WS #12918

The dominant narrative remains a tech selloff driven by AI infrastructure spending concerns and Chinese competition, with the Nasdaq 100 entering correction territory (down >10% from highs). However, several counter-signals have emerged in this window: Apple reached a $5 trillion market cap as investors rotate out of AI/semiconductor stocks into defensive tech, and oil prices are declining sharply (WTI -5.34%, Brent -5.68%) amid growing optimism for a US-Iran de-escalation. The Houthi attack on a Saudi oil tanker and a strike on an Aramco fuel depot in Yanbu represent an escalation in Middle East tensions, but the oil price decline suggests markets are pricing in a potential peace deal. Nvidia's Jensen Huang met with Commerce Secretary Lutnick amid China chip export scrutiny, adding regulatory risk to NVDA. Magna secured an 800-volt electric drive program award with Chery, a positive signal for the auto supplier. The situation is MIXED: tech selloff ESCALATING, but oil-driven sector rotation and Apple's milestone provide a partial offset.