Markets Brace for Oracle, Adobe as Inflation Bites

The Big Macro Story

US inflation hit 4.2% in May — a new three-year high driven by a Middle East energy shock. That reading throws fresh doubt on Fed rate cuts this year. The FT warned the Fed "might yet again take the punch bowl away." Equity markets face a tricky week with that backdrop hanging over tech earnings.

Earnings in Focus

Oracle kicks off today with Q4 2026 results at 5pm ET. The $592 billion company carries just 2.1% short interest. Tomorrow, Adobe follows with Q2 numbers after the close. Homebuilder Lennar also reports Wednesday — a crucial read on US housing demand while mortgage rates stay elevated. Across the Atlantic, BT Group posts full-year 2026 results Wednesday morning in London.

Short Interest Flashpoints

XOMA is the most explosive setup. Short interest hit 93% of free float this week. Any catalyst could trigger a violent squeeze. PureCycle Technologies is also under pressure — SI utilization reached 90%, near its 52-week peak. The company launched a $250M convertible notes offering plus a $145M stock sale today, compounding the squeeze risk.

Cerebras Systems saw short interest explode from 6.3% to 27.7% in a week. Bears are targeting the AI chip maker hard post-Nasdaq debut.

Insider Conviction

Robinhood insiders filed over $95M in purchases. Ribbit Capital added $75M and director Meyer Malka filed a separate $20M buy. GeneDx drew $105M in combined insider buying. Meanwhile, a Humana headline crossed wires: the insurer agreed to divest its minority Gentiva stake in a deal valued at roughly $900M.