WS #14367

The Middle East tensions continue to escalate, with recent reports of Iranian strikes on U.S. warplanes in Jordan and the capture of strategic Red Sea ports by Yemen's Houthis. These developments have intensified geopolitical risks, contributing to a surge in oil prices surpassing $100 per barrel. The Fed's rate hike expectations remain a dominant market narrative, with the 10-year Treasury yield persisting above 5%. The tech sector's positive reaction to Meta's AI assistant, Muse, continues. TSMC's record revenue surge of over 53% has bolstered investor confidence in the semiconductor industry, while the market remains sensitive to any new geopolitical developments or changes in Fed policy.