WS #16361

The geopolitical landscape has escalated sharply with Israel imposing a full lockdown on the West Bank following a deadly attack in Hebron, compounding the ongoing crisis in the Strait of Hormuz where tanker attacks have pushed Brent crude past $112. This dual-front escalation has triggered a broad risk-off sentiment, with Asian and European markets slipping as the oil shock overwhelms local growth narratives. The Middle East tension theme is firmly in an ESCALATING state, driving a flight to safety and compressing equity valuations globally. In the technology sector, the AI selloff has found a tentative floor, with Nasdaq futures stabilizing after a 2.6% drop driven by Meta's 7% decline on AI cost concerns. However, the broader tech narrative remains fragile; semiconductor stocks are testing key support levels, and while Rocket Lab's 98th mission launch provides a tactical positive for the space sector, it does little to offset the macro headwinds. Meanwhile, the Jio Platforms IPO in India has become a massive retail phenomenon, signaling strong domestic liquidity despite the Reserve Bank of India's rate hike aimed at countering the imported inflation from the oil shock.