Adobe, Inflation, and AI Bets Drive Wednesday's Action

Macro: US Inflation Hits 4.2%

US inflation jumped to 4.2% in May. That's a three-year high, driven by an energy shock from the Iran conflict. Oil tankers are now rerouting through the Strait of Hormuz. The Fed faces a harder path ahead — rate cuts look increasingly distant.

Today's Earnings

ADBE reports Q2 2026 results after the close today. Options traders are actively positioned around the June 12 expiry. Bears and bulls are both loaded. LEN also reports Q2 2026 homebuilder numbers. Mortgage affordability is the key pressure point with rates still elevated. Furniture retailer RH rounds out today's slate.

AI Infrastructure Gets a Lift

Analysts upgraded VRT, DELL, and GLW today. All three are direct plays on data center build-out. The upgrades come as KKR launched a $10bn data center group led by a former AWS chief — underlining how much capital is flowing into AI infrastructure.

Meta Under Pressure From Two Directions

META faces a dual headache. Canada unveiled a Safe Social Media Act this morning. Separately, Bloomberg reported that Meta severed access to Manus data after China ordered a buyout to be reversed. Regulatory risk is building on both sides of the Pacific.

Short Interest: Bears Crowd CBRS and HTZ

AI chip startup CBRS saw short interest explode to 27.7% of free float — up 21 percentage points in a week. Car rental play HTZ sits at 45% SI % FF. Bears are pressing hard on both names with availability near 20% or below.

Insider Signal: HOOD Bought, DELL Sold

Board-linked investors piled $55M+ into HOOD this week. Silver Lake simultaneously dumped over $442M in DELL shares — a notable exit as analysts simultaneously upgraded the stock.