WS #16170

The dominant market-moving event is a sharp escalation in Middle East tensions, driving oil prices to record highs (Brent above $110) and triggering a broad risk-off rotation. The S&P 500 and Nasdaq opened lower as tech stocks slid, while healthcare emerged as a defensive green wall. This escalation is fueled by renewed US-Israeli strikes on Iran, shipping threats near the Strait of Hormuz, and Ukrainian drone attacks on Russian oil infrastructure, creating a complex, multi-front supply shock. Simultaneously, the macro landscape is deteriorating, evidenced by US housing starts falling 5.2% and missing consensus, alongside a record 10-week losing streak for China's CSI 300. In the corporate sector, Salesforce's $5.66 billion acquisition of Braze highlights M&A activity in software, while Northrop Grumman's earnings beat reinforces the defense sector's resilience amid the geopolitical turmoil. A Google Cloud outage also disrupted European banking services, adding a layer of operational risk to the tech narrative.