WS #13074

The dominant signal in this window is the escalation of the US-Iran conflict, with Iran striking a US base in Bahrain and a drone attack hitting a US-owned LNG vessel at Egypt's Damietta port, marking the first hostile drone attack on Egyptian soil. This is corroborated by multiple sources including BBC, AP, and social media posts, and represents a significant escalation that threatens energy infrastructure and shipping lanes. The Strait of Hormuz disruption continues, with Iran's IRGC boasting of speedboat swarm attack capabilities. A Russian missile fell in Poland, a NATO member, adding geopolitical risk. On the corporate front, Microsoft's Azure cloud revenue surged 43%, driving a 15% stock surge and lifting the entire tech sector, while Meta's weak guidance and high capex caused a 9% decline. The Fed held rates steady, but 30-year yields hit a 19-year high, signaling a lack of credibility. Apple and Amazon report after the bell, with Apple facing a memory crunch and Amazon's capex in focus. The overall narrative is one of escalating geopolitical risk (Iran, Russia/Poland) clashing with a tech sector rebound led by Microsoft, creating a mixed macro backdrop.