WS #12270

The global tech selloff is escalating sharply, with semiconductor stocks leading declines as AI capex return skepticism deepens. The selloff is widening beyond chips to major tech names, with S&P 500 futures down 0.8% and Nasdaq futures down 1.5% premarket. Netflix's weak Q3 guidance is adding pressure, with NFLX down ~10% premarket, and Intuitive Surgical is falling 11% on insurance change concerns. The selloff is spreading to Asia, with the Nikkei down 4% and KOSPI down over 6%. 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, Iranian bridges severely damaged, and Iran claiming attacks on US bases. Oil prices are elevated, with Strait of Hormuz transits dropping to just 3 vessels on Thursday. The EU proposed doubling the electrification rate by 2040, which could boost clean energy and grid infrastructure plays. On the earnings front, Fifth Third Bancorp trades higher on Comerica acquisition boost, Regions Financial beat, and State Street beat estimates. 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.