices keep souring sentiment. Energy Costs at the Pump: GasBuddy reports show pockets of relief and volatility—diesel lows like $4.59 in Murray County and regular lows like $4.05 in Upton County—while broader fuel pressure remains tied to geopolitics and refinery outages. Housing Finance: A TD Bank survey finds 74% of Americans would consider Trump’s proposed 50-year mortgage, despite warnings it could cost borrowers far more. Tech Policy & AI Safety: Anthropic argues governments should have the option to slow or pause frontier AI if it nears recursive self-improvement. Retail & Consumer Trends: Aldi’s first soju launch (Jinju Peach Soju) signals growing U.S. demand for Korean spirits. Manufacturing & China Links: Serbia’s “Chinese brain” factory systems highlight how Chinese tech transfer is accelerating industrial upgrades. Corporate Restructuring: Whirlpool plans another 288 layoffs at its Iowa refrigerator plant, bringing cuts to 879 since last summer.

Solar Crackdown: Texas AG Ken Paxton sued rooftop solar installer CAM Solar, alleging deceptive practices after a storm blew poorly installed panels off roofs while customers kept getting billed. Housing Affordability: A new Forbes-style price-to-income ranking keeps major U.S. cities among the least affordable, with San Jose, Los Angeles and Honolulu still far out of reach. Electricity Costs: EIA data shows residential power bills rising fastest in places like D.C. (+22.5% YoY) and New Jersey (+18.2%), with grid and demand pressures, including data centers, driving the climb. Fed Rate Bets Hit Stocks: U.S. payrolls jumped to 172,000 in May, pushing markets toward more rate-hike odds and dragging tech-heavy indexes. Cuba Sanctions: Rubio announced new sanctions targeting Cuba’s ICAP network, raising compliance risk for banks and firms tied to Cuba-linked operations. Medicaid Work Rules: CMS finalized an 80-hour monthly “community engagement” requirement starting 2027, with projections of millions losing coverage. Crypto & Markets: Bitcoin and ether saw heavy outflows and renewed selloff pressure as investors reassessed risk. Antitrust Watch: States including California are preparing a lawsuit to block Paramount’s Warner Bros deal, aiming to delay the merger. Energy Security: The U.S. intercepted Iranian drones and struck radar sites near the Strait of Hormuz, keeping oil-shipping risk elevated.

Labor Market Watch: The U.S. added 172,000 jobs in May and kept unemployment at 4.3%, but new analysis flags broader labor underutilization—more people stuck part-time, discouraged, or out longer—while inflation-adjusted wages keep slipping. Markets & Rates: S&P 500 dipped more than 1% as tech weakened even with the strong jobs print, keeping rate-cut hopes in question. Defense & Security: The Marine Corps moved toward anti-drone 5.56mm ammunition for M4/M27 rifles, while AFRICOM tested CURTAIN CALL drone swarms and the Army showed Stryker-plus-mortar-plus one-way drone drills for Pacific warfare. Consumer & Health Regulation: Texas AG Ken Paxton opened an investigation into Celsius/Alani Nu marketing to minors over high caffeine levels. Sanctions & Payments: Visa and Mastercard are exiting Cuba’s payments ecosystem under expanded U.S. sanctions. Geopolitics: CENTCOM denied Iran fired on U.S. destroyers in the Gulf of Oman after Iranian state media claims. Business Tech: ABB is integrating NVIDIA tools into RobotStudio to scale “physical AI” for industrial robotics. Critical Minerals: An investor webinar set for June 8 will spotlight Avalon Advanced Materials’ lithium and rare-earth push.

Infrastructure Watch: A new DOT-based analysis says only a small share of major roads are in poor shape nationwide, but the bigger issue is funding continuity—IIJA road/bridge money is set to expire in Oct. 2026, raising alarms about safety and shipping-cost impacts. Defense & Tech: Griffon Aerospace won a nearly $68M U.S. contract for the Outlaw Gen 3 drone tied to Operation Epic Fury, highlighting the push toward scalable, attritable unmanned systems. AI & National Security: House Energy and Commerce chairmen asked PCAST and the FBI for details on alleged foreign influence campaigns targeting U.S. AI progress and data-center buildouts. Cuba Sanctions: The Trump administration expanded sanctions on Cuban President Miguel Díaz-Canel, family members, and linked entities, as Havana condemned the move amid blackouts and shortages. Consumer/Legal: Abbott must defend a class action over PediaSure “clinically proven” growth claims, with a judge saying ads and labeling could lead consumers to believe it boosts height. Markets & Economy: Jobless claims rose more than expected, keeping investors cautious as tech stocks wobbled and Wall Street digested mixed signals.

