WS #8323

The dominant narrative remains the Iran conflict and oil supply disruption, with no de-escalation signals in this window. However, several high-significance developments have emerged. Goldman Sachs raised its S&P 500 target to 8,000, citing AI and earnings growth, a bullish signal for US equities. SK Hynix joined the $1 trillion market cap club amid AI frenzy, reinforcing the AI-driven semiconductor rally. Micron Technology surged 19% to cross $1 trillion market cap, further validating the AI chip demand thesis. The ECB's Financial Stability Review warns of 'sudden and sharp repricing' risks due to the energy supply shock, a bearish macro counterpoint. Additionally, Spanish police raided the ruling Socialist Party headquarters over alleged illegal financing, adding political risk in Europe. The Iran conflict narrative remains stable with no ceasefire progress, keeping oil prices elevated and energy stocks supported. The Goldman target and AI chip milestones are bullish for tech, while ECB warnings and political uncertainty in Spain are bearish for European equities.