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Markets finally cracked Friday after hotter inflation data sent Treasury yields soaring past levels investors had hoped were behind them, wiping out tech gains and putting new Fed chair Kevin Warsh under immediate pressure. Kyiv mourned victims from one of Russia’s deadliest strikes of the war as drone attacks intensified, while Britain’s political landscape shifted sharply after Andy Burnham emerged as a real challenger to Keir Starmer.

We also cover Trump’s return from Beijing, the bond market’s growing influence over stocks, Cannes breakout films, and new health warnings tied to cannabis use after 65.

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US stocks gave back ground hard on Friday, with the Dow shedding 480 points and tech leading the way down. Nvidia, Intel, AMD and Micron all sold off after a week that had just set fresh records.

The selloff was driven by a spike in Treasury yields, with the 30-year crossing 5.1% after fresh inflation data landed. CPI at 3.8% and PPI at 6% set up a brutal first week for new Fed chair Kevin Warsh.

Kyiv held a day of mourning Friday after Thursday's missile strike on a nine-story apartment block killed 24, including three teenage girls. Zelensky visited the site as the toll climbed hour by hour.

Russia and Ukraine separately swapped 205 prisoners each on Friday, the opening stage of a Trump-brokered "1,000 for 1,000" exchange. Russia launched more than 1,560 drones at Ukrainian cities over three days, its biggest barrage since the invasion began.

UK Prime Minister Keir Starmer's grip slipped further on Friday after Labour cleared Manchester Mayor Andy Burnham to challenge him through a by-election. Streeting and other senior figures backed Burnham within hours, turning a quiet rebellion into an open contest.

Gilts slumped and the pound fell to a one-month low, with 10-year UK yields jumping as much as 13 basis points. Polymarket put Burnham at 42% to be the next prime minister by day's end, with Starmer marked down to 27%.

Israel and Lebanon agreed Friday to extend their ceasefire by 45 days after another round of US-mediated talks in Washington. A new military-track dialogue runs through the Pentagon starting May 29, with the next political round set for June.

Finland's President Alexander Stubb told a Vilnius business forum Friday that the US still needs NATO to counter Russia's nuclear weapons. Stubb pointed to European and Nordic bases as the proximity Washington cannot replicate elsewhere.

Yemen's government and the Iran-backed Houthis agreed to release more than 1,600 detainees, the largest exchange of the 11-year war. UN officials and the Red Cross brokered the deal after 14 weeks of talks in Amman.

Trump's plane touched down in Washington Friday after a two-day Beijing visit that yielded claims of 200 Boeing orders and US soybean purchases. Neither deal has been put on paper, and Beijing has not confirmed the numbers.

Florida Attorney General James Uthmeier subpoenaed the NFL on Friday, calling its Rooney Rule for minority coaching interviews discriminatory. NFL leadership pushed back, insisting the rule expands the candidate pool but imposes no quotas or mandates.

DC's US Attorney Jeanine Pirro said the Justice Department will prosecute parents of teens who violate the city's curfew during a federal "summer surge." Pirro's blunt message to parents was, "Do your jobs, or we will do ours."

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The week closed with yields as the worry, as the 30-year crossed 5.1% and pulled retail and small caps with it. Russell 2000 looked set to snap a seven-week winning streak amid a sharp rotation out of risk.

HSBC upgraded Cisco to Buy and lifted its price target to $137 from $77 after the company's blowout quarter. Hyperscaler AI orders and enterprise networking demand pushed nineteen of twenty-six analysts to a Buy rating.

Amazon expanded its 30-minute grocery delivery service into Austin, Denver, Minneapolis, and Phoenix on Friday. Prime members pay $3.99 per order while non-members pay $13.99, with perishables driving most of the demand.

A new survey of 300-plus mouse strains found 47% inconsistent with how they had been described in published research. Mismatched genetics threaten the reproducibility of a huge slice of biomedical work.

Stanford researchers warned that cannabis use after 65 may raise risks tied to falls, memory loss and heart problems. Rising use among older Americans matters because many seniors now rely on cannabis for pain, sleep and anxiety relief.

Researchers found that many people may carry a genetic cholesterol condition without realizing it until serious heart problems appear. Earlier testing could help doctors catch the risk before it leads to heart attacks or strokes.

Hideki Matsuyama posted a 67 to share the PGA Championship clubhouse lead with Chris Gotterup at 3-under. Scottie Scheffler battled back from three early bogeys for a second-round 71 to sit two off the pace.

The wind turned Aronimink into a grinder on Friday, with the projected cut hovering near 4-over. Rory McIlroy and Bryson DeChambeau both started Round 2 needing rallies to make the weekend.

Ian Happ homered and the Cubs blanked the Braves 2-0 to snap a four-game skid against MLB's top-scoring offense. Starter Ben Brown gave up just one hit over four innings with seven strikeouts before five Cubs relievers finished it.

Japanese auteur Ryusuke Hamaguchi's French-language debut "All of a Sudden" drew a seven-minute Cannes ovation, the longest of the festival so far. Hamaguchi vaults into the Palme d'Or conversation that "Drive My Car" once primed.

Jordan Firstman sobbed and kissed co-star Diego Calva inside Theatre Claude Debussy as "Club Kid" earned a six-minute ovation in Un Certain Regard. Cara Delevingne and Miss Benny round out the cast in what looks like Cannes' first breakout title of 2026.

Marion Cotillard premiered Guillaume Canet's "Karma" at Cannes, playing a French woman who flees Spain as a missing-child investigation closes in. Cotillard reflected on family over Hollywood and on "Contagion" echoing in the current hantavirus moment.

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What it is: A sharp Friday selloff in US Treasurys pushed the 30-year yield past 5.1% for the first time since spring 2025, dragging stocks, small caps and the dollar sideways with it. Behind the move sit two fresh inflation prints, an incoming Fed chair facing his first big test, and the Iran-war oil shock the market has still not fully absorbed.

The detail: Headline CPI ran at 3.8% and PPI at 6% on an annual basis, the highest readings in more than two years and a brutal setup for new Fed chair Kevin Warsh's first full week. Warsh's publicly stated preference for lower rates now collides with a bond market that no longer trusts the inflation story has wound down, especially with Brent crude above $105 a barrel.

Why it matters: A 30-year Treasury yield above 5% raises borrowing costs for the federal government, large corporations and ordinary homebuyers, with mortgage rates likely to follow within days. An expensive Treasury market also reshapes equity valuations, particularly for the AI-driven megacap stocks whose pricing assumed cheap money would persist for several years to come.

What to watch: Nvidia, Target, Walmart, Lowe's and Deere all report next week, with analyst calls already flooding in ahead of that pivotal stretch. Meanwhile, Warsh's first full week as Fed chair will set the tone for whether the central bank pushes back against the bond market or simply tries to ride it.

- A Knight Rider replica car at an Illinois museum got a speeding ticket from New York City, despite not having moved in over a decade.

- Empty Waymo robotaxis are flooding an Atlanta neighborhood, circling cul-de-sacs in the kind of footage every sci-fi writer hoped never to quote-tweet.

- Arsenal and Manchester United are reportedly chasing a West Ham midfielder, Mateus Fernandes, in a four-club race that already includes PSG and Atletico.

That’s it for today’s Five Minute Daily. We’ll be back tomorrow morning with the stories, markets, and moments everyone will be talking about next.

—The Five Minute Daily Team