The stock market rally erased or reversed modest weekly gains on Friday as Israel launched major attacks vs. Iranian nuclear sites. Tame inflation data and weak jobs data pushed Treasury yields lower and raised odds for Fed rate cuts later this year. Oracle was a big earnings winner while Cameco and Oklo surged on nuclear plant news. Boeing fell on an Air India 787 Dreamliner crash. Tesla CEO Elon Musk tentatively set a robotaxi debut date.

Stock Market

The S&P 500 and Nasdaq were creeping toward record highs until Friday's retreat on Israel's Iran attack. The S&P 500 and Nasdaq were little changed for the week as of Friday morning while the Dow Jones and Russell 2000 fell modestly. There were some breakouts, though growth stocks had some ups and downs even before Friday. Nuclear stocks were big winners, along with software giant Oracle. The 10-year Treasury yield fell on softer economic data. Crude oil spiked higher Friday.

Economic Data Cooling

The May CPI and PPI inflation reports both came in lighter than expected, with core consumer goods prices flat despite Trump tariffs. That could reflect retailers drawing down pre-tariff stockpiles, with tariff impacts kicking in over the summer. But it hasn't happened yet. Meanwhile, rising jobless claims suggest the labor market is starting to weaken. The four-week average of initial claims is the highest since August 2023. Continuing claims are the highest since November 2021. Odds for Fed rate cuts later this year picked up.

Oracle Soars On Bullish Outlook

The software giant reported a 4% EPS gain as revenue growth picked up to 11%, both slightly beating fiscal Q4 views. Citing a large backlog of cloud demand, CEO Safra Catz said Oracle expects its growth will be "dramatically higher" during its current May-ending fiscal 2026. Catz also said the company's cloud infrastructure business has become a go-to destination for enterprise AI work. That requires a costly expansion of data centers, however. Oracle's capital expenditures tripled to $21 billion for fiscal 2025, and are expected to reach $26 billion during the current fiscal year. Investors and analysts generally hailed the outlook. Oracle surged 13% Thursday to a new high.

Nuclear Stocks Power Higher

Cameco (CCJ) and Oklo (OKLO) both surged on news related to President Donald Trump's focus on fueling the AI revolution. Canada-based Cameco, a uranium refiner, specifically announced that its partial ownership of Westinghouse was set to bear fruit amid progress of projects overseas. William Blair analysts wrote Monday that Westinghouse was the "top pick" for the construction of 10 new large nuclear reactors by 2030. Trump mandated those projects in his recent executive orders. Meanwhile, nuclear startup Oklo on Wednesday said it had been selected by the Department of Defense to supply its emerging nuclear reactor technology to power the Eielson Air Force Base in Alaska. Both stocks surged to record highs, with several other nuclear plays rallying.

Tesla Robotaxi Event Date Set

Tesla (TSLA) CEO Elon Musk tentatively plans to launch limited robotaxi service in Austin, Texas, on June 22. The Model Y robotaxis will use new Full Self-Driving software not released to FSD owners. Meanwhile, Tesla's China EV sales in Q2 are still tracking below the seasonally weak Q1. President Donald Trump on Thursday also signed measures to block California's EV mandates. That could put more pressure on Tesla's U.S. zero-emission credits, which have been key to profitability. That also comes as Congress moves toward repealing the $7,500 EV tax credit, and perhaps other credits that Tesla taps. Meanwhile, Tesla released mildly refreshed Model S and X vehicles, with higher price tags.

Adobe Tops Targets, Guides Up

Adobe (ADBE) beat estimates for its fiscal second quarter, with EPS up 13% as sales grew 11% to $5.87 billion. The digital media and marketing software firm guided to slightly decelerating growth in the current quarter. Adobe slightly raised full-year targets. Shares dropped after the report as investors expected more of a lift from Adobe's generative AI offerings.

Apple WWDC News Disappoints

Apple (AAPL) played it safe with announcements at its Worldwide Developers Conference after failing to deliver on promises from last year's show. The consumer electronics giant announced a new user interface for its operating systems. It features a "Liquid Glass" design for overlaying controls over apps and showing more of what's underneath. It also previewed some incremental advancements using artificial intelligence. But agentic AI and a new Siri digital assistant were no-shows after being touted a year earlier. Analysts called WWDC "a yawner" and "a dud." Meanwhile, a survey showed that U.S. consumer plans to buy new iPhones have fallen to their lowest level in five years. Apple stock fell modestly for the week.

EToro Dives On Earnings

Recent IPO eToro Group (ETOR) reversed sharply lower from record highs after its first earnings report since coming public in May. The trading platform reported that Q1 EPS fell 9% vs. a year earlier, though that beat views. Total revenue and income increased 11% to $3.75 billion. Both were well below the torrid pre-IPO growth. EToro didn't give much guidance about Q2.

Stock Market News In Brief

Boeing (BA) tumbled after an Air India 787 Dreamliner with 242 passengers and crew bound for London crashed in a residential area shortly after takeoff in western India on Thursday. There was one survivor.

Warner Bros. Discovery (WBD) plans to split into two publicly traded companies by mid-2026. CEO David Zaslav will lead the streaming and studios company, with Warner Bros. Television, WB Motion Picture Group, DC Studios, HBO and HBO Max. The global networks company, to be led by CFO Gunnar Wiedenfels, will include its sports and television brands, as well as Discovery+. Global networks will retain up to a 20% stake in the streaming company. Warner Bros. Discovery formed as a spinoff from AT&T (T) when WarnerMedia merged with Discovery in 2022.

Insmed (INSM) rocketed out of a base Tuesday on promising test results for its drug in patients with a form of high blood pressure in the arteries of the lungs. After 16 weeks of treatment, the group that received Insmed's inhaled powder had a 35% greater improvement in blood flow in the lungs compared to placebo recipients.

Chime Financial (CHYM) jumped 37% in Thursday's debut after the fintech priced its IPO at $27, above the expected range of $24-$26.

IonQ (IONQ) agreed to buy U.K.-based Oxford Ionics in a deal valued at $1.075 billion, all stock except for $10 million cash. In May, IonQ agreed to purchase Lightsynq, founded by former Harvard University quantum memory experts, as well as Capella Space. Also, IonQ recently completed the acquisition of a controlling stake in ID Quantique. IonQ last year bought quantum networking company Qubitekk.

GameStop (GME) fell on mixed Q1 results, then dived as the mall-based video game retailer turned meme stock turned bitcoin buyer announced plans for a $1.75 billion convertible debt offering, in part to buy more bitcoin.

Chewy (CHWY) reported a 13% EPS gain and 8% revenue rise, both narrowly beating Q1 views but with growth slowing. The online pet supplies retailer guided up on Q2 but kept full-year targets steady. Shares gapped lower, but held a buy point.

Meta Platforms (META) has finalized a major investment in data-focused startup Scale AI, reportedly $14.3 billion for a 49% stake. Scale AI provides data labeling services that help train and produce AI large language models. Scale CEO Alexandr Wang will join Meta's AI team.

Nvidia (NVDA) stormed Europe, announcing a host of deals and alliances. First, the chipmaker publicized two AI data center projects in the U.K. Later in Paris, Nvidia said it is partnering with European governments, telcos and cloud providers to deploy its technologies.

Taiwan Semiconductor Manufacturing (TSM) said May sales surged 40% year over year to about $10.7 billion. Strong demand for AI chips for customers like Nvidia fueled the growth. That bodes well for TSMC's second-quarter results, due in early July.