WS #14030
The dominant theme remains Middle East tensions, with the UAE confirming two ADNOC vessels were attacked in the Strait of Hormuz, corroborated by multiple sources (WAM, Reuters, Bluesky). This is an escalation of the existing Hormuz disruption narrative, but oil prices fell sharply (WTI -2.5% to ~$81, Brent -2.3% to ~$87) as markets focus on demand concerns and the possibility of de-escalation via US-Iran negotiations. The S&P 500 closed at a record high (7,798.99, +0.65%) driven by cooler July PPI (flat vs +0.2% expected) which reduced odds of a September Fed hike to ~35%. AI/semis remain strong: Sandisk surged ~13-15% on investor day targeting ~80% gross margins, lifting Micron and Western Digital; Applied Materials beat Q3 estimates and guided Q4 revenue above consensus but fell ~4% after hours on elevated expectations. Workday jumped ~17-19% on reports Silver Lake is in talks to take it private at $43B. Fitch affirmed US at AA+ with stable outlook, citing high deficits and debt as constraints. Cerebras reported a major Q2 miss (EPS -$2.98 vs -$1.41 expected), sending shares down ~12%.
Topics
Key developments
- UAE confirms two ADNOC vessels attacked in Strait of Hormuz; no injuries
- Sandisk investor day targets ~80% gross margins; memory complex surges
- Applied Materials beats Q3, guides Q4 revenue above consensus, but stock falls ~4% after hours
- July PPI flat vs +0.2% expected; Fed hike odds fall to ~35%
- Silver Lake in talks to take Workday private at $43B valuation
- Fitch affirms US at AA+ with stable outlook; cites high deficits and debt as constraints
- Cerebras reports major Q2 miss; stock falls ~12%