WS #11777

The dominant signal in this window is the European Commission's preliminary finding that Meta's addictive design of Instagram and Facebook breaches the Digital Services Act. This is corroborated by multiple sources (pro-wire, Guardian, EU official release, and multiple Bluesky posts from Reuters), indicating high significance. The EU demands changes to features like infinite scroll and autoplay, with potential fines if Meta fails to comply. Meta has publicly disagreed with the charges. This regulatory action could pressure Meta's ad revenue model and user engagement metrics, creating a bearish overhang for META stock. Separately, PepsiCo reported Q2 revenue that beat estimates but cited high gas prices hurting convenience store sales, leading to a stock slide and a Citigroup downgrade to Neutral. This is a negative signal for PEP and consumer staples broadly. Additionally, Ukrainian drone strikes continue to target Russian oil infrastructure, with reports of fires at refineries and tankers, sustaining upward pressure on oil prices and benefiting energy stocks. The SK Hynix Nasdaq debut is ongoing but no new price data is available in this window. The US-Iran situation remains volatile with renewed strikes, but no new ceasefire-breaking developments were reported in this window beyond what was already known.