WS #12875

The dominant narrative is a sharp divergence between energy and tech sectors. Oil prices plunged ~8% (Brent to ~$88, WTI to ~$82) as US-Iran hostilities paused and talks resumed, with Iran and Oman discussing reopening the Strait of Hormuz. This counters the prior oil supply crisis thesis. However, semiconductor stocks sold off sharply (NVDA -5%, AMD -7%, MU -6%) on renewed AI capex return concerns and reports of China producing advanced chipmaking equipment, pressuring ASML. Apple overtook Nvidia as the world's most valuable company. The Fed decision looms Wednesday, with Trump publicly urging a rate cut while Citadel Securities anticipates a surprise hike. The Houthi threat to Red Sea shipping and Saudi oil facilities adds a secondary geopolitical risk layer, partially offsetting the Iran de-escalation.