TL;DR

Trump tariffs reinstated; Gap tumbles on tariff risk; Dell, Costco, Ulta beat, SEC drops Binance case.

Highlights

• U.S. appeals court temporarily reinstates Trump-era worldwide 10% tariffs; legal review ongoing 1.
• Gap shares drop 16–18% after hours despite Q1 beat, citing $250M–$300M annual tariff risk 6.
• Dell beats Q1 revenue on AI server demand, raises full-year outlook, $14.4B AI order backlog 7.
• Costco Q3 EPS $4.28 and 8% revenue growth beat; shares up 1.15% after hours 8.
• Ulta Beauty Q1 EPS $6.70 tops estimates, raises 2025 guidance; stock up 8% after hours 9.
• Zscaler Q3 revenue/EPS beat; Q4 revenue guide light, but shares up 4.5% on institutional support 10.
• Marvell Q1 revenue +63% y/y and strong Q2 guide; shares down 3.5% after hours 11.
• Elastic Q4 revenue +16%, EPS beat; shares fall 11–12% on slower FY26 growth outlook 12.
• SEC drops Binance lawsuit, clarifies protocol staking is not a security; Solana staking ETF odds rise 23.
• Russia-Ukraine peace talks set for June 2; major issues unresolved 4.
• IDF conducts airstrikes on Hezbollah sites in Lebanon, escalating regional tensions 5.
• Toyota recalls 440,000+ Tundra trucks for reverse light defect 14.
• U.S. Labor Department to pause 99 Job Corps centers by June 30 due to high costs, low graduation rates 15.

Commentary

Tariff risk re-emerged as a key market theme after a U.S. appeals court reinstated Trump-era tariffs, maintaining pressure on import-heavy sectors 1. Gap ’s sharp after-hours decline, despite solid operating results, highlights the earnings sensitivity for retailers facing higher import costs 6. The legal uncertainty around tariffs is likely to keep retail and consumer discretionary names volatile, with potential spillover to other sectors dependent on global supply chains 16.

Tech earnings were mixed but generally constructive. Dell ’s strong AI server demand and raised guidance point to ongoing enterprise investment in AI infrastructure 7, further supported by Marvell ’s robust data center growth, though Marvell shares slipped—likely on valuation or expectations 11. Zscaler and Elastic both beat on Q3 results 1012, but Elastic’s conservative FY26 growth guidance and competitive pressures weighed on the stock 12. Institutional interest in Zscaler remains strong, cushioning the impact of a modest Q4 revenue guide miss 10.

Consumer demand remains resilient, as evidenced by Costco ’s steady comp sales 8 and Ulta Beauty’s strong quarter and raised outlook 9. Both stocks responded positively, suggesting continued strength in select consumer segments despite broader macro uncertainty and tariff concerns 89.

On the regulatory front, the SEC’s dismissal of the Binance lawsuit 2 and clarification on staking not being a security 3 mark a notable shift in U.S. crypto policy, improving the outlook for digital asset products—particularly Solana and Ethereum staking ETFs. This could support crypto-related equities and sentiment in the near term 23.

Geopolitics remain a background risk, with Russia-Ukraine talks 4 and renewed Israel-Hezbollah hostilities 5 unlikely to drive immediate market moves but worth monitoring for any escalation. Other headlines, such as Toyota ’s large recall 14 and the Job Corps pause 15, are unlikely to have broad market impact but may affect specific names.