WS #16241

The market opens with a bifurcated regime driven by diverging sectoral narratives. The AI infrastructure thesis remains the dominant bullish force, anchored by Nvidia's Berlin event and a major expansion of its supply chain with Amkor. This is corroborated by OpenAI's move to Google Cloud, which breaks the Azure monopoly and validates the broader AI ecosystem. However, this tech strength is offset by a sharp deterioration in the US housing market, with pending home sales falling 7.3%, the worst reading on record, signaling potential demand destruction ahead. In the energy complex, the narrative is shifting from geopolitical supply shocks to domestic policy intervention. The US government's offer to loan heating oil reserves to stabilize prices is dampening the bearish impact on consumers and refiners, though the underlying data remains weak. Meanwhile, corporate earnings show a mixed bag: Super Micro Computer's massive outlook raise contrasts with Abbott's growth cut, while Philip Morris delivers a beat but warns of future conflicts. The macro environment is further complicated by Trump's mandate for data centers to generate their own power, a structural shift that could benefit energy and infrastructure plays long-term but adds complexity to tech capex models.