FCC & Telecom Security: The FCC proposed tighter oversight for undersea internet cable systems, requiring licenses for submarine line terminal equipment and pushing faster approvals for “trusted” U.S. firms while limiting risky foreign gear. SpaceX IPO Watch: Elon Musk’s SpaceX is set for the biggest IPO ever, with JPMorgan and other banks lining up investor pitches ahead of the debut. Health Insurance Costs: A Commonwealth Fund report says over 20% of Americans with private coverage faced delayed or denied care via prior authorizations and claim denials, fueling medical debt. Energy & Markets: Gold held above $4,500 after weaker U.S. jobless claims; Bitcoin rebounded on rate-cut hopes. Defense/Geopolitics: The U.N. nuclear watchdog said it can’t carry out safeguards in Iran as required, while U.S.-Iran tensions keep pressuring risk markets. Agriculture Biosecurity: USDA confirmed a New World screwworm case in south Texas, triggering quarantine steps to protect cattle. AI & Cyber Skills: EC-Council launched a program to fund cybersecurity training by sponsoring 1,000 practical exam attempts for underserved communities. Local Business/Consumer: Domino’s tied World Cup “Emergency Pizzas” to a U.S. player red card, and McDonald’s rolled out World Cup meals with collectible cups and Squishmallows.

Space & IPO Boom: SpaceX set its IPO at $135 a share, valuing the company at $1.77 trillion and aiming to raise $74.4B—potentially the biggest U.S. IPO ever. Private Markets Stress: Partners Group capped withdrawals from an $8.6B private equity fund after net redemptions topped 5% of NAV, reigniting fears about liquidity risk in “evergreen” alternatives. Housing Market Squeeze: Redfin says nearly 6% of U.S. home listings were delisted in April, the highest rate since early 2020, as buyers balk at high prices and mortgage rates stay elevated. Tech & Mobility: Uber committed close to $500M to Nuro for robotaxis, including a plan to roll out 35,000 robotaxis with Lucid vehicles. Corporate Relocation: Samsung moves its U.S. HQ from New Jersey to Plano, Texas, consolidating operations after an eight-month stint in North Jersey. Defense & Cyber: The House advanced sanctions on Russia plus a new Ukraine aid package, while defense cyber leaders warn the market still lacks clear “winners.” Energy & Markets: Gold slid as Middle East tensions and higher oil prices pressured safe-haven demand. Local Impact: Route 59 bridge closure in Spring Valley, NY, begins with business owners worried about traffic and revenue.

China-U.S. Soybeans: USDA’s Stephen Vaden says China is buying new-crop U.S. soybeans, but a market analyst notes confirmation may lag in weekly export data. Labor Market: Job openings rose to about 7.62M in April, yet hiring stayed sluggish, keeping economists split on whether demand is truly improving. Private Markets Scrutiny: U.S. prosecutors are pressing for more transparency on how private credit and private equity value illiquid assets, especially where fees are involved. Big Tech Regulation: The U.K. ordered Google to change how publishers can control and be credited for generative AI search summaries. Crypto Volatility: Bitcoin’s “fear gauge” jumped nearly 20% as prices slid, while ETF outflows and weaker institutional demand fueled renewed selloff bets. ETF Competition: Grayscale launched a lowest-fee Hyperliquid staking ETF, intensifying the race for HYPE-related products. Energy & Markets: Oil and stocks remain sensitive to U.S.-Iran tensions, with gold also pressured by a firmer dollar and higher crude. Corporate Moves: Samsung plans to relocate its U.S. HQ from New Jersey to Plano, Texas. Trade Policy: The administration proposed higher forced-labor tariffs on many partners, adding another layer of cost pressure for U.S. business. Education Staffing: Teacher shortages persist nationwide, with Louisiana among the hardest hit.

Housing Policy: The House passed the bipartisan 21st Century ROAD to Housing Act, a rare big move aimed at easing permitting and financing frictions, though critics say it won’t fix the core affordability problem—too little income for too-high rents and mortgages. AI & Cybersecurity: Trump signed an executive order to let the government review the most advanced AI models for cybersecurity risks before release, tightening the federal approach to frontier AI. Sanctions & Crypto: Treasury hit Iran’s largest crypto exchange, Nobitex, plus three others, escalating “maximum pressure” with claims of sanctions evasion and terror-finance links. Markets & Commodities: Gold overtook U.S. Treasurys as the top reserve asset as central-bank buying surged, while stocks pushed to more records and crypto sold off on geopolitical jitters. Business Growth & Local Economy: Poncha Springs launched a facade and frontage grant program to help businesses upgrade along major corridors. Sports Business: The PWHL saw key re-signings—Alex Carpenter and Sarah Nurse—highlighting how league expansion reshapes player markets.

