WS #15155

The 30-year Treasury yield has surged to a multi-decade high of 5.62%, driving a sharp selloff in rate-sensitive sectors. REITs and utility stocks are under acute pressure as the cost of capital spikes, while the broader market faces headwinds from hawkish rate expectations. This macro shock is the dominant narrative, overshadowing isolated corporate developments and creating a defensive posture across equity portfolios. In the geopolitical sphere, the UK government has identified strong indications of Iranian involvement in the foiled RAF Fairford attack. While this escalates tensions in the Middle East, the immediate market impact is muted by ongoing ceasefire dynamics and a lack of direct energy supply disruption. However, the incident reinforces a persistent risk premium in defense equities and energy infrastructure. Technology and AI infrastructure remain a focal point for sector-specific volatility. Cerebras Systems is facing headwinds as reports suggest OpenAI is sticking with Nvidia hardware, compounded by a looming lockup expiry. Conversely, networking stocks like Celestica are seeing renewed interest due to data center bottlenecks. Meanwhile, Apple shares are rising on iPhone demand optimism, contrasting with UBS's more cautious wait-time outlook.