WS #14824

Geopolitical tensions in the Middle East have escalated sharply, marked by an Iranian missile strike in the Strait of Hormuz and intensified hostilities in Lebanon. While Brent crude initially spiked on the news, it has since retreated to $104.28 as the market digests the immediate supply impact versus the threat of broader disruption. Concurrently, the US 30-year Treasury yield hit its highest level since 2004, driven by strong growth expectations and debt concerns, creating a dual pressure on growth equities and fixed income. In the technology sector, a distinct rotation is underway. Microsoft surged 3.79% to its highest close of 2026, capitalizing on AI demand while Meta bled 3.30% following privacy liabilities and subscription stock pressure. AMD crossed the $1 trillion market cap threshold, signaling continued strength in the semiconductor complex, though broader chip stocks like Intel lagged. Meanwhile, the defense sector is seeing aggressive call buying in Lockheed Martin, reflecting the escalating geopolitical backdrop.