1. Tech selloff resumes as markets eye US inflation data.

Investors remian wary about the risks stemming from rising borrowing costs as U.S. 10-year Treasury yields are above 4.5%.
Investors now await May U.S. Consumer Price Index (CPI) data on Wednesday and Producer Price Index (PPI) data on Thursday for clues on the Federal Reserve's next moves after a robust jobs report last week ramped up bets for a rate hike this year.
"The market is getting nervous when oil prices, inflation data, and Fed policy all lean in a direction that becomes less supportive of stocks over the near term. This is the risk we see building in the market right now."

Below: The US 10 year rate

2. Tech FOMO.

US large cap Tech recently outperformed the S&P 500 by +6 standard deviations over the prior 50 days. No other rally since 2015 comes anywhere close.
Time to take some “chips” off the tech table?

3. Why the oil price isn’t higher.

Societe Generale have a note out with several reasons why the roughly-14% loss in global crude supply has resulted in only around a 30% price increase.
They are:
o China has cut crude imports from ~11.7mb/d in February to just under 9mb/d by late May.
o Today’s prices feel far less painful than in past cycles. They reckon $100 a barrel now is equivalent to around $50-70 two decades ago.
o Washington’s messaging has played a key role in anchoring markets, with consistent signals of reassurance helping to cap price upside.
o Oil is no longer the dominant market narrative, with investor focus fragmented across themes like AI, equities, and macro.
o A meaningful supply response in Brazil and Venezuela.
o The possibility more oil is transiting the Strait of Hormuz than official data suggests.

4. AI is turning cybersecurity from a defensive budget line into a strategic priority.

Palo Alto is buying its way deeper into identity and agent security, while CrowdStrike is expanding Falcon into AI-native infrastructure. The thesis is working.
The stocks are the hard part….after massive rallies, expectations have caught up with the story, and the valuations leave little room for error.
After a nearly 50% rally this year and a stock near 62x forward EBITDA, cyber stocks are priced for perfection.

5. How do IPO’s perform?

When it comes to initial public offerings, the first-day pop is the fizz that attracts so much interest. After that, they often fall flat.

6. Buy Eiffage for its deep-value portfolio of infrastructure assets.

Eiffage is a leading company in the European concessions and public works sector, operating through four business lines: concessions, construction, infrastructure, energy.
Order book was at record highs at €31.1bn with order intake up ~8% y/y as Eiffage is the most exposed name in the sector to German contracting activity.

The shares are trading on 10.2x 27e P/E, 4.4% dividend yield and a 4.5 EV/EBITDA.
The stock is oversold.

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