WS #12231

The dominant market narrative is a broad tech selloff led by semiconductor stocks, with the Nasdaq falling 1.47% and the S&P 500 down 0.51%. The selloff is driven by ongoing concerns over AI stock overvaluation and a global chip glut, with notable declines in NVDA (-2.40%), AMD, ARM, and Micron (-5.65%). This is partially offset by Apple's (+1.76%) rise to all-time highs on China regulatory news, acting as a MAG7 carve-out. The US-Iran conflict continues to escalate with new airstrikes hitting a bridge in southern Iran and a supertanker in the Persian Gulf, keeping oil prices elevated and geopolitical risk high. However, no ceasefire or de-escalation signals emerged in this window. In earnings, Netflix reported mixed Q2 results (EPS beat, revenue miss) with weaker guidance, sending the stock down ~8% in after-hours trading. Intuitive Surgical beat estimates but fell on China challenges. Valero Energy authorized a $5B buyback, a positive signal for the energy sector. Morgan Stanley launched crypto trading on E*Trade, a bullish signal for crypto adoption. Coca-Cola's fairlife subsidiary suffered a ransomware attack halting US production, a negative for KO. The equal-weight S&P 500 outperformed, suggesting broadening market participation away from mega-cap tech.