Soon, that rule will likely be broken, three times. On purpose. S&P Dow Jones is considering relaxing its rules on profitability, trading history, and ownership concentration in order to allow SpaceX, OpenAI, and Anthropic to go public with\u2014potentially\u2014lower-quality earnings than the other stocks in the benchmark index.<\/p>\n
Ordinary investors could be forced to eat this whether they like it or not: S&P index funds and ETFs are required to buy the entire index, they cannot pick and choose. The rule change would dilute retail investors, 401(k)s, and institutional investors alike with lower quality stock. \u201cIt\u2019s the opposite of what an index is supposed to be,\u201d says Nell Minow, a longtime expert on corporate governance.<\/p>\n
\u201cAIR POCKET AHEAD\u201dBank of America is suddenly skeptical about the AI story<\/p>\n
The big AI hyperscalers are shifting from being \u201ccapital light\u201d to \u201ccapital intensive,\u201d seeing their cash flow shrink, and issuing too much debt, according to a deep dive from Savita Subramanian et al at Bank of America. \u201cWe are long-term [technology] bulls but we see an air pocket ahead,\u201d she advised clients recently.<\/p>\n
She notes that of the IPOs in the late 1990s dotcom boom, only one of every five survives today, even though all the broadband fibre they laid remains in use. Thus it is time to get picky when it comes to big tech stocks, she suggests. One symptom of the problem is the way that companies like Amazon, Google, Meta, Microsoft and Oracle are burning through cash to spend on AI capex and issuing debt to fund it. The sector has gone \u201cfrom [a] source of cash to user of cash, shrinkage to issuance,\u201d she tuts.<\/p>\n
This chart shows the new debt the companies have piled on. It\u2019s more than triple what it used to be:<\/p>\n
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And this one shows how that capex has reduced the quality of their financials. The earnings of the Magnificent Seven continue to march upward as a percentage of the S&P 500 as a whole. But their free cashflow has flatlined\u2014because it is being blown on data centers:<\/p>\n
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IRANTrump to Netanyahu: \u201cYou’re fucking crazy. You’d be in prison if it weren’t for me. I’m saving your ass. Everybody hates you now. Everybody hates Israel because of this.\u201d<\/p>\n
There is confusion this morning over whether a ceasefire still exists in Israel and the U.S.\u2019s conflict with Iran and Axios reports a major split<\/a> between President Trump and Israeli Prime Minister Benjamin Netanyahu. Trump wants Israel and the Iran-backed Hezbollah terror group to stop fighting in Lebanon. Iran said it was suspending talks with the U.S. as a result of Israel\u2019s ongoing strikes, per Bloomberg<\/a>.<\/p>\n Trump blew up at Netanyahu in a call on Monday, sources told Axios<\/a>. It\u2019s worth reading verbatim:<\/p>\n Summarizing Trump’s remarks to Netanyahu, the U.S. official said: \u201cYou’re fucking crazy. You’d be in prison if it weren’t for me. I’m saving your ass. Everybody hates you now. Everybody hates Israel because of this.\u201d Officially, Trump said both Iran and Israel “agreed that all shooting will stop,” according to the BBC. On Truth Social, the president said<\/a>: \u201cI had a conversation with Bibi Netanyahu today, asking him not to go into a major raid of Beirut, Lebanon. He turned his Troops around. Thank you Bibi! I also had a conversation with Representatives of the Leaders of Hezbollah, and they agreed to stop shooting at Israel, and its soldiers. Likewise, Israel agreed to stop shooting at them.\u201d<\/p>\n But Netanyahu had a different take: Strikes on Beirut would continue<\/a> “if Hezbollah does not stop attacking our cities and civilians,” he said, and Israeli forces would not move out of southern Lebanon.<\/p>\n Trump seems to be out of patience with the whole situation, according to CNBC<\/a>. \u201cI don\u2019t care if [peace talks] are over, honestly \u2026 I really don\u2019t care. I couldn\u2019t care less,\u201d he told the channel. The discussions \u201cstarted to get very boring.\u201d<\/p>\n Bottom line: Israel and Hezbollah were still bombing each other overnight.