WS #13401

The dominant theme is a sharp de-escalation in the US-Iran conflict, with multiple high-signal developments converging: Treasury Secretary Bessent signaled a potential deal to reopen the Strait of Hormuz 'today or tomorrow,' Iran is reportedly considering allowing European nations to clear mines in the strait, and Secretary of State Rubio confirmed progress in talks though no finality yet. This drove a significant oil price collapse (WTI down ~6% to ~$75.4, Brent below $80), which in turn fueled a broad risk-on rally: S&P 500 hit a record high above 7,700, Dow rose ~800 points, and Nasdaq surged ~2.7%. The rally was amplified by strong earnings from Palantir (+25%) and Caterpillar (+5.5%), plus AI-driven semiconductor strength (Marvell +10%, SK Hynix coverage with bullish targets). The oil crash is a counter-signal to the prevailing 'war premium' thesis, pressuring energy stocks (Chevron, Exxon) while boosting airlines and consumer discretionary. Separately, Apple faces multiple headwinds: a downgrade on memory chip inflation, a Russian antitrust case, and an escalating legal battle with OpenAI, while Amazon was hit by a New Jersey antitrust lawsuit. These MAG7-specific negatives contrast with the broader tech rally, warranting standalone attention.