WS #15389

Global equities are surging to record highs, driven by a sharp decline in oil prices and falling Treasury yields, which have alleviated inflation fears despite a widening US trade deficit. The S&P 500 and Nasdaq have hit intraday records, with the Dow jumping 200 points, as the market digests the completion of the $110 billion Paramount-Warner Bros. Discovery merger. While the macro backdrop is overwhelmingly bullish, the narrative is complicated by Dimon’s warnings of sticky inflation and a potential rotation of capital from AI equities into crypto, suggesting a nuanced shift in risk appetite rather than a simple continuation of the tech rally. In the technology sector, Marvell’s investor day provided a massive TAM expansion catalyst, with CEO Matt Murphy projecting a $400 billion market by 2030, reinforcing the long-term AI infrastructure thesis. This is corroborated by AMD CEO Lisa Su’s comments on sustained AI demand. Meanwhile, Micron’s recent $600 million licensing deal with Netlist has sparked an 18% surge in Netlist, highlighting the secondary market opportunities in custom silicon and memory licensing. The sector remains supported by strong analyst upgrades, including Wells Fargo raising Meta’s price target to $1,000. Geopolitical tensions are escalating in the Middle East and Eastern Europe, with reports of Houthi ballistic missile strikes in Yemen and Ukrainian drone incursions into Russia. However, these developments are currently being overshadowed by the benign macro environment of lower energy costs. The market is also reacting to the Google-Constellation Energy 20-year nuclear power deal, which has triggered a rally in nuclear stocks, signaling a long-term shift in data center energy sourcing strategies.