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Wall Street CEOs reportedly “summoned” to DC by Scott Bessent and Jay Powell to discuss AI cyber risks after Anthropic’s warning

Top officials are worried about left-tail cybersecurity risks from new AI tools, and are making sure the most important American bankers are taking the threat seriously.

The most powerful Americans in finance held an “urgent meeting” this week to discuss cybersecurity risks linked to new, powerful AI models — in particular, Anthropic’s Mythos.

Bloomberg reports that US Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell “summoned” the leaders of the biggest US banks — all of which are considered systemically important — to DC on Tuesday “to make sure banks are aware of possible future risks” and ensure that they “are taking precautions to defend their systems,” citing people familiar with the matter.

On Wednesday, Anthropic announced that it was releasing a version of its Mythos model to a select group of companies in an initiative called “Project Glasswing.” The hope is that these firms will get a head start on shoring up their defenses before malicious actors have the chance to strike with these new tools.

“AI models have reached a level of coding capability where they can surpass all but the most skilled humans at finding and exploiting software vulnerabilities,” warned Anthropic, which said it’s “found thousands of high-severity vulnerabilities, including some in every major operating system and web browser.”

Separately, OpenAI is also reportedly concerned that an upcoming cybersecurity tool of its own is too dangerous to be released publicly, and has similarly allowed a small group of its partners to test it out.

The CEOs of Citi, Morgan Stanley, Bank of America, Wells Fargo, and Goldman Sachs were said to be in attendance for this meeting at the Treasury Department. Jamie Dimon, CEO of JPMorgan (whose bank is a part of Project Glasswing), couldn’t make it.

Throughout 2026, we’ve discussed how the AI theme has become much more zero-sum in the stock market. For instance, AI demand has been helping memory and optics stocks, but fears of disruption have pushed software stocks down to multiyear lows.

The high degree of attention being paid to AI-fueled cybersecurity risks by top officials, with the same being demanded from their private sector counterparts, suggests that a similar lens may be appropriate to judge AI’s impact on the economy. That is, the potential for productivity benefits may need to be balanced against left-tail risks, particularly as agents are scaled and empowered to execute increasing workloads across companies.

That little sigh of relief you hear over in the corner is the private credit industry, grateful that these cybersecurity concerns mean there will be one less question asked about their own travails during banks’ quarterly conference calls when earnings season kicks off next week.

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Lululemon’s stretch getting tested: Stock plunges after after outlook is cut

Lululemon shares are down double digits in premarket trading after the company cut its full-year sales and profit outlook, overshadowing a Q1 beat and raising fresh concerns about the brand’s turnaround efforts.

The company now expects fiscal 2026 revenue to be flat to down 1%, compared with its prior forecast for 2% to 4% growth. Guidance for full-year diluted earnings per share was dragged down to a range of $10.95 to $11.15, below the company’s previous guidance of $12.10 to $12.30 and well below Wall Street’s estimate of $13.26.

Key numbers for Q1:

  • EPS of $1.69 vs. the $1.68 expected.

  • Revenue of $2.47 billion vs. the $2.43 billion expected.

The modest top-line beat masked a widening divergence between Lululemons geographic markets. While international revenue rose 22% overall with a 30% increase in Mainland China, the bigger problem remains North America, where revenue fell 5%.

Interim co-CEO and CFO Meghan Frank acknowledged during the earnings call that recent product rollouts underperformed. A highly anticipated yoga campaign failed to generate its expected halo effect across broader product lines.

Profitability metrics took a major hit, with gross margins contracting by 410 basis points to 54.2% due to mounting tariff costs and promotional markdowns. Operating income consequently fell 37% year over year to $276.9 million.

“We experienced spikes of negative commentary in the media and on social channels with regard to our brand, which had an impact on traffic and overall top-line performance,” Frank said during the earnings call. “And second, not all of our product launches have met our expectations. While we have had several successful launches so far this year, we have seen others as we start Q2 not generate the anticipated guest response.”

Lululemons valuation has already been steadily compressing for years. While it was once one of retails richly valued stocks, investors have been questioning whether the company can return to the double-digit growth era.

The results also arrive during a leadership transition. Lululemon announced back in April that former Nike executive Heidi ONeill is set to take over as CEO in September, with investors looking to her to revive growth in North America and restore the brands growth.

As Lululemon faces both macroeconomic pressure and brand-specific challenges, its stock has dropped around 40% year to date.

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US job growth skyrocketed in May, blasting past expectations

The US economy added 172,000 jobs in the month of May, the Bureau of Labor Statistics reported Friday, sending 10-year Treasury yields higher.

The strong May job market surprised economists. Experts had predicted only 85,000 new jobs — just half the reported number. The unemployment rate held steady at 4.3%, as expected.

The job growth story is a hopeful spot for the economy as consumers continue to feel inflationary pressure from the Iran war.

Job gains were buoyed by the leisure and hospitality sector, which added 70,000 jobs, as well as local government, healthcare, and education.

Both the March and April jobs reports were revised upward, making them collectively 93,000 higher than previously reported.

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