WS #14838

The dominant market-moving event is the US rejection of Iran's ceasefire proposal to reopen the Strait of Hormuz, confirming the escalation of Middle East tensions. This geopolitical shock is immediately countered by a significant supply-side development: Libya's National Oil Corporation has resumed crude flows by reopening the Sharara-Zawiya pipeline valve. This operational recovery provides a tangible offset to the geopolitical risk premium, stabilizing energy markets despite the broader conflict. Simultaneously, the US-China trade dynamic has shifted positively, with both nations agreeing to cut tariffs on $30 billion in goods. This de-escalation in trade policy supports global risk appetite and consumer-facing sectors. In the technology sector, the market is witnessing a broadening rally where the XLK sector hits record highs, though gains remain concentrated in a few mega-cap names. Microsoft is undergoing a significant internal restructuring, while Meta continues to refine its AI strategy following recent regulatory headwinds.