WS #13530

The dominant market theme is a sharp selloff in memory/storage and software stocks following earnings, while geopolitical tensions around the Strait of Hormuz and Middle East remain elevated with a potential Iran-Oman deal in the works. SanDisk (SNDK) and Western Digital (WDC) both reported better-than-expected results but saw shares plunge (SNDK -9% premarket, WDC -15%) on guidance concerns and profit-taking after massive YTD gains, dragging the entire memory complex (MU, SNDK, WDC) down and pressuring Nasdaq futures. Software names also sold off: AppLovin (APP) dropped ~19% after a revenue miss and weak guidance, Datadog fell up to 18% on soft guidance, and HubSpot was downgraded by Stifel (to Hold, PT $200), raising questions about AI monetization. Meanwhile, the AI infrastructure theme continues with Alphabet seeking up to $25B in a new bond offering to fund AI capex, and SpaceX reporting first earnings with a $100B ARR target but stock down 13% post-results and lockup expiry adding pressure. On the macro/geopolitical front, Iran and Oman have reportedly reached an understanding on a 60-day Hormuz reopening deal (pending approval), which is a counter-signal to the oil supply crisis; however, Houthi attacks on Saudi tankers and Israel's strikes on Lebanon (113 projectiles) keep risk elevated. Oil prices are rebounding (Brent ~$80, WTI ~$76) on these tensions. Gold surged above $4,250/oz, reflecting safe-haven demand. The Fed's Daly warned about inflation 'drift', and the Senate voted to hold Fauci in contempt (political noise). Overall, the narrative is a tech-led selloff in memory/software, with geopolitical risks providing a floor for oil and gold.