WS #10693

The dominant signal in this window is a broad tech selloff led by Apple's strategic pivot to skip high-end M6 chips in favor of AI-focused M7 line, confirming margin pressure and a shift in product strategy. Apple's price hikes across Macs and iPads are explicitly attributed to AI-driven memory shortages, echoing Micron's warnings. Micron's blowout earnings (stock up ~15-16%) provide a powerful bullish counter-signal for semiconductors, with multiple analyst price target raises (Raymond James to $1500, BofA to $1550). However, the broad market remains under pressure: US consumer spending beat (0.7% vs 0.6% forecast) and GDP final revision (2.1% vs 1.6% forecast) suggest a resilient economy, which may reinforce hawkish Fed expectations. Geopolitically, the White House requested $87.6bn in new funding, with $67.1bn for the Iran war, signaling escalation. Saudi Aramco is resuming crude loadings at Ras Tanura, and Goldman Sachs slashed Brent forecasts to $75/bbl average on projected surplus, countering oil supply fears. Venezuela's devastating earthquakes and Braskem's emergency creditor protection filing add idiosyncratic risks. The narrative is one of tech margin compression and component cost inflation, partially offset by strong semiconductor earnings and resilient macro data.