WS #6121

The dominant narrative remains the US-Iran conflict, which is now in a state of diplomatic stalemate. The US is reviewing an Iranian peace plan that proposes reopening the Strait of Hormuz, but US officials, including Secretary of State Rubio, have expressed dissatisfaction, stating the proposal does not meet US demands. Trump has cancelled plans to send envoys to Pakistan, signaling a lack of progress. This has kept oil prices elevated, with WTI settling above $96 and Brent near $108, and has contributed to a US national average gasoline price spike of 10c/gal in a single day. The S&P 500 and Nasdaq hit new all-time highs, but the Dow fell, reflecting a market that is pricing in persistent geopolitical risk and higher energy costs. In a significant tech development, China blocked Meta's $2 billion acquisition of AI startup Manus, citing national security concerns. This underscores the intensifying US-China tech rivalry and could impact sentiment for tech stocks with China exposure. Separately, activist investor Starboard Value has taken a stake in Dynatrace (DT), sending shares higher, and Cathie Wood's ARK Invest made a large purchase of CRISPR Therapeutics (NTLA) shares, signaling conviction in the gene-editing space. The assassination attempt on Trump at the WHCD is a security story with limited direct market impact, though it adds to the general atmosphere of political uncertainty.