WS #12882

The dominant narrative remains the ESCALATION of the AI capex selloff, with Asian semiconductor stocks plunging sharply overnight. Bloomberg reports Asian stocks have slid 10% from June peak, heading for a correction. SK Hynix and Samsung shares slide, triggering a trading halt on South Korea's Kospi. 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 settling at lowest in over a week as US pauses attacks on Iran. CNBC reports Brent crude fell more than 2% to $86.52 and WTI dropped 2.3% to $80.71. The Commonwealth Bank of Australia warns risks remain elevated. The FOMC meeting this week adds macro uncertainty, with Polymarket showing high probability of no rate change. Tesla (TSLA) falls to its most oversold level since March 2025, a bearish signal for the stock. Meta is now on trial in Tennessee over allegations that it ignored internal research linking Instagram's design to compulsive use and depression among teenagers, a negative development for META. Apple CEO aims to build on movie and TV progress, but this is a low-significance item. The FAA warns 453 Boeing 737 MAX jets may need seat inspections, adding to Boeing's safety woes. Ukraine's Zelenskyy is set to meet Trump as Iran and Ukraine wars converge, with a vote on Russia sanctions possible. Biden classified tapes released by Republicans, but this is political noise. RBA Governor Bullock's comments on the economy slowing and housing market slowing more than expected are notable for AUD but not directly US market-moving. A 5.8 magnitude earthquake struck China's Qinghai province, but no significant market impact expected. Hurricane Genevieve in category 5 threatens the US, but no landfall details yet. The Houthi blockade of Red Sea shipping adds a new geopolitical layer that could reignite energy supply fears. Overall, the AI selloff and oil de-escalation are the key themes.