WS #12879

The dominant narrative remains the de-escalation in US-Iran tensions and the oil price plunge, with the AI capex risk narrative persisting. This window shows an ESCALATION of the AI selloff, with Asian semiconductor stocks plunging sharply overnight. SK Hynix plunged 10%, Samsung Electronics fell 8%, and Tokyo Electron dropped 9%, driven by deepening AI fatigue and Nvidia financing worries. This corroborates the ongoing AI capex risk narrative and suggests further downside for US semiconductor names (NVDA, AMD, MU) at the open. Meanwhile, the US-Iran de-escalation continues to hold, with oil prices falling another 1% and Brent at $85.87. The Houthi threat to Red Sea shipping adds a new geopolitical layer but is not yet market-moving. Apple has overtaken Nvidia as the world's most valuable company at $4.95T market cap, a significant shift in market leadership. J&J's $5.5B talc settlement offer is a notable corporate development but likely already priced in. The SEC Chair's optimism on the Crypto Clarity Act is a minor positive for crypto sentiment but lacks specific market impact.