Market Beats | Israel Strikes Tehran Radar Site; US Home-Price Gains Slow as Market Enters Transitional Phase; McDonalds, Krispy Kreme End Partnership Over Cost Concerns; U.S. Rent Burden Reaches Record

—— Israel Strikes Tehran Radar Site Despite Trump’s Ceasefire Warning; US Home-Price Gains Slow as Market Enters Transitional Phase; McDonald’s, Krispy Kreme End Partnership Over Cost Concerns; U.S. Rent Burden Reaches Record

1. Israel Strikes Tehran Radar Site Despite Trump’s Ceasefire Warning

Israel launched a limited strike on a radar site near Tehran on Tuesday, defying a direct warning from US President Donald Trump not to retaliate against Iran for an alleged ceasefire breach. The Israeli government said no further attacks would follow after a phone call between Prime Minister Benjamin Netanyahu and Trump.

Iranian state media confirmed the strikes near the capital, while denying any violation of the ceasefire agreement.

The move came just hours after Trump posted an emphatic message on Truth Social: “ISRAEL. DO NOT DROP THOSE BOMBS. IF YOU DO IT IS A MAJOR VIOLATION. BRING YOUR PILOTS HOME, NOW!”

Speaking to reporters before departing for the NATO summit in The Hague, Trump expressed deep frustration: “They don’t know what the fuck they’re doing.” He added, “I’m really unhappy with Israel. The ceasefire is in effect. As soon as we made the deal, they dropped a load of bombs — the biggest we’ve seen.”

Earlier Tuesday, the US had brokered a truce between the two regional adversaries after nearly two weeks of escalating conflict. But within minutes of confirming it had agreed to the ceasefire, Israel accused Iran of breaching the deal and pledged a response.

“I have instructed the IDF to respond forcefully to Iran’s violation of the ceasefire with powerful strikes against regime targets in the heart of Tehran,” said Israeli Defense Minister Israel Katz.

Iranian state TV rejected the accusation and insisted it had honored the truce.

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2. US Home-Price Gains Slow as Market Enters Transitional Phase

US home-price growth slowed in April as high mortgage rates and economic uncertainty cooled demand.

The S&P CoreLogic Case-Shiller national home-price index rose 2.7% year-over-year, the smallest increase since the summer of 2023 and down from a 3.4% annual gain in March.

Some buyers were priced out of the market as elevated mortgage rates squeezed affordability. President Donald Trump’s early April tariff announcement also introduced new economic uncertainty that dampened market sentiment. Contracts to buy existing homes fell in April by the most since September 2022, according to the National Association of Realtors.

The sluggishness extended into May. While consumer confidence began to rebound, borrowing costs remained high. Home resales ticked up slightly last month, but May’s pace was still the slowest for the month since 2009.

“We’re witnessing a housing market in transition,” said Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices. “The era of broad-based, rapid price appreciation appears over, replaced by a more selective environment where local fundamentals matter more than national trends.”

An increase in listings is giving buyers more options, offering some relief after years of tight inventory. However, according to Capital Economics, this shift is more likely to cap price gains than cause them to fall.

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3. McDonald’s, Krispy Kreme End Partnership Over Cost Concerns

McDonald’s Corp. and Krispy Kreme Inc. are ending their partnership just over a year after it began, citing unsustainable costs.

The collaboration, launched in March 2024, sought to bring Krispy Kreme donuts to McDonald’s restaurants. Krispy Kreme had projected that the deal could more than double its distribution footprint by the end of 2026.

“Our two companies partnered very closely, each supporting execution, marketing, and training, delivering a great consumer experience in approximately 2,400 McDonald’s restaurants,” said Krispy Kreme CEO Josh Charlesworth. “Ultimately, efforts to bring our costs in line with unit demand were unsuccessful, making the partnership unsustainable for us.”

Krispy Kreme shares rose 1.5% in premarket trading, while McDonald’s stock remained largely unchanged.

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4. New York to Build First Major New Nuclear Plant

New York plans to build a new nuclear power facility, marking the first major nuclear project in the United States in more than 15 years.

A spokesperson for Governor Kathy Hochul confirmed the development, which was first reported by the Wall Street Journal.

