WS #13337

The dominant theme is the US-Iran de-escalation, which is ESCALATING in terms of market impact: Trump's comments on Iran talks, the Strait of Hormuz blockade, and oil price collapse are driving a broad risk-on move. Oil prices have plunged (WTI -5.46% to $80.05, Brent -4.82% to $83.69) after Trump called off strikes and said talks are ongoing, with European gas prices also tumbling. This is a counter-signal to the previous war-risk premium, boosting equities (Dow +560 points, European indices up 1-1.5%) and pressuring energy names. However, Iran denies talks, and Trump has blasted Iran as 'duplicitous,' warning of a continued blockade and 'total surrender' — creating headline risk that could reverse the move. Separately, Amazon crossed $3 trillion market cap on strong earnings and AI capex optimism, while Alibaba's Qwen3.8-Max release and Hugging Face CEO's claim that China is winning the AI race add to the AI narrative. Boeing's 737-7 FAA certification is a positive catalyst for BA and LUV. The Fed's hawkish pause (3 dissenters, 10Y at 4.7%) and Williams' comments on potential rate hikes remain a macro overhang, but oil's decline may ease inflation concerns.