WS #14730

Global equities are attempting a sharp reversal after a morning selloff driven by soaring Treasury yields and elevated oil prices, but the primary market-moving catalyst is a diplomatic breakthrough regarding the Strait of Hormuz. Reports from Reuters and Bloomberg confirm that the US and Iran are discussing a phased deal to reopen the critical chokepoint, which has triggered a relief rally in energy and consumer discretionary sectors while dampening the escalation narrative that has dominated the past 24 hours. This development counters the bearish macro thesis of a supply-driven inflation spike, though yields remain near two-decade highs, keeping pressure on growth valuations. In the technology sector, Meta Platforms has surpassed SpaceX to become the 7th-largest company in the world by market capitalization, a milestone driven by the successful launch of its AI agent 'Muse Charm' and strong institutional buying. Concurrently, Google is advancing its AI infrastructure ambitions with plans to launch an experimental satellite for data centers, signaling a shift toward space-based compute. Meanwhile, CoreWeave received an upgrade from JPMorgan, reinforcing the bullish thesis on AI infrastructure demand despite broader macro headwinds. In energy M&A, BP is reportedly evaluating acquisition targets to grow its US shale business, specifically studying deals for oil-weighted assets worth $2B-$5B, including Devon Energy's Eagle Ford assets. This corporate consolidation activity suggests major oil companies are positioning for a post-crisis supply environment. On the macro front, the White House reinstated access to CNN, MS NOW, and Politico following a judge's order, a minor political signal that has not yet moved markets but highlights ongoing regulatory friction for media assets.