WS #13470

The dominant market narrative is a broad equity rally driven by strong earnings and optimism over a potential Strait of Hormuz deal, with the S&P 500 at record highs and oil prices falling. However, a major new development is the significant AI leadership reshuffle at Google (GOOGL), with chief scientist Jeff Dean departing and DeepMind CEO Demis Hassabis stepping down, which is pressuring GOOGL shares. This is a high-significance, company-specific signal that contradicts the broader tech rally. Additionally, the Hormuz situation is showing signs of de-escalation with Iran announcing an agreement with Oman on a shipping route, though this is not yet confirmed and a tanker incident near Yemen adds risk. Other notable earnings-driven moves include Eli Lilly's beat and raised guidance, Disney's record parks revenue, and weakness in AMD and Uber. The Fed's Kashkari calling for rate hikes is a hawkish signal that could pressure growth stocks.