🤔 Walmart & Amazon Stablecoins?

Good afternoon! The class of 2025 is walking into one of the toughest job markets in years. Unemployment for recent grads hit 5.8% in March, well above the national rate, and confidence among entry-level workers just hit a record low. Even those landing jobs aren’t exactly feeling optimistic.

Blame the bots. Companies are hiring fewer new grads and leaning on AI or experienced pros instead. At Big Tech firms, new grads made up just 7% of hires last year. With AI creeping into roles like junior engineering, the same tools that helped students get through college are now keeping them out of the job market.

MARKETS

• Stocks sank Friday after Iran launched retaliatory airstrikes on Israel, shaking global markets and sending investors fleeing to safety. Gold hit a record high, oil prices surged, and defense stocks rallied.

• The Dow dropped nearly 800 points, while the S&P 500 and Nasdaq lost over 1%. All three major indexes ended the week in the red as fears of a broader conflict took center stage.

STOCKS
Winners & Losers

What’s up 📈

• Circle surged 25.36% a day after Shopify announced it will accept USDC stablecoin payments on its platform. ($CRCL)

• RH jumped 6.93% after reporting a surprise Q1 profit despite weaker revenue. ($RH)

• Oil and Defense Stocks climbed on news that Israel launched airstrikes against Iran without U.S. support, raising fears of broader conflict and energy disruption:
  • Halliburton gained 5.51%. ($HAL)
  • EOG Resources climbed 3.89%. ($EOG)
  • RTX advanced 3.34%. ($RTX)
  • Northrop Grumman gained 3.94%. ($NOC)
  • Lockheed Martin rose 3.66%. ($LMT)

• Gold Stocks gained as investors moved into safe havens:
  • Newmont rose 3.54%. ($NEM)
  • Barrick Mining added 2.81%. ($GOLD)
  • SSR Mining gained 2.25%. ($SSRM)

• Tesla climbed 1.94% after reports that the Trump administration will lower the bar for regulations on self-driving cars. ($TSLA)

What’s down 📉

• Archer Aviation plunged 14.83% after announcing it will sell $850 million worth of new shares. ($ACHR)

• Adobe fell 5.32% despite solid earnings and raised guidance, due to slowing growth in key segments. ($ADBE)

• Payment Stocks dropped after a report that Amazon and Walmart are exploring launching their own stablecoins, which could reduce credit card usage and fees:
  • Visa dropped 4.99%. ($V)
  • Mastercard fell 4.62%. ($MA)
  • American Express declined 3.42%. ($AXP)
  • Capital One retreated 2.45%. ($COF)
  • PayPal slid 5.32%. ($PYPL)
  • Block was lower by 3.57%. ($XYZ)

• Travel & Leisure Stocks weakened as oil prices surged and concerns over geopolitical instability grew:
  • American Airlines fell 4.86%. ($AAL)
  • Delta Air Lines dropped 3.76%. ($DAL)
  • United Airlines declined 4.43%. ($UAL)
  • Carnival dropped more than 4.92%. ($CCL)
  • Norwegian Cruise Line fell about 5.02%. ($NCLH)
  • Royal Caribbean Cruises declined about 2.88%. ($RCL)

• DraftKings fell 3.90% after it imposed a $0.50 surcharge per bet in Illinois to offset a new state tax. ($DKNG)

CRYPTO
Walmart and Amazon Are Exploring Issuing Their Own Stablecoins

Amazon and Walmart may be eyeing a new frontier: minting their own money. According to the Wall Street Journal, both giants have discussed launching their own stablecoins (cryptocurrencies tied to the dollar) in an attempt to sidestep credit card networks and shave billions off transaction fees.

Stablecoins, unlike their rollercoaster crypto cousins, are designed for stability (think Venmo meets crypto). Retailers like Amazon, Walmart, and even Expedia are reportedly exploring ways to issue their own or join a stablecoin consortium. Either route could cut out the Visa-Mastercard middlemen who take a slice of every transaction.

Retail vs. Plastic

The appeal? Speed and savings. Merchants pay 1.1–3.15% in fees every time you swipe or tap. A blockchain-based system could cut that dramatically and settle payments faster especially handy for international suppliers.

Investors got spooked. Visa stock dropped nearly 5%, Mastercard lost 4.6%, and PayPal and Amex weren’t spared either. Some analysts say it’s an overreaction since retailers have tried (and failed) before, remember Meta’s ill-fated Libra coin?

Congress Could Be the Tiebreaker

The stablecoin push hinges on the GENIUS Act, a bill working its way through Congress that would finally create rules for the $238B stablecoin industry. If it passes, a wave of corporate coins could flood the market.

But not everyone’s sold. Critics worry this hands too much power to Big Tech, turning already dominant retailers into financial juggernauts. Walmart, which has dabbled in fintech for years, reportedly wants a last-minute amendment to further shake up the credit card industry.

NEWS
Market Movements

• 🇨🇳 China clears path for Tesla’s FSD with new data rules: Draft guidelines released by China outline how auto data can be exported and retrieved, potentially enabling Tesla to expand its Full Self-Driving tech in the country. Since Tesla’s FSD team is based in the U.S., data export is essential for progress. Tesla has already partnered with Baidu and launched some FSD features earlier this year ($TSLA, $BIDU).

• 📦 97% of Foxconn’s India iPhones now go to the U.S.: Apple’s partner Foxconn exported $3.2B worth of iPhones from India from March to May—and nearly all went to the U.S., up from 50% a year ago. The shift helps Apple reduce exposure to Trump’s 55% China tariffs by leveraging India’s lower 10% rate ($AAPL).

• 🇪🇺 BYD claims lead over Tesla in Europe with broader model lineup: BYD says it’s beating Tesla in Europe because it offers more EV and plug-in hybrid options, with seven to nine models across major markets. Tesla's thinner lineup and Elon Musk’s political controversies have dented demand on the continent ($BYDDY, $TSLA).

• 🧠 Adobe beats expectations, but AI doubts linger: Adobe topped Q2 earnings and raised its full-year forecast, yet shares slid over 5% as investors questioned whether its AI tools would truly boost long-term growth. It’s Adobe’s third straight post-earnings selloff, albeit smaller than past drops ($ADBE).

• 🚁 Archer stock dives after $850M share sale: Archer Aviation dropped ~15% after announcing it sold 85M shares at $10 apiece to fund infrastructure, AI-based aviation software, and support its 2028 Olympics air taxi rollout. The news follows Trump’s executive order backing eVTOL pilot programs. ($ACHR)

• 🏥 Amazon restructures healthcare arm amid exec exits: Amazon is reorganizing its health business into six “pillars” after losing several top healthcare leaders. The move aims to simplify its offerings after high-profile acquisitions like One Medical and PillPack failed to yield clear strategy. ($AMZN)

• ✈️ Airline stocks plummet after Middle East strikes: Airline stocks fell globally as Israel’s strikes on Iran led to widespread Middle East airspace closures. American and United dropped 4–6% premarket ($AAL, $UAL).

• 🧑‍💼 Apollo delays investment-banking offers: Apollo Global Management paused interviews and job offers for 2027 candidates, citing the need for more early-career experience ($APO).

• 🚗 Tesla raises Model S and X prices by $5K: Tesla increased U.S. prices on all Model S and Model X configurations following vehicle upgrades ($TSLA).

• 💻 Nvidia to exclude China from forecasts: Nvidia will remove China from its financial projections due to U.S. export restrictions that have already cost it $2.5B in revenue ($NVDA).

• 🌐 Google Cloud outage hits major platforms: A Google Cloud outage disrupted services including Spotify, Discord, Cloudflare, and AWS before being resolved later Thursday ($GOOGL, $SPOT, $NET, $AMZN).

• 🥩 JBS lists on NYSE to expand U.S. reach: JBS, the world’s largest meat processor, begins trading on the NYSE to attract more U.S. investors as over half its $80B in sales now come from North America ($JBS).

WAR
Israel strikes Iran's nuclear sites

Crude prices surged over 7% Friday after Israel carried out targeted strikes on Iran’s nuclear facilities and military leaders, triggering a rapid escalation in a region that holds the keys to global energy. It was the largest single-day spike in oil since Russia rolled into Ukraine — and the fastest way to remind the world how tightly commodities are tied to conflict.

Investors poured into traditional safe havens like gold and the dollar, while equity markets sank on opening bell. The Dow fell over 700 points. Airlines, cruise lines, and travel stocks bore the brunt as traders braced for rising fuel costs and airspace closures. Meanwhile, oil majors like Exxon and Occidental finally caught a tailwind after months of sector stagnation.

Energy Heats Up, Travel Melts Down

The energy sector had been lagging the broader market all year, partly due to cheap oil and increased OPEC+ output. That changed quickly. Friday’s surge put oil stocks back in favor, while fuel-thirsty sectors went the other direction.

Carnival and Royal Caribbean lost altitude fast, alongside United and Delta. Hotel chains like Hilton and Marriott dipped too, as the prospect of another drawn-out Middle East crisis cast a shadow over global travel. Meanwhile, shipping firms ticked higher on expectations that rerouted tankers could lift freight prices across the board.

Geopolitics Enters the Chat

Markets don’t like uncertainty — especially the kind that flies on ballistic missiles. The strikes have officially opened a new chapter in the long-simmering Israel-Iran feud, and while both sides claim retaliation is “proportionate,” investors are pricing in anything but calm.

Unlike past flashpoints, this one threatens chokepoints like the Strait of Hormuz, through which a fifth of the world’s oil flows. Disruption there wouldn’t just rattle prices — it could force central banks to rethink inflation trajectories and pause any talk of rate cuts.

The Bottom Line
Wall Street is trying to keep its cool, but this isn't just a story about oil. It’s about supply chains, inflation risks, and how much geopolitical stress the global economy can absorb. If tensions simmer, expect a few volatile weeks. If they boil over, this could be a turning point.

Calendar
On The Horizon

Next Week

Next week’s earnings lineup is… sparse. Lennar kicks things off Monday, but after that, it’s a ghost town until Friday, when CarMax, Accenture, Kroger, and Darden Restaurants try to wake Wall Street up.

Economic data isn’t bringing the fireworks either, with a few Tuesday highlights like retail sales and homebuilder sentiment, plus housing starts on Wednesday. But the real main event? The Fed. The FOMC meets Tuesday and wraps Wednesday, when Jerome Powell will take the mic to drop his latest interest rate verdict. He’s expected to hold steady, but his comments could offer clues on how the Fed’s thinking shifts in the face of tariffs and inflation. Oh—and don’t forget, markets are closed Thursday for Juneteenth.

NEWS
The Daily Rundown

• 🚀 NASA Budget Cut in Half Under Trump Plan: Trump’s proposed 2026 budget slashes NASA’s science funding by 50%, down to $3.9B—its lowest (inflation-adjusted) since 1961. The cuts would kill 40 projects including the Mars sample return mission. Scientists are alarmed; the White House says it’s about curbing waste.

• ⚖️ Judge Temporarily Blocks Trump Over National Guard Use: A federal judge ordered Trump to return control of California's National Guard to Gov. Newsom amid LA protests. Hours later, a federal appeals court paused that ruling. A hearing is set for June 17 to decide next steps in a case testing federal limits under the 10th Amendment.

• 🔗 Sen. Padilla Handcuffed During DHS Briefing: California Sen. Alex Padilla was forcibly removed and handcuffed while questioning DHS Secretary Kristi Noem during a press conference. Video shows Padilla identifying himself before being taken out. He was later released without charges, and criticism is mounting over the incident.

• 🌐 Global Internet Outage Hits Gmail, Spotify, Twitch: A Google Cloud issue caused cascading outages across major platforms, including Gmail, Spotify, Twitch, and Google Home. Cloudflare said its own systems stayed up but blamed Google’s identity infrastructure. Service was mostly restored within hours.

• 🧮 Trump Says Immigration Crackdown Is Hurting Business: President Trump admitted that his aggressive immigration policies are backfiring economically, particularly in agriculture and hospitality, where undocumented workers make up a significant portion of the labor force. As ICE ramps up workplace raids, companies like Smithfield and Doordash warn of workforce disruptions, while economists fear long-term labor shortages could slow growth. Meanwhile, businesses from mom-and-pop stores to Coca-Cola report losing customers afraid of deportation.

• 📉 Boeing Faces Fresh Backlash: The crash marks the first fatal incident for Boeing’s 787 Dreamliner and comes two weeks after the company paid $1.1 billion to avoid charges over past 737 Max crashes. A previous whistleblower flagged safety concerns about the 787, fueling renewed criticism of the aircraft manufacturer

• 🚔 Texas Deploys 5,000 Troops Ahead of Protests: Texas Gov. Greg Abbott mobilized 5,000 National Guard members and 2,000 state officers ahead of "No Kings" protests against federal immigration raids. The move spans major cities including San Antonio. Some see it as public order; others call it intimidation.

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