WS #10670

The dominant signal in this window is the continued normalization of oil markets following the Strait of Hormuz reopening, with Brent crude falling back to pre-war levels (~$72.68) and WTI below $70. US Energy Secretary Wright confirmed flows near pre-war levels, with 20 million barrels exiting the strait in 24 hours. This is corroborated by Al Jazeera, Bloomberg, and social media commentary noting oil prices back to levels last seen before the Iran war. The de-escalation is a counter-signal to the previous oil supply crisis narrative, dampening bullish energy bets. Separately, Micron's AI-driven surge continues to lift the semiconductor sector, with AMD and NVDA gaining premarket on AI infrastructure optimism. McCormick reported a Q2 beat (EPS $0.80 vs $0.69, revenue $1.94B vs $1.91B) and reaffirmed FY2026 guidance, a positive for consumer staples. On the geopolitical front, India's trade minister stated the US-India deal was done on Feb 6 and teams are working on finer details, signaling progress on trade. Venezuela earthquake death toll rose to 164 with 971 injured, a humanitarian crisis but limited direct US market impact. The AI data center demand theme is escalating, with PJM adding a new power supply warning due to surging AI demand, and AOC introducing a moratorium bill on data center construction—a potential headwind for tech infrastructure plays.