WS #14820

The geopolitical landscape has shifted from a stalemate to a potential de-escalation event. Iran has proposed reopening the Strait of Hormuz within seven days if US conditions are met, a direct reversal from the previous 'escalation' state. This development counters the prevailing bearish energy narrative and suggests an imminent resolution to the supply shock, dampening the bullish thesis for energy equities while relieving pressure on global shipping and consumer sectors. In the technology sector, Microsoft is emerging as a clear leader, with shares heading for their highest close of the year driven by renewed investor confidence in its AI narrative and Copilot ecosystem. Conversely, the utilities sector is flashing technical warning signs, hitting its most oversold level in three years, likely due to a rotation out of defensive assets and the broader bond market selloff. Meanwhile, macro headwinds persist as the US 30-year yield hits its highest level since 2004, pressuring rate-sensitive sectors.