WS #12241

The US-Iran conflict continues to escalate with a fifth consecutive night of US airstrikes on Iran, now targeting civilian infrastructure including bridges and a rail station in southern Iran. Iran retaliated with cruise missile launches from Sirik and explosions reported in Kuwait. The US military intercepted 5 commercial vessels attempting to breach the naval blockade on Iran. This escalation is driving a risk-off tone, with Asian stocks expected to track US slide on chipmaker selloff. The prevailing macro narrative is bearish for risk assets, but energy and defense stocks may benefit. The US-Iran conflict is ESCALATING, with no de-escalation signals detected. In corporate developments, Reuters exclusively reports that PayPal's board sees a $53 billion Stripe-Advent takeover bid as inadequate and is evaluating the bid against a standalone strategy, with talks continuing. This could move PYPL significantly. Additionally, a dark pool alert shows a $271M institutional order in AVGO at $374.45, indicating large institutional positioning. The FDA is investigating Taylor Farms lettuce linked to a cyclosporiasis outbreak at Taco Bell, which has already caused Sweetgreen to lose over a quarter of its market value in four days. The House Budget Committee advanced the SAVE America Act in reconciliation, which could impact election-related policy expectations. White House's Hassett questioned why Jerome Powell remains at the Fed, expressing concern about Powell's motives, adding to uncertainty around Fed leadership. Alcoa shares tumbled after a cyclone cut into alumina output, impacting AA. Netflix posted higher Q2 results but shares dropped due to lukewarm forecast, with analysts noting selling pressure builds as reality sets in. Intuitive Surgical dropped as ACA changes and GLP-1s weigh on growth. Bank rally hits short sellers betting on Australia lending slump. Asia stocks to track US slide on chipmaker selloff, with NVDA and other semis under pressure. Gold fails to hold support at $4000 but BofA suggests buying the dip. Oil prices remain volatile with Brent at $84.95 and WTI at $79.60, as IEA warns global oil demand could decrease for the first time since 2020 due to Middle East disruptions.