WS #11470

The dominant narrative remains stable: oil market normalization continues with OPEC+ announcing a 188,000 bpd production increase for August, and Strait of Hormuz traffic showing signs of recovery. However, several new developments have emerged that could move markets. Nvidia ($NVDA) is taking a recurring revenue cut from cloud customers' AI chip usage, a new business model that could significantly boost its software-like recurring revenue. Tesla launched robotaxi operations in Miami, expanding its autonomous driving footprint. Apple has raised prices on MacBooks and iPads by up to 20-25% due to soaring memory chip costs from AI data center demand, which could pressure demand but benefit memory makers like Micron ($MU). The US dollar is poised for a rally according to analysts, which could pressure commodities and emerging markets. Ukraine struck an oil terminal near St. Petersburg, escalating the conflict and adding a risk premium to oil. The Khamenei funeral in Iran has paused US-Iran talks, keeping Strait of Hormuz tensions elevated. Michael Dell's net worth fell $34 billion as Dell stock faces headwinds, signaling potential weakness in the PC/server space. The divergence between a strong US economy and a weakening stock market (Nasdaq/S&P 500 down, Mag7 down >10%) is a key macro concern.