WS #5849

The dominant signal in this window is the confirmation of Google's massive investment in Anthropic, with a $10B initial investment at a $350B valuation and potential for $30B more. This is corroborated by a Bloomberg-sourced post on Bluesky, reinforcing the AI infrastructure buildout thesis. Separately, the DOJ has dropped its probe into Fed Chair Jerome Powell, clearing the path for Kevin Warsh's confirmation as the next Fed chair, which could signal a shift toward rate cuts and crypto-friendly regulation. Intel's blowout Q1 earnings, with revenue of $13.6B beating estimates and a 123% YoY increase in non-GAAP EPS, have driven the stock up over 20% and lifted the entire semiconductor sector, with the Philadelphia Semiconductor Index hitting an all-time high. This contrasts with the broader AI pivot narrative and suggests strong demand for CPUs in AI inference. The US and EU have reached an agreement to coordinate on securing critical minerals and bolstering supply chains to reduce reliance on China, which could benefit domestic producers and rare earth miners. Tesla has started production of the Cybercab robotaxi, as confirmed by Elon Musk, which could boost TSLA sentiment. On the geopolitical front, the US maintains its blockade on Iran, and there are reports of internal friction in Iran's negotiating team, keeping oil prices elevated. The Pentagon is considering suspending Spain from NATO over its stance on the Iran war, adding to geopolitical uncertainty. In crypto, a $292M hack at KelpDAO triggered a $13B DeFi exodus, but Bitcoin held above $77K, and Strategy bought 34,164 BTC, signaling institutional accumulation. The Ethereum Foundation sold nearly $24M of ETH to Tom Lee's Bitmine, a notable insider sale. Norway plans to ban social media for under-16s, which could impact social media stocks. Microsoft is offering voluntary buyouts to long-serving employees for the first time, potentially affecting up to 7% of its US workforce. The ECB faces stagflation risks as the Iran war fuels inflation while growth slows, complicating rate decisions. The US and EU critical minerals deal counters the China reliance thesis. The DOJ dropping the Powell probe counters the bearish thesis of political interference at the Fed. Intel's strong results counter any narrative of AI spending slowing down.