WS #11204

The dominant narrative in this window is a sharp tech selloff, particularly in semiconductors, with the Nasdaq 100 falling 1.5% and the VanEck Semiconductor ETF (SMH) dropping over 5%. This is driven by profit-taking after a record Q2 for chip stocks and a report that Meta may be renting out excess AI computing capacity, raising fears of AI processing supply catching up to demand. However, Meta itself gained over 9% on the news, creating a MAG7 carve-out. The selloff is broad, with Micron down 11%, Intel down 9%, and AMD down 7%. The bond market found some solace in Fed Chair Warsh's dovish-leaning comments at the ECB Sintra conference, where he signaled inflation risks have come down and the Fed is committed to price stability, but he offered no forward guidance. The US-Iran ceasefire talks continue in Doha, with technical talks underway, but a ship ran aground in the Strait of Hormuz using a non-Iran-approved route, highlighting ongoing tensions. Oil prices fell sharply (Brent down 2.4% to $71.17) on the de-escalation narrative. Ukrainian drone strikes continue to hit Russian oil refineries, exacerbating a domestic fuel crisis. The FDA approved Casgevy gene therapy for children as young as 2 with sickle cell disease, a positive for Vertex Pharmaceuticals. Anthropic restored Claude Fable 5 after the US lifted an export ban, a positive for AI sentiment. Trump's financial disclosure showed $1.2 billion in crypto-related income, underscoring his pro-crypto stance. The Bending Spoons IPO (AOL owner) surged 39.7% on its first day. Overall, the window is characterized by a tech rotation, mixed macro signals (Warsh dovish but data-dependent), and ongoing geopolitical cross-currents (Iran talks vs. Ukraine strikes).