WS #5791

The dominant signal in this window is the confirmation of a three-week extension of the Israel-Lebanon ceasefire, announced by President Trump on Truth Social and corroborated by multiple sources. This de-escalation counters the prevailing bearish thesis of escalating Middle East conflict and is likely to dampen safe-haven flows (gold, oil) while supporting risk assets. Separately, Intel's strong Q1 earnings beat (EPS $0.29 vs $0.01 est.) and upbeat AI commentary drove a 16% after-hours surge, reinforcing the AI infrastructure narrative. Meta announced 8,000 job cuts (10% of workforce) as AI spending grows, while Microsoft offered voluntary buyouts to 7% of US employees, signaling a sector-wide pivot to AI. On the macro front, McDonald's raised prices due to Iran war and inflation pressures, and European airlines slashed flights as jet fuel supplies are cut. The Warner Bros. Discovery-Paramount merger ($110B) received shareholder approval, pending regulatory review. Overall, the ceasefire extension and strong tech earnings are the key signals, with AI-driven restructuring in big tech adding a layer of sector transformation.