Trump's war predictions, Pershing Square files for IPO, Anthropic's lawsuit and more in Morning Squawk

In a notable turn of events, Wall Street experienced a remarkable midday rebound yesterday, spurred by President Donald Trump's optimistic remarks regarding the U.S.-Iran conflict. Speaking to CBS News, Trump stated that the war is 'very complete' and indicated that it could conclude 'very soon.' This optimism seemed to invigorate market activity despite the previous day's volatility. In breaking news, billionaire hedge fund manager Bill Ackman is preparing to make waves on the New York Stock Exchange with his firm Pershing Square. The company has officially filed to list under the ticker symbol 'PS.' This dual listing will allow investors to choose between purchasing common shares of Pershing Square or its investment vehicle, which will trade as 'PSUS.' With $2.8 billion in secured commitments from family offices, pension funds, and high-net-worth individuals, the initial offering is poised to attract significant interest. However, economic indicators are raising concerns among analysts. The recent increase in oil prices, combined with a disappointing jobs report from last week, has some economists warning of potential stagflation—an unsettling mix of high inflation and slow growth. These fears echo sentiments from earlier instances, such as after the Russian invasion of Ukraine and the imposition of tariffs by the Trump administration, which, while alarming, did not lead to a prolonged stagflationary period like that seen in the 1970s. Additionally, prediction markets are reflecting growing apprehension about a recession, with the odds climbing above 34% on Kalshi, a stark increase from below 25% just days prior. In a significant legal development, AI startup Anthropic has filed a lawsuit against the federal government, claiming that the Pentagon's recent decision to blacklist the company is both 'unprecedented and unlawful.' This designation, typically reserved for foreign adversaries, follows a disagreement between Anthropic and the Pentagon over usage requirements. This legal action highlights the ongoing tensions between the startup and the Trump administration, with concerns that such blacklisting could set a troubling precedent for U.S. tech companies. On the automotive front, Stellantis is making headlines by collaborating with unexpected suppliers for its new hybrid SUVs. The first hybrid Jeep SUV for North America will incorporate systems from Toyota-backed Blue Nexus, while its upcoming extended-range electric vehicles will utilize technology from Bosch, a major player in the auto supply industry. This strategic move marks a rare instance of using competitor components for critical vehicle systems, underscoring the evolving landscape of automotive manufacturing. In corporate news, luxury hair care brand Olaplex has faced a considerable decline, losing nearly 95% of its value since its IPO in late 2021. The company is now strategizing on how to restore investor confidence and regain its footing in the market.