WS #16465

The dominant market-moving event is the simultaneous reporting of Alphabet and Microsoft earnings, heavily weighted by Microsoft's decision to disclose Azure revenue in dollar terms for the first time. This transparency shift, combined with a massive $60,000 voluntary exit program, signals a structural pivot in cloud economics and cost discipline that will recalibrate AI capex expectations. Concurrently, SK Hynix surged after declaring memory chips sold out through 2029, providing a bullish supply-side anchor for the AI hardware thesis despite Teradyne's post-earnings sell-off on valuation concerns. Geopolitical tensions remain elevated, with a terror attack in Belgrade and ongoing unrest in Paris, while the US administration moves to clear regulatory hurdles for peptide compounding. In macro policy, markets are pricing in a Fed hold, but the divergence between the short-end (Fed Funds) and long-end (10Y at 5.00%) term premium remains a key risk. European energy markets saw natural gas prices spike above 100 euro/MWh, creating a mixed environment for industrial and utility sectors.