Hochul told the Journal she directed the New York Power Authority to add 1 gigawatt of nuclear generation capacity — enough to power about 1 million homes.

The state is in discussions with Constellation Energy Corp., the largest operator of nuclear reactors in the US, about potentially building a new reactor at one of the company’s three existing nuclear sites in New York.

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5. U.S. Rent Burden Reaches Record

Despite one of the largest surges in new apartment construction in decades, a new Harvard study finds the growing supply has done little to ease the rent burden for the most financially stretched Americans.

Harvard’s Joint Center for Housing Studies (JCHS) released its annual State of the Nation’s Housing Report this week, revealing that cost burdens among U.S. renters have reached record highs — and that middle-income households are increasingly affected. According to the report, 65% of working-age renters in the U.S. cannot afford basic non-housing costs after paying their monthly rent.

“Having a job no longer guarantees financial security when it comes to housing,” said Alexander Hermann, senior research associate at JCHS. “Lower-income households continue to struggle, but the biggest increases in burden are now seen among middle-income renters.”

The outlook may worsen: President Donald Trump has proposed major cuts to housing assistance, including a 40% reduction in funding for Section 8 housing vouchers, the primary federal program for low-income renters. “This is the worst possible time to reduce support for struggling households,” Hermann warned.

The number of cost-burdened renters — defined as those spending over 30% of income on housing — reached 22.6 million in 2023, the highest on record. Among them, 12.1 million spent more than half of their income on rent. Financial instability due to housing costs is particularly high in Florida and the U.S. West.

A staggering 83% of renters earning less than $30,000 a year are burdened by rent, often left with just $250 per month after housing costs. But even higher earners aren’t spared: 45% of renters earning $45,000 to $74,999 annually are rent-burdened — double the rate in 2001.

Nationally, rents rose 32% from 2019 to 2025, according to the report.

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6. Iran Fires Missiles at US Base in Qatar After Trump’s Airstrikes

Iran launched missiles at a US military base in Qatar, making good on its vow to respond “proportionately and decisively” to President Donald Trump’s weekend airstrikes on three Iranian nuclear sites.

Qatar reported that the barrage targeting Al Udeid Air Base — the largest US military facility in the Middle East — was successfully intercepted, with no casualties. Al Udeid serves as the regional headquarters for US Central Command and hosts several thousand US service members, although many had already been evacuated.

Oil prices dropped sharply following the attack. Brent crude fell 3.3% to $74.48 a barrel as of 6:10 p.m. The strike involved at least six missiles aimed at US military installations in Qatar, according to a person familiar with the matter. In response, the United Arab Emirates and Bahrain closed their airspace as a precaution.

Another individual familiar with Western intelligence assessments said the strike had been anticipated by US and allied officials. Earlier in the day, American and British diplomatic missions in Doha advised residents to shelter in place “until further notice.”

Iran has consistently refused to halt domestic uranium enrichment, a major sticking point in past negotiations.

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7. Tesla Rolls Out Robotaxi Service, Shares Jump Nearly 9%

Tesla Inc. shares rose sharply after the company launched its long-awaited driverless taxi service, marking a quiet but meaningful step toward what Elon Musk envisions as a transformative business model.

The first robotaxi rides began Sunday in a limited area of Tesla’s hometown, Austin, Texas. Each vehicle had a company employee in the front passenger seat to monitor for safety. Tesla selected a group of loyal retail investors and social-media influencers to test the service and live-stream their experiences.

In one video, Herbert Ong, who runs a Tesla fan account, praised the car’s acceleration and parking capabilities. Another user, @BLKMDL3, said his ride was smoother than with a human driver. Sawyer Merritt, a well-known Tesla-focused investor, called the experience “awesome.”

Tesla opted for an unusually low-key rollout with no formal launch event, relying on word of mouth and media buzz instead. This contrasted sharply with past unveilings like the 2022 “Cyber Rodeo” or last year’s invite-only prototype event in Hollywood.

While Musk has warned that autonomy may not significantly impact Tesla’s financials until at least next year, the debut of the service boosted investor optimism.

Tesla shares jumped as much as 11% on Monday—the biggest intraday gain since April 9—before settling at an 8.7% rise by early afternoon.

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