WS #14039

The dominant theme remains Middle East tensions, with the Strait of Hormuz conflict escalating. Iran and the US continue to make competing claims over control of the strait, and Iran has attacked two ADNOC oil tankers, marking the second such attack in less than a week. This is corroborated by multiple sources including VRT NWS, GDELT, and Reuters. The oil market, however, shows resilience with Brent crude falling 2.1% on the day, as strategic reserve releases and bypass pipelines mitigate supply fears. The S&P 500 hit a record high, driven by cooler-than-expected PPI data and strong AI-related earnings, particularly from Applied Materials. The Fed's September rate decision is now seen as a hold with 63% probability, with dissenting voices like Cleveland Fed's Hammack calling for hikes. In corporate news, Reddit's inclusion in the S&P 500 is confirmed, and Anthropic's IPO valuation target of $2 trillion is reiterated. Apple opened a Houston manufacturing plant, and AMD is raising $5B in debt for AI expansion. Trump imposed new tariffs on drones, which could impact defense and tech sectors.