WS #17028

Global equity markets are attempting a rebound on Friday following a severe mid-week technology selloff, with the Nasdaq 100 opening up 1.1% as chip stocks like Nvidia and ASML rally. However, this recovery is heavily contested by a strong US Non-Farm Payrolls beat (+165k), which has revived fears of persistent inflation and delayed rate cuts, keeping the broader S&P 500 and Dow Jones mixed. The market is caught between a technical bounce in the AI/data-center complex and a macro headwind of higher-for-longer interest rates. In the energy sector, the narrative has shifted from geopolitical premium to demand destruction, with oil prices plunging 8.1% as peace talks and weak demand override the Iran premium. This creates a sharp divergence: energy majors are under pressure while airlines and shipping face margin compression. Meanwhile, geopolitical tensions remain elevated in the Middle East and Red Sea, with reports of missile attacks on oil tankers and escalating rhetoric between Ethiopia and Eritrea, though these have not yet broken through to spike oil prices. Corporate developments are dominated by Tesla's strategic pivot, with the company confirming it will wind down Cybertruck production by mid-2027 to focus on robotaxis, a move that signals a retreat from the EV pickup market. In healthcare, Humana beat expectations driven by its CenterWell unit, while Eli Lilly intensified competition in the obesity drug market by partnering with Hims & Hers. The defense sector faces headwinds as Metzler cuts Rheinmetall's price target on execution risks, contrasting with the broader geopolitical escalation.