WS #12880

The dominant narrative is the ESCALATION of the AI capex selloff, with Asian semiconductor stocks plunging sharply overnight. South Korea's KOSPI slumped over 9% as AI spending fears hammer chip stocks, and Japan's Nikkei fell 4% at the open, 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 plunging another 7-8% (WTI $82.61, Brent $88.36) as the ceasefire holds for a third day and Trump expresses optimism for a peace deal. However, the Houthi blockade of Red Sea shipping adds a new geopolitical layer that could reignite energy supply fears. The FOMC meeting this week adds macro uncertainty, with Trump calling for rate cuts. Nvidia's $750B+ AI infrastructure deals revive circular financing fears, while Apple regains the world's most valuable company title. J&J's $5.5B talc settlement offer is a notable corporate development but likely already priced in.