WS #16184

Markets are pricing in a de-escalation of Middle East tensions following Secretary Rubio's signals that Hormuz traffic is normalizing, causing Brent crude to pull back 1.13% to $108.31. This shift is driving a rotation out of energy and into risk assets, with airlines rallying on lower fuel cost expectations and the Nasdaq rising over 100 points. However, the broader macro backdrop remains fragile, as evidenced by a deep freeze in US housing pending sales hitting a 25-year low and WestJet bonds sliding to record lows due to persistent fuel and trade headwinds. In the technology sector, the AI infrastructure narrative is accelerating with ByteDance, Alibaba, and Tencent placing a combined $35 billion order for NVIDIA RTX chips, reinforcing demand visibility for the chipmaker. Conversely, SK Hynix is facing significant headwinds, dropping 30% amid regulatory scrutiny over its Solidigm IPO and intensifying competition in China. Meanwhile, Salesforce is expanding its footprint by acquiring Braze for $5.66 billion, signaling continued consolidation in the customer experience software market despite the high cost of AI integration.