WS #16331

The Middle East crisis is accelerating sharply, with Houthi strikes now hitting Aramco facilities and Dammam airport, pushing Brent crude to five-month highs and triggering US State Department departures. This escalation is creating a broad macro shock: energy stocks are rallying while airlines and shipping face severe headwinds, and European natural gas prices are rising on supply fears. The narrative has shifted from peripheral risk to direct infrastructure impact, validating the escalation thesis. In equities, the broad selloff continues with the QQQ testing critical support levels. Meta is under renewed pressure following a record credit risk indicator jump, compounding the earlier antitrust fine impact. Conversely, defense contractor Lockheed Martin is surging on a record $55B missile backlog, acting as a direct beneficiary of the geopolitical instability. Meanwhile, consumer discretionary faces pressure as Chipotle drops nearly 6% and American Airlines cuts its outlook for the third time due to fuel costs. Tech and crypto markets show mixed signals. SpaceX's AI partner network launch with Nvidia and Databricks provides a bullish catalyst for the AI infrastructure thesis, though SpaceX itself missed Q3 targets. Bitcoin remains volatile, hovering near the $82,000 mark, while tokenized stock volumes on Robinhood's blockchain are surging, signaling structural shifts in market access. Institutional flows show continued conviction in mega-cap tech, with Perigon Wealth Management increasing its NVDA position.