WS #12269

The global tech selloff is escalating, with semiconductor stocks leading declines as AI capex return skepticism deepens. IBM's warning is described as a 'hammer' slamming down on tech's AI outsiders, and Netflix's weak Q3 guidance is adding pressure, with NFLX down ~9% premarket. The selloff is spreading to crypto, with Bitcoin testing $63K as long-term holders sell at a loss. However, there are counter-signals: HSBC upgraded Apple to Buy, citing a strong cycle ahead, and Apple hit an all-time high. The US-Iran conflict is intensifying, with a sixth consecutive night of US strikes on Iran, Kuwait blaming Iran for an attack on a water desalination plant, and Iran asking Houthis to prepare to disrupt Red Sea oil routes. Oil prices are up ~12% this week on supply disruption fears. The EU proposed doubling the electrification rate by 2040, which could boost clean energy and grid infrastructure plays. On the earnings front, Travelers Companies reported a massive beat (EPS $10.04 vs $5.38 est), and Truist Financial also beat. The UK political landscape shifted with Andy Burnham becoming Labour leader, paving the way to become PM on Monday. The dominant theme is an ESCALATING risk-off move in tech, but with pockets of strength in energy, financials, and select AI beneficiaries like Apple.