WS #10678

The dominant signal in this window is a broad-based selloff in US equities, particularly in the Mag7 and AI-related names, with NVDA hitting a 2-month low and AAPL down 5.2%. This is corroborated by a Bloomberg report showing US consumer spending accelerated in May but the PCE price index rose 4.1% YoY, the fastest in over three years, which has dampened rate hike expectations and pushed short-term Treasuries higher. The selloff is broad: Mag7 all red, SPY trimmed by traders, and the Nasdaq 100 turned negative after erasing a 2% gain in 30 minutes. Bitcoin has crashed to a 21-month low near $58,469, with Polymarket trades heavily skewed toward dip scenarios. On the geopolitical front, the Strait of Hormuz situation is easing—ADNOC cut Murban crude price to $101.48 as tensions ease, and Polymarket shows bets on traffic returning to normal by July 15. However, Ukraine continues to strike Russian refineries, and Russia faces a growing fuel crunch. The UK experienced its hottest June day on record (36.4C), causing school closures and transport disruption. In corporate news, the US Supreme Court ruled in favor of Bayer limiting Roundup lawsuits, a positive for the stock. The Trump administration proposed removing brake pedal requirements for autonomous vehicles, a boost for Tesla and Zoox. Darden Restaurants raised its dividend by 8%. The Fed's favored inflation gauge (PCE) came in at 4.1%, above expectations, but short-term Treasuries rallied as traders reduced rate hike bets, suggesting the market sees this as transitory or already priced in. The Venezuela earthquakes are a humanitarian crisis but not directly market-moving for US equities. The overall narrative is one of risk-off driven by sticky inflation and energy price pass-through, with the Mag7 selloff being the most actionable signal.