Energy & Finance: Vesper Energy reached financial close on a $236M debt package for its 201 MW Nazareth Solar project in Texas, targeting fall 2027 operations and ERCOT power supply. Regulation & Power Markets: New York AG Letitia James sued the Trump administration over a deal ending an offshore wind project, arguing it would pay TotalEnergies $1B while shifting investment to fossil fuels. Fed Watch: Cleveland Fed President Beth Hammack warned rates may need to rise if inflation stays sticky, while saying it’s reasonable to hold for now. Labor & Inflation Signals: U.S. job openings jumped to 7.62M in April, the highest in nearly two years, complicating the inflation outlook. Crypto Markets: Bitcoin slid amid ETF outflows and liquidations, with gold holding near $4,500 as traders weigh labor data and rate risk. Corporate Deals: People Inc. made an $18B offer for MGM Resorts, coming days after Tilman Fertitta agreed to buy Caesars in a $17.6B deal. Tech & Privacy: Amazon was sued over Ring’s “Familiar Faces” facial recognition feature, alleging images were collected without consent. Politics & Business Leadership: Trump named housing finance chief Bill Pulte as acting national intelligence director, drawing questions about qualifications.

Energy & Markets: Iran suspends U.S. talks and threatens to block the Strait of Hormuz, rattling oil inventories and pushing crude higher—gold slips as yields firm and investors price more fuel risk. Climate Policy: Washington Gov. Bob Ferguson rejects a GOP push to pause the state’s cap-and-trade program despite rising gas prices, arguing it’s not an emergency. Retail & Consumer Pressure: Retailers are absorbing some of the fuel-price shock for now, but analysts warn margins could face strain if higher costs persist. Auto Affordability: New-car buyers are walking away—about one million potential buyers have exited since 2020 as prices near $50,000 and entry options shrink. Telecom Infrastructure: AT&T plans major Indiana network buildout—$1.9B invested since 2021—with more fiber miles and 5G upgrades. AI & Chips: The U.S. tightens rules to limit China-linked access to advanced AI chips, while Huawei pitches a 3D architecture roadmap to keep scaling under sanctions. Business Strategy: McDonald’s rolls out “McDonald’s > NEXT,” leaning on automation and franchiseer-friendly operations to win back customers. Sports Business: Stephen Curry signs a long-term deal with Li-Ning, signaling a bigger U.S. push for the brand and deeper China upside.

Cybersecurity & Trade: The U.S., EU, NATO and others blamed China’s Ministry of State Security for the Microsoft Exchange cyberattack, warning of major economic fallout for governments and businesses. Defense & Markets: Oil jumped as Iran-U.S. tensions flared, keeping investors focused on whether the Strait of Hormuz reopens and how higher fuel costs feed inflation and borrowing pressure. Monetary Policy: A Sprott executive said the Fed is trapped between inflation and debt risks, a setup that could keep gold supported. Politics & Housing: New Jersey’s key House battleground heads into a state primary, while Jacksonville-area projects were added to Florida’s budget—both underscoring how policy choices shape business conditions. Corporate Moves: U.S. Bancorp closed its BTIG acquisition, expanding capital markets reach. Biotech: AbCellera reported Q1 results and positive interim Phase 1 data for ABCL635. Energy & Industry: Georgia announced ArcelorMittal Building Solutions will open a North American HQ and plant in Macon-Bibb. Public Finance: A new study found Americans’ financial literacy hit a 10-year low.

Defense & Tech: The U.S. Army and U.K. troops ran NATO’s Project Flytrap 5.0 in Lithuania, testing counter-drone interceptors, sensors, and unmanned ground vehicles to improve mobile anti-drone tactics. Energy Markets: Oil and gold both moved on Middle East risk as traders watched Trump’s decision on a U.S.-Iran ceasefire extension and the reopening of the Strait of Hormuz. Auto Supply Chain: Tesla withdrew a termination notice on its graphite supply deal with Australia’s Syrah, keeping a key Louisiana anode-material pipeline alive. Crypto & Finance: Stablecoin growth drew fresh scrutiny from ECB board member Isabel Schnabel, while MEXC launched “RealStocks,” letting eligible users buy real U.S. shares with crypto-style trading and potential dividends. Politics & Business: A judge blocked Trump’s Kennedy Center renaming and closure steps, and the Congressional Black Caucus urged major corporations to oppose GOP redistricting plans. Cybersecurity: Carnival disclosed a breach tied to social engineering that may have exposed data for 800,000+ Texans. Trade & Industry: South Korea’s exports jumped 53% in May to a record $87.8B, led by a semiconductor AI-driven supercycle.