Security Spending Climbs | Credit Stress | Fed Split

Futures pushed a bit higher after another record run for the S&P and Nasdaq. But the bigger story was what stayed calm overnight.

Oil kept drifting lower as traders held onto hopes that the U.S. and Iran are moving closer to a deal, easing pressure across markets. 

Strong earnings kept adding fuel, with tech and AI names still leading the charge while investors continue rewarding growth over caution. 

Investor Signal

Right now, lower oil matters more than geopolitical noise. As long as crude stays calm and earnings keep landing, buyers will likely stay aggressive in tech and growth names. 

Warren Buffett famously said, “If you don't find a way to make money while you sleep, you will work until you die.”

What if your phone could do it for you? 📲

That’s exactly what Mode Mobile has created — technology that turns idle phone time into passive income. With 490M+ users in their ecosystem and $1B in earnings and savings, their EarnPhone is being called the Uber of smartphones.

With 32,481% revenue growth and a newly secured Nasdaq ticker $MODE, investors can access their pre-IPO offering at $0.50/share. 

Invest now at $0.50/share and earn up to 20% bonus shares.

Disclaimer:  Please read the offering circular and related risks at invest.modemobile.com. This is a paid advertisement for Mode Mobile’s Regulation A+ Offering. Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur. The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.

Anthropic and SpaceX spent months publicly attacking each other. Yesterday, they announced a deal. Business logic beat the rivalry.

Anthropic will use all of SpaceX's Colossus 1 data center in Memphis. That is over 300 megawatts of computing power. Hours later, Musk posted that he met Anthropic's team and was genuinely impressed. He also announced xAI would be rebranded as SpaceXAI.

What's Inside

The space compute interest is the bigger signal. SpaceX built its entire IPO case around AI being its largest future market. Anthropic committing to orbital compute would be the first named customer for that vision.

A named Anthropic contract for orbital compute would be the most direct validation of SpaceX's AI infrastructure thesis in the prospectus.

The Reversal

Two rivals closed a deal because the infrastructure shortage left them no choice. When enemies start transacting, the scarcity driving it is real.

The fear in software investing this year was simple. Would AI make security tools obsolete? Fortinet (FTNT) answered that today.

Billings grew 31 percent. Revenue rose 20 percent. The company said AI is making attacks more complex and more frequent. Shares jumped 16 percent. Zscaler (ZS) and Palo Alto Networks (PANW) both rose in sympathy.

The logic is direct. AI makes it easier to launch attacks. So companies spend more defending against them. That means more security spending, not less.

Fortinet just proved the spending is real and accelerating.

The Resolution

If Palo Alto and Zscaler confirm similar demand when they report, the AI-kills-security fear is officially dead. The whole sector re-rates from that point forward.

If you have any money in the stock market, you may want to pay attention.

New research points to a massive market-moving event that could send hundreds of popular stocks into a sudden free fall.

Holding the wrong stocks when this hits could erase years of gains.

That’s why analysts have now identified a list of stocks investors may want to avoid as this event unfolds.

If you want to see what’s coming — and which stocks could be most at risk —

Click here to get the full details before it’s too late.

Jeffrey Gundlach manages nearly $100 billion at DoubleLine. He does not warn casually. At Milken, he said private credit investors "are going to lose money here."

He compared the market to dot-com and pre-crisis mortgages. Both hid risk behind complexity until it was too late. He called the term "semi-liquid" for these funds misleading. The funds are liquid when you do not need them. They are illiquid exactly when you do.

This landed the same week HSBC disclosed a $400 million private credit loss. Oaktree (OCSL) marked down software loans and cut its dividend. Nearly 10 percent of private credit borrowers are showing stress.

What's Building

The pattern Gundlach named has a sequence. Complexity hides the risk first. Retail money enters late. Assets deteriorate before prices move. That sequence is already running.

The Quiet

No major private credit manager has responded publicly. In markets, silence from the accused is rarely a good sign.

The assumption was simple. Strait reopens, inflation falls. Two Fed officials spoke and pushed back on that directly.

Chicago Fed President Austan Goolsbee said companies are burning through chemical and industrial input stocks. When those run out, production problems persist even after oil normalizes. St. Louis Fed President Alberto Musalem said rate hikes are still a real possibility. Neither currently votes on the committee. Both are describing the environment Warsh walks into.

The global supply chain pressure index hit its highest level since July 2022 the same day.

Oil shocks are reversible. Supply chain disruption is not. That is the difference both officials are naming. Warsh takes over May 15 wanting to cut rates. His own colleagues are describing the opposite scenario publicly.

The Gap

Warsh's cut agenda and the Fed's supply chain data point in opposite directions. His first meeting is where that gap has to resolve.

The Magnificent Seven worked when investors were early.

Now they’re crowded, bloated, and priced for perfection.

Market leadership doesn’t disappear — it rotates.

Our analysts believe the next group of leaders is already emerging quietly. 

Their FREE report reveals 7 stocks positioned to benefit as leadership shifts.

Get the entire list free today, before the crowd catches on.

There is a real difference between expensive fuel and scarce fuel. Expensive means higher costs. Scarce means airports cannot operate. The story has now moved closer to scarce.

Global jet fuel exports fell 30 percent in April. Weekly tanker loadings fell 50 percent versus last year. ConocoPhillips (COP) warned import-dependent countries could face critical shortages by June or July. European airports formally warned the EU of a systemic shortage.

The pre-war buffer is gone. Tankers that left the Gulf before hostilities began have now arrived and been used up.

What's Already Moving

Financial hedges protect against price spikes. They do not help when the fuel does not exist at any price.

The Line

When any major airport announces operational limits beyond route cuts, the story has crossed from costly to critical. That announcement has not come yet. The timeline says it is close.

The morning compressed a season of tension into one day.

Rivals made deals. Private credit got its loudest warning of the year. The Fed's own data contradicted its incoming chair. Jet fuel moved from expensive to potentially scarce on a timeline measured in weeks.

The stress stopped building. It started arriving.