WS #16301

Geopolitical escalation in the Strait of Hormuz remains the dominant market driver, with Iran confirming attacks on seven tankers and Brent crude surging past $112. This supply disruption is creating a sharp divergence between physical and futures markets, triggering a broad macro sell-off in growth and technology equities. Nasdaq futures have dropped over 1% as AI-related worries resurface alongside the energy shock, while airlines and shipping sectors face immediate margin compression from higher fuel and transit costs. In corporate news, the earnings season continues with mixed results. Honeywell raised its full-year outlook, and Meta beat estimates on AI monetization, but these positives are being overshadowed by the macro headwinds. Samsung reportedly overtook SK hynix in HBM revenue, a significant shift in the memory market that pressures SK hynix while validating Samsung's foundry and memory strategy. Meanwhile, Boeing secured FAA approval for the 737 MAX 10, a long-awaited catalyst for the aerospace sector, though systemic integration issues remain a concern. Crypto markets saw a volatile round-trip with Bitcoin briefly touching $85,000 before retreating, though spot ETFs recorded a net inflow of $528 million, signaling renewed institutional interest despite the volatility. The geopolitical backdrop continues to fuel safe-haven demand for energy and gold, while risk assets face headwinds from potential supply chain disruptions and inflationary pressures.