WS #7148

The dominant macro narrative of Middle East escalation and oil supply disruption remains the key market driver, with no de-escalation signals in this window. However, several new data points have emerged that could shift sector-level positioning. Copper prices hit an all-time high, with the Strait of Hormuz disruption cited as a factor, which is bullish for copper miners (FCX, SCCO) and bearish for copper-intensive sectors. US intelligence assessments indicate Iran retains substantial missile capacity despite recent strikes, contradicting claims of degraded capability and keeping geopolitical risk elevated. Separately, a US-China agreement to prevent navigation fees in the Strait of Hormuz was reported, which could act as a counter-signal to the oil disruption thesis, though its credibility is uncertain. On the corporate front, eBay rejected a takeover bid from GameStop, sending EBAY up 2.1% and signaling the market prefers eBay standalone. D-Wave Quantum reported a 2,000% increase in Q1 bookings, highlighting growing quantum computing demand. Franco-Nevada beat Q1 estimates on strong revenue growth, positive for precious metals royalty/streaming. JBS posted a 56% drop in Q1 net profit, negative for protein producers. The Missouri Supreme Court upheld a Republican-friendly congressional map, while South Carolina Republicans defied Trump's redistricting push, creating a split-screen political narrative with limited direct market impact. The FDA commissioner was ousted, which could create regulatory uncertainty for biopharma. Anthropic is targeting a $900B valuation in a new funding round, signaling continued AI investment frenzy. Japan's Kawasaki Heavy Industries launched a 30% hydrogen engine, part of a $13B hydrogen infrastructure build to escape Strait of Hormuz dependence, bullish for hydrogen plays.