WS #5794

The dominant signal in this window is the confirmation of Meta's massive layoff of 10% of its workforce (approximately 8,000 employees) as it reallocates resources toward AI investments. This is corroborated by multiple sources (Bloomberg, Reuters, GDELT, and various news outlets), indicating high significance. The layoffs are part of a broader cost-cutting and AI pivot, with Meta planning to invest $115-135 billion in AI in 2026. This development is bearish for META in the near term due to negative sentiment around job cuts, but the AI investment thesis could support long-term bullishness. Additionally, Warner Bros. Discovery shareholders approved the sale to Paramount Skydance for $110 billion, creating a media giant. This is a significant M&A event but has limited direct US equity impact beyond the involved companies. Oil prices continue to rise for a fifth day, driven by Trump's rhetoric hindering Iran talks, which is bullish for energy stocks (XOM, CVX) and bearish for airlines and consumer sectors. The Israel-Lebanon ceasefire extension talks are ongoing, with Trump meeting negotiators, but no new material developments. The Nike layoff of 1,400 jobs is a minor signal, but the magnitude is small relative to Meta's cuts. Overall, the window is dominated by Meta's restructuring and the Warner-Paramount deal, with oil price momentum as a secondary theme.