WS #8812

The dominant macro narrative is a sharp deterioration in risk assets driven by a confluence of geopolitical and monetary policy headwinds. Bitcoin has plunged below $70,000, with Strategy (MSTR) selling 32 BTC for the first time since 2022, and CoinDesk reports the February $60,000 low is back in play. Cleveland Fed President Hammack stated monetary policy may not be sufficiently restrictive to bring inflation down, signaling potential rate hikes. This hawkish Fed stance counters the prevailing risk-on narrative. Separately, the US struck Iranian radar and drone C2 facilities in Goruk and Qeshm Island, while Iran's Fars News Agency says message exchange between Iran and the US to reach an MOU has stopped. The prospects for a rapid reopening of the Strait of Hormuz look bleak, keeping oil elevated above $90. On the positive side, Nvidia CEO Jensen Huang endorsed Marvell (MRVL) as 'the next trillion-dollar company,' sending the stock up 20%, and CoreWeave (CRWV) continues to climb on AI spending signals. The macro narrative is shifting toward stagflation fears: oil supply disruption risk + hawkish Fed + crypto selloff. The US strikes on Iran and the breakdown of Iran-US talks are the most actionable new developments, escalating the geopolitical risk premium.