WS #12286

The dominant narrative remains a broad tech selloff, with the VanEck Semiconductor ETF briefly entering bear market territory, driven by AI spending concerns and weak guidance from Netflix (NFLX -10%) and IBM (-25%). However, a key counter-signal has emerged: Meta (META) is in talks to lease computing power to Anthropic in a potential $10 billion deal, per NYT, which underscores the scarcity of AI computing power and could create a new revenue stream for Meta. This development is corroborated by multiple sources (NYT, Bluesky posts) and directly contradicts the prevailing bearish AI narrative. Additionally, Chevron is reportedly signing a deal with Iraq to invest in oil fields and studying a pipeline bypassing the Strait of Hormuz, which could alleviate some supply disruption fears and dampen the oil price spike. The US-Iran conflict continues to escalate, with the US sending dozens more refueling planes to Israel ahead of possible escalation (Axios), and oil prices surging (WTI +2.74%, Brent +2.43%). This is weighing on airline stocks and risk assets. A 7.3-magnitude earthquake near the Mexico-Guatemala border triggered a tsunami warning, but initial forecasts suggest limited impact. Apple (AAPL) briefly overtook Nvidia (NVDA) as the world's most valuable company, supported by an HSBC upgrade, highlighting a divergence within the Mag7. The tech selloff is escalating, while the US-Iran conflict remains at high intensity with a potential de-escalation signal emerging via the Chevron pipeline news.