WS #8967

The dominant theme in this window is the continued escalation of the Middle East conflict, with diverging approaches between Trump and Netanyahu regarding Iran, and a House-passed War Powers Resolution ordering Trump to end the Iran war. This counters the previous narrative of a potential ceasefire, representing an escalation. Separately, Broadcom's (AVGO) $100B AI revenue forecast for 2027 failed to impress Wall Street, with the stock plunging overnight, clouding AI boom bets and dragging semis lower (AMD, MRVL, CRWD also down). On the geopolitical front, a new wildfire in Los Angeles County and the return of flesh-eating screwworm to the U.S. after 60 years add to domestic risks. The ECB's Financial Stability Review highlights elevated vulnerabilities from the geoeconomic shock, and the Bank of England's FPC record notes a substantial negative supply shock from the Middle East conflict. Overall, the Middle East situation is ESCALATING, Broadcom's miss is a negative for semis, and the Iran deal prospects are fading.