<\/p>\n Good news? The blockade is being broken. The Greek shipping line Dynacom Tankers has moved eight ships through the blockade of the Strait of Hormuz and is preparing another six to transit the shipping lane. The FT doesn\u2019t report details<\/a> on exactly how Dynacom is achieving this, but the context is that the Greeks do not mess around when it comes to shipping: \u201cGreece has a tradition of breaking blockades since the antiquity,\u201d founder George Prokopiou told a conference in Athens on Monday,<\/p>\n MORE FROM FORTUNE<\/p>\n Anthropic confidentially files its S-1 first\u2014but the IPO race with OpenAI is just beginning<\/a> – Allie Garfinkle<\/p>\n He sent out 3,200 r\u00e9sum\u00e9s and got zero job offers in the 2008 crash. Now Outdoor Boys\u2019 Luke Nichols is telling grads how he survived<\/a> – Sydney Lake<\/p>\n Jeff Bezos\u2019 25-year-old stress cure is to \u2018make the first phone call, or send the first email\u2019\u2014 and a recruiter says it lands even harder in 2026<\/a> – Orianna Rosa Royle<\/p>\n It\u2019s not a recession. But Goldman says your paycheck is acting like it<\/a> – Nick Lichtenberg<\/p>\n Cognizant CEO is swimming against the tide on AI: he\u2019s hiring over 20,000 graduates this year and says AI tokenmaxxing is a \u2018vanity metric\u2019<\/a> – Preston Fore<\/p>\n CHART OF THE DAYGoldman Sachs\u2019 insanely detailed World Cup brackets<\/p>\n Spain will beat Argentina in the final of the World Cup this summer, according to Goldman Sachs.<\/p>\n I\u2019m not saying that Jan Hatzius\u2014the bank\u2019s chief economist and head of its global investment research\u2014and his colleagues have too much time on their hands. But their World Cup prediction model is thorough, to put it diplomatically. Here\u2019s a description of the statistical model they used to predict the results of all 104 matches. I won\u2019t even try to translate this into plain English. Just know that I\u2019m leaving out all the minor variables they’ve weighted into it, including things like stadium altitude and pre-match momentum:\u00a0\u00a0<\/p>\n \u201cWe estimate a regression model to predict the number of goals scored by a particular team (\u2018team i\u2019) against a particular opponent (\u2018team j\u2019) using the entire history of mandatory international matches since 1978 \u2026 we assume that the number of goals scored by team i is described by a so-called \u2018Poisson\u2019 distribution \u2026 The main determinant of the number of goals scored is the difference in team performance as reflected in Elo ratings prior to the match. The Elo system was originally devised to rank chess players \u2026 We can also leverage the Poisson distribution underlying our model to run a Monte Carlo simulation with 50,000 draws, which yields a set of probabilities that a particular team wins.\u201d<\/p>\n The big calls: The U.S. gets past Iran but is knocked out in the round of 16. England make it to the quarter-finals, where they are dispatched by Brazil. Scotland actually makes it out of the group stage (bold call from Goldman!). And France get their hearts broken in the semis.\u00a0<\/p>\n NUMBER OF THE DAY$2.95 trillion<\/p>\n The amount of wealth moved across foreign borders and booked in the largest markets for offshore riches. Hong Kong has narrowly overtaken Switzerland to become the world\u2019s largest offshore wealth hub according to Boston Consulting Group\u2019s 2026 Global Wealth Report<\/a>. The report found an influx in capital from mainland China had driven significant growth, with Hong Kong hosting $2.95 trillion in cross-border wealth in 2025, compared to Switzerland\u2019s $2.946 trillion. Next on the list were Singapore ($2.1 trillion) the U.S. ($1.6 trillion) and the U.K. ($1 trillion).<\/p>\n THE FRONT PAGES TODAY<\/p>\n US in talks to expand nuclear weapons deployments in Europe<\/a> – FT<\/p>\n Prominent Short Seller Andrew Left Convicted of Fraud<\/a> – WSJ<\/p>\n How One Tech Company Created 13 New Types of Jobs Because of A.I.<\/a> – NYT<\/p>\n Ken Griffin poised to pay extra $1.4M in taxes for NYC properties thanks to Mamdani\u2019s pied-\u00e0-terre tax<\/a> – NY Post<\/p>\n
\nA second source briefed on the call said Trump was “pissed” and at one point yelled at Netanyahu: “What the fuck are you doing?”<\/p>\n![\"\"](\"https:\/\/www.europesays.com\/germany\/wp-content\/uploads\/2026\/06\/Screenshot-2026-06-01-at-161559.png\"\/)
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![\"Elon](\"https:\/\/www.europesays.com\/germany\/wp-content\/uploads\/2026\/06\/GettyImages-2246892016-e1778691314221.jpg\"\/)
Elon Musk at the John F. Kennedy Center for the Performing Arts in Washington, DC, on November 19, 2025.<\/p>\n