WS #13531

The dominant theme remains the tech-led selloff in memory/software stocks, with SanDisk (SNDK) and Western Digital (WDC) continuing to slide after earnings (SNDK -10.3%, WDC -17% premarket) despite strong results, as investors take profits after massive YTD gains. This is corroborated by multiple sources (GDELT, Seeking Alpha, pro-wire) and is pressuring the Nasdaq. Software names remain weak: AppLovin (APP) down ~19.6% after first guidance miss since IPO (Piper Sandler cut), HubSpot downgraded by Stifel to Hold (PT $200), and Datadog soft guidance. However, a counter-signal is emerging: several analysts (Evercore, Barclays, KeyBanc) are raising price targets on software names like Shopify, Paycom, and Dynatrace, suggesting some dip-buying interest. Geopolitically, the Strait of Hormuz situation is the key macro driver: Iran says it is in the 'final stage' of drafting an agreement with Oman to reopen the strait for 60 days, but the deal is contingent on the US lifting its blockade, and Iran has not decided whether to resume negotiations with the US. This is a counter-signal to the oil supply crisis, but oil prices are rebounding (WTI +1.3% to $76.23) on renewed Middle East tensions, including Israel striking Lebanon (113 projectiles) and Houthi attacks on Saudi deployments. Gold is at $4,326/oz, reflecting safe-haven demand. The US jobless claims stayed below 200K for a third week (longest streak since 1969), supporting a resilient labor market. In corporate news, Apollo agreed to buy easyJet for £5.7B, UK cleared Paramount's $81B Warner Bros. Discovery deal, and SpaceX shares held steady as a $100B lockup expired. The narrative is STABLE with a slight DE-ESCALATION on the Hormuz front, but the memory/software selloff continues.