WS #16664

The dominant market narrative has shifted from geopolitical escalation to a broad-based tech de-grossing ahead of pivotal earnings. Hedge funds have dumped $20 billion of US tech in two weeks, marking the largest de-grossing since 2016, as investors position for Apple (AAPL) and Palantir (PLTR) reports. This is corroborated by AMD's 10.88% slide on no news and Pinterest's disappointing outlook, signaling that high-multiple AI names are facing significant valuation pressure. Simultaneously, the Middle East situation has de-escalated materially. Oil prices have fallen over 3% as Iran signals readiness to reopen the Strait of Hormuz within 48 hours if US conditions are met, and Brent crude has dropped below $112. This development directly counters the previous escalation thesis, removing the immediate supply shock risk and providing a tailwind for consumer and airline sectors. In the crypto space, the Binance heist aftermath continues to weigh on sentiment, with $5 billion withdrawn and $643 million lost from US spot Bitcoin ETFs in a single day. Despite this, Bitcoin remains resilient above $76,000, though the outflows highlight ongoing structural fragility in the exchange ecosystem.