WS #10603

The dominant narrative is a sharp escalation in US political uncertainty after Trump abruptly cancelled the signing of a bipartisan housing affordability bill, demanding the Senate first pass the Save America Act (voter ID legislation). This was corroborated by Axios, NBC, and multiple Bluesky sources, and represents a significant escalation from the previous 'no material new developments' status. The housing bill was a major bipartisan effort to lower costs and increase supply; its linkage to a controversial voting bill introduces a high-conviction bearish signal for homebuilders (DHI, LEN, PHM) and housing-related sectors. Separately, the AI infrastructure narrative is intensifying: OpenAI and Broadcom unveiled the 'Jalapeño' custom AI chip (bullish AVGO, bearish NVDA on inference displacement), and Wedbush flagged that SpaceX's AI compute leasing deals signal another massive Colossus buildout (bullish NVDA, DELL, ANET, CRDO). Micron earnings tonight are the key litmus test for the AI rally. On the geopolitical front, Rubio stated Iran cannot charge tolls in the Strait of Hormuz, exposing a key friction point in US-Iran talks; this counters the recent oil price decline narrative (oil fell on Hormuz reopening hopes). The dollar made new 1-year highs against the euro and yen. In company-specific news, Chemours agreed to a $450M PFAS settlement (removes litigation overhang, bullish CC), and Pelosi reported buying up to $6M of Intel stock (bullish INTC). The Colombian presidential election saw a Trump-backed conservative win, a positive for US-Colombia trade relations. Bitcoin broke below the Rainbow Chart's 'BTC is dead' zone, and Bitcoin ETP outflows pushed rolling one-year flows negative for the first time since